INTRA COMPANY TRANSFER (ITC)

HOW TO EXPAND YOUR BUSINESS TO CANADA

The immigration system of Canada offers several options for business immigration. One of these is the Intra Company Transfer (ICT) program, which is ideal for foreign business owners seeking to grow their current operations in Canada. This article will provide you with comprehensive information on the ICT program, such as its eligibility criteria, benefits, how to apply, and opportunities for transitioning to permanent residency.

The concept of Intra Company Transfer (ICT):

ICT refers to a program within the International Mobility Program that enables eligible foreign business owners to transfer their operations to Canada and obtain a work permit. With an ICT Work Permit, you can eventually apply for permanent residence (PR) in Canada. Moreover, your spouse may receive an open work permit, and your children can obtain study permits.

Who can apply for  Intra Company Transfer (ICT):

The ICT program is designed to encourage established companies worldwide to expand their operations to Canada. The program is open to three groups of individuals:

• Business owners, entrepreneurs, and shareholders of successful companies who hold executive positions and intend to perform similar duties in Canada.

• Senior managers and functional managers who are presently employed by a foreign company and intend to hold a comparable role in Canada.

• Key employees of a business with advanced specialized knowledge that is unique or uncommon.

To obtain a work permit under the ICT program, individuals in these positions must satisfy additional criteria, as outlined below.

Intra Company Transfer Canada Requirements:

Entrepreneurs who have successful businesses in their home countries can apply for the ICT Work Permit to expand their business to Canada. To obtain a work permit under the ICT program, entrepreneurs must meet several additional requirements, including:

• The home company must be operational for at least 12 months, ideally for at least 3 years, before expanding to Canada.

• The home company must be financially stable and capable of supporting foreign operations in Canada.

• The applicant seeking an ICT Work Permit must have been employed or engaged with the home company for at least 12 months in the past three years before the immigration application.

• The home company must be related to the Canadian company as a parent, subsidiary, or affiliate.

• Canadian operations must be a viable enterprise and result in job creation for Canadians.

If it is the initial expansion of a foreign company to Canada, immigration officers will also verify the following:

• Is there a sound business plan demonstrating that Canadian operations can generate sufficient revenue to cover its expenses and compensate its employees?

• Will this expansion result in job creation for Canadians?

• Will the company be large enough to require an executive or a manager in Canada?

Therefore, for companies expanding to Canada for the first time, it is critical to present a strong business case and explain the rationale for expansion, in addition to meeting basic eligibility criteria for the ICT program.

Please Note: 

The Canadian government does not specify any minimum investment amounts for companies expanding to Canada. However, the companies must have sufficient financial resources to support their new operations in Canada and hire local staff.

Based on our experience, companies must demonstrate solid gross sales of over $250,000 annually and have access to liquid funds of at least $100,000 to cover the first year's operational costs. In addition to the initial investment capital, applicants should also demonstrate access to additional funds or assets to support the business in Canada if it does not become self-sufficient by the end of the first year.

How to Apply for Intra Company Transfer Work Permit?

To apply for the ICT Work Permit in Canada, applicants must first confirm their eligibility for the program and develop a solid strategy to present their case to Canadian immigration authorities. Applicants must also collect strong evidence to support their immigration application and provide detailed explanations on how they meet the eligibility criteria and why their presence in Canada is required.

For the initial ICT application, follow these steps:

• Step 1: Register your company in Canada as a parent, subsidiary or affiliate of your home company.

• Step 2: Prepare a business plan outlining the proposed business activity, market research, hiring plan, and cash flow projections for at least 2-3 years in accordance with industry standards.

• Step 3: Collect all the required documents (such as bank statements, articles of incorporation, evidence of investment funds, etc.) and prepare your work permit application.

• Step 4: Submit your work permit application and wait for the decision.

Please Note:

It is essential to note that the process may vary depending on the applicant's nationality. Some countries have agreements with Canada, which allows their citizens a more lenient immigration journey under the ICT program. In some cases, citizens of visa-exempt countries may apply for the ICT Work Permit at the port of entry (POE).

Processing time for the ICT Work Permit applications

The processing time for the ICT Work Permit applications typically follows standard processing times, which can be verified on the IRCC's website for the applicant's specific country.

