Starting a business in Canada as an immigrant can be an exciting opportunity, but it also comes with unique challenges—one of the biggest being understanding how your immigration status affects your ability to legally own and operate a business. This blog provides a general overview of the most common Canadian visas and what they mean for starting a business.
Important Note: This guide is intended as a general resource only. Immigration rules can change, and individual circumstances vary widely, so we strongly recommend checking the Government of Canada’s official immigration resources for the most up-to-date information. It’s crucial to ensure you fully comply with your visa regulations when starting a business, as violations can lead to severe consequences, including the loss of your visa status or affecting your future applications for permanent residency or citizenship. Always verify your permissions and consult with an immigration lawyer to avoid any unintentional breaches that could jeopardize your stay in Canada.
Let’s dive into the basics of business ownership for different immigration statuses in Canada.
Canadian Citizens
Canadian citizens have the highest level of rights, including the right to vote, run for public office, and obtain a Canadian passport.
- Can Citizens Start a Business? Yes, with no restrictions. Citizens can start, run, and expand businesses domestically or internationally, and can also access various government programs designed to support Canadian entrepreneurs.
- Resources: Information on becoming a Canadian citizen.
Permanent Residents (PR)
Permanent residents in Canada have almost the same rights as citizens, including the freedom to live, work, and start a business anywhere in the country.
- Can PRs Start a Business? Absolutely! As a PR, you can freely start and operate a business without any additional immigration-related restrictions. This status allows you to register your business, hire employees, and apply for business loans just like a Canadian citizen.
- Resources: Learn more about permanent residency.
Open Work Permits
Open work permits allow you to work for almost any employer in Canada without needing a specific job offer.
- Examples: Spouses of those in the Skilled Worker Program, international graduates on a Post-Graduation Work Permit.
- Can Open Work Permit Holders Start a Business? Yes! If you hold an open work permit, you have the flexibility to start and run your own business in Canada. There are no additional restrictions specific to business ownership beyond the usual business regulations.
- Resources: Learn more about open work permits.
Closed (Employer-Specific) Work Permits
Closed work permits are tied to a specific employer, position, and sometimes even location, making them more restrictive.
- Can Closed Work Permit Holders Start a Business? Generally, no. These permits are designed to limit work to the specific job and employer listed on the permit, so starting or operating your own business is not allowed under this permit type. If you’re interested in entrepreneurship, you’ll need to explore options like transitioning to an open work permit or applying for PR status.
- Resources: More on employer-specific work permits.
Visitor Visas
Visitor visas are for short-term stays in Canada, such as tourism or attending business meetings.
- Can Visitors Start a Business? No, visitor visas do not allow for employment or the operation of a business in Canada. However, you can conduct preliminary business activities like market research.
- Resources: Check visitor visa guidelines.
Student Visas
International students in Canada can explore entrepreneurship, but they must adhere to the conditions of their study permits such as only being allowed to work for a maximum of 20 hours in a week off campus. While study permits primarily cover education, starting a business is allowed if you are currently maintaining a full-time enrollment at a designated learning institution (DLI), have a Social Insurance Number, and some more conditions you can review in the resource below. If you’re self-employed, you’re responsible for tracking your work hours off-campus and ensuring compliance with your study permit conditions. This includes any time spent earning wages, being paid for services, or selling products.
- Can Students Start a Business? Yes, as long as they follow the regulations tied to their study permit, including work hours.
Start-Up Visa Program
This program is specifically designed for immigrant entrepreneurs who have innovative business ideas that can create jobs for Canadians and compete globally.
- Can Start-Up Visa Holders Start a Business? Yes, this visa is tailored for those intending to establish a business in Canada. You must have the support of a designated organization, like a venture capital fund or business incubator, meet language requirements, and have enough money to settle in Canada.
- Resources: More about the Start-Up Visa Program.
Self-Employed Persons Program (Note: applications paused until January 2027)
This program targets self-employed individuals in cultural or athletic activities who can contribute significantly to Canadian society.
- Can They Start a Business? Yes, this program is specifically for self-employed professionals wishing to immigrate to Canada and start their own businesses in their field of expertise.
Provincial Nominee Programs (PNP)
With the exception of Quebec and Nunavut all Canadian provinces have their own immigration programs targeting business owners or entrepreneurs with specific criteria.
- Can PNP Nominees Start a Business? Yes, if you are nominated under a business or entrepreneur stream, you can immigrate as a Permanent Resident (PR) and start your business in the nominating province.
- Resources: Explore the Provincial Nominee Programs.
Navigating the complexities of starting a business as an immigrant in Canada requires understanding how your specific immigration status impacts your business plans. Always refer to the Government of Canada’s immigration resources for the latest information and consider consulting with an immigration lawyer to ensure compliance with all legal requirements.
Disclaimer: This blog is intended as a general guide and does not constitute legal advice. Immigration laws and policies can change, and individual circumstances vary widely. Always consult with a professional to get advice tailored to your situation.
Final Thoughts
If you’re an immigrant entrepreneur looking to start your business in Canada, our Business Link advisors are here to help! Book a free consultation today to get the support you need on your entrepreneurial journey. Visit Business Link for Immigrant Entrepreneurs to learn more.
Sources:
- Government of Canada, “Understand PR Status” [2022].
- Government of Canada, “Become a Canadian Citizen” [2023].
- Government of Canada, “Help Centre: Can I Work While I’m a Student in Canada?” [2022].
- Government of Canada, “About the Visitor Visa” [2023].
- Government of Canada, “Work Off Campus” [2023].
- Government of Canada, “Start-up Visa” [2023].
- Government of Canada, “Self-Employed Program: Eligibility” [2023].
Author: Two Rivers Law
Based in Calgary, Two Rivers Law is a boutique firm specializing in Immigration and Wills and Estates. Their team provides personalized legal solutions, guiding clients through every step of their legal journey.
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