refugees and employment

[wowreally]

Hello, i am a refugee residing in Montreal,Quebec since December of 2018, i am looking to get into e-commerce as a self employed entrepreneur and subsequently running my own business. some people tell me it is illegal for a refugee to own a business with the 4 years brown paper like myself unless after a hearing and permanent residency is granted. Please i will like to know how to go about this in every way possible;suggestions,recommendations,opinions,criticisms on the path will be very appreciated. Thank you

 

[jddd]

To legally start a business in Canada as an individual, you need to be a Canadian citizen or a permanent resident.

Starting a Business in Canada and Living in Canada
To start a business in Canada and live in Canada, you must become a permanent resident. Permanent residents, also known as landed immigrants, are allowed to legally start businesses in Canada.


To become a permanent resident, you will need to apply to immigrate to Canada. There are several different types of immigration that you may be able to apply for:

• Immigration to Canada under Canada's Start-Up Visa for Entrepreneur Immigrants
• Immigration to Canada as a self-employed person

taken from https://www.thebalancesmb.com/start-business-work-permit-2948584

 

[Fawaz__]

I'm in Ontario. But, I'm also interested in knowing the answer to the OP's question.

I don't think the answer is simply you can't start a business unless you're a Canadian citizen or a permanent resident. There are different types of businesses. Like, sole proprietorship, partnership, and corporation.

As for sole proprietorship, my understanding is that, it covers self-employment including independent contractors. I know international students who work as drivers for Uber, UberEats, and SkipTheDishes. They're not employees. They're self-employed independent contractors. I myself worked for Uber as driver when I was student on study permit and filed my taxes last year with no problem.

As for corporation, my understanding is, to register a corporation in Ontario, at least %25 of the directors - not necessary owners - must be resident Canadian. If the number of directors is 3 of less, at least one director must be resident Canadian.

So, I think you might start as self-employed in e-commerce under your name. Then, when you get the PR, register a corporation.

Visit the page on the link below, and find out the laws related to Quebec.

Sole proprietorship, partnership, corporation or co-operative?

 

[lknd3]

My two cents: (could be wrong):
-Working for Uber or others still counts as employment, in my calls to IRCC they specify that any form of income in Canada (other than grants or stipends, ... ) counts as work and requires you to have a valid work permit or in case of students a study permit which allows you to work (up to 20 hrs a week I think, if you go over that then you are in breach of your permit conditions, whether you get caught or not is a different story)
-I think you can legally start a business if you have an open work permit which you are eligible for as a claimant

Work is any activity that:

• you are paid to do, or
• you are not paid to do but is a job that:
  • you would usually be paid for, or
  • would be a valuable work experience for a Canadian citizen or permanent resident (for example, an unpaid intern).

Pay includes money or commission:

• an employer gives you,
• you receive for a service, or
• you receive for any other activity.

http://www.cic.gc.ca/english/helpcentre/answer.asp?qnum=1288&top=17

You can also use the link in the bottom of the page to know if you need a work permit or not.

 

[canuck78]

The status of refugees and protected people is not the same as having PR. People used to receive PR quite quickly but that is no longer the case. It is important to look at the rules for the specific class of immigration.

 

[Fawaz__]

I asked my immigration consultant today, if I as a refugee (protected) or refugee claimant can establish a corporation without a PR. He said, yes you can. He even called an accountant who register corporations for fees, and he also said yes you can.

EDIT:

The answer I got from my consultant in conflict with the Business Corporations Act of Ontario which can be found here: https://www.ontario.ca/laws/statute/90b16
He might didn't get that I want to establish and direct this small company.

This is for Ontario. However, other provinces might not have restrictions on the directors residency. As I quoted from the page on https://www.canadianbusinessresources.ca/resident-canadian-requirement-directors-ontario-companies/

On the other hand, not all provinces and territories have the same rules. In British Columbia the Business Corporations Act (British Columbia) does not provide for a residency requirement. Therefore a non-Canadian or a Canadian citizen not living in Canada may be the sole director of a BC company. This is good news for those Canadians who wish to conduct business in Canada but also wish to live outside of Canada. As well, foreign individuals are able to set up BC companies and act as the sole director of those companies since there is no requirement for them to live in Canada.

 

[canuck78]

I asked my immigration consultant today, if I as a refugee (protected) or refugee claimant can establish a corporation without a PR. He said, yes you can. He even called an accountant who register corporations for fees, and he also said yes you can.

Still don't believe that especially a refugee claimant can establish a Canadian business.

 

[Fawaz__]

Still don't believe that especially a refugee claimant can establish a Canadian business.

I edited my reply. But, those residency restrictions for the directors are in Ontario. In other provinces, like BC, a foreigner can establish a Canadian business and be the sole director without even living in Canada. As in the quoted part in my reply above. I didn't find any special restriction on refugee claimants specifically to not open a business anywhere in Canada. Especially if the refugee claimant has a work permit.

There is a legal separation between the ownership of the business and actually working in the business.

 

[Fawaz__]

My two cents: (could be wrong):
-Working for Uber or others still counts as employment,

If you mean by employment as self-employment, then yes. Those companies make it clear that drivers are not employees. In my phone interview with SkipTheDishes, the interviewer made it clear to me that I'm not an employee, but an independent contractor. There are lawsuits against those companies to consider drivers as employees.

 

[Nyathira]

I asked my immigration consultant today, if I as a refugee (protected) or refugee claimant can establish a corporation without a PR. He said, yes you can. He even called an accountant who register corporations for fees, and he also said yes you can.

EDIT:

The answer I got from my consultant in conflict with the Business Corporations Act of Ontario which can be found here: https://www.ontario.ca/laws/statute/90b16
He might didn't get that I want to establish and direct this small company.

This is for Ontario. However, other provinces might not have restrictions on the directors residency. As I quoted from the page on https://www.canadianbusinessresources.ca/resident-canadian-requirement-directors-ontario-companies/

hi i am a claimant in BC i have a workpermit can you please send me a link on me starting a business in bc iwould love to know where i should start.