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What is the Intra-company transfer? Who is eligible for this ICT LMIA exempt program?
How do you avoid refusals and make sure your application is exactly what Canadian immigration is looking for, and how IRCC officers make decisions on ICT cases.
If you’re planning to immigrate to Canada through the ICT program and you’re looking for some guidance and support, you’re at the right place! We are licensed and we have successfully supported applicants from more than 47 nationalities. Get a FREE email assessment, click here.
It is one the oldest immigration programs in Canada, and it’s called the Intra-Company Transfer, also known as the C12 LMIA exempt work permit under the International Mobility Program. If you are not familiar with this program (intra-Company transfer, C12), it is for the purposes of transferring key staff or executives between company branches inside and outside Canada.
It is not actually designed for immigration purposes, as it is only for company branch transfers based on work permits. However, it is a very popular program for business owners, executives and key staff to transfer to Canada with a work permit, which can be combined with other immigration programs when you are inside the country, to eventually convert to permanent immigration such as a PR.
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Here are the requirements to qualify for this program:
1st Requirement (any of the below):
* You (the applicant) or the Parent Company have ongoing dealings/business in Canada.
* You have visited Canada and established/researched business contacts and activities to decide to set up a branch/subsidiary/or JV.
* You have a Canadian joint venture partner who will start & operate the business before you apply (in the same industry/field/activity as the parent company overseas).
The reasoning for this 1st requirement is that the ultimate goal & intention of this program is for business setup & significant economic benefit for Canada. If the case does not make sense for ICT, the visa officer will refuse the applicant.
What is the most ideal ICT case from the point of view of an IRCC officer? To understand their perspective about this program.
The program was designed originally to help facilitate multinationals to transfer staff across borders between their different branches. Examples include….
🡪 Amazon, Microsoft, Procter & Gamble, General Motors, etc. transfer over key staff or executives from one branch overseas to their Canadian branch.
Since these companies are recognized, hence these would be the most ‘ideal’ and ‘easy’ applications to process for IRCC officers. The reality is that many medium sized businesses also apply, and there has to be an effort made on behalf of the applicant and their legal representative (INGWE) to make sure the IRCC officers understand the business, its success overseas, the benefit for Canada to make a positive decision.
2nd Requirement:
* Significant economic benefit for Canada is mandatory. Investing in the Canadian economy, hiring Canadians, servicing under populated regions or communities, etc. are a few examples. If you are from a Free-Trade-Agreement country with Canada, there can be more options and less requirements for this ‘benefit’ as it’s a reciprocal arrangement between Canada and many other countries such as UK, USA, Mexico, Colombia, Peru, Australia, European countries, Korea, Japan and so on.
3rd Requirement:
* All funds/investments should be coming from the parent company – not the individual (applicant), shareholders or executives.
4th Requirement:
* The business account in Canada should be funded with a significant portion of the total investment (if less than $200,000 – then full amount to be in the bank account or already invested in operations). Again, here the Free-Trade-Agreement applicants would have more flexibility on these criteria.
5th Requirement:
* The new branch/subsidiary/JV should have a location of business inside Canada before an application is submitted (i.e. place of business – whether retail , or office lease agreement, or virtual shared office space yearly agreement, etc.).
6th Requirement:
* If the Canadian entity is not set up yet or operational, only 1 overseas applicant can transfer over with a work permit until 1 year of operations & a ratio of 30-40% foreign workers to Canadians is required.
7th Requirement:
* To renew your work permit after the first year under this program, applicant/company needs to show progress based on the business plan (not 100% of the plan needs to be implemented) and indicate an economic benefit to Canada as per point # 2.
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What are the red flags from the point of view of the IRCC officers under the ICT program?
* Operating company with no staff, and mainly capital funds trading (i.e. buying/selling) .
* Transferring over more foreign staff during the first year of setting up the branch/subsidiary/JV.
* No previous Canadian visit or business transactions, or logic behind setting up in Canada (i.e. if it appears to be an immigration scheme).
* Little or no significant economic benefit for Canada.
* Apply to transfer a key staff or executive from your overseas parent company who has not yet been on the payroll for a minimum of 1 year.
* Brand new overseas parent company with no prior financials or history.
* Parent company has no profits or positive or declared cash flow.
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1: Is this a Permanent Residency Program?
No. This program can be combined with other potential programs such as Express Entry or PNP based on applicant eligibility to apply for PR.
2: What is the minimum investment under this program?
No minimum investment amount exists for this program. However, each case is scrutinized by the IRCC to understand the significant benefit for Canada.
3: Can I receive a 2-3 year work permit upon the first application approval?
If the business is not yet operational, the first work permit will be issued for 1 year (renewable).
4: What happens if I don’t implement the business plan during the first year?
You may not receive a renewed work permit to remain in Canada.
5: Do I need to stay inside Canada for the entire time?
No. This is a Federal program with no residency requirements, unlike the Provincial programs. Depending on your long term plan, and whether you plan to apply for a PR, you should consult with our office.
6: Can you register a company remotely without visiting Canada and be a non-resident shareholder?
Yes. You can register provincial companies in 3 provinces in Canada, all remotely.
What are the processing times for ICT work permit applications?
* You can either wait for 4 to 6 months depending on the country where you are applying from, or
* Apply in person at the Canadian/USA border (also known as flag-poling) if you can visit Canada on a visitor visa or if you are from a visa-exempt country. This can take 2-5 hours at the border depending on the officer and how busy they are.
* The parent company also has the option to purchase/acquire an existing Canadian business in Canada as part of this program. It would be a significant benefit for both parties, and allow you to transfer over more staff and enter the Canadian market with less risk. This is a healthy option that we recommend if you have no prior experience or customers inside Canada.
* The parent company or headquarters overseas must continue to exist and be ‘operational’ for every year you would like to renew your work permit inside Canada.
* It’s possible to claim either 50 or 200 bonus points under this program for Express Entry after 12 months of consecutive payroll inside Canada. The 200 points are exclusive for executive-level positions (C-level) that have mid-level managers and at least 2 departments, with 5-7 staff at a minimum.
* Many countries have Free-Trade-Agreements in place with Canada which allow applicants to apply under the ICT without a requirement for a significant benefit for Canada, or the need to hire Canadians.
If you’re planning to immigrate to Canada and you’re looking for some guidance and support, you’re at the right place! We are licensed and we have successfully supported applicants from more than 47 nationalities in terms of studying in Canada, Working, Sponsorship, and Business Immigration. Get a FREE email assessment, click here.
1: Income statement report & balance sheet. If you do not declare your full income, then we would request a full audit by a CPA or CA firm in your country for immigration purposes.
2: The number of full time staff on your payroll.
3: Any dealings with Canadian customers or suppliers (if any).
4: The profiles of the applicants/executives whom you plan to transfer to the Canadian branch.
If you’re thinking about immigrating whether permanently or temporarily, through Skilled Immigration, LMIA-exempt work permits, Free Trade Agreements work permits, Study Visas, Investment, or Family sponsorship - you’re at the right place! Get a FREE email assessment, click here.
