Owner Operator LMIA
For Employers in Atlantic Canada:
The Owner-Operator LMIA program is a valuable pathway for business immigrants who meet Express Entry criteria but have a CRS score below the current cut-off. This program can significantly enhance their chances by adding up to 200 points to their Comprehensive Ranking System (CRS) score.
Under this program, a work permit may be granted to a foreign national (the applicant) if their proposed Canadian employer—who is the applicant themselves—receives a positive or neutral Labour Market Impact Assessment (LMIA) from Employment and Social Development Canada (ESDC). This confirms that the job offer is legitimate and will not negatively impact the Canadian labor market.
ESDC (Service Canada): New instructions on owner/Operator LMIA:
Although new guidelines have now been formally released, most recent decisions have already been made in accordance with these principles. At Shreehari Immigration, we’ve consistently advised our clients to follow the true spirit of the Owner-Operator LMIA program — specifically, acquiring and actively managing an existing operating business that already has a middle management structure in place.
The core intent of the program remains focused on delivering significant economic benefits to Canada, particularly in terms of investment and job creation. To reinforce this, Service Canada has introduced the following updates to its policies:
1. Existing Businesses Only:
Service Canada will no longer approve LMIA applications for start-ups or new franchise locations. The business must already be operational, with a physical location, active employees, and an established customer base. Simply having a plan or intention to operate in the future is not sufficient.
2. Middle Management Requirement:
LMIAs for senior executive positions (NOC 00 such as CEO, CFO, COO, etc.) will only be approved if the business already employs middle management staff. These roles must be filled and in place at the time of the LMIA application. Future hiring intentions will not meet eligibility requirements.
3. Mandatory Job Advertising:
The Owner-Operator’s NOC 00 position must now be advertised in compliance with standard LMIA advertising requirements. The ad must run for a minimum of four weeks before submission, and at least one ad (typically on Job Bank Canada) must remain live until a decision is made. This process generally takes 2 to 3 months.
These changes emphasize Service Canada’s focus on genuine business operations that contribute meaningfully to the Canadian economy.
There are a few things to note:
Business Purchases:
Purchasing an existing business is generally more advantageous than starting a new enterprise, as it allows the applicant to demonstrate that the business is already operational and that they are actively engaged in its day-to-day operations.
Role of the Owner-Operator Prior to LMIA Approval:
It is essential to clearly define the Owner-Operator’s role within the business before submitting the LMIA application. The business being purchased must already be actively engaged in operations, and evidence should be provided that the prospective Owner-Operator is involved in business activities, even prior to formal approval.
Future Role of the Owner-Operator:
Applicants must demonstrate that their presence in Canada is essential to the business. If a Canadian manager is already employed, it must be shown that their responsibilities are limited and that the Owner-Operator’s leadership is crucial for strategic direction and overall management of the company.
Financial Capability:
The business must have sufficient financial resources to support the hiring of the Owner-Operator, especially if there is a salary component involved. The ability to pay must be well-documented.
Compliance with Employment Laws:
The business being acquired must be in full compliance with Canadian recruitment and employment regulations. It must not be listed on the ESDC’s ineligible employer list.
Alternative for Start-Ups – LMIA-Exempt Work Permits:
For clients who prefer to launch a new business, it may be more effective to first obtain an LMIA-exempt work permit under a Free Trade Agreement (e.g., Investor category) or through the C10/C11 exemptions. Once the business is operational, they may then apply for an Owner-Operator LMIA.
TFWP Owner Operator Guidelines
For the Temporary Foreign Worker Program (TFWP), Owner/Operators are defined as foreign nationals who hold an ownership stake in a Canadian business and occupy a position classified under NOC 0 or 00. Unlike self-employed individuals, Owner/Operators are not necessarily involved in the daily operations of the business.
LMIA exemptions may be granted by IRCC under codes C10 or C11, allowing a work permit without a Labour Market Impact Assessment if the applicant demonstrates significant economic, social, or cultural benefit to Canada. However, Employment and Social Development Canada (ESDC) is responsible for assessing all LMIA applications. Although an employer-employee relationship is typically required for an LMIA, exceptions exist—such as in Owner/Operator cases—where the business owner also serves as the worker.
In evaluating an LMIA, ESDC officers consider whether hiring the foreign national will likely result in job creation or retention for Canadians or permanent residents. All submitted evidence must be carefully assessed to determine if issuing the LMIA will have a neutral or positive impact on the Canadian labour market.
The Principal Owner is typically the individual holding the largest share of the business. In cases where ownership is equally shared among multiple individuals, one can be designated as the Principal Owner.
Few more things to consider:
Direct Ownership vs. Holding Companies
According to updated ESDC guidelines, the Owner/Operator must hold direct ownership in the operating business. Ownership through a holding company or for voting rights alone will likely not qualify under the Owner/Operator LMIA Program.
Licences and Registrations
All necessary licences and registrations to operate the business should either be secured or actively in process at the time of submitting the application.
Business Location
A physical business location (e.g., a leased property) must be secured before applying. If multiple locations are involved, clearly list each in the application.
Application Forms
Although ESDC LMIA forms are not tailored specifically for Owner/Operators, all sections must be completed. For any non-applicable fields, mark them accordingly and provide brief explanations as needed.
Supporting Documentation
Provide proof that the business is currently operational and employing Canadian citizens or permanent residents. Supporting documents may include:
Financial statements
CRA payroll account confirmation
Website content or public-facing employee pages
Business photographs
Evidence of past business activity
Job Description for Owner/Operator
Even though hands-on management is not required, the applicant must be well-prepared to articulate their role within the business. A clearly defined position strengthens the application.
Understanding the Business
Applicants should be thoroughly familiar with the business they are purchasing. This is crucial, especially during interviews with ESDC officers.
Median Wage Expectations
While median wage requirements are not mandated for principal owners, some ESDC officers may still request proof of such wage commitments. Be prepared to address this possibility.
Language Proficiency
Language ability is not a core requirement for LMIA approval. However, applicants should show willingness to improve English skills as part of transition plans or permanent residence processes.
Conditional Business Purchase
ESDC may challenge applications where the purchase of the business is conditional on work permit approval. Demonstrating seriousness—such as through a significant non-refundable deposit—can positively impact the application.
Business Plan
A detailed, genuine business plan is essential. It should explain:
The business concept
Day-to-day operations
The Owner/Operator’s role
How the business supports the Canadian labour market
The goal is to help ESDC officers understand the business thoroughly and demonstrate that the proposed employment will have a neutral or positive labour market impact.
Get Immigration Assessment
We offer expertise advice and services to suit your Canadian immigration requirements. To provide professional consultation book appointment.
