Investor Work Permit

Investor Category Work Permit: An Overview

Business owners and certain employees can come to Canada with investor status if they meet the requirements established in Canadian free trade agreements. They may work in Canada without going through the Labour Market Impact Assessment (LMIA) process by obtaining an Investor Work Permit, which is LMIA-exempt. 

Currently, Canada has six agreements in place that qualify citizens of participating states for the Canada Investor Work Permit, provided they meet the eligibility requirements. These are:

• Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA) Investor Work Permit under LMIA Exemption Code T46
• Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Investor Work Permit under LMIA Exemption Code T50
• Canada-United States-Mexico Agreement (CUSMA) Investor Work Permit under LMIA Exemption Code T35
• Canada-Chile Free Trade Agreement (CCFTA) Investor Work Permit under LMIA Exemption Code F21
• Canada-Peru Free Trade Agreement (CPFTA) Investor Work Permit under LMIA Exemption Code F51
• Canada-Colombia Free Trade Agreement (CPFTA) Investor Work Permit under LMIA Exemption Code F11
• Canada-Korea Free Trade Agreement (Korea, South) Investor Work Permit under LMIA Exemption Code F31
• Agreement on Trade Continuity between Canada and the United Kingdom of Great Britain and Northern Ireland (CUKTCA) Investor Work Permit under LMIA Exemption Code F65

IRCC (the Immigration, Refugees, and Citizenship Canada) can assess and select candidates from the pool.IRCC (the Immigration, Refugees, and Citizenship Canada) c

Investor Work Permit Prerequisites

Investor Citizenship

Citizens and, in some cases, permanent residents of the following countries are eligible:

• America (U.S.)
• Mexico
• European Union (EU): Austria, Italy, Belgium, Latvia, Bulgaria, Lithuania, Croatia, Luxembourg, Cyprus, Malta, Czechia, Netherlands, Denmark, Poland, Estonia, Portugal, Finland, Romania, France, Slovakia, Germany, Slovenia, Greece, Spain, Hungary, Sweden
• Australia
• Japan
• Vietnam
• Chile
• Peru
• Colombia
• Korea
• United Kingdom

Controlling Interest in the Canadian-Based Corporation

An applicant/investor must own at least 50% interest (directly or through stock) in the enterprise or firm for which they are coming to Canada. Though the enterprise may be established in Canada with a local registered address, it is considered to have the nationality of the investor for Investor Work Permit purposes.

“Develop and Direct” the Canadian Operations

A business owner needs an Investor Work Permit to "develop and direct" the operations of a Canadian enterprise. This means having a controlling interest of at least 50% in the enterprise, granting them the right to develop and direct operations. An interest of less than 50% does not qualify.

Type and Nature of Business/Investment

Passive investments in real estate or stocks do not qualify. The Investor Work Permit aims to promote productive investments in Canada, meaning the enterprise cannot be merely marginal, i.e., providing only a livelihood for the applicant and their family. It must be an active commercial enterprise that produces goods or services for profit and expands job opportunities for Canadians.

“Substantial Amount” of Capital Investment

The applicant must have invested a "substantial amount" of capital in the Canadian-based corporation or be actively in the process of investing. Investment involves placing funds or other capital assets at risk for commercial purposes to generate profit. The investment must be irrevocably committed to the business.

Activities considered as investment include:

• A reasonable amount of cash held in a business bank account for routine operations
• Loans secured by the applicant’s personal assets or unsecured loans at risk in the event of business failure
• Lease or rent payments for property or equipment already made
• Purchase of equipment and inventory on hand
• Value of goods or equipment transferred to Canada for commercial use

Minimum Required Investment Amount

The investment must be "substantial," already invested, or irrevocably committed. "Substantial" means significantly proportional to the total investment in or value of the Canadian-based enterprise, or normally considered necessary to establish a viable enterprise of that nature and business type.

Bringing Employees in Investor Status

Employees without a controlling interest in the Canadian-based corporation can also come to Canada under investor status if the corporation is at least 50% owned by a citizen of a participating state, is productive/active, and a “substantial investment” has been made or is being actively invested. Eligible employees must be citizens of the participating state and work in a supervisory, executive capacity, or possess skills essential to the firm’s operations in Canada.

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