You might be self-employed & still be eligible for Canadian immigration streams. Most economic immigration streams need evidence of at least a year’s work. IRCC uses the NOC system to evaluate if an applicant’s work experience meets the program’s criteria they are applying for. If you wish to apply to a skilled worker program, you can count your self-employed work experience towards the eligibility criteria of the program. In addition to the implications of being self-employed, IRCC accepts numerous proofs that you were self-employed, like articles of incorporation, self-employment income, third-party documentation implying the service provided & details of payment.
If you want to immigrate to Canada via a self-employed program, numerous options are available. Let’s discuss them in detail!
The Federal Self-Employed People Program
This program enables eligible self-employed individuals with work experience in athletics/ cultural studies to establish themselves in the nation as permanent inhabitants. Applicants for the program must have the expertise, intention as well as ability to make a prominent contribution to the nation’s sports or cultural life.
In order to be eligible for the program, applicants require a minimum of two years of working experience of self-employment or participation at a world-class level in athletics or cultural events as defined by IRCC.
Eligibility is determined by the least cut-off score of 35 on a points grid that assesses language capabilities, education, experience, age, & adaptability.
Quebec’s Self-Employed Worker Immigration Program
This program grants eligible applicants the opportunity to get PR if they can effectively establish themselves as independent professionals/ tradesperson in the province.
Further, in the implications of being self-employed, to meet the requirements of the program, an applicant must:
- Choose the means of work performance
- Organize the work
- Offer the required equipment/ tools
- Carry of specialized duties
- Collect the profits & support the loss risks resulting from work
In order to be eligible, you must be at least 18 years old. Moreover, self-employed professionals in Montreal must register a start-up deposit of over $50,000 or more at a local financial institution. In contrast, candidates based outside Montreal must deposit a minimum of $25,000.
All candidates should have a passing score under the Quebec Economic Class selection grid for the program. Applicants are awarded up to 99 points for factors like language proficiency, education, professional experience, age, family in Quebec, financial self-sufficiency, deposit amount, & financial resources.
Physician Self-Employment
IRCC & the Canadian government recently made it easier for doctors to arrive in Canada. However, some physicians struggled to access permanent residence via Canada’s Express Entry programs for skilled workers as the ‘fee of service’ model used in Canada for healthcare professionals was outside the conventional employer-employee model. As a result, some physicians were considered self-employed & weren’t able to meet the eligibility criteria of immigration streams.
In September 2022, IRCC declared that they were exempting physicians who worked in a fee-for-service model from present requirements, thus providing them access to the economic permanent resident programs. This enables an increased number of physicians to fill job vacancies in Canada’s healthcare sector & allows them to stay in the country permanently.
Work Permit Alternatives For Self-Employed People
Many self-employed people will first enter Canada by acquiring a temporary work permit. This can be advantageous in the long run, as many economic immigration programs require relevant work experience. Thus, having this experience can support an application for Canadian PR.
In addition to the implications of being self-employed, a self-employed work permit is an alternative for entrepreneurs who are the sole owners of a business in Canada. In such situations, the work permit could be exempt from the Canadian government’s labor market test, known as LMIA, i.e., Labor Market Impact Assessment. The applicant must demonstrate that their business will significantly benefit the country.
Under CUSMA, citizens of the US/ Mexico who invest in existing/ new businesses in Canada might be eligible/ suitable to apply for Investor work permits to manage their businesses in Canada. Generally, the investor is the prominent shareholder or the business’s sole owner. Therefore, he/ she should prepare a business plan as a part of the application.
Under the Comprehensive Economic & Trade Agreement, citizens of European Member States who invest in new/ existing businesses in Canada might be able to apply for Investor work permits in order to manage their businesses.
Finally, the Intra-Company Transfer Work Permit is primarily used by corporations when moving key staff between branches. However, it can be well-suited for entrepreneurs wishing to begin a new business in Canada. In addition, the candidates must demonstrate their companies to become established in Canada.
Tax Implications Of Being Self-Employed
On April 30, the income taxes are due for the previous year in Canada. However, self-employed people must file their taxes by June 15. In return, they must enter their income from any business they run with their partners or themselves.
Basically, a self-employed person should register for HST/ GST if their revenue/ income is more than $30,000 in one calendar quarter or over the last four calendar quarters.
A self-employed person must fill out form T2125, the statement of Professional Activities/ Business, and report their income on the T1 General. The T2125 also allows self-employed Canadians to deduct allowable expenses from their gross income to reduce taxable income so that they pay less in income taxes.