Options for Business People to Get Permanent Residency (PR) in Canada

Options for Business People to Get Permanent Residency (PR) in Canada

Canada’s business immigration landscape has evolved significantly, and securing Permanent Residency (PR) for entrepreneurs and business owners has become increasingly challenging. This article explores realistic pathways for business owners looking to gain PR in Canada, the barriers they might face, and the most viable strategies available.

1. Understanding the Challenges in Business Immigration to Canada

In recent years, the Canadian government has shifted its focus in immigration policies, making it harder for business owners to use their entrepreneurial background as a pathway to PR. As of October 2024, there are over 209,000 active profiles in the Express Entry pool, indicating a highly competitive landscape for all categories, including business immigrants. This trend has been accompanied by more stringent criteria for business immigration programs and a preference for skilled workers over entrepreneurs​

 2. Why Express Entry is Not Ideal for Business Owners

Express Entry is one of the primary immigration systems used by Canada to manage skilled worker applications, but it poses significant hurdles for business owners:

Self-employment work experience is not counted under the Canadian Experience Class (CEC), one of the main categories of Express Entry, making it difficult for entrepreneurs to gain the points needed.

The Comprehensive Ranking System (CRS) score threshold remains high, with recent draws requiring scores around 510 to 534 points, which is difficult to achieve without a job offer or senior managerial position.

Even though Canada aims to admit around 120,000 to 125,000 permanent residents through Express Entry in 2024, most of these opportunities are geared toward skilled workers rather than self-employed individuals​

3. Provincial Nominee Programs (PNPs): Limited Spots for Entrepreneurs

Provincial Nominee Programs (PNPs) offer another route to PR, but they come with their own set of challenges for business owners:

Alberta’s entrepreneur stream has limited spots, with fewer than five nominations allocated for business owners annually, making it extremely competitive.

Ontario’s entrepreneur program is currently paused, and other provinces like British Columbia and Saskatchewan have rigorous requirements that are hard to meet for new entrepreneurs.

Most PNPs require an employer-employee relationship, which excludes self-employed individuals from qualifying easily​ 

4. The Start-Up Visa Program: A Mixed Bag

The Start-Up Visa (SUV) program is designed for innovative entrepreneurs but has significant drawbacks:

Processing times can take up to four years, and during this period, applicants must maintain the required ownership level, limiting their ability to raise capital or dilute shares.

Designated organizations have caps on the number of applicants they can support, which has increased the cost of securing a commitment from these organizations.

The focus of the Start-Up Visa program is on tech-based businesses, which might not align with every entrepreneur’s background​

5. Temporary Pathways for Business Owners

Given the limitations of direct PR pathways, business owners might consider alternative temporary solutions:

Labour Market Impact Assessment (LMIA)-based work permits or LMIA-exempt categories like the Intra-Company Transfer can help entrepreneurs move to Canada temporarily.

Business visitors can also enter Canada for short-term stays, but this route does not lead directly to PR.

Entrepreneurs can explore the possibility of immigrating first as skilled workers or through their spouse's open work permit to build a stronger case for PR later on​

6. Risks of Investing Without a Clear PR Pathway

Investing in a business in Canada without a secure pathway to PR carries significant risks:

Financial exposure without a guarantee of long-term stability in Canada.

Changing immigration policies could affect an entrepreneur's eligibility in the future, leading to potential financial losses.

7. Practical Advice for Business Immigrants

For entrepreneurs determined to move to Canada, consider a two-step approach:

Immigrate temporarily as a skilled worker or through a spouse’s permit.

Transition to PR through a business venture once a more stable and predictable pathway is available.

Given the high barriers for business owners in Express Entry and the limited PNP spots, this approach provides a safer route while minimizing risks.

Conclusion

While business immigration to Canada has become more complicated, there are still ways for entrepreneurs to achieve their goals if they plan carefully. The most reliable method might be to first enter Canada through other immigration pathways and then explore business opportunities once they are established. If you’re a business owner looking to immigrate to Canada, it's best to consult with a licensed immigration expert to explore all your options based on the latest information and trends in Canadian immigration.

For further guidance on the most suitable immigration strategy for your situation, consider reaching out to a qualified immigration consultant to ensure you make the right choices for your business and future in Canada.