Physical Presence - Opearating business overseas

[Rritu]

I am a Canadian permanent resident and planning to register a business (in Canada) as a sole proprietorship. The nature of business will require me to stay abroad for longer duration. Does it count towards my physical presence in Canada for renewal of my PR?

 

[scylla]

I am a Canadian permanent resident and planning to register a business (in Canada) as a sole proprietorship. The nature of business will require me to stay abroad for longer duration. Does it count towards my physical presence in Canada for renewal of my PR?

No - this won't count as physical presence in Canada. It will be counted as time outside of Canada.

CIC shut down this loop hole ages ago. If it was that easy, everyone would just register a business in Canada and then spend as much time as they want abroad.

 

[Rritu]

Ok! How about employment for a Canadian business but posted overseas? Does that count? What are the conditions?

 

[Leon]

It has to be a Canadian business that files taxes in Canada, is Canadian owned etc.

It has to be a full time position and you have to have been hired in Canada and then transferred overseas.

 

[dream16]

It has to be a Canadian business that files taxes in Canada, is Canadian owned etc.

It has to be a full time position and you have to have been hired in Canada and then transferred overseas.

1. Yes the business will be canadian (registered with BC or any other province)
2. If the company hires a canadian citizen full-time performing services within canada whereas the boss i.e. me in this scenario decide to continue to live abroad and PAY canadian taxes (of the canadian business) in canada inclusive of phone bills/leased space etc, then?
3. If i am my own boss of this IT Consulting Business Firm & paying all my canadian taxes despite physically residing outside of canada, does this meet canadian PR & Citizenship obligations?

 

[torontosm]

1. Yes the business will be canadian (registered with BC or any other province)
2. If the company hires a canadian citizen full-time performing services within canada whereas the boss i.e. me in this scenario decide to continue to live abroad and PAY canadian taxes (of the canadian business) in canada inclusive of phone bills/leased space etc, then?
3. If i am my own boss of this IT Consulting Business Firm & paying all my canadian taxes despite physically residing outside of canada, does this meet canadian PR & Citizenship obligations?

Taxes have nothing to do with it. As mentioned earlier, you must be residing in Canada to fulfill the residency obligation requirements (and definitely for citizenship). The only loophole for the PR RO is if you are hired by a Canadian company in Canada, and then are subsequently transferred overseas. Owning your own business will not count.

 

[zardoz]

1. Yes the business will be canadian (registered with BC or any other province)
2. If the company hires a canadian citizen full-time performing services within canada whereas the boss i.e. me in this scenario decide to continue to live abroad and PAY canadian taxes (of the canadian business) in canada inclusive of phone bills/leased space etc, then?
3. If i am my own boss of this IT Consulting Business Firm & paying all my canadian taxes despite physically residing outside of canada, does this meet canadian PR & Citizenship obligations?

You are completely wasting your time with this line of reasoning. It will NOT work. This has already been played out many times without success. CIC have got this loophole totally closed.

 

[scylla]

3. If i am my own boss of this IT Consulting Business Firm & paying all my canadian taxes despite physically residing outside of canada, does this meet canadian PR & Citizenship obligations?

No - it won't.

 

[Leon]

Agreed. They will see through it in a second that you started your own company in order to live overseas and still meet the RO. You can not work in your own company and even if you have a Canadian partner who starts the company in Canada, they would be highly suspicious of such a small company. You really can not get around this.

Apart from that, even if this were to work, you can never fulfill citizenship residency without physically being in Canada yourself, no matter who you work for. PR yes, citizenship no.

Here are some excerpts from OP10, CIC operational manual on PR residency requirements:

Page 16:

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)].

Page 25:

R61(1): Whether the employment abroad is being conducted on behalf of a provincial or federal government or a “Canadian business”.

R61(1)(a) Any corporation, whether federally or provincially incorporated, would satisfy the definition provided that the business has an ongoing operation in Canada.

