[ESTABLISHING A BUSINESS ENTITY IN CANADA] 87
as well as to review transactions involving state-owned entities. With a heightened focus on national security considerations, Bill C-34, the National Security Review of Investments Modernization Act was passed in March 2024. The Act, which is anticipated to come into force in 2025 will require new pre-closing filings in certain "sensitive" sectors even if a transaction otherwise falls below the thresholds for mandatory net benefit review. A list of sensitive sectors will be established by yet to be published regulations accompanying the Act, but the new requirement is anticipated to apply to areas such as advanced materials and manufacturing, artificial intelligence, biotechnology, and energy generation, storage and transmission. As of August 2022, a foreign person which is not obliged to file under the Investment Canada Act national security rules may do so voluntarily to obtain regulatory certainty that the transaction will not be subsequently challenged, which the regulator has the authority to do for a period of 5 years following the closing date. Immigration The Immigration and Refugee Protection Act (IRPA) (Canada) permits a foreign national to apply for a work permit, if necessary, where they will be engaging in “work” in Canada. Work permits are assessed and issued under one of the following programs: 1. International Mobility Program (IMP); or 2. Temporary Foreign Worker Program (TFWP). The IMP allows for foreign nationals to apply for a work permit directly to Immigration, Refugees, and Citizenship Canada (IRCC). Most IMP work permit categories are based on reciprocity and multi/bilateral agreements with other countries, such as the Canada-U.S.-Mexico Agreement ("CUSMA"), which replaced the North American
Free Trade Agreement ("NAFTA"), and the General Agreement on Trade in Services . The IMP is primarily for high-skilled and high-wage occupations, but also includes work permits under the working holiday category. Work permits issued under an IMP category are usually employer-specific, although some categories allow for open work permits, including spousal work permits and post- graduate work permits, the latter two of which are expected to be curtailed by the IRCC starting in late 2024. All employer-specific work permits under the IMP require an Offer of Employment through an online employer portal prior to the submission of a work permit application. The Temporary Foreign Worker Program (TFWP) is managed by Employment and Social Development Canada (ESDC) and is based on employer demand to fill specific positions. Employers must demonstrate that they have made efforts to find a Canadian for the position before filing a Labour Market Impact Assessment (LMIA) application with ESDC to support the foreign national’s job offer. As it is an employer-driven process, an LMIA approval allows a foreign national to apply for an occupation and employer-specific work permit. Foreign nationals who require a visa to travel to Canada must file their work permit application at a visa post. Visa-exempt applicants may apply for their work permits at the port of entry. IRCC does allow limited categories of business visitors to work in Canada without a work permit, including, but not limited to: (i) some commercial speakers, seminar leaders and guest public speakers; (ii) some performing artists, athletes, sports officials, journalists, clergy and providers of emergency services; (iii) diplomats, consular officers and other
ILN Corporate Group – Establishing a Business Entity Series
Made with FlippingBook Ebook Creator