Operate a Meal Preparation Business in Rural Alberta (C11 Work Permit)

THE CHALLENGE

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Our client did not want to take the risk of making a full business purchase before knowing the outcome of obtaining a work permit to operate the business, while the retiring Canadian sellers in Alberta were unwilling to wait. Additionally, our client did not have direct experience in the meal preparation industry but possessed a strong entrepreneurial drive and management expertise, as well as a significant commitment to success and a desire to run a business in picturesque rural Alberta, with a mission to benefit the community and local businesses.

Our client found an opportunity to take over a business owned by retiring Canadian proprietors in rural Alberta. They approached Lerom Law after identifying the business and expressing interest in applying for a C11 Work Permit. However, they were not familiar with all the nuances and complexities involved and chose to seek representation.

The client is a highly sophisticated solopreneur with approximately C$150,000 in personal savings available for investment. They have management experience in the hospitality and tourism industry, though not directly related to the food industry, and have had short career gaps due to family matters. Seeking a fresh start in a picturesque Alberta community, the client was genuinely interested in and committed to pursuing this business opportunity. They planned to invest around C$65,000 to acquire a small meal preparation business, and further invest to scale it up and differentiate their offerings.

Our client had several legal questions regarding the entrepreneur work permit, particularly about how to structure the business to meet the C11 exemption requirements while minimizing financial risk in case of refusal. They also inquired whether the selected business was sufficiently qualified for an entrepreneur work permit, how to address the applicant’s career gaps, whether it was possible to bring the entrepreneur’s immediate family, and any other obstacles they might need to prepare for.

THE SOLUTION

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We advised our client on the following:

• Balancing Business Intentions and Financial Risks: To balance the genuine intention to run a business with the financial risks associated with the uncertainty of business acquisition before obtaining a work permit, we recommended a conditional purchase agreement with a deposit, contingent on the approval of the work permit. We also informed the client about the alternative pathway through the Alberta Provincial Nominee Program for Entrepreneurs, which they opted not to pursue due to the longer timeline.
• Proving Qualified Ownership: We highlighted the importance of proving qualified ownership of at least 50% at the time of the work permit application under the C11 LMIA exemption. To facilitate a conditional purchase, we advised our client to incorporate a corporation they fully own, which would then enter into a conditional purchase agreement for the meal preparation business in Alberta. This structure minimized financial risks and met the requirements for an LMIA-exempt work permit under the C11 exemption code.
• Developing a Comprehensive Business Plan: We stressed the importance of a well-conceived, realistic, and viable business plan that clearly outlines the significant benefits the business could bring under the entrepreneur’s management. While our client was aware of the need for a business plan, they underestimated the level of specificity and comprehensiveness required. Our lawyer spent a significant amount of time reviewing their business plan and advising on the missing elements. Specifically, although the chosen business offered many significant benefits, these were either missing or inadequately described in the initial draft. We advised our client to highlight the vulnerable groups they would serve, their long-term impact on rural communities in Alberta, their support for the industry by purchasing from Canadian farmers, and their contributions to sustainability and environmental health by promoting organic foods and a healthy lifestyle. Additionally, retaining jobs for Canadians already working for the business, as the retiring owners might have closed it, was emphasized.
• Demonstrating Client's Funds, Skills, and Business Suitability: We emphasized the importance of demonstrating the client’s financial resources, skills, and ability to manage the business while providing logical explanations for career gaps. Although the client’s business experience was not directly in the food industry, their personal suitability significantly supported the viability of the business. Our client decided to transfer funds to a Canadian bank account to further demonstrate the genuineness of their intention to invest, in addition to paying the deposit.‍
• Family Accompaniment: Our client expressed a desire for their spouse and children to accompany them while operating the business in Canada. We advised them on the option to apply for accompanying family members after the entrepreneur’s work permit is granted. Otherwise, it was crucial to demonstrate strong ties to the home country, given the requirement to show temporary intent under the C11 work permit.

THE RESULT

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Our client successfully obtained a C11 Entrepreneur/Self-employed Work Permit to operate and scale-up a meal preparation business in rural Alberta. 

We assisted by applying for a work permit exempt from a Labour Market Impact Assessment under the C11 administrative exemption code. Additionally, we helped our client secure an open work permit for their spouse, a study permit for one school-aged child, and a visitor record for their younger child who is not yet of school age. IRCC approved these applications within approximately 5 months (136 days) from the submission date.

The application was submitted with full disclosure of all "problematic areas," which were competently addressed in a counsel's submission letter with reference to substantial evidence that accompanied the application. When handling cases that are not straightforward, our top priority is to disclose and address all issues to ensure our clients' long-term success and peace of mind.