Canada is among the world’s most welcoming and beautiful places. It’s got something for everyone, from bustling city life to areas to truly get away from it all and off the grid. It’s not surprising that it’s also one of the most popular choices for entrepreneurs of all sorts. It’s also one of the most popular choices for investors worldwide. So, it’s not surprising that increasingly those looking to start a new business consider making Canada their home. One of the ways that can be accomplished is through the Owner Operator LMIA work permit for entrepreneurs. This permit is unlike other Canadian work permits. It has its own set of rules and requirements that an interested party must follow. So, what exactly is an owner operator LMIA work permit,and what does it take to get one?
What is an Owner Operator LMIA Work Permit for Entrepreneurs?
As the title implies, this work permit is designed for those interested in being entrepreneurs. It’s designed for those who wish to begin a new business or purchase an existing business in Canada.
For this permit, the business must already be operating in full before sending in the paperwork for the permit. It’s a primary choice for those looking to buy an existing business or franchise.
Over the last two years, the pandemic has wreaked havoc on businesses worldwide. Canada is no exception. Therefore, there is an increase in the number of companies that have become available to purchase. This opportunity should not be overlooked as these applications may indeed have a higher priority as they may assist in the rebuilding and restarting of the Canadian economy.
It’s important to understand that most programs designed to offer permanent residence are based on a point system. If permanent residency is your goal, then the owner operator LMIA work permit will add significantly to your overall point score.
No Minimum Investment or Location Requirements
Most programs for entrepreneurs are designed to draw businesses to specific locations within Canada. They often require that you run that business in a set province for at least a year, if not longer. Specific regions often run these other programs to help draw businesses to their area. That is not the case with the Owner Operator LMIA Work permit.
With the owner operator LMIA work permit for entrepreneurs, you can operate your business from any location within Canada that you choose.
Other entrepreneur permit programs have minimum investment requirements to be met to be eligible. These investments can range considerably. Some only require that you invest around 100,000 CAD, while others can rage all the way up to 600,000 CAD. This can be challenging to overcome for some entrepreneurs. The owner operator, LMIA work permit for entrepreneurs,opens up the ability to invest without the minimum requirements.
No Minimum Net Worth
One of the other primary requirements for most work permits for entrepreneurs is a minimum net worth. That means you must prove that you have a specific net worth, which can range, much like the minimum investment requirements, anywhere from 100,000CAD up to a much higher 900,000 CAD.
Unlike most other work permit options available, the owner operator LMIA work permit doesn’t have this requirement. However, it will ask that you show your financial ability to do business in Canada for the first year.
Even though there are no minimum requirements for investment, it’s essential to understand that you still must incur the cost of purchasing a business. In Canada, it’s challenging to acquire a business for less than 150,000 CAD. On top of the purchasing price, you’ll also need to have the funds to keep that business going for at least a year available.
Another caveat of this no investment portion is that you need to have enough money to pay your own salary and the salary of a second team member for at least one year. This means you cannot invest everything you have just into buying the business. You must have enough in the bank to keep the business going for at least a year.
The general recommendation is to have a net worth of at least 400,000 CAD before undertaking the owner operator LMIA work permit process. Though there may be exceptions.
No Language Requirements
Another advantage is that the owner operator LMIA work permit for entrepreneurs offers no language requirement. Other programs may require you to prove your ability to communicate fluently in English and French. However, there is no general language requirement for this program that needs to be met.
However, keep in mind that when you are applying for permanent residency, things like language skills are part of the point system that will impact your overall score. So if you’re not currently fluent in both languages, it might be a good time to consider taking some classes.
Other Requirements for the Owner Operator LMIA Work Permit
We’ve talked about what you don’t have to do to be eligible for an owner operator LMIA work permit for entrepreneurs. Now, let’s take a look at some of the requirements.
You must either start a business or buy an existing Canadian business.
Business ownership is defined by owning at least 51% of the business you have started or bought, controlling the company.
What Type of Businesses Work for the Owner Operator LMIA Work Permit?
That business can’t be just anything. There aren’t exact limits on what does and doesn’t constitute a business, but just buying a mini-mart, for example, isn’t what they are looking for. Instead, aim for something that adds significant value to the Canadian economy in one way or another.
Experience is Necessary
You also must prove that you have experience within the industry of your business. This can’t be a first for you. The years of experience you have will also add to that point system when you apply for permanent residency.
Be prepared to hire at least one, preferably two, Canadians during your first year of business. This is part of why they are eager for new companies and owners;they want to improve the job market for Canadian citizens. You may also want to hire foreign workers for your Canadian business. In this case, you need to meet LMIA requirements for employers (Critères de l’EIMT pour les employers), which means you must prove that you weren’t able to find the necessary workforce in Canada and you need to hire foreigners.
Your Business Must be Off the Ground
Even if you bring a new business to Canada, it can’t be a brand-new business. There isn’t specific on how far along the requirement is. Still, you need to have things like your location or an office, an account for your business with a financial institution, and things like potential customers or clients lined up or contacted already.
This is only a brief overview of the owner operator LMIA work permit for entrepreneurs. Overall, it gives you a good starting point if you’re considering immigrating to Canada through owning a business. This process can be tricky, and it may help to work with someone that knows what they are doing when it comes to business immigration. Business entrepreneurship is a highly successful way of immigrating to Canada and is becoming one of the top choices for those looking to get involved in the growing Canadian market.
Photo by Philippe Beliveau on Unsplash
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