Maple News reports that Canada has officially phased out the Owner/Operator category from the Temporary Foreign Worker Program (TFWP) as of April 1, 2021, significantly altering the landscape for immigrant entrepreneurs. This category previously allowed business owners to bypass the Labour Market Impact Assessment (LMIA) advertising requirements, creating a faster pathway for those seeking to launch or operate a business in Canada.
In response to this change, foreign entrepreneurs now have several alternative work permit pathways, each tailored to different nationalities, investment levels, and business models. Here’s a closer look at the most relevant options currently available:
One of the most practical alternatives is the Intra-Company Transfer (ICT) program. It allows entrepreneurs who already operate businesses overseas to transfer themselves—or key personnel—to a Canadian counterpart such as a branch, subsidiary, or affiliate. To qualify, the Canadian enterprise must be financially viable, secure a physical business location, and create at least one Canadian job within the first year. Furthermore, the transferee must have been working in a senior or executive role with the foreign entity for at least one year.
For U.S. and Mexican citizens, the CUSMA (formerly NAFTA) Investor stream permits investors to enter Canada through business ownership. Applicants must demonstrate substantial financial commitment and a well-developed business plan, with the additional expectation that the investment will generate economic benefits, especially in terms of job creation.
European entrepreneurs may still qualify under the CETA Investor provisions, which allow certain business owners or executives to stay in Canada for up to one year without an LMIA. Applicants under this stream must also show significant capital investment and business activity plans in Canada.
Additionally, the Entrepreneurs/Self-Employed work permit route remains viable for those who own at least 50% of a Canadian-based business. In some cases, this route may not require an LMIA if the applicant does not intend to reside in Canada. However, these entrepreneurs must illustrate that their venture delivers substantial economic, social, or cultural benefits to Canadians.
It’s also important to note that starting January 2021, U.K. investors are no longer being processed under the CETA Investor category. Instead, their applications are now being reviewed under the Canada-UK Trade Continuity Agreement, reflecting post-Brexit trade adjustments.
As the Canadian immigration landscape continues to evolve, entrepreneurs seeking to launch or expand businesses in Canada should assess all permit options carefully to align with immigration regulations while also meeting their commercial goals. Maple News will continue to monitor and report on changes to immigration pathways that impact global talent and business mobility.