Do you know that one of the easiest ways to become a permanent resident in Canada is by starting or investing in a business in Canada? Canada, with its stunning natural beauty, vibrant culture, and welcoming immigration policies, has long been a magnet for entrepreneurs and individuals seeking a fresh start. While relocating to Canada can be a costly endeavour, there’s a lesser-known path that can make it possible to move to Canada without breaking the bank, and that is by starting or investing in a business. In this article, we’ll explore the step-by-step process of how to make this dream a reality.
How to Relocate to Canada for Free by Starting a Business
You can become a permanent resident in Canada by starting or investing in a business in Canada through four methods:
1. Start a business in Canada, operate it for at least 12 months and employ between 2 to 3 Canadian employees.
2. Buy an existing business in Canada and ensure you own at least 51% share for 12 months.
3. Buy at least 33% or more shares in an existing company.
4. Buy a franchise in Canada and operate for at least 12 months with at least 2 employees.
Now, all these methods fall under the Business Immigration Program and this is one of the easiest ways to immigrate to Canada and become a permanent resident. Before we proceed, it is important to understand what the Business Immigration Program is all about and how you can take advantage of it. This will be discussed in detail below.
What is the Business Immigration Program?
Business Immigration Program in Canada is a broad category of immigration which is aimed at inviting individuals of high quality who hold the potential to contribute to the economic development of the nation. Some of these streams include the Start-up Visa (SUV) program that focuses on innovative entrepreneurs and start-ups, the Provincial Nominee Programs (PNPs) which provide programs for business people that suit the needs of a particular province and enable provinces to nominate candidates that meet certain business criteria. Another important stream is the Self-Employed Program, aimed at targeting people with remarkable skills and experience in certain sectors. Also, the program provides a transition from work permit to permanent residency, including LMIA for business owners.
These routes allow applicants intending to carry on business in Canada, gain employment, generate economic benefits and also pursue permanent residence in Canada. The Business Immigration Program allows business persons, investors, entrepreneurs, and other high-caliber individuals to start or invest in business in Canada. With new business ventures or acquisitions of existing ones among others, these individuals also contribute towards the development of economic growth, employment, and introduction of new products into the market. In return, they and their families get the status of permanent residents of Canada and can have better lives together with their families contributing to the further prosperity of the country. This program is, therefore, a very useful and beneficial program not only for the economy of Canada but also for the people who take part in it.
How to Obtain Permanent Residency in Canada through Business Ownership
1. Start or Invest in a Business
As mentioned earlier, there are four options, in which foreign investors can invest in a business situated in Canada. The first way is for them to start a business from its very inception I’m the country. Alternatively, they can also buy a business that already has set up facilities and clients. Another option is to purchase the issued shares and acquire at least a 33% stake in an existing business to have proportional control and an opportunity for growth. Finally, they can buy a franchise as they will be able to establish a good business model from an existing business. It is worthy of note that, you don’t have to be a permanent resident of Canada or a Canadian citizen to invest in a business in Canada or even to start your own business in Canada. Nevertheless, having a valid work permit is compulsory for working in your business. Hence, you can employ a Canadian manager to manage your business until you secure the proper permits.
Also, the cost of investment, which refers to the amount required to purchase or start a business in Canada, is about $150,000 to $350,000. However, it should be noted that this sum can be adjusted at one’s discretion based on individual and financial objectives. For instance, a retail business with annual sales of $200,000 and net profits of $40,000 may cost between $120,000 to $200,000, which is 3-5 times the net revenue. Furthermore, key sectors that attract foreign investment in Canada include technology and software, Healthcare and Biotechnology, Renewable energy and sustainability, E-commerce and digital marketing, and Tourism and hospitality. It’s essential to note that other costs will arise when investing in a Canadian business such as legal and professional fees, business registration and licensing, as well as marketing and advertising expenditure and the salaries and benefits of employees where relevant.
The table below shows the advantages and disadvantages of each option for business investment in Canada.
