Owner Operator Program in Canada
However, one has to know that this program combines regulations concerning immigration for investment purposes with the ones available for foreigners who want to relocate here for work purposes, and that the program has sufferent some important changes, which are presented below.
|Who can apply for the Owner Operator Program in Canada?|| |
Foreign investors who are able to purchase at least 50.1% of the shares of a Canadian based company or who can launch a new business
Permanent residency (yes/no)
National applicability (yes/no)
Yes, the Owner Operator Program in Canada is applicable at a national level.
|Company formation requirements|| |
- the investor must own at least 50.1% of the shares of a company;
- the company must have a positive impact on Canadian citizens/residents;
- Canadian citizens/residents have priority in filling job openings.
|Main characteristics of the Owner Operator Program in Canada|| |
- the program is designed for business purposes and it is an immigration pathway that can grant permanent residency to those who are selected;
- investors can relocate here with their families;
- the investors can become employees of their company in top management positions, in certain conditions
|LMIA application requirements|| |
LMIA procedures can be completed only after concluding recruitment procedures for the Canadian citizens/residents.
|Prioritization rules (yes/no)|| |
|Who must be hired in the companies of owner operators in Canada?|| |
Canadian citizens or residents have priority, under the latest procedures applicable to this program.
|Recruitment obligations|| |
The owner of the company is obligated to perform recruitment procedures (advertising, job announcements, interviews, recruitment through recruitment agencies).
|When can the owner operator hire himself/herself in the company?||Only if there aren't any Canadian citizens/residents who can fill the respective job openings.|
|Category of foreigners favored by the LMIA system|| |
Highly skilled individuals, with exceptional abilities and experience in fields in which Canada does not have qualified workforce
|Other business immigration programs with the LMIA|| |
The Global Talent Stream
|Non-LMIA programs for foreign businessmen|| |
The Self-Employed Work Permit or the Intra-Company Transfer
|Company formation services offered by our team|| |
- registering a new legal entity;
- assisting in the process of purchasing a company available for sale;
- assisting in expanding a foreign company on the local market;
- opening a bank account,
- obtaining licenses and permits etc.
|Immigration services for foreign investors|| |
- legal assistance in applying for a suitable visa type;
- preparing the necessary paperwork;
- helping foreigners relocate with their family members;
- providing up-to-date information on the immigration law;
- legal assistance for visa rejection procedures etc.
This is given by the fact that the Owner Operator program in Canada requires the applicants to either purchase a company (or purchase the majority of voting rights in a company) that is registered in this country or to incorporate a new legal entity.
At the same time, another particularity of the program is that the founder of the company or the shareholder will act as an employee of the company.
Our consultants in company registration in Canada can present the steps you should follow in this case, but we also invite you to read the information below, which offers a short presentation regarding this subject.
New regulations concerning the Owner Operator in Canada
Starting with 1st of April 2021, the Owner Operator program went through few significant changes related to the LMIA application.
Some of the immigration procedures that would ease the access of foreigners on the local market have been abolished, and this made the program less accessible.
Under the new rules, the Owner Operator program requires that a job position in a company that is owned by a foreign entrepreneur (by purchasing or by owning at least 50.1% of the company’s shares) should be first addressed to Canadian citizens or Canadian permanent residents.
Before 1st of April 2021, there weren’t any rules regarding the prioritization of Canadian residents, which made the Owner Operator LMIA process an easier immigration route for foreigners.
Because the Department of Employment and Social Development of Canada removed an important provision that was applied for the Owner Operator LMIA, this will have a negative impact on LMIA applications.
The Department removed the policy through which the Owner Operator LMIA job position was not required to be advertised on the Canadian market (it also didn’t impose any recruitment procedures in Canada).
The purpose of the program is that a foreign investor can purchase a company and then hire himself/herself in a qualifying job position in his or her company (CEO, manager, etc.) by conducting LMIA procedures.
Successful applications lead to the issuance of a work permit and then to permanent residency, which is the most important matter for those who want to become permanent residents here through this immigration pathway.
Under the new policies, the investor purchasing the company is now required to first advertise the same job position (CEO, manager) to persons who are Canadian citizens or permanent residents.
Efforts of conducting recruitment procedures have to be shown (posting the job advertisement, addressing to a recruitment company, organizing interviews).
Only if at the end of the recruitment process, there weren’t any valid applications or suitable applicants, the owner operator is allowed to apply for the LMIA, which will lead to the issuance of the work permit and permanent residency.
Given that the Canadian employment market is a highly skilled one, the possibility of not finding suitable candidates is very low, and this is why the LMIA procedure has become more complicated for owner operators.
Although the new regulations of the program limit the access of foreigners through the LMIA pathway, it must be noted that it can still be accessed by foreigners who have a remarkable experience in their field.
Our team of consultants in company registration in Canada can assist you with more details on the regulations of the new Owner Operator LMIA.
What are the main characteristics of the Owner Operator in Canada?
Through the Owner Operator program in Canada, one can receive the permanent residency, while developing a business activity here.
The program is applied at a national level, and all the Canadian provinces require the accomplishment of the same steps, the sole exception from this rule being in Quebec, where additional regulations have to be met.
After this is done, he or she will begin the process for Labor Market Impact Assessment (LMIA), though which he or she will be able to obtain a work permit and a residence permit.
If this is something of interest, then the investor will start the LMIA process, through which he or she will request the right for his or her company to hire foreign workforce. In this particular case, the foreign employee will be represented by the company’s owner.
What does the Canadian LMIA form contain?
The LMIA form is created for the Temporary Foreign Worker program and special procedures have to be completed by the Canadian employers. The form contains the following sections:
- Section 1 – information on the company’s trading name, registered address, company type and others;
- Section 2 – contact information of the employer, such as name, address, phone number, etc.;
- Section 3 – third-party information (here, the authorized representative of the employer can also provide his or her personal information);
- Section 4 – Labor Market Impact, a section where the employer has to provide information on whether the respective employment contract is signed for a job shortage, for the creation of additional jobs, etc.;
- Section 5 – details on the job opening and duration of the employment contract.
Are there any alternatives for permanent residency in Canada?
Yes. Foreign businessmen can still obtain permanent residency through other immigration pathways. There is the possibility to apply for the LMIA through the Global Talent Stream, which is addressed to highly skilled persons.
Other 2 common programs for businessmen which do not apply the LMIA procedures are: 1) the Self-Employed Work Permit and 2) Intra-company Transfer Work Permit.
For the self-employed path, the foreigner has to open a company in Canada that will have a positive impact on the social, cultural or economic life.
The owner of the company has to show the ways in which the respective business can create opportunities for local citizens/residents.
There are other immigration pathways available for foreign investors; you can rely on our consultants, who can help you open a company in Canada and can represent you in the immigration procedures as well (LMIA assessment, obtaining the work permit, the residence card, etc.).
For more information regarding this subject, we invite you to contact our team of consultants in company formation in Canada, who can advise you on all the requirements that have to be met.