If you are an entrepreneur currently selecting a country for global business expansion and immigration with your family, Canada will be your first choice. Here is why.

As a potential investor, you want to understand the benefits and incentives of doing business in Canada. It worth starting, therefore, with an explanation of why to choose Canada for business expansion. We will describe the pathways for business immigration to Canada through more than 20 programs for an investor and their family after.

Generally, active investment is required to be approved for Canadian permanent residency (PR). In most cases, it is not sufficient just to buy property and get residency in Canada through such a passive investment. The business purpose must be to make a profit from active income through the sale of goods and/or services, at least until you become a permanent resident. Currently, only one program - Quebec Investor Program - allows to get PR in Canada by passive investment (this program will reopen in July 2020).

Thus, Canada has regulations and agreements in place to trigger success for your prospective company, either if buying a business in Canada as a foreigner, incorporating an affiliated company, or a start-up.

Canadian companies can benefit from preferential tariff treatment under the Canada Free Trade Agreements when trading with the following countries - Australia, Brunei Darussalam, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, Chile, Colombia, Costa Rica, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden, United Kingdom, Honduras, Israel, Jordan, Korea, and Ukraine.

• Canada-United States-Mexico Agreement (CUSMA)
• Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
• Canada-Chile Free Trade Agreement
• Canada-Colombia Free Trade Agreement
• Canada-Costa Rica Free Trade Agreement
• Canada-Honduras Free Trade Agreement
• Canada-Israel Free Trade Agreement (CIFTA)
• Canada-Jordan Free Trade Agreement
• Canada-Korea Free Trade Agreement (CKFTA)
• Canada-Panama Free Trade Agreement
• Canada-Peru Free Trade Agreement
• Canada-Ukraine Free Trade Agreement (CUFTA)

Thus, for example, the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) provides for about 99% of EU tariffs are duty-free for Canadian goods. CETA guarantees market access to both the EU and North America. Notably, no other top investment destination in the Americas can offer access to all 28 EU Member States.

Canada is in the process of reaching even more benefits for the businesses in future by keeping negotiating other Free Trade Agreements with the following countries  – Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam, China, Turkey, Dominican Republic, Guatemala, Nicaragua, El Salvador, India, Japan, Argentina, Brazil, Paraguay, Uruguay, Morocco, Singapore.

Not only preferential trade treatments but also Canada's transport infrastructure greatly facilitates its global trade. Canada has 26 airports, 17 seaports, 117 border crossings to the USA, which makes it a hub for global trading, with the best in the world air transportation infrastructure, direct maritime access to Asia, Europe, and South America, and easy access to the US through the Great Lakes.

Another indicator of Canada's positive climate for foreign direct investment is the fact that the largest Fortune 500 companies are expanding existing operations or establishing new Research & Development hubs in Canada.  As a result of Canada's popularity in the global arena, its foreign direct investment results increased by 18.6% just in 2019.

More importantly, Canadian companies can bring in top international talent through the Global Skills Strategy. For example, through the Global Talent Stream, eligible workers can receive work permits in as little as two weeks.

Key workers, such as business owners and senior managers, can be transferred to the Canadian company from its foreign affiliate under the Intra-Company Transfer Program (described below). Owners and operators of Canadian Business can get a work permit under the Owner Operator LMIA Program (described below).

Also, Canada has the lowest business costs in the digital and Research & Development (R&D) sectors.

Canada has the soundest banking system among G7 countries and ranks second in the world (World Economic Forum, 2018), and is the least corrupt country among G20 members and 9th among 180 countries (Transparency International, 2018).

Foreign investors can benefit from initiatives, incentives, and programs. Some examples are: 

• Scientific Research And Experimental Development Program (Sr&Ed) 
• Strategic Innovation Fund 
• Innovation Superclusters Initiative 
• Pan-Canadian Artificial Intelligence (Ai) Strategy

Canada offers the perfect space for an investor and family members to live, work, study, and develop. Canada rankings under certain country attributes are detailed below.

• Quality of Life - #1
• Transparency - #1
• Headquarter a corporation - #2
• Citizenship - #2
• Open for business -#3
• Education - #3
• Raising children - #4
• Woman - #5
• Entrepreneurship - #6
• Comfortable retirement - #6
• Adventure - #16
• Start a business - #10
• Green living - #10
• Internationa influence - #10 
• Forward thinking - #10
• Cultural Influence - #11
• Power - #12

The minimum investment required for Canada immigration depends on the program, as well as other Canada business immigration requirements.  If, at this point, you are becoming serious about getting a business immigration visa, explore your options by completing the free assessment form. What is business immigration to Canada, and the 6 main pathways are discussed in detail below. 

Business immigration is the way to get permanent residency in Canada through investment in a Canadian company and operating a business that has a potential to bring economic benefit to Canada in a certain way (f.e., creating jobs, bringing innovation to Canada, etc.)

You can start a new or affiliated business or buy an existing business with the purpose to make a profit from active income through the sale of goods and/or services. Notably, you cannot buy property and get residency in Canada through only a passive investment. If you would like to know how to start a business in Canada as a foreigner, as compared to other countries, the World Bank Group published a great report detailing the fees, steps, timeline and procedures that you can download here.