| Cost | Risk/, Profit Potential | Duration of operation before eligibility for PR | Basic Requirements for PR | Difficulty | |
| Begin a new business | Minimum of $150,000 | High | Minimum of 12 months | To qualify, your business in Canada must meet the following requirements:– Be an actively operating company– Have a physical commercial office or workspace– Employ at least 2-3 Canadian citizens or permanent residents– Have been in continuous operation for a minimum of 12 months | Difficult |
| Buy a business | Minimum of $250,000 | Average | None | To qualify, you must meet the following requirements:– Own at least 51% of the company’s shares– Ensure the company is actively operating in Canada– Employ a minimum of 2-3 Canadian citizens or permanent residents | Moderate |
| Buy shares in a business | Between $200,000, to $500,000 | Average | None | To qualify, your business in Canada must meet the following requirements:– Be an actively operating company– Have a physical commercial office or workspace– Employ at least 2-3 Canadian citizens or permanent residents | Simple |
| Buy a franchise | Minimum of $150,000 | Average | 12 months in a new location | To qualify, your business in Canada must meet the following requirements:– Be an actively operating company– Have a physical commercial office or workspace– Employ at least 2-3 Canadian citizens or permanent residents– Have been in continuous operation for a minimum of 12 months | Simple |
2. Start Applying for Work Permits
After you have set up or acquired a business in Canada, you can apply for a work permit as a foreign owner. Some of the available options depend on some specific preconditions and your immigration objectives. Each of these options will be briefly discussed below:
- LMIA-based work permits allow a foreign worker to come and work in Canada under circumstances that the employer has qualified for a Labour Market Impact Assessment (LMIA). While owner-operator LMIAs are currently not exempt from advertising rules, business owners can apply for the LMIA on the standard program to work in Canada as managers of their companies.
- The Intra-company transferee work permit is suitable for an entrepreneur who has set up a branch office of their multinational company in the home country and the candidate has been transferred to head a new branch in Canada. This option can let them bring their experience and managerial skills to the Canadian market and open new branches.
- Foreign investors falling under free trade agreements (FTAs) can obtain a work permit provided one is a citizen of one of the countries eligible for such permits which include Mexico, Chile, Colombia, USA, European Union, South Korea, Panama, Peru, Vietnam, Australia, New Zealand, Japan and Singapore. This option is best for those who are interested in investing in a business in Canada and also in charge of its management.
- C11 entrepreneur work permits are intended for foreign-born individuals who plan to start a business that will have a significant positive impact on Canada. This entails businesses that will employ more people, thus increasing the employment rate, and also expanding or bringing about development in the economy or businesses that bring change in their respective fields.
- The start-up visa work permits exist for visitors planning to set up new and high-growth ventures in Canada. This program is ideal for business innovators who have a desire to commence a business firm with a vision of rapid expansion and employment generation.
- The Quebec Immigrant Investor Program involves a substantial commitment to a business situated in Quebec and serves as a ticket to permanent residency.
3. Travel to Canada and Operate the Business
If you are planning to start a business in Canada as a foreigner, before applying for permanent residency, you need to run your business for 12 months at least. This requirement enables one to prove that he or she has experience running a business in Canada and this is very essential when applying for permanent residence. Throughout these 12 months, your business must be actively operating and must possess enough capital to meet its day-to-day expenses, including your remuneration. However, it should be stressed that the business does not need to make a certain amount of revenue but what is important is that it is sustainable and active.
In order to support your claim of participation in this business, you will have to prove that you are involved in the running of the business, making major decisions, and helping in the growth of this business venture. The duration of operation needed might be different based on your business type as an established or start-up business and the kind of work permit you have. For example, a start-up visa holder will require more time than the usual time taken by an individual who has bought an existing business.
4. Apply for PR
If you are a business person in Canada, you may apply for permanent residency by entering the Express Entry (EE) programme under the Federal Skilled Worker programme. In order to participate, the applicant has to be working in Canada and engaged in the business for one year or more. Having an active business in Canada will be an added advantage and you may get an extra 200 points for arranged employment through the Express Entry system if it meets some conditions. Among other requirements, to qualify for the Express Entry program, the following requirements must be met:
- There must be actual direct selling of products or services with customers, either domestic or international, in Canada.
- All lawful licenses and permits for the business’ lawful operation across Canada must be obtained.
- A known business location in Canada
- A higher rank than a middle manager, which could be an executive or senior manager, is in charge of general business activities and assigning the executive management of day-to-day tasks to middle managers.
- Some progress towards implementing your business plan
Other than the above business requirements, be sure to also meet the requirements for obtaining a Canadian permanent resident through Express Entry which may include:
- Language skills assessment score equivalent to at least CLB 7.
- High school diploma or other post-secondary education credentials
- No prior criminal activity.
- No regular severe medical conditions
If these requirements have been met, you may proceed to becoming a permanent resident of Canada and starting a prosperous business in the country.
Conclusion
Canada offers a wealth of opportunities for foreign entrepreneurs and business owners looking to establish or expand their operations. By navigating the various work permit options and meeting the requirements for permanent residence, business owners can successfully transition to life in Canada and contribute to the country’s thriving economy. With careful planning, dedication, and hard work, entrepreneurs can turn their business vision into a reality and build a prosperous future in Canada. If you have been wondering how you can relocate to Canada for Free by starting a business, then we hope this article has been of tremendous help to you.