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Migration to Canada through company registration

These days, there are many advertisements regarding migration to Canada through company registration. Unfortunately, it must be clarified from the beginning that such a program does not exist for immigration to Canada, and registering a company in Canada alone does not grant permanent residency in Canada. As a non-Canadian, you can register a company in certain provinces of Canada (only in certain provinces) and engage in economic activities, but this does not necessarily provide you with a migration or residency program.

Perhaps what is meant by these advertisements (migration through company registration in Canada) is a method known as the Intra-Company Transfer (ICT) program, which we will briefly explain in this article. However, it should be emphasized again that this program is completely different from obtaining permanent residency through company registration offered by some European countries. Company registration is only part of the process in this program, provided by the Immigration Department of Canada, and it does not directly lead to permanent residency in Canada. Instead, it grants a temporary work visa, although there is the possibility of transitioning to other residency programs and ultimately obtaining permanent residency in Canada after entering Canada and gaining work experience.

This program allows international companies to temporarily transfer their qualified employees to Canada. The purpose of this transfer can be to improve management efficiency, expand Canadian exports, and enhance competitiveness in international markets outside of Canada.

Applicants under this program will receive a work permit, but they will be exempt from obtaining a Labour Market Impact Assessment (LMIA) from Employment and Social Development Canada, as their transfer of expertise to Canadian positions will bring significant economic benefits to Canada.

Applicant Requirements:

  1. Currently working in a multinational company and seeking entry into the workplace of a parent, subsidiary, branch, or affiliate of that company in Canada.
  2. The transfer must be made to a company that has a genuine and legal relationship with the company where the applicant is currently employed.
  3. The position to be held in the destination company must be in an executive, senior management, or specialized role.
  4. Prior to submitting the application, the applicant must have at least one year of continuous full-time employment (with wages or under a direct contract) in a similar position in the company they intend to transfer outside of Canada, within the past three years.
  5. The purpose of coming to Canada is only for a temporary period.
  6. All immigration department requirements for obtaining a temporary residence must be met.
  7. Generally, the company must have a physical presence for conducting business in Canada, especially in the case of specialized transfers. However, in specific cases related to senior executives or managers, it may be acceptable for the new startup address to not be determined yet. For example, the company may use its lawyer’s address until the executive can purchase or lease a property.
  8. The company must provide a realistic plan for the employees in the new implementation program.
  9. The company must have the necessary financial capacity to start operations in Canada and compensate employees for damages.
  10. When transferring managers or senior executives:
  • The company must demonstrate that it will be large enough to support the performance of the executive or senior managers.
  1. When transferring specialized workers:
  • The company is expected to have active business operations.
  • The company must ensure that operational activities are conducted by a team in Canada.

Work Permit Duration:

The initial work permit under this program will be for one year. For renewal, evidence must be provided that Canadian and foreign companies are still eligible. The new office in Canada has been actively providing goods or services continuously in the past year. The new office has personnel.

Eligibility Criteria for Both Senior Management and Specialists:

In this company transfer program, it is not mandatory for the applicant to have worked for the same company for one year. They can have worked for one of the company’s affiliated entities within the past three years. However, they must demonstrate that the benefits, obligations, assets, and liabilities of the subsidiary company are tied to the parent company and that they continue to engage in the same type of business.

For example, a software design company from the United States wants to transfer an employee to its branch in Canada. The American company has recently acquired a smaller software design company in the United States and wishes to transfer an employee from the acquired company to its branch in Canada. The applicant has been continuously employed by the smaller company for more than 10 years in a highly specialized technical position similar to the one they will be performing in Canada. Since the subsidiary company has assumed the limited liabilities and obligations of the smaller software company and continues to engage in a similar business, the applicant can be considered for an intra-company transfer.

Intra-company transferees are not necessarily required to establish an office in Canada. However, they are expected to create a genuine job position at their Canadian branch. There must be a clear employer-employee relationship with the Canadian company, and the Canadian company must oversee the day-to-day activities of the foreign employee, especially for employees working at customer sites or subsidiary locations rather than the parent company’s branch.

If the applicant does not intend to actively work at a branch in Canada, immigration officers will need to assess whether they should be classified as a business visitor or not, which would entail a different process.

The following documentation is required:

– Confirmation that the foreign national is currently employed by a multinational company outside Canada and is seeking employment at one of its branches, subsidiaries, or affiliates in Canada.
– Confirmation that the foreign national has been continuously employed (full-time) for a minimum of one year within the past three years by the foreign company in a similar position to the one being transferred to in Canada. The one-year period is calculated immediately prior to the initial application date.
– A clear description of the applicant’s job position as an executive, senior management, or specialist (e.g., job title, position in the organization, job description).
– For “specialists,” evidence must be provided to demonstrate their specialized knowledge and that the current job position in Canada requires such knowledge and expertise.
– The desired duration of the temporary stay in Canada must be specified.
– Evidence of the employment relationship between the Canadian and foreign companies that intend to facilitate the transfer (the officer may request tangible evidence to establish the relationship between the Canadian and foreign companies seeking the transfer).
– Those who have obtained a work permit through this program can renew their work permit if they continue to work at the branch and the previous conditions are maintained.
– The maximum duration for renewal under this type of work permit is 7 years for executives and senior managers and 5 years for specialists.