A letter of declaration signed by an authorized officer of the “Canadian business” employer/ contractor that states the position and title of the signing officer and indicates the following:
 that the said business is incorporated under the laws of Canada or a particular province, as applicable;
 that the business has an ongoing operation in Canada;
 the nature of the business, length of time in operation in Canada and number of employees in Canada;
 details of the permanent resident’s assignment or contract abroad, such as: duration of the assignment; confirmation that the permanent resident is a full-time employee of the “Canadian business” working abroad on a full-time basis as a term of their employment, or that the person is on contract working on a full-time basis abroad as a term of their contract; or a description or copy of the position profile regarding the assignment or contract abroad;
 details about the nature of the relationship between the “Canadian business” and the business abroad indicating if it is to a position with the “Canadian business” office abroad, or with an affiliated enterprise, or a client;
 confirmation that the “Canadian business” has not been created primarily for the purpose of allowing a permanent resident to satisfy their residency obligation while residing outside of Canada.

Supporting documentary evidence, as applicable, may include the following: articles of incorporation; business licence; corporate annual reports; Canadian Income Tax Notice of Assessment; financial statements; copy of the employee assignment agreement or contract; or a copy of any agreement or arrangement between the “Canadian business” and the business or client abroad concerning the permanent resident’s assignment to that client or business.

Page 27:

R61(1)(b) An enterprise may be a legal entity other than a corporation. Examples include a proprietorship, partnership, joint-partnership, etc. Many small businesses and professional businesses such as law and engineering firms and some banks would be included in this category. Some banks and other financial institutions could also be described in R61(1)(a). In order to qualify under this definition, these businesses must also have an ongoing operation in Canada that is capable of generating revenue and is carried out in anticipation of profit. Canadian citizens, permanent residents or Canadian businesses must hold the majority of voting or ownership interests in the business.

A letter of declaration signed by an authorized officer of the “Canadian business” employer/ contractor that states the position and/or title of the signing officer and indicates the following:
 whether the said business is a proprietorship, partnership, joint partnership, etc., as applicable;
 the name, citizenship or residency status of the proprietor or, in the case of partnerships, of each partner;
 a breakdown of voting or ownership interests of each partner in the business;
 that the business has an ongoing operation in Canada;
 the nature of the business, length of time in operation in Canada, number of employees in Canada;
 details of the permanent resident’s assignment or contract abroad, such as duration of the assignment; confirmation that the permanent resident is a full-time employee of the “Canadian business” working abroad on a full-time basis as a term of their employment, or that the person is on contract working on a full-time basis abroad as a term of their contract; or a description or copy of the position profile regarding the assignment or contract abroad;
 details about the nature of the relationship between the “Canadian business” and the business abroad indicating if it is a position abroad with the “Canadian business’” office abroad, or with an affiliated enterprise or a client;
 confirmation that the “Canadian business” has not been created primarily for the purpose of allowing a permanent resident to satisfy their residency obligation while residing outside of Canada.
Supporting documentary evidence, as applicable, may include the following: partnership agreement; business licence; Canadian Income Tax Notice of Assessment for the business; financial statements; a copy of the employee assignment agreement or contract; or a copy of any agreement or arrangement between the “Canadian business” and the business or client abroad concerning the permanent resident’s assignment to that business or client.

Page 30:

R61(3): Whether the employment abroad is full-time and pursuant to an assignment or contract as a term of the applicant’s employment with the public service of Canada or of a province by a Canadian business as defined and provided for in R61(1).

The burden of proof rests with the applicant to provide information and evidence to satisfy an officer that their employment abroad is in compliance with the regulatory description of the R61(3)qualifying criteria for employment abroad and the R61(1) definition of a “Canadian business”. See definitions for “Employment outside of Canada” and “Canadian business” in section 6 above.

 A letter of declaration and supporting documentation from the Canadian government or “Canadian business” employer/contractor indicating compliance with the definitions and provisions of R61(1) and R61(3).
 Pay statements, Canadian Income Tax Notice of Assessment, T4 slips For further details, refer to the above guidelines for examining documentary evidence under R61(1)(a),(b) and (c).