Temporary Residence > Intra-Company Transfer

Intra-Company Transfer

Foreign businesses can bring key workers to the Canadian parent, subsidiary, branch or affiliate company via Intra-Company Transfer program. Canada has some international economic and trade agreements with other countries and unions, such as United States of America, Mexico, Chile, Peru, Colombia, Peru, Korea, European Union. Under the International Mobility Program, these agreements and the General Agreement on Trade in Services (GATS) have provisions that facilitate temporary entry to four categories of business persons: business visitors, professionals, intra-company transferees, and traders and investors.

Intra-Company Transferees

Foreign businesses can bring key workers to the Canadian parent, subsidiary, branch or affiliate company via Intra-Company Transfer program.

An international company can expand the business to Canada and transfer its employee(s) to Canada to manage a Canadian parent, subsidiary, branch or affiliate.  For example, the manufacture of leather furniture in Paris wants to open the store and sell the furniture under its brand in Toronto. Some of the Paris company’s key employees, i.e., senior managers or executives, may be needed in Canada to establish the Canadian parent, subsidiary, branch or affiliate, improve management, or enhance the competitiveness of such Canadian company. The “intra-company category” permits such an international company to transfer key employees to Canada temporarily, up to seven years.

To work in Canada, an employee (i.e., intra-company transferee) requires a work permit. Under the Intra-Company Transfer category, a transferee does not need a confirmation letter (i.e., positive Labour Market Impact Assessment) because such employees provide significant economic benefit to Canada through the transfer of their expertise to the Canadian business. The initial work permit is valid one year. After one year of the work, if the Canadian company further requires that employee,  the extension is optional for up to maximum seven years cumulatively.

How to transfer key employees?

A foreign business can transfer key employees to the Canadian parent, subsidiary, branch or affiliate company.

To transfer an employee from an international company to the Canadian branch the requirements are the following:

– The international company’s performance, and

– The employee’s work experience and position in the international company, and

– The type of relationship between the international company and its Canadian parent, subsidiary, branch or affiliate subsidiary.

Requirements for a transferee

The employee that a foreign business wishes to transfer to Canada must currently work at that international company for at least one year full-time. The position in Canada must be similar to that worker’s position in the foreign company and must be in an executive, senior managerial, or specialised knowledge capacity. For example, a Vice President of Production organises, directs, or controls the production activities of a business. A business owner may well be responsible for the policies and directions of that business. An employee with “specialised knowledge” must have advanced knowledge in the job and proprietary knowledge about an international business’s service or product.

Requirements for the Canadian parent, subsidiary, branch or affiliate

Firstly, a Canadian company must be a parent, subsidiary, branch or affiliate company with foreign business. For example, if the Canadian company is a subsidiary, the international company either owns 50% of it or, possibly, less than 50% but in that case controls the Canadian subsidiary. The Canadian affiliate means that it is and the international company are both owned by another company or person or group of the latter. The Canadian branch is an operating division or office of the same international company housed in a different location. The Canadian parent company usually owns a foreign business.

In most cases, the Canadian company should have operated for 18 – 24 months. However, a start-up company is also a possibility. The documents though would vary to support that the Canadian company was actively doing business in the preceding months or that there are a viable business and financial ability to move forward with the start-up company.

Requirements for a foreign business

An international company must be actively doing business, i.e., provide good or services for the commercial (or charitable) purpose. That company’s activity and performance can be usually verified through annual reports, profit and loss statements, partnership agreements, license to do business, business tax returns, etc. depending on the specific country’s requirements.

Free Assessment

We can help with a prior assessment of whether your business is eligible to transfer key employees to work in Canada. Please contact us at +1(647) 695-5256, Skype (LeromImmigration), or send us your query to info@leromlaw.com

Intra-Company Transferee Package

– Consultation

– Forms – completion

– Verification of employment letter – drafting

– An offer of employment – drafting

– Supporting documents – guidance and review

– Business plan – preparation (if a start-up)

– Business registration in Canada (if a start-up)

– Submission letter – preparation

– Employer Portal – registration & submission of an offer of employment

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April 2019