Employer/Job Offer/LMIA

[bromac]

Hi,

I was wondering what conditions and constraints a company, an employer, have to satisfy in order to hire a foreign worker except to acquire LMIA (Labour Market Impact Assessment) and issue a job offer for that worker?

For example are there any other particular constraints, like for example the company needs to exist at least for a year, or the company has to make such and such profit for a certain period of time in order to be eligible to hire foreigners, etc?

I'm asking this because what stops a person to open a company today, on paper, submit for LMIA, gets it, and offers a job to a foreigner, while in reality the company is only "fictional", constituted literally yesterday and it hasn't shown that it actually functions properly as such?

So, can anyone point me to a direction or explain this to me.

Thank you.

 

[scylla]

Employer needs to provide the following info. Some of this will be impossible to do if the company is fake.

All employers must submit a copy of the following documents:

- Job offer (signed by the employer and the foreign worker);
- Proof of recruitment (e.g. copy of advertisement and information to support where, when and for how long the position was advertised);
- Business registration or legal incorporation documents (if first LMIA application);
- Provincial/territorial/municipal business licence (where applicable and if first LMIA application);
- Canada Revenue Agency (CRA) documents, including:
-- T4 Summary of Remuneration Paid (most current year ending)
-- PD7A Statement of Account for current source deductions (for 12-month period preceding LMIA application)
-- Schedules 100 and 125 - T2 Corporation Income Tax Return (for corporations only - 2 most recent returns filed)
-- T2125 Statement of Business or Professional Activities (for sole proprietorships/partnerships only – 2 most recent returns filed)
- Commercial lease agreement (if applicable)
- Provincial documentation requirements:
-- Alberta – Employment Agency Business Licence (Alberta’s Fair Trading Act), if applicable
-- British Columbia - Employment Agency Licence (British Columbia's Employment Standards Act), if applicable
-- Manitoba – Certificate of Registration (Manitoba’s Worker Recruitment and Protection Act)
-- Nova Scotia – Employer Registration Certificate (Labour Standards Code)
-- Saskatchewan - Employer Registration Certificate (The Foreign Worker Recruitment and Immigration Services Act) (no documentation required, however employers must be registered).

http://www.esdc.gc.ca/en/foreign_workers/hire/permanent/requirements.page

 

[bromac]

-- T4 Summary of Remuneration Paid (most current year ending)
-- PD7A Statement of Account for current source deductions (for 12-month period preceding LMIA application)
-- Schedules 100 and 125 - T2 Corporation Income Tax Return (for corporations only - 2 most recent returns filed)
-- T2125 Statement of Business or Professional Activities (for sole proprietorships/partnerships only – 2 most recent returns filed)

http://www.esdc.gc.ca/en/foreign_workers/hire/permanent/requirements.page

This is the crucial info. A company won't be able to provide these documents if it doesn't have at least one person on payroll, reasonable balance of finances, and some minimal tax return in the last 12 months. I mean it can, but if the company is only dormant (meaning no revenue, zero tax returns, no salaries, etc... it exists just on paper) the LMIA authority will most certainly NOT issue a positive LMIA, and without it the company will not be able to hire a foreign worker.

Excellent and super-fast answer. Thanks scylla.

 

[kemperguitar]

This is the crucial info. A company won't be able to provide these documents if it doesn't have at least one person on payroll, reasonable balance of finances, and some minimal tax return in the last 12 months. I mean it can, but if the company is only dormant (meaning no revenue, zero tax returns, no salaries, etc... it exists just on paper) the LMIA authority will most certainly NOT issue a positive LMIA, and without it the company will not be able to hire a foreign worker.

Excellent and super-fast answer. Thanks scylla.

This makes the whole thing work out only at big companies....
If you're hired by starting-up businesses, there's no chance.

The problem rises here....
Obviously, the most of job ads out there are from starting up companies.
Bigger companies hire on annual basis. Also, the bigger companies have less chance of helping you with documents like this.

I went to all kinds of companies but the bigger one you go, the less chance of you meeting someone who is in control of this kind of documents and procedure. Unless you majored in brain surgery or nuclear weapon science, they'll not help you with this.

 

[scylla]

Bigger companies hire on annual basis. Also, the bigger companies have less chance of helping you with documents like this.

No - they don't hire on an annual basis (whoever told you that doesn't know much about big companies in Canada). Hiring takes place fairly consistently throughout the year for many industries (e.g. all of financial services).

However I agree they are much less likely to be willing to go through the LMIA process - unless someone has very specialized experience or training that is difficult to source in Canada.

 

[kemperguitar]

No - they don't hire on an annual basis (whoever told you that doesn't know much about big companies in Canada). Hiring takes place fairly consistently throughout the year for many industries (e.g. all of financial services).

However I agree they are much less likely to be willing to go through the LMIA process - unless someone has very specialized experience or training that is difficult to source in Canada.

