BUSINESS OWNER OPERATOR PROGRAM
Owner/Operator LMIA is a special class of applications within the TFWP whereby a self-employed/qualified individual wishing to enter Canada can do so by establishing or purchasing a business. A foreign national would be an Owner/Operator if they establish that they have a controlling interest in the business and cannot be fired/dismissed (only answerable to themselves). Controlling interest according to guidelines and policy can be established by either:
- Purchasing a business and be involved in its day-to-day operations (being a sole proprietor),
- By being the majority shareholder (holding at least 50.1% shares) or
- By providing an official document confirming that they hold the majority interest (even if they do not hold 50.1% of total shares).
There is no specified minimum percentage of shares to be held by a foreign national to be considered an Owner/Operator. In cases, where there are multiple owners of a business, the largest shareholder or the equal shareholder designated as the “employer” must apply for LMIAs to Service Canada for the other co-owners as “workers”. Individuals who only receive shares (less than to establish the controlling interest) as part of a compensation package are not subject to the term Owner-Operator. The foreign nationals must demonstrate that they have the controlling interest prior to submitting their application and for the duration of their employment in Canada.
The burden of proof in owner/operator LMIA application is on the foreign national/investor to provide information/documents to prove their shareholding/ownership status.
New start-up business
This scenario is applicable to a foreign national where the individual is 100% owner of a start up business not in operation in Canada yet but dependent on a positive LMIA and Work Permit (WP). The owner/operator guidelines considerations state that the TFW can be considered owner/operator for the purposes of the LMIA if they can demonstrate that they have considerably prepared to open and operate the business (e.g., have incorporated the business, applied for a business license, entered into a lease agreement, securing contracts, etc.), have a viable business plan, have the intent and plan to retain/hire Canadian citizens and permanent residents within a reasonably short timeframe.
Complete purchase of a business
When a 100% purchase has been completed and documentary evidence is provided (e.g., share purchase agreement, share certificate, notice of articles, central securities register, shareholding/ownership documents, CRA business number), reflecting purchase/ownership change application, the burden of proof is less onerous. However, requirement on creation or retention of Canadian jobs and knowledge transfer to Canadians in the form of transition plan, still needs to be satisfied.
Advantages of owner/operator LMIA
- There is no requirement of having a certain total net worth or making any non-guaranteed investment in a Canadian government designated investment fund.
- Foreign national/investor can apply for a work permit based on positive owner/operator LMIA.
- Owner/operator LMIA award 200 points under comprehensive ranking system (CRS) and, foreign national/investor can apply for permanent residency through express entry program.
