What does it mean that the business has to be active?

[albertj]

One of the requirements of LMIA application that the employer has to state it has been active for at least for 1 year, what does active mean exactly? Having a lot of transactions on the account, but it is OK they lead to zero or negative revenue?

 

[scylla]

One of the requirements of LMIA application that the employer has to state it has been active for at least for 1 year, what does active mean exactly? Having a lot of transactions on the account, but it is OK they lead to zero or negative revenue?

Active means generating revenue. Revenues should be positive.

 

[albertj]

Active means generating revenue. Revenues should be positive.

What amount? As long as it is even 1 dollar more than zero, it is called active?
It does not have to be ongoing transactions during the year? For instance, if they sell something at the beginning of the year or at the end of that, as long as it is more than their costs, they are called active?

 

[scylla]

What amount? As long as it is even 1 dollar more than zero, it is called active?
It does not have to be ongoing transactions during the year? For instance, if they sell something at the beginning of the year or at the end of that, as long as it is more than their costs, they are called active?

No - what you've described is not an active business.

 

[Buletruck]

It has to be a real business, with regularly occurring transactions. Sounds like the business you are describing was established solely for the purpose of getting you a LIMA. That won’t work, particularly if they have no Canadian employees and only want to hire you.

 

[albertj]

It has to be a real business, with regularly occurring transactions. Sounds like the business you are describing was established solely for the purpose of getting you a LIMA. That won’t work, particularly if they have no Canadian employees and only want to hire you.

No, this was only an example to find out the requirement. Scylla said the revenue has to be positive, and my example showed that that's not the case. Other requirements have to be satisfied. Of course, it has to be a real business.

I think your answer means if a business is established an has regular occurring transactions, it can be considered an active business even if the revenue is negative, right?

I am actually looking for a precise definition of an active business. Is there anything?

 

[albertj]

No - what you've described is not an active business.

But you said as long as the revenue is positive it is an active business. It looks like there are other requirements. Can you explain what the requirements are? Also, I think a business can be active but with negative revenue and there are millions of examples of real active businesses.