How to Get a CUSMA Investor Work Permit in Canada – IMP T35

Valeria, an energetic 42-year old Mexican-American entrepreneur from Texas, has built up a successful technology company over the last two decades. She is eager to explore other markets and feels ready to expand into Canada. Valeria wonders what the future holds for her business. CUSMA Investor work permit will allow her to establish and manage her business there. With a clear vision and determination, she starts exploring her options under the CUSMA framework, hoping to replicate her U.S. success in Canada.

What is CUSMA?

The Canada-United States-Mexico Agreement (CUSMA), which replaced NAFTA in 2020, is a modern trade pact designed to strengthen economic relationships among Canada, the U.S., and Mexico. Known as USMCA in the United States and T-MEC in Mexico, this agreement updates NAFTA’s framework to meet contemporary economic needs. CUSMA facilitates trade, boosts investment opportunities, and promotes enhanced cross-border cooperation. A key feature of CUSMA is its role in labour mobility, particularly for business professionals.

CUSMA simplifies the movement of businesspeople between the three countries. It offers specific pathways for traders, investors, and professionals to work in these nations without facing extensive visa procedures. By reducing barriers to cross-border employment, CUSMA promotes economic integration and collaboration. This agreement significantly contributes to the region’s economic stability and growth by allowing skilled workers and entrepreneurs to move more freely, ensuring businesses can operate effectively across North America.

Categories of business persons under CUSMA

CUSMA identifies several categories of businesspersons eligible to enter Canada under its provisions. Each category has its criteria and requirements.

Business visitors

Business visitors participate in international business activities such as research, marketing, sales, and after-sales services. They engage in activities integral to the business cycle but do not enter the Canadian labour market. Under specific conditions, business visitors can enter Canada without a work permit, facilitating temporary business activities.

Professionals

Professionals are individuals entering Canada to provide pre-arranged professional services. These services can be delivered as a salaried employee of a Canadian company, through contracts with a Canadian employer, or via a contract between their U.S. or Mexican employer and a Canadian business. Professionals must obtain a work permit but are exempt from the Labour Market Impact Assessment (LMIA). CUSMA covers 63 professional occupations, allowing qualified professionals to work in Canada with fewer barriers.

Intra-company transferees

Intra-company transferees are employees of U.S. or Mexican companies who are transferred to a related Canadian branch, subsidiary, or affiliate. These employees must hold managerial, executive, or specialized knowledge positions. This category eases the transfer of essential personnel within multinational companies. While intra-company transferees need a work permit, they are exempt from the LMIA, facilitating a smoother transition between international offices.

Traders

CUSMA traders are individuals involved in substantial trade of goods or services between Canada and the U.S. or Mexico. These individuals typically occupy supervisory, executive, or essential skills roles. Traders must secure a work permit to operate in Canada but are exempt from the LMIA process. Before arriving in Canada, they must apply for this permit to conduct their trading activities legally.

Investors

CUSMA investors are businesspersons who have committed or are committing, substantial capital to a Canadian business. They must hold supervisory, executive, or essential roles related to their investment. Like traders, investors require a work permit but are exempt from the LMIA process. Applying for this permit before entering Canada ensures that investors can effectively manage and direct their investments.

Eligibility requirements for CUSMA investors

To apply for a work permit as a CUSMA Investor, you must meet all the eligibility requirements, namely:

• Citizenship and Nationality Requirements
• Substantial Investment Criteria
• Controlling Interest and Business Direction
• Employee Roles and Temporary Intent

Citizenship and Nationality Requirements

To qualify as a CUSMA Investor, applicants must meet specific criteria. Firstly, the applicant needs to hold American or Mexican citizenship. Unfortunately, this option is not available to the permanent residents of those countries. The business in which the applicant invests must also have American or Mexican nationality, meaning that U.S. or Mexican citizens must own at least 50% of the enterprise.

Substantial Investment Criteria

Furthermore, the investment must be substantial. This means that the applicant has made or is actively making a significant capital investment in a Canadian business. The investment must involve placing funds or other assets at risk with the expectation of generating a profit. The investment cannot be passive, such as holding real estate or stocks for potential appreciation.

Controlling Interest and Business Direction

Additionally, the applicant must enter Canada solely to develop and direct the business. This means the applicant must have a controlling interest in the enterprise, typically holding an executive or supervisory role. The investment should allow the applicant to guide the business’s operations effectively. Moreover, the applicant must own at least 50% of the business in Canada. Consequently, CUSMA Investors has many similarities with IMP C11.

Employee Roles and Temporary Intent

The position must be executive, supervisory, or involve essential business skills. Lastly, the applicant must comply with all Canadian immigration regulations and demonstrate a temporary intent to stay in Canada, planning to return to their home country after completing their business activities.

