Owner-Operator Work Permit

It’s a program allowing foreign nationals to operate businesses in Canada. Requirements include controlling interest, job creation, skills transfer, and a viable business plan. Successful temporary work visa holders can transition to permanent residence under a provincial program or as a federal skilled worker under Express Entry.

LMIA Owner/Operator Qualifications

• Controlling Interest: Be a sole proprietor or a majority shareholder (50.01% plus) in the business.

• Job Creation/Retention: Demonstrate that temporary entry will create or retain employment opportunities for Canadians and permanent residents or involve skills transfer.

• Business Plan: Have a viable or solid business plan.

• No Minimum Net Worth: No minimum net worth requirement; individuals can purchase an existing business or open a new one.

• Processing Time: Approximately 5-8 months, including the work permit application, after submitting a complete application.

Transition to Permanent Residence: After a period of less than one year, successful temporary work visa holders can transition to permanent residence under a provincial program or as a federal skilled worker under Express Entry.

LMIA Owner-Operator Definition: An employer must be an entity (person, business, corporation, or organization) making an offer of employment to a foreign national to work in Canada. To qualify as an owner-operator, the foreign employee-investor should establish controlling interest and active involvement in the business operation.

Genuine Transaction Requirement: The transaction must be genuine, and the offer must come from a foreign employee-investor actively engaged in the management of the business. Ownership of shares alone does not guarantee qualification, and the sale/purchase of shares requires immigration approvals.

What Constitutes an Employer: In cases where a self-employed individual intends to establish or purchase a business and be involved in day-to-day operations, the business plan and share purchase contract must establish an employer/employee relationship with an offer of employment. In the absence of a job offer, the case officer assesses the foreign worker’s business plan or share purchase contract’s strength, considering factors such as job creation, retention, or skills transfer.

In the context of existing businesses, when a foreign employee-investor acquires or plans to acquire 100% or a substantial interest in a Canadian business, certain considerations come into play for the assessment of a Labor Market Impact Assessment (LMIA) work permit.

Here are the key points

Complete Purchases

• If a 100% purchase has been completed, and documentary evidence is provided, the burden of proof is reduced.

• The new owner applies for an LMIA to support an owner-operator management-based work visa.

• Requirements for job creation, retention, and knowledge transfer to Canadians through a transition plan still apply.

Pending Complete Purchases

• Authorities assess the genuineness of the anticipatory project for pending transactions.

• Factors include the advanced status of the transaction, soundness of the business plan, and the intent to hire or retain Canadian workers.

• The existing or incoming owner applies for an LMIA.

Partial Purchases

• Similar considerations for pending transactions, including the percentage of business being transferred.

• Evaluation of the foreign national as a new management employee, with a focus on the prognosis of continuing employment.

• Existing owner hires the foreign national and applies for an LMIA work permit.

• For new businesses, the following considerations apply under the Owner-Operator guidelines.

• Preparation efforts for opening the business.

• Presence of a viable business plan.

• Hiring intentions for Canadians or permanent residents.

• Active engagement of the foreign employee-investor as the sole owner, carrying out anticipatory work for the business.

Labour Market Impact Assessment (LMIA)

• A regulatory tool to determine if a Canadian exists to perform a specific job.

• Positive LMIA allows the employer to bring in a foreign worker without advertising the position.

• Focus on genuineness of the job offer, job creation or retention, and skills transfer.

• Employer must demonstrate controlling interest in the business.

• Effective communication skills and language proficiency are essential.

Process

• Create a viable business plan.

• LMIA application.

• If positive, proceed to work permit application.

• Processing time: about 5-8 months, including work permit application.

Permanent Residence

• LMIA work permit holders can later apply for permanent residence.

• Options include the Federal Skilled Worker Program (FSWP) under Express Entry or a suitable provincial immigration stream.

• FSWP provides additional CRS points (50-200) for the job offer, facilitating the Permanent Residence application.

FAQs

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