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PR Obligation

NeoJ

Star Member
May 6, 2020
67
0
Can I start my own company in Canada and hire myself to work overseas to satisfy the PR residency obligations?
 

scylla

VIP Member
Jun 8, 2010
95,833
22,109
Toronto
Category........
Visa Office......
Buffalo
Job Offer........
Pre-Assessed..
App. Filed.......
28-05-2010
AOR Received.
19-08-2010
File Transfer...
28-06-2010
Passport Req..
01-10-2010
VISA ISSUED...
05-10-2010
LANDED..........
05-10-2010
Can I start my own company in Canada and hire myself to work overseas to satisfy the PR residency obligations?
No - won't work.
 

scylla

VIP Member
Jun 8, 2010
95,833
22,109
Toronto
Category........
Visa Office......
Buffalo
Job Offer........
Pre-Assessed..
App. Filed.......
28-05-2010
AOR Received.
19-08-2010
File Transfer...
28-06-2010
Passport Req..
01-10-2010
VISA ISSUED...
05-10-2010
LANDED..........
05-10-2010
it is going to be legitimate business with real revenue income.
Doesn't matter. This won't meet the criteria to claim time outside of Canada for PR.

If you want to claim time, you would first need to be hired for a role within Canada by a company that has established operations in Canada, including established staff, revenue, and tax filings in Canada. At a later date, you would need to be transferred temporarily by that same company to a role outside of Canada.
 
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canuck78

VIP Member
Jun 18, 2017
55,587
13,518
Doesn't matter. This won't meet the criteria to claim time outside of Canada for PR.

If you want to claim time, you would first need to be hired for a role within Canada by a company that has established operations in Canada, including established staff, revenue, and tax filings in Canada. At a later date, you would need to be transferred temporarily by that same company to a role outside of Canada.
On top of that they role abroad needs to be temporary.
 
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dpenabill

VIP Member
Apr 2, 2010
6,435
3,182
Can I start my own company in Canada and hire myself to work overseas to satisfy the PR residency obligations?
it is going to be legitimate business with real revenue income.
Practically speaking, the chorus of "no" by others is the answer to your queries. This deserves emphasis, as a practical matter, as the others have answered, and count me in the chorus: "NO."

That said . . . just looking at IRCC information about the Residency Obligation, and where it says a PR "may" count days outside Canada when working for a Canadian business, many have been confused if not deceived about what is actually required. And even among those who drill into more detail about what will count, quite a few see scenarios that will meet the requirements, allowing them to get this credit, most of which will not qualify for the credit.

So your query, and what it appears was your impression, is rather common. And there are some very similar cases seen in officially published decisions . . . but, to be clear, RO credit was denied.

So if you are not convinced (as you may be tempted to be, as it is not the answer you hoped for) by the chorus of "no" so far here, I will offer the longer explanation.

The Longer Explanation:

Technically it may appear to be possible, particularly if one is relying on IRCC FAQ information or even the more detailed description of qualifying for credit toward meeting the Residency Obligation in "Situation A. Employment outside Canada" set out in the appendix to the guide for PR card and PR TD applications, that is in particular in Appendix A: Residency Obligation.

Because the information provided by IRCC appears to indicate this is possible, and the IRRC information otherwise fails to clearly communicate the limitations imposed on the working-outside-Canada credit, many approach this as a puzzle to be solved:
how to set up a business that will allow me to get RO credit while I am outside Canada?

Spoiler alert: If a business is set up to allow the PR to get credit while outside Canada, that automatically, conclusively disqualifies the business. (This is directly prescribed by regulation.)

And if we are being honest, for many that leads to the question:
how to set up business that will allow me to get RO credit while I am outside Canada but will not look like it is set up to do that?

IRCC often sees through this, but many times does not deny the credit explicitly on the grounds that, as the regulation, section 61(2) IRPR, states:
"For greater certainty, a Canadian business does not include a business that serves primarily to allow a permanent resident to comply with their residency obligation while residing outside Canada."
but, rather, IRCC more thoroughly screens the case and finds other grounds for denying credit. @canuck78 identified one of the more common issues IRCC focuses on, the extent to which the assignment outside Canada is temporary.

Meanwhile, much of the perception that doing this is possible relies on the IRCC information which in one way or another says "a PR may" be able to count days outside Canada when in the employ of a Canadian business. However . . .

CAUTION/BEWARE . . . the way IRCC employs the term "may" in the FAQ, and the guide appendix, does not mean a PR will be allowed to count these days outside Canada, but rather that a PR might be able to count these days . . . without overtly acknowledging that credit will be allowed only within some narrow and tough, strictly interpreted and strictly applied limitations.


Bottom-line is the general failure, to extend the time a PR can be outside Canada, of efforts based on the working for a Canadian business exception to the obligation to be IN Canada.
 

YVR123

VIP Member
Jul 27, 2017
7,407
2,883
Doesn't matter. This won't meet the criteria to claim time outside of Canada for PR.

If you want to claim time, you would first need to be hired for a role within Canada by a company that has established operations in Canada, including established staff, revenue, and tax filings in Canada. At a later date, you would need to be transferred temporarily by that same company to a role outside of Canada.
Agree. By the time OP setup this company, established the operation, worked at that company for a period of time and have all the requirements needed, he/she may be able to apply for citizenship.