Intra-Company Transfer

Investor File: Intra-Company Transfer

The Intra-Company Transfer (ICT) allows non-Canadian businesses to transfer workers and business owners to their Canadian subsidiary, branch, or affiliated office. The ICT can be used in the context of a start-up or an established Canadian company.

There are numerous advantages to ICT including:

• no need of a LMIA,
• quick work permit processing (2-weeks) under the Global Skills Strategy,
• low to no investment requirements, and,
• experience gained on the ICT work permit can be used to apply for permanent residence (PR) after one year in Canada.

An ICT “LMIA exempted” work permit can be issued thanks to numerous free trade agreements including CUSMA(NAFTA), CETA(Europe), GATS(WTO), Canada-Chile FTA, Canada-Peru FTA, Canada-Colombia FTA, Canada-Korea FTA, Canada-Panama FTA, and CPTPP.

Because of the large scope of these trade agreements, most countries are covered under some version of the ICT program.

The ICT is similar to the more known “Owner Operator LMIA”, with the added benefit of not requiring an LMIA and much reduced initial investment.

Requirements of the ICT

Transfers must fall under the Canadian national occupation codes (NOC) O, A, or B, which means that only executives, managers, and specialists will be eligible. They must also perform a job in a similar capacity while in Canada as they performed outside of Canada. The following NOCs are some examples of roles that would be eligible: 0013, 0014, 0015, 0016.

Applicant must have worked for the company for a least 12 months outside of Canada within the last three years. The non-Canadian company and Canadian company must be in an ownership and control relationship as partners, a subsidiary, or a wholly/partially owned investment in Canada.

The company must stay in business and must be a legal entity doing business for at least 1 year continuously outside of Canada.

Documentation must be provided which proves the company (or companies) continued operations, including: incorporation documents, business tax returns, profit and loss statements, licenses to do business, partnership agreements, business tax returns, among others.

However, if no company exists in Canada, then the non-Canadian company must have the financial means and proof that they are able to start-up and support the new Canadian company.

For a new company in Canada, the following supporting documents can be provided to show the start-up nature of the company: articles of incorporation, a business plan, lease agreement, proof of funds for at least $100,000 CAD to cover first-year start-up expenditures (salaries, lease agreement, marketing, etc.).

ICT Work Permit

The Intra-Company Transfer process varies depending on the nationality of the applicant. Each bi-lateral free trade agreement (FTA) outlines the specifics.

Variations can mean differences in length of work permits, ability to apply for a work permit at a POE (or if it must be done outside of Canada), types of NOC that are eligible, education and licensing requirements, wait times for work permit processing, among other notable differences.

The various agreements and LMIA exemptions can be reviewed here.

Spousal and family visas are available for families to join the primary applicant while in Canada.

ICT to Canadian PR

After one year, the transferee can use the work experience gained on the ICT work permit to immigrate through the Express Entry program. PR status also includes spouses and dependant family members.

The foreign worker can gain an additional 200 points on the CRS for a valid job offer as a senior level manager. Alternatively, an additional 50 points will be awarded to the foreign worker’s CRS as a specialist or non-senior manager.

ICT Work Permit Duration

In most cases, the ICT work permit will be granted for a maximum of three years. However, start-ups are usually issued only a 1-year work permit. Typically, an ICT work permit can be renewed for two years, or even up to 7. The exact rules vary and are determined by the FTA agreements with Canada.

After reaching the maximum work permit duration, the transferee must complete one year of full-time employment in the company outside Canada if they wish to re-apply.

However, after one year of work in Canada, the applicant may gain enough CRS points to qualify for PR through Express Entry and will no longer need a work permit to remain and work in Canada.

Processing Time for ICT Work Permit

