[ESTABLISHING A BUSINESS ENTITY IN CANADA] 88
representatives or officials of other countries; and (iv) expert witnesses or investigators. Additional procedures apply to foreign workers who intend to work in many jurisdictions, notwithstanding that immigration is a matter of federal jurisdiction. It is an offence for Canadian employers to hire anyone who is not authorized to work in Canada. Canada has introduced a rigorous employer compliance program that requires employers to keep all documentation for a foreign worker on file for a minimum of 6 years. All employers who have foreign national employees with employer-specific work permits are subject to an inspection or employer compliance review. Employers may be selected randomly or based on a complaint. In December 2015, the government introduced a system of administrative monetary penalties (AMPs) and varying bans on employers in order to address employer non-compliance with the TFWP and IMP employee conditions. The AMPs range from $200 to $100,000 depending on the size of the employer, the severity of the violation and the number of previous violations. Employers may also be subject to a ban on hiring foreign workers for a limited or indefinite period of time, or a warning where justification for the non-compliance is accepted. In March 2023, the Ministry of Immigration, Refugees and Citizenship announced its intention to launch a new Federal Pathway called the Economic Mobility Pathways Pilot (EMPP). The EMPP is focused on connecting skilled refugees with potential Canadian employers. In order to apply, in addition to meeting admissibility requirements and being eligible for one of Canada's designated economic immigration programs, candidates must have one of the following: (a) a positive Refugee Status Determination from the UN
Refugee Agency or a refugee-hosting state; (b) evidence the person is registered or recorded as a person of concern by the UN Refugee Agency; (c) a refugee certificate from the United Nations Relief and Works Agency for Palestine in the Near East (UNRWA); (d) evidence of being registered or recorded as a person of concern with UNRWA; or (e) evidence of temporary protected status and a copy of the completed durable solution information form. In September 2024, the IRCC announced that it would be reducing the number of study permits issued to international students based on a 10% reduction from its initial 2024 target. Canada-US-Mexico Agreement Under CUSMA, which replaced NAFTA on July 1, 2020, citizens of Canada, the United States and Mexico can gain quicker and easier temporary entry into the three countries to conduct business-related activities or investments. All provisions are equally available to citizens of the three countries. Permanent residents of these countries who are not citizens are not covered by the CUSMA provisions. CUSMA applies to four specific categories: (i) business visitors, (ii) professionals, (iii) intra-company transferees and (iv) persons engaged in trade or investment activities, all of whom can apply to enter Canada on a work permit or as a business visitor without the need for a LMIA. CONCLUSION As can be seen from this summary review, although the commercial considerations involved in establishing and operating a business in Canada are substantially the same as in other jurisdictions, specific knowledge of the particularities of Canadian business law at the federal, provincial, and territorial levels is essential to carrying on that business successfully in the “Great White North.”
ILN Corporate Group – Establishing a Business Entity Series
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