LMIA Exemption Code C11

Published on 2022-10-28; updated on 2022-10-29

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Generally, a positive Labour Market Impact Assessment (LMIA) is required before a Canadian employer can hire a temporary foreign worker. However, Immigration and Refugee Protection Regulations (IRPR) provides the regulatory authority to issue a work permit to a worker who does not require a LMIA, and Refugees and Citizenship Canada (IRCC) has created LMIA exemption streams via unique administrative codes for those specific situations. Among those situations, legislative section Canadian interests – Significant benefit – Entrepreneurs/self-employed candidates seeking to operate a business is coded as R205(a) - C11, and sometimes it is referred as C11 among professionals.

This article is a summary on C11, and consist of the following sections

• Related regulation
• The operational instructions and guidelines for IRCC staff

Related regulation: IRPR 205 (a)

IRPR section 205 is titled Canadian interests. A work permit may be issued under section 200 to a foreign national who intends to perform work that is of Canadian interests.

Section IRPR 205 (a) states that, (a work permit may be issued under section 200 to a foreign national who intends to perform work that) would create or maintain significant social, cultural or economic benefits or opportunities for Canadian citizens or permanent residents.

Operational instructions and guidelines for IRCC staff on C11

Corresponding to section IRPR 205 (a), section significant benefit exemption codes is in the operational instructions and guidelines for IRCC staff, and among the codes, C11 is about Entrepreneurs: Self-employed or potential provincial nominee as an entrepreneur.

There are two kinds of applicants: ones seeking only temporary residence and ones seeking eventual permanent residence. If the applicant intends to start or buy a business and eventually stay in Canada on a permanent basis, IRCC officers should encourage the applicant to apply for permanent residence.

Applicants seeking only temporary residence

Determining whether IRPR 205 (a) is met

Questions include but are not limited to the following:

• Is the work likely to create a viable business that will benefit Canadian or permanent resident workers or provide economic stimulus?
• Does the applicant have a particular background or skills that will improve the viability of the business?
• Is there a business plan that clearly shows that the applicant has taken steps to initiate their business?
• Has the applicant taken some measure to put the business plan in action (showing evidence of having the financial ability to begin the business and pay expenditures, renting space, having a staffing plan, obtaining a business number, showing ownership documents or agreements, etc.)?

Indicators of significant benefit

Indicators are:

• general economic stimulus (such as job creation, development in a regional or remote setting or expansion of export markets for Canadian products and services);
• advancement of the Canadian industry (such as technological development, product or service innovation or differentiation or opportunities for improving the skills of Canadians).

The applicant may provide information from organizations in Canada that can support the application. For example, if an applicant wishes to be self-employed in the tourism industry, the applicant provide submissions from the provincial tourism authority to assist in determining whether the activity would be beneficial or actually impinge on Canadian service providers. IRCC officers could use other sources of information and advice include local Canadian Chambers of Commerce and Employment and Social Development Canada (ESDC).

Degree of ownership

The applicant controls at least 50% of the business in question. Where an individual is a partial owner with a slightly smaller stake and is coming to work in the business, they are required to apply for a work permit as an employee and may therefore require a LMIA.

If there are multiple owners, only one owner is generally eligible for a work permit of C11. this is intended to prevent the transfer of minority shares solely for the purpose of obtaining a work permit.

Long-term self-employed applicants

Applicants who have repeatedly been issued work permits over several years in the self-employed or entrepreneur category should, in addition to satisfying the indicators of general economic stimulus, be able to provide more evidences.

Work permit processing for temporary residence applicants

To be eligible, a foreign national must

• have received either an offer of employment number (a 7-digit number, starting with the letter “A”), or authorization by the Immigration Program Guidance Branch (IPG) to submit the “Offer of Employment to a Foreign National Exempt from a Labour Market Impact Assessment (LMIA)” form [IMM 5802];
• have paid the employer compliance fee;
• have submitted an application for a work permit.

Applicants seeking eventual permanent residence

There are two categories.

• Actual or potential provincial nominees undertaking business activities
• Quebec-destined entrepreneurs or self-employed persons issued a CSQ

Applicants in these categories have demonstrated that their admission to Canada to begin establishing or operating their business may generate significant economic, social or cultural benefits or opportunities for Canadian citizens or permanent residents pursuant to paragraph R205(a).

References

• Labour market impact assessment (LMIA) exemption codes – International Mobility Program
• Immigration and Refugee Protection Regulations (SOR/2002-227) - Workers (continued)
• International Mobility Program: Canadian interests – Significant benefit – Entrepreneurs/self-employed candidates seeking to operate a business [R205(a) – C11]