About the "Canadian business" exemption of the residency oblication

[t-chan]

Hi,
I am a Canadian PR. I have a question about the "Canadian Business" excemption of the residency obligation.

My understanding is if you work for a Canadian business (defined by CIC) and if you are to go outside of Canada for the business, you are exempted for the obligation. (please correct me if I'm wrong at this point)

My question is, if you own your business here in Canada, and branch out to the US, and if you are to go to the US for the business, will you be exempted?

In a word, can you be a "employer" aka "Canadian Business" yourself and then an employee of you at the same time?

Technically for the business perspective, you can be an employee of your company for example, paying yourself salary and everything if I'm not mistaken, but can it be applied to this obligation exemption?

Thanks in advance.

 

[Leon]

From what I have heard, they are pretty strict about who qualifies under this exception. You can find some definitions here:

6.2. Canadian business
The definition applies to both large and small businesses and includes:
• federally or provincially incorporated businesses that have an ongoing operation in Canada;
• other enterprises that have an ongoing operation in Canada, are capable of generating
revenue, are carried out in anticipation of profit and in which a majority of voting or ownership interests is held by Canadian citizens, permanent residents or Canadian businesses; and
• enterprises which have been created by the laws of Canada or a province.
Note: It does not include businesses that have been created primarily for the purpose of allowing a permanent resident to satisfy their residency obligation while residing outside of Canada [R61(2)].

 

[t-chan]

Thanks for your reply.
Yes I have seen this definition.
From my understanding it is not that the business has to cover all the 3 definitions provided here, but has to cover at least one of them, am I correct?

I have opened up an business and it is "enterprises which have been created by the laws of Canada or a province." and I could say "other enterprises that have an ongoing operation in Canada, are capable of generating revenue, are carried out in anticipation of profit and in which a majority of voting or ownership interests is held by Canadian citizens, permanent residents or Canadian businesses"

I am planning to branch my business out to the US. I probably will spend more time in Canada than in the US but just in case when/if I am to stay in the US for a long period of time, I want to know the possibilities and restrictions.

Thanks

 

[toby]

Or, does anyone know a contact at CIC who could give a definitive answer?

 

[louisliem]

Hi
I am in the same situation. Have you got a definitive answer yet ?