Technology Company Relocation To Canada: How To Choose The Right Immigration Program

Many aspiring foreign entrepreneurs looking to start a business in Canada mistakenly believe that securing support from a designated organization and applying through the Start-Up Visa (SUV) program is the only option. It is not true. The Start-Up Visa is just one of several business immigration programs available to foreign entrepreneurs who want to immigrate to Canada and start a new business there.

Canada has a range of immigration programs to help you start your business. These include temporary residence options like LMIA-based work permits, entrepreneur work permits, investor work permits, and intra-company transfers, all of which can lead to obtaining permanent resident status (PR) after one year of work experience. There are also permanent residence options such as Provincial Nominee Programs (PNPs) and the Start-Up Visa program. Canadian immigration authorities evaluate the skills and knowledge of potential immigrant entrepreneurs to ensure they have the relevant expertise to successfully navigate the business landscape and scale their ventures. Choosing the best business immigration program for your start-up depends on various factors, including your business type, location, capital, and immigration goals. Having a Canadian bank account can simplify financial transactions and improve money transfer efficiency between the U.S. and Canada.

This article aims to clarify the different immigration options that can help you establish your business in Canada without unnecessary complications. Read on to find the best Canadian immigration programs for your start-up business operations.

Why Consider Moving to Canada?

Canada offers a unique blend of economic stability, a high standard of living, and welcoming immigration policies, making it an attractive destination for tech companies and entrepreneurs. With its highly skilled workforce, innovative business environment, and favourable immigration policies, Canada provides a competitive edge for businesses looking to expand globally. The country's robust infrastructure, coupled with a strong emphasis on research and development, creates an ideal environment for tech companies to thrive. Additionally, Canada's multicultural society and inclusive policies ensure a welcoming atmosphere for foreign entrepreneurs and their families. Canada's major cities rank among the most livable in the world, offering a high standard of living and cultural diversity. Furthermore, Canada boasts excellent healthcare, safety, education, and progressive social policies, making it an ideal location for families and businesses alike.

Benefits of Relocating to Canada for Tech Companies and Entrepreneurs

Relocating to Canada can bring numerous benefits for tech companies and entrepreneurs, including:

• Access to a Highly Skilled Workforce: Canada boasts a highly educated and skilled workforce, particularly in the tech sector, providing a rich talent pool for your business.
• Favourable Business Environment: With low corporate tax rates and minimal regulatory hurdles, Canada offers a business-friendly environment that encourages innovation and growth.
• Proximity to the US Market: Canada's close proximity to the United States, with similar time zones and working culture, facilitates easy business operations and communication with US partners.
• Convenient Travel: Daily flights to major US cities make travel and communication seamless, enhancing business operations and client relations.
• Diverse Immigration Programs: Canada offers a range of immigration programs, including the Intra-Company Transfer Program and the Start-Up Visa Program, providing multiple pathways for tech companies to establish a presence in Canada.
• Opportunities for Permanent Residence: These immigration programs often lead to permanent residence and citizenship for foreign workers and their families, offering long-term stability and security.
• Employer Sponsorship: Canadian employers are more likely to sponsor foreign workers compared to U.S. employers, making it easier for businesses to attract and retain global talent.

Launching a Tech Company in Canada: Three Main Options

When starting a technology company in Canada, there are significant opportunities available for tech companies looking to immigrate. The following options describe the best immigration programs for foreign business owners and entrepreneurs.

LMIA-Exempt Work Permits (Intra Company Transfer Program Leading to PR)

This option includes such immigration programs as the C11 Entrepreneur Work Permit, Intra-Company Transfer (ICT), and C10/C11 Significant Benefit Work Permit. The Intra-Company Transfer Program (ICT) is a strategic pathway for foreign companies looking to establish operations in Canada. For a foreign company to utilize the ICT program, it must have a qualifying relationship, such as being a parent company, with a Canadian or affiliate company. The program allows foreign companies to transfer senior executives, managers, and key staff to their Canadian affiliates. The importance of transferring employees with specialized knowledge critical for the operations of the Canadian branch cannot be overstated. These work permits allow you to work in Canada without needing a Labour Market Impact Assessment (LMIA) and can lead to permanent residency after one year of employment. This pathway is ideal for sophisticated entrepreneurs with high language proficiency, a clear business vision, and confidence in their ability to build a viable business in Canada.

