LMIA & Canada PR via Business Acquisition/Setup

Overview of LMIA & Canada PR via Business Acquisition/Setup

Most of the employers in Canada needs to provide a LMIA certificate in order to hire employees from outside of Canada. LMIA confirms that there is a need for a temporary foreign worker, and no Canadians or permanent residents are available to do that particular job.

Employer will need to apply for a LMIA from Employment and Social Development Canada (ESDC). The program lets employer hire temporary foreign workers to fill labour and skill shortages.

The LMIA process is different depending on whether the targeted employee is classified as “high-wage” or “low-wage” class and posting job on job banks. In addition, employers may be inspected for compliance with government regulations after their employee has begun working in Canada.

Under this program, the applicant can either set-up a new business, keep it functional, and after a few months he can apply for LMIA from his own company considering the company fulfils all the requirements of ESDC. As an alternative, the applicant can acquire a running business and then apply for LMIA through that firm, the acquisition option is less time consuming compared to new business set-up.

Applicant must travel to Canada as visitor for negotiation and agreement signing in the case of purchasing a running business or in case of setting up of their own entity, the applicant needs to setup an office space and hire local employees, show contracts with Canadian companies, generate business (evidences like invoices, receipts, bank payments etc.) along with prospective leads and provide administrative evidences (like website for Canadian market, brochures, business cards etc.) to prove the business legitimacy for the LMIA application.

LMIA Requirements:

  • All Canadian employers must provide evidence that they have attempted to find qualified Canadian resident to fill job positions before turning to foreign workers.
  • They have been advertising the job for at-least 4 weeks in Canadian job market.
  • They have used at least two other recruitment methods in addition to advertisement on the government portal known as “Canada Job Bank”.
  • Employers must focus advertising efforts on groups of Canadians who are under-represented, such as First Nations or persons with disabilities.
  • Employers must attest to their awareness that they are prohibited from laying off or cutting the hours of Canadian workers working in the same position(s).
  • Employers must prove that the Canadian company is financially capable to undertake the cost of hiring the foreign worker including the salaries to be paid for at least two years of employment tenure.
  • LMIA via Business Setup (including but not limited to):
    • Incorporate company, registered address will be provided for.
    • Visit Canada and set up a physical office.
    • Hire employees and set up bank account.
    • Sign MOUs with companies in Canada, sign contracts in Canada, conduct business for at least one quarter with invoices and bank statements.
    • Setup administrative services including, social media presence, website and marketing material etc

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