When you go to their recruitment meeting, the only person you can meet is their hiring manager who doesn't want to hear something like this from you.
If you say they can't hire you until a positive LMIA comes back in two months, they will not call you back tomorrow.

The best bet you can try is telling them you will work the first two months for free.

 

[PMM]

HI

When you go to their recruitment meeting, the only person you can meet is their hiring manager who doesn't want to hear something like this from you.
If you say they can't hire you until a positive LMIA comes back in two months, they will not call you back tomorrow.

The best bet you can try is telling them you will work the first two months for free.

1, Working illegally is not a good idea, can lead to removal
2. Also under provincial labour laws it is also illegal.

 

[kemperguitar]

HI

1, Working illegally is not a good idea, can lead to removal
2. Also under provincial labour laws it is also illegal.

I didn't say you will have to work illegally.

Not many employers are interested in doing LMIA which takes several months.
To make them interested in doing it, you can offer them two months of free works upon arrival of positive LMIA.
Otherwise, people will not be interested in unless your major is brain surgery or nuclear physics.

 

[scylla]

I didn't say you will have to work illegally.

Not many employers are interested in doing LMIA which takes several months.
To make them interested in doing it, you can offer them two months of free works upon arrival of positive LMIA.
Otherwise, people will not be interested in unless your major is brain surgery or nuclear physics.

What you are proposing is in fact illegal work.

It's still classified as working illegally even if you aren't being paid since it's the kind of job someone would normally be paid to do. You can only volunteer (i.e. work without being paid) legally if it's the kind of work someone would not normally be paid to do - for example, volunteer at a fundraising church rummage sale.

So a bad idea if you want a future in Canada.

 

[bromac]

This makes the whole thing work out only at big companies....
If you're hired by starting-up businesses, there's no chance.

So basically, as far as this argument goes, a Start-up is not eligible to hire foreigners unless it has a history of revenue, tax return, etc. for at least 12 months prior to LMIA application?

 

[bromac]

So what about the following scenario:

1. A foreigner creates a company in Canada (in some provinces a foreigner can open a corporation in Canada without the need to include Canadian(s) and he can act as a one-person corporation.)

2. CIC grants him a temporary visa to run his company on the basis of being owner/operator of that company.

3. The dude runs the company with profit and pays himself/herself a salary for a period of time (several months, half a year, or more).

Can he apply for PR and how?
He'll be submitting LMIA application for his own job he's already doing (owner/operator)?
He'll be given positive LMIA and he'll give himself a job offer for the job he's already doing?
Then he'll apply for PR via Express Entry gaining points with that job offer he's already doing?

It's a bit confusing, but I hope someone has some answers?

 

[scylla]

To run your company temporarily in Canada you need a work permit - which requires an LMIA. An LMIA won't be grated under these circumstances (CIC shut down these kinds of loop holes age ago). It's a non-starter.

If you want to immigrate through starting a company in Canada, you should look into the Start Up Visa:

http://www.cic.gc.ca/english/immigrate/business/start-up/index.asp

 

[bromac]

To run your company temporarily in Canada you need a work permit - which requires an LMIA. An LMIA won't be grated under these circumstances (CIC shut down these kinds of loop holes age ago). It's a non-starter.

If you want to immigrate through starting a company in Canada, you should look into the Start Up Visa:

http://www.cic.gc.ca/english/immigrate/business/start-up/index.asp

Understood. But anyways, a foreigner can undeniably start a company in Canada. It can be done entirely online (via agency), except opening a merchant bank account, which must be done in person, in the bank, by the founder. That can be done via visitor visa issued upon an invitation by the agency.

Having said that, if the physical presence of the founder is not required, he can run the company from anywhere in the world, as long as he pays taxes in Canada. But I don't see a legitimate reason for him to be denied a work permit to run his own, presumably profitable company in Canada which pays taxes in Canada.

Edit: The Start-up venue is aimed at individuals who have a profitable idea and need help in terms of resources and/or investment. I'm talking about full-blown self-sustaining company that doesn't need incubation nor investment.

 

[scylla]

Understood. But anyways, a foreigner can undeniably start a company in Canada. It can be done entirely online (via agency), except opening a merchant bank account, which must be done in person, in the bank, by the founder. That can be done via visitor visa issued upon an invitation by the agency.

Having said that, if the physical presence of the founder is not required, he can run the company from anywhere in the world, as long as he pays taxes in Canada. But I don't see a legitimate reason for him to be denied a work permit to run his own, presumably profitable company in Canada which pays taxes in Canada.

He can run the business from outside of Canada. The work permit to allow him to run his business from Canada is another matter. You can't apply for an LMIA for yourself.

 

[bromac]

He can run the business from outside of Canada. The work permit to allow him to run his business from Canada is another matter. You can't apply for an LMIA for yourself.

He won't be applying for LMIA for himself per se. The corporation (which by the law is an entity legally separate from the owners, founders, directors, etc.) will be applying for LMIA for that particular person.