For aspiring immigrants, Canada offers promising opportunities even if you are self-employed. Many economic immigration streams require proof of at least one year’s worth of work experience. The Immigration, Refugees, and Citizenship Canada (IRCC) assess candidates’ work experience based on the National Occupational Classification (NOC) system, which determines eligibility for specific immigration programs.
If you intend to apply under a skilled worker program, your overseas self-employed work experience may count towards meeting the program’s eligibility criteria. IRCC accepts various forms of evidence to verify your self-employment, such as articles of incorporation, income records, and documentation from third parties confirming your services and payments.
Alternatively, if you wish to pursue Canadian immigration through a dedicated self-employed program, several options are available to you.
1. The Federal Self-Employed Persons Program
The Federal Self-Employed Persons Program allows eligible foreign nationals with relevant experience in cultural activities or athletics to become permanent residents in Canada. Candidates must demonstrate their ability and intention to make a “significant contribution” to Canada’s cultural life or sports.
Eligibility for this program requires a minimum of two years of self-employment or participation in cultural or athletic activities at a world-class level, as defined by IRCC. Candidates are evaluated based on a points grid, where factors such as language proficiency, education, age, experience, and adaptability contribute to a minimum cutoff score of 35.
2. Quebec’s Self-Employed Worker Immigration Program
The Quebec Self-Employed Worker Program offers eligible individuals the opportunity to attain permanent residence by establishing themselves as independent tradespeople or professionals within the province.
In addition to meeting program requirements, self-employed workers must fulfill specific criteria set by the Quebec government, including choosing their means of work performance, organizing the work, providing necessary tools and equipment, carrying out specialized duties, and assuming the risks of profits and losses resulting from their work.
Applicants must be at least 18 years old, and self-employed workers in Montreal must deposit a start-up amount of $50,000 or more at a local financial institution, while those outside Montreal must deposit at least $25,000. The selection grid for the program evaluates candidates on factors such as education, professional experience, language proficiency in English and French, family connections in Quebec, age, financial self-sufficiency, deposit amount, and financial resources.
3. Physician Self-Employment
To facilitate the entry of doctors to Canada, IRCC the Government of Canada eased eligibility requirements for physicians. Some doctors faced barriers to accessing permanent residence through Express Entry programs due to the “fee-for-service” model used in Canada’s healthcare sector, which differed from the traditional employer-employee model. Consequently, some physicians were categorized as self-employed and unable to meet the immigration streams’ eligibility criteria.
In September 2022, IRCC announced that physicians working in a fee-for-service model would be exempt from certain requirements, granting them access to Canada’s economic permanent residence programs. This change enables more physicians to fill critical job vacancies in Canada’s healthcare sector and settle in the country permanently.
4. Work Permit Options for Self-Employed Individuals
Many self-employed individuals initially enter Canada with a temporary work permit. Gaining work experience in Canada can be advantageous for future applications for Canadian permanent residency, as many economic immigration programs require this experience.
Various options are available for self-employed individuals to obtain work permits. For entrepreneurs who are the sole or majority owners of a Canadian business or whose business owners do not have a primary residence outside Canada, a self-employed work permit may be exempt from the Labour Market Impact Assessment (LMIA). Applicants must demonstrate that their business will significantly benefit Canada.
Under the Canada-United States-Mexico Agreement (CUSMA), citizens of the US or Mexico investing in new or existing Canadian businesses may apply for Investor work permits to manage their Canadian businesses. Similarly, citizens of European member states under the Comprehensive Economic and Trade Agreement may also be eligible for Investor work permits.
Additionally, the Intra-Company Transfer work permit, commonly used by corporations to transfer key staff between branches, may also suit entrepreneurs wishing to start a new business in Canada. Applicants must demonstrate their company’s ability to establish itself in Canada.
5. Tax Implications of Being Self-Employed
Self-employed individuals in Canada have specific tax obligations. While regular income taxes are due by April 30th of the previous year, self-employed individuals have until June 15th to file their taxes. On their tax returns, they must report income from any business they operate with themselves or their partner.
If revenue exceeds $30,000 in one calendar quarter or over the last four consecutive calendar quarters, self-employed individuals must register for GST/HST.
Form T2125, the Statement of Business or Professional Activities, must be completed in addition to the T1 General to report self-employed income. This form also allows self-employed individuals to deduct allowable expenses from their gross income, reducing their taxable income and overall income tax liability.
Several immigration streams and work permit options cater to self-employed individuals, offering a pathway to permanent residency in this promising and diverse country. By considering these implications and seeking the necessary documentation and evidence, you can embark on a successful journey to make Canada your new home.
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