Advantages of the LMIA-Exempt Work Permits:

• Quick processing times.
• No minimum capital requirement.
• Flexible business plans.
• No need for support from a designated organization.

Disadvantages of the LMIA-Exempt Work Permits:

• Transition to permanent residency may be challenging for those without a Bachelor's degree or strong language skills (CLB 8 level).

Start-Up Visa: Getting PR in Canada With a Startup

The Start-Up Visa Program is designed for highly scalable innovation companies with a proven track record of success. Consulting with an immigration lawyer can provide essential insights and assistance in navigating the Start-Up Visa Program. To qualify, your start-up must pitch its idea and secure support, and sometimes investment, from a Designated Organization such as a venture capital fund, angel investor group, or business incubator in Canada. This program aims to attract high-quality, well-capitalized start-ups with the potential for significant growth. It is particularly suited for entrepreneurs with multiple co-founders looking to relocate permanently and substantially impact the Canadian economy.

Advantages of the Start-Up Visa Program:

• Up to five founding partners can come under this program with their families.
• The program directly leads to Canadian permanent residence.
• There is a possibility of essential founders obtaining open work permits while they wait for their permanent residence.

Disadvantages of the Start-Up Visa Program:

• As of April 2024, the program has undergone significant changes, including a capped intake, making it highly competitive and expensive.
• The program has been criticized for long processing times, often exceeding three years.

LMIA-based Work Permit (incl. Global Talent Stream)

This option is suitable if your company already has active customers in Canada and needs to bring in specialized and talented foreign workers quickly.

Advantages of the LMIA-based Work Permit:

• Speed: GTS LMIA is usually processed within 2 weeks and can be a good solution for start-ups that need to relocate specialized talent quickly or require solutions speedily. The Global Talent Stream (GTS) is a fast-track immigration program that allows employers to hire tech talent in Canada quickly, often within two weeks. This program is part of Canada's Global Skills Strategy, designed to fill labour shortages in key sectors, including tech. This option can also lead to permanent residency for a start-up owner in an expedited manner. Read Success Story here (to be published on September 3).

Disadvantages of the LMIA-based Work Permit:

• Only open to start-up companies that are already actively engaged in business in Canada.
• Requires the ability to pay foreign team members at or above the median market rate.
• Executing Labour Market Benefit Plans can be expensive (can cost over $100,000+)

A Helpful Tip: If you intend to start a non-technology company in Canada, read our article on Options for Foreign Entrepreneurs Who Want to Start a Non-Technology Company in Canada.

Business Requirements for Immigration to Canada

To establish a business in Canada, companies must meet certain requirements, including:

• Genuine Business Intent: Companies must demonstrate a genuine intention to operate a business in Canada, showcasing a viable business plan and commitment to the Canadian market.
• Program-Specific Requirements: Depending on the chosen immigration program, such as the Intra-Company Transfer Program or the Start-Up Visa Program, companies must meet specific criteria, including qualifying relationships and securing support from designated organizations.
• Labour Market Impact Assessment (LMIA): In some cases, companies may need to obtain an LMIA to prove that hiring a foreign worker will not negatively impact the Canadian labour market. However, certain programs, like the Intra-Company Transfer, may offer exemptions from this requirement. The Intra-Company Transfer program typically provides work permits valid for three years, renewable for up to two more years, with a maximum stay of seven years.
• Work Permit and Permanent Residence: Companies must ensure that their employees meet the requirements for obtaining a work permit or permanent residence, including language proficiency, educational qualifications, and relevant work experience. Every day spent in Canada as a temporary worker counts toward the residence requirement for Canadian citizenship applications.

By understanding and meeting these requirements, tech companies can successfully navigate the Canadian immigration landscape and establish a thriving business presence in Canada.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.