Based on our experience, the average processing times for some of the specific offices around the world are as follows:

Ankara Office: 6+ months

New Delhi Office: 3-6 months

Abu Dhabi Office: 6+ months

Ho Chi Minh City: 3+ months

Please Note :

It is crucial to note that ICT applications for executives and managerial staff are often processed by the CPC-Edmonton office in Canada, which uses a case processing technology called "Chinook" and delivers decisions in an expedited manner. If the application is sent to the CPC-Edmonton office, it is likely that a decision will be made in 1-2 months. However, in our experience, the rejection rates from the CPC-Edmonton office are usually higher than other offices. Therefore, it may be wise to consult an immigration consultants to strategize where to submit the application.

Duration of ICT Work Permits: 

The duration of ICT Work Permits is usually 1-2 years, except for individuals employed by start-up companies, who receive a 1-year WP. Some nationals from visa-exempt countries may receive a 3-year WP. The WP can be extended for an additional 2-3 years, allowing for a maximum of 5 years for specialized knowledge workers and 7 years for executives and managers.

However, for individuals employed by newly established companies in Canada, immigration officers may issue WP for only 1 year. US nationals and other citizens from visa-exempt countries such as Australia, UK, EU, Japan, etc., may benefit from their countries' Free Trade Agreements with Canada and receive a 3-year ICT Work Permit.

Under the program, it is possible to obtain a Work Permit through a Labour Market Impact Assessment (LMIA) exemption (C12). However, in some cases, an LMIA may be required.

Canada ICT to Permanent Residency Transition

After one year of full-time employment for the Canadian company, the foreign national may become eligible to apply for PR through the Express Entry program. Depending on the employment role, the foreign national may be eligible to receive 50 or 200 additional points for an arranged employment (job offer) from their own business in Canada.

This normally results in a significant increase in their Comprehensive Ranking System (CRS) score, which can lead to the selection under the FWS category of the EE stream and an invitation to apply for PR from the immigration authorities.

Other strategies to transition to permanent residence may depend on the individual's background, duties, and location of employment in Canada. It is important to consult with an immigration  consultant or advisor to determine the best strategy for your specific circumstances. They can provide guidance on additional options such as the Provincial Nominee Programs or the Quebec Experience Class.

Intra Company Transfer Canada and International Free Trade Agreements:

Canada has entered into several international agreements that provide special benefits for certain countries under the Treaty ICT applications. Nationals of the following countries can use Treaty ICT regulations:

• United States (CUSMA)

• Mexico (CUSMA)

• Chile

• Colombia

• Peru

• Korea

• European Union (CETA)

• Australia (CPTPP)

• Japan (CPTPP)

• Mexico (CPTPP)

• New Zealand (CPTPP)

These agreements offer a more lenient immigration process for citizens of these countries under the ICT program, providing them with faster processing times, reduced paperwork, and other benefits. It is important to consult with an immigration Consultants to determine eligibility for these agreements and how to take advantage of their benefits.

Important Notes when applying for ITC

When applying for ICT work permits in Canada, it is important to focus on providing sufficient evidence to support the application and developing a solid business case for the company in Canada. Here are two essential tips to improve your chances of obtaining a positive decision:

• Focus on evidence: Provide all necessary documents to the immigration officer with your ICT work permit application, including evidence of the foreign company's active engagement in business and company ownership documents. However, be careful not to include too many unnecessary documents that may confuse the officer. Effective organization of your documents is crucial to make it easy for the officer to process your application.

• Make a solid business case for your company in Canada: If it is a start-up ICT application, include a well-developed business plan that has key components about your business, market entry strategy, and feasibility assessments. It is important to work with an immigration lawyer or advisor who has experience with ICT applications to develop the business plan. Avoid outsourcing the business plan to non-immigration professionals who may not understand your immigration strategy and application. Careful review of the business plan is essential to ensure it aligns with your legal submissions and overall immigration and business strategy.

By following these tips, you can improve your chances of obtaining a positive decision when applying for an ICT work permit in Canada.

FAQ

"Frequently Asked Questions"

1. "What are the procedures our company needs to initiate to apply for the Intra Company Transfer (ICT) program?

To initiate the process of applying for an Intra Company Transfer (ICT) Work Permit in Canada, your company needs to follow these general procedures:

• Confirm eligibility: Determine if your company meets the eligibility requirements for the ICT program. The program is open to business owners, entrepreneurs, shareholders, senior managers, functional managers, and key employees of a business with advanced specialized knowledge. You will need to ensure that your company meets the eligibility criteria outlined in the ICT program and any additional criteria that may apply.