Meeting these requirements ensures that the applicant can operate under the CUSMA Investor category, contributing to Canada’s economy while maintaining strong ties with the U.S. or Mexico.

Work permit application and extension for CUSMA investors

It’s essential to grasp the process and requirements when applying for a work permit as a CUSMA Investor. The following sections will cover where to apply, the necessary documents, and the duration of both the initial and subsequent work permits.

Where to apply?

CUSMA Investors should apply for work permits at a visa office (i.e., an online application before entry). Although U.S. citizens can technically apply at a Port of Entry (POE), due to the complexity of the process, it’s advisable to apply at a visa office. Additionally, U.S. and Mexican citizens with temporary resident status in Canada can apply for investor status from within the country.

The essential documents

Applicants must submit the Application for Trader/Investor Status (IMM 5321) and their work permit application. They must also provide proof of U.S. or Mexican citizenship and evidence of the enterprise’s American or Mexican nationality. Documents proving substantial investment and the applicant’s role in the enterprise are also required. A letter from a corporate secretary or lawyer verifying ownership and nationality should be included if applicable.

Duration of the initial and subsequent work permit

The initial work permit for CUSMA Investors is issued for a maximum of one year. Extensions can be granted for up to two years, provided the applicant meets all eligibility requirements. Applicants must also clearly intend to return to their home country once their investor status ends.

Comparing CUSMA Investors and IMP C11 work permits

IMP C11 is Canada’s International Mobility Program (IMP) category that allows self-employed individuals and entrepreneurs to obtain a work permit without requiring a Labour Market Impact Assessment (LMIA). This work permit is designed for those who can demonstrate that their business or professional activities will bring significant economic, cultural, or social benefits to Canada. It is particularly aimed at individuals who are establishing a new business or contributing to a Canadian community in a meaningful way.

Similarities

Both CUSMA Investors and IMP C11 work permits are designed to facilitate business activities in Canada without requiring a Labour Market Impact Assessment (LMIA). They cater to individuals who intend to contribute to the Canadian economy through investment or entrepreneurial efforts. Additionally, both permits require the applicant to demonstrate that their activities in Canada will provide significant economic, social, or cultural benefits.

Differences

Eligibility and scope:

• CUSMA Investors: This permit is specific to citizens of the United States, Mexico, and Canada, as it stems from CUSMA. It focuses on those making a substantial investment in Canada and actively managing the business they have invested in. Canada issues these work permits based on the reciprocal treatment of Canadians by Mexico and the United States.
• IMP C11: This permit is more broadly available and is not restricted to specific nationalities. It applies to self-employed individuals and entrepreneurs who can demonstrate significant benefits to Canada through their business or professional activities. Canada issues these work permits based on significant benefits for Canada.

Nature of business:

• CUSMA Investors: The applicant must have already made a substantial investment in a Canadian business and be seeking entry to develop and direct that business. The emphasis is on managing and growing an existing investment.
• IMP C11: Applicants can be in the process of establishing a new business in Canada. The permit focuses on those who generate significant economic, cultural, or social benefits. The business does not need to be established before applying, but a solid plan and intent to benefit Canada are crucial.

Duration and intent:

• CUSMA Investors: This permit often supports longer-term business activities in Canada and may be renewed as long as the business continues to operate, and the applicant remains eligible.
• IMP C11: This work permit generally favours short-term business activities, although exceptions for longer terms can be considered. The applicant must prove that their stay in Canada is temporary, especially if the business is seasonal or short-term.

Documentation and proof:

• CUSMA Investors: Applicants must show proof of their investment and their role in managing the business, along with the ability of the business to support their stay in Canada.
• IMP C11: The application process for IMP C11 requires detailed evidence of the potential benefits to Canada, including a business plan, proof of ownership, and documentation of the applicant’s skills and experience relevant to the business they intend to establish or operate.

These similarities and differences highlight how CUSMA Investors and IMP C11 work permits serve distinct groups of business-oriented individuals, each with unique requirements and benefits tailored to their circumstances.

Expertise in Assisting American and Mexican Clients

I have extensive experience helping American and Mexican clients apply for work permits in Canada. I understand the complexities of the CUSMA work permit process and can guide you through every step. From determining eligibility to gathering essential documents, I ensure your application is accurate and timely. My goal is to make your transition to Canada as smooth as possible.

Don’t hesitate to contact us if you’re considering applying for a CUSMA Trader or other types of work permit. Book a consultation session today, and let’s work together to achieve your business goals in Canada. Alternatively, fill out the following form to contact our team.

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