How To Immigrate To Canada & Get Permanent Residency By Starting a Business

If you are looking into ways to get Canadian citizenship or permanent residency, or considering business immigration as a pathway, this page is for you. Canada offers several options for business owners, such as the Start-up Visa, Self-Employed Programs, and Provincial Nominee Programs. This article provides an alternative route for foreign entrepreneurs aiming for permanent residency in Canada. Unlike specific business immigration programs, this route starts with a work permit and can lead to permanent residency faster than traditional methods. We will explain how this process works and offer step-by-step guidance, starting with obtaining a work permit, then moving to permanent residency, and eventually citizenship.

You can use our free assessment tool to find the best program for you or schedule a consultation with our top business immigration lawyers.

What is Business Immigration in Canada?

Business immigration in Canada includes various programs designed to attract foreign business owners, investors, entrepreneurs, start-ups, and high-net-worth individuals who want to establish or expand their business ventures in Canada. This includes the Start-up Visa (SUV) program, Provincial Nominee Programs (PNPs) for entrepreneurs, the Self-Employed Program, and pathways transitioning from a Work Permit (WP) to permanent residency (PR), including Labour Market Impact Assessments (LMIAs) for business owners.

These programs allow individuals and their families to obtain permanent residency by starting or buying a business in Canada and contributing to the Canadian economy through their business activities.

How to Obtain Canadian Citizenship Through Business Ownership?

Let’s explore each step of the business immigration pathway to obtain permanent resident status in Canada through investment and eventually become Canadian citizens.

Step 1: Buy or Start a Business in Canada Foreign investors have four ways to invest in Canadian business:

1. Starting a new business
2. Buying an established business
3. Buying shares in an established business (at least 33% or more)
4. Buying a franchise

You do not need to be a Canadian permanent resident or citizen to start or invest in a business in Canada, but you cannot work in your business without a valid work permit. Hire a Canadian manager to operate your business until you are authorized to work in Canada.

Your initial investment to buy or establish a business in Canada can range between CAD 150,000 and 350,000, but this amount can be higher based on your personal and financial goals. For example, a business generating net profits of 100,000 per year typically costs between 300,000 to 500,000 (net revenue x 3 to 5).

Here is a table showing the pros and cons of each option for business investment in Canada:

Option	Cost	Risk (Profit Potential)	Time Before PR Application	Difficulty to Operate	Business Performance Requirements for PR
Start a New Business	Moderate: 150,000+	High	At least 12 months	Difficult	Active company in Canada; Commercial office; At least 2-3 Canadian employees; 12 months of operations.
Buy a Business	High: 250,000+	Moderate	No minimum requirement	Moderate	Ownership of 51% of shares; Active company; At least 2-3 Canadian employees.
Buy Shares in a Business	High: 200,000-500,000	Moderate	No minimum requirement	Simple	Active company in Canada; Commercial office; At least 2-3 Canadian employees.
Buy a Franchise	Moderate 150,000+	Moderate	12 months if a new location	Simple	Active company in Canada; Commercial office; At least 2-3 Canadian employees; 12 months of operations.

Step 2: Apply for a Work Permit Once you have started or purchased a Canadian business, you can apply for a work permit as a foreign owner of a Canadian business. Several different work permits are available based on your background and immigration goals, including:

• LMIA-based work permits
• Intra-company transferees (ICTs)
• Investors under free-trade agreements
• Entrepreneur work permits
• Start-up visa work permits
• PNP Canada programs
• Quebec Immigrant Investor Program

Step 3: Come to Canada to Operate Your Business Upon arriving in Canada as a foreign worker, you must operate your business for a minimum of 12 months before transitioning to permanent residence. The length of operation depends on the type of business you have and your work permit type.

Your business is not required to generate specific revenue or be profitable, but it must be active and operational and have sufficient capital to cover operational costs and pay your wages.

Step 4: Apply for Permanent Residence as a Business Owner If you have been working in Canada as a business owner for at least 12 months and are actively involved in your enterprise, you might qualify to apply for permanent residence through the Express Entry (EE) program under the Federal Skilled Worker stream. Ownership of an active business in Canada can potentially earn you an additional 200 points for arranged employment in the EE system if your business meets specific requirements.

Your business must be active and meet the following requirements:

• Active sales of goods or services to real customers within Canada or internationally
• All licenses and permits to operate legally in Canada
• A physical commercial location in Canada
• Several local employees
• Your role is focused on executive or senior managerial duties
• Progress toward executing your business plan

Additionally, to be eligible for permanent residence through the Express Entry program, you must meet certain criteria, often including:

• A language skills score equivalent to at least Canadian Language Benchmark (CLB) 7
• A Bachelor’s degree or other post-secondary education credentials
• A clean criminal record and no serious ongoing medical issues

Our Experience with Canadian Business Immigration for PR We successfully assist approximately 70 business owners each year in transitioning from a work permit to permanent residency using the Express Entry pathway. Though this process can be complex, it is a viable option for many. Our experience shows that Immigration, Refugees and Citizenship Canada (IRCC) typically recognizes the claim of 200 points for arranged employment for those who own an active and operational business in Canada. This significant boost in CRS points can greatly enhance applicants’ Express Entry profile, making the pathway from work permit to PR both practical and achievable.

However, specific nuances and requirements must be met to ensure success:

• IRCC will challenge your claim of arranged employment if your business operations are based out of your home; commercial premises are a must.
• Self-employment under the Canadian Experience Class (CEC) program within Express Entry is not recognized as Canadian work experience.
• If your business does not demonstrate a scale of operations, your job offer may be viewed as not genuine, putting your application at risk.

Understanding these intricacies is crucial in navigating the journey from business ownership to permanent residency in Canada.

Frequently Asked Questions About Business Immigration

Here are answers to common questions about Canadian business immigration.

Can I buy Canadian citizenship? No, Canada does not have any programs allowing you to buy citizenship. You can become a citizen through business immigration programs by first investing in a business in Canada, obtaining permanent residence, and living in Canada for 3+ years before applying for citizenship.

How much should I invest to get a PR in Canada? There is no set minimum investment amount. The investment depends on your business plan. For example, establishing a consulting business may cost less than 100,000, while a restaurant could be over 350,000. Typically, clients allocate around 250,000 for investment and have access to an additional 100,000 for operational costs in the first year.

How long does it take to get an investor visa in Canada? It usually takes 2-4 months to get a work permit as an investor/entrepreneur and another 1-2 years to obtain permanent residence. These timeframes are estimates and can vary based on location, application type, business performance, and document availability.

What is Startup Visa Canada? A start-up visa is an immigration program allowing founders to obtain permanent residence by moving their companies to Canada. This program targets highly scalable and innovative companies. You must secure funding from a designated organization and obtain a letter of support for your project.

Can I start a business in Canada without PR? Yes, you can register a company in Canada without being a permanent resident or citizen. However, you cannot work in your business without a valid work permit. You should rely on Canadians to operate your business until you secure authorization to work in Canada.

Can I get an investor visa easily? Canadian business immigration is complex and often requires professional help. However, when done correctly, business immigration applications usually have a high approval rate. It can be a viable pathway for immigrant entrepreneurs to relocate to Canada through investment.

What type of business should I buy for immigration to Canada? Invest in a business you understand, have experience with, and can commit to long-term. Avoid businesses solely for immigration purposes. Focus on profitable businesses and let professionals handle the immigration process.