• Develop a business plan: Prepare a business plan outlining the proposed business activity, market research, hiring plan, and cash flow projections for at least 2-3 years in accordance with industry standards. The business plan should also include detailed information on how the expansion of your company to Canada will result in job creation for Canadians.

• Register your company in Canada: Register your company in Canada as a parent, subsidiary, or affiliate of your home company. This will establish your company's legal presence in Canada and allow you to apply for an ICT Work Permit.

• Collect documents: Collect all the required documents (such as bank statements, articles of incorporation, evidence of investment funds, etc.) and prepare your work permit application.

• Submit your application: Submit your work permit application and wait for the decision.

It is important to note that the process may vary depending on the applicant's nationality, and some countries have agreements with Canada that allow their citizens a more lenient immigration journey under the ICT program. Additionally, it is crucial to provide sufficient evidence to support the application and develop a solid business case for the company in Canada.

2. how many people are allowed to immigrate under this scheme? 

• The Intra Company Transfer (ICT) program does not have a specific limit on the number of people who can immigrate under this scheme. However, the program is designed to encourage established companies worldwide to expand their operations to Canada, so the eligibility criteria for the program are stringent, and only certain individuals may qualify.

• To obtain a work permit under the ICT program, the applicant must satisfy additional criteria, as outlined in the program requirements. These requirements include being a business owner, entrepreneur, shareholder, senior manager, functional manager, or key employee of a business with advanced specialized knowledge. Additionally, the applicant must have been employed or engaged with the home company for at least 12 months in the past three years before the immigration application.

• It is also worth noting that the approval of the work permit is at the discretion of the Canadian immigration authorities, who will consider various factors, such as the viability of the Canadian enterprise, job creation for Canadians, and the potential benefits of the proposed expansion to Canada.

Therefore, the number of people who can immigrate under the ICT program will depend on various factors such as the size of the company, the positions that need to be filled, and the company's ability to meet the eligibility criteria and provide a compelling business case for expansion to Canada.

3. Can siblings and parents apply for a work permit under the Intra Company Transfer (ICT) program in Canada? 

• If a parent or sibling of an eligible foreign business owner, senior manager, functional manager, or key employee with advanced specialized knowledge also holds a qualifying position in the same company, they may be eligible to obtain a work permit under the Intra Company Transfer (ICT) program.

• However, it is important to note that the program is primarily designed for eligible individuals to transfer their operations to Canada and expand their business in the country. Therefore, the eligibility of a family member to obtain a work permit under the ICT program will depend on several factors, such as the position they hold in the company, their qualifications, and their ability to meet the program's eligibility criteria.

• Additionally, the Canadian immigration authorities will carefully review each application and assess whether the family member's position in the company is genuine and not created solely for immigration purposes. The authorities will also consider whether the proposed expansion of the company in Canada will result in job creation for Canadians and the potential benefits of the expansion to Canada. 

4. How is eligibility determined for the Intra Company Transfer program? 

• The eligibility for the Intra Company Transfer (ICT) program is determined based on several criteria, including the position of the applicant in the foreign company, the relationship between the foreign company and the Canadian company, and the viability of the proposed expansion to Canada. Here are the key factors that determine eligibility for the ICT program:

1. Position in the foreign company: The ICT program is open to business owners, entrepreneurs, shareholders, senior managers, functional managers, and key employees of a business with advanced specialized knowledge. To obtain a work permit under the ICT program, the applicant must have been employed or engaged with the foreign company for at least 12 months in the past three years before the immigration application.

2. Relationship between the foreign company and the Canadian company: The ICT program requires a relationship between the foreign company and the Canadian company as a parent, subsidiary, or affiliate. The Canadian company must also be a viable enterprise that can create jobs for Canadians.

3. Viability of the proposed expansion to Canada: The proposed expansion of the foreign company to Canada must be a sound business venture and result in job creation for Canadians. The applicant must provide a solid business plan demonstrating that Canadian operations can generate sufficient revenue to cover its expenses and compensate its employees.

4. Financial stability: The foreign company must be financially stable and capable of supporting foreign operations in Canada. While the Canadian government does not specify any minimum investment amounts, the company must have sufficient financial resources to support its new operations in Canada and hire local staff.

5. Special benefits for certain countries: Canada has entered into several international agreements that provide special benefits for certain countries under the Treaty ICT applications. Nationals of these countries can use Treaty ICT regulations, which offer faster processing times, reduced paperwork, and other benefits.

It is important to note that the eligibility requirements and criteria for the ICT program can vary depending on the specific circumstances of each case.