Importantly, business immigration to Canada means becoming a permanent resident first and then applying for citizenship. In general, Canada business immigration stages are:

• Get an entrepreneur work permit to do business in Canada.
• Come to Canada to establish and/or operate a Canadian company.
• Apply for Canada business PR (permanent residence).
• Apply for Canadian citizenship. Entrepreneurs must be physically present in Canada as a PR for at least 3 of the last 5 years to become eligible for Canada citizenship. So, the right question would be not how much to invest in Canada to get citizenship, rather to become a permanent resident? In some circumstances, an investor may want to renew status as a permanent resident without getting citizenship at all. Learn about the difference in the rights of permanent residents and citizens.  

Canadian business immigration is truly family immigration. Here is why. Investor's spouse or common-law partner can get an open work permit and children – study permits before becoming permanent residents of Canada. Investor's children will study at a Canadian school for free. They will be exempted from tuition fees applicable to international students. All family members will be covered by provincial health insurance.

While getting a business visa for Canada can take 2-3 weeks, immigration is a complex process, and in the fastest scenario, the timeline is 8 months.

The minimum investment required for immigration ranges throughout the provinces, from 25,000 C$ in Quebec to 600,000 C$ in Ontario. The net worth amount also varies from 100,000 C$ in Quebec to 600,000 C$ in Ontario. The net worth includes the evaluation of assets of an investor together with a spouse or common-law partner less any liabilities (including mortgage, taxes), which must be verifiable. 

There are other criteria such as language, business experience, the viability of a business idea, age, based on which points assigned, and selection made by provinces.

Foreign entrepreneurs are encouraged to invest in Canada in certain industry sectors. For example, technology, advanced manufacturing, natural resources, entertainment and media, agribusiness, cleantech, and life sciences. Each province has its own priorities for investments, based on the local market industry trends. At the same time, the ability of a proposed business to create jobs for Canadians and permanent residents is a very important factor. Some types of businesses are not eligible for immigration purposes (depending on the province).

Business people looking to gain Canadian permanent residency through investment can estimate for 2-3 years on average to gain the status. In general, the stages of business immigration to Canada via provincial nomination programs (PNPs) are:

• Expression of interest
• Invitation to apply
• Business visit and interview (recommended but not required by all provinces)
• Business Performance Agreement
• Coming to Canada on a Work Permit to do business
• Establish Business/ Invest
• Report/ Review
• Nomination
• Application for Permanent Residence by investor and family members

Read more about Provincial Business Programs In Canada here.

Under this program, a foreign national must have at least 2 years of work experience in the past 5 years as a self-employed in cultural activities or athletics.

Importantly, to be eligible to apply for permanent residence under the Self-Employed Persons Program, a candidate must possess not only professional skills in cultural activities or athletics but also the ability to manage a business.

There is a selection grid that helps to assess whether a candidate will be able to make an economic contribution to Canada. A candidate is required to score at least 35 points out of 100 points to meet the minimum eligibility criteria under the following factors – education, experience, age, language, and adaptability.

Read more about requirements for the Self-employed Persons Program here.

Entrepreneurs with an innovative business idea and ability to get a letter of support from a Canadian venture capital fund (must agree to invest a minimum of $200,000), angel investor group (must agree to invest a minimum of $75,000), or business incubator (must accept it to one of the programs) can immigrate to Canada. The goal of Canada's Start-up Visa Program is to build innovative businesses in Canada that can create jobs for Canadians and compete on a global scale.

Read more about requirements for the Self-employed Persons Program here.

The initial work permit is valid for 1 year and can be extended to a maximum of 7 years cumulatively.

Thus, foreign business owners and the key workers, i.e., executives, senior managers, and specialized professionals, can be transferred to the Canadian parent, subsidiary, branch, or affiliate company via the Intra-Company Transfer Program.

ICT Program works for both affiliated start-ups and established companies in Canada. In any case, at least 50% of the Canadian subsidiary must be owned by an international company. To be eligible, a transferee must be currently working for an international company for at least 1 year full-time. The position in Canada must be similar to that worker's position overseas.

After a business owner arrives in Canada on the ICT Work Permit and starts managing a business, they may apply for the Owner/ Operator LMIA (Labour Market Impact Assessment) to support their application for permanent residence via Express Entry System. Starting with an ICT Work Permit is the best route for entrepreneurs who need some time to improve their English and test the market.

Read more about requirements for the Intra-Company Transfer Program here.

Being approved for this program gives 200 points to the business owner for a valid job offer. It is a direct pathway for business immigration to Canada through the Express Entry System.

At a minimum, to be eligible for the Owner-Operator Work Permit, an entrepreneur must own 50,1% of shares in a Canadian company. It must be operating and bringing economic benefits to Canada. It does not work for a start-up company, as compared to the Intra-Company Transfer Program.

Read more about requirements for the Owner-Operator Work Permit (LMIA-based), here.

It is a direct pathway without first starting a business in Canada as an immigrant and applying for a work permit. Moreover, self-employed experience also counts towards the FSW program requirements.

While being the fastest route, it is the most difficult one, as it is hard to get the necessary CRS score to get invited for permanent residence. If your current score is low, then consider the above-described other options to get additional points for Express Entry Immigration. To briefly summarize, there are provincial business immigration programs, intra-company transfer, owner-operator visa, self-employed, or start-up visa programs for eligible entrepreneurs.

Explore options for you and your family members by completing the form below. Our Business Immigration Lawyer will get back to discuss your eligibility under Canada business programs.