Hi, I am on a study permit and recently started a start-up company with a friend who is a Canadian citizen. Currently, he is the CEO of the company because he was doing the paperwork of registering it and now he is about to transfer the CEO position to me. I am not actively getting any salary or sth for becoming CEO neither my friend. We both have an equal amount of shares of the company. We plan to work on software projects in our free time hopefully we might end up with a product in 3 or 4 months. I was just concerned if what I am doing might violate my study permit terms and conditions in a way that someone might say CEO is full-time positions or when you worked on your software you spend more than 20 hours of the week. As I said I am not getting any salary but I am planning to work on our software. Please advise me on this.
Study permit and working as a CEO of my own new startup company
- Thread starter amex
- Start date
If you are getting paid for your work and you are working more than 20 hrs a week, that wouldn't be allowed.
Why register if you aren't going to make any money from it? What do you mean by register anyways - Incorporate?
Why register if you aren't going to make any money from it? What do you mean by register anyways - Incorporate?
Thanks for the reply, yes it is an Incorporate company. So we are working on software as a product of our company that hopefully we will sell in the future and we want to have a company name after our product for advertisement and other purposes. Currently, we are not being paid by anyone as we just work on our own so, I guess (from your answer) I am going to be fine, however in the future if we start making some money by selling the product and I wanted to have some of that we might reconsider all situation and probably adjust my work hours. Am I right?
Yeah I would seek tax advice cause if you incorporate you have to file corporate taxes and they will need the director's/shareholder's info. The other consideration you should have is to look into the rules of your own country to see what the obligations are for reporting foreign assets/shares (being your Canadian business). IMO, Incorporating sounds glamorous but until you have a minimally viable product I would avoid it as there are a lot of requirements with corporations Canada, the CRA etc.Thanks for the reply, yes it is an Incorporate company. So we are working on software as a product of our company that hopefully we will sell in the future and we want to have a company name after our product for advertisement and other purposes. Currently, we are not being paid by anyone as we just work on our own so, I guess (from your answer) I am going to be fine, however in the future if we start making some money by selling the product and I wanted to have some of that we might reconsider all situation and probably adjust my work hours. Am I right?
Also, on the title thing lose the CEO bit. No one cares about title. It is just vanity. Why don't each of you call yourselves Director or Partner? Once you actually have something to market you can change your title but until then it just draws raised eyebrows.Hi, I am on a study permit and recently started a start-up company with a friend who is a Canadian citizen. Currently, he is the CEO of the company because he was doing the paperwork of registering it and now he is about to transfer the CEO position to me. I am not actively getting any salary or sth for becoming CEO neither my friend. We both have an equal amount of shares of the company. We plan to work on software projects in our free time hopefully we might end up with a product in 3 or 4 months. I was just concerned if what I am doing might violate my study permit terms and conditions in a way that someone might say CEO is full-time positions or when you worked on your software you spend more than 20 hours of the week. As I said I am not getting any salary but I am planning to work on our software. Please advise me on this.
Disagree with the previous advice. Even if you aren't getting paid it will be considered work hours. don't believe you can be the owner of a business and will need to remain an employee. You can still carry on your role but without changing the structure of your company. You'll need to track your hours and I'd keep a detailed record of your daily hours because start-ups aren't known for short hours. If every asked you can show your record of the hours you worked. Doesn't provide concrete proof but shows that you were aware of the 20 hour limitation.Hi, I am on a study permit and recently started a start-up company with a friend who is a Canadian citizen. Currently, he is the CEO of the company because he was doing the paperwork of registering it and now he is about to transfer the CEO position to me. I am not actively getting any salary or sth for becoming CEO neither my friend. We both have an equal amount of shares of the company. We plan to work on software projects in our free time hopefully we might end up with a product in 3 or 4 months. I was just concerned if what I am doing might violate my study permit terms and conditions in a way that someone might say CEO is full-time positions or when you worked on your software you spend more than 20 hours of the week. As I said I am not getting any salary but I am planning to work on our software. Please advise me on this.
But there are few CEO's in a startup who work fewer hours than other employees, shareholder's etc. Why draw attention to yourself by calling yourself a CEO when no one could care apart from yourself.Disagree with the previous advice. Even if you aren't getting paid it will be considered work hours. don't believe you can be the owner of a business and will need to remain an employee. You can still carry on your role but without changing the structure of your company. You'll need to track your hours and I'd keep a detailed record of your daily hours because start-ups aren't known for short hours. If every asked you can show your record of the hours you worked. Doesn't provide concrete proof but shows that you were aware of the 20 hour limitation.
Agreed about keeping track of your hours, that could help I guess.
If a student volunteers for 20 hours is that considered work? Because I was under the impression that was allowable.
But CEO's of companies where they are also shareholder's in the company don't volunteer ... if you get my drift.
If others can get paid for the volunteer work you do it is considered work.But there are few CEO's in a startup who work fewer hours than other employees, shareholder's etc. Why draw attention to yourself by calling yourself a CEO when no one could care apart from yourself.
Agreed about keeping track of your hours, that could help I guess.
If a student volunteers for 20 hours is that considered work? Because I was under the impression that was allowable.
But CEO's of companies where they are also shareholder's in the company don't volunteer ... if you get my drift.
But if you are not being paid, show no revenue or ITC offsets on your corporate returns, file your taxes on time, log your hours I don't see why this would not be allowed. But I would seek tax advice and immigration advice before venturing into the world of incorporation and all the headaches it brings. To me, you would be better to get your software to a viable commercial product before incorporating. Until then just few it as a hobby. You aren't pitching it or selling it to anyone yet because it doesn't even exist.If others can get paid for the volunteer work you do it is considered work.
Like If I decide to take 30 hours of my week to knit 100 mittens and I'm not selling them this is not work hours. It's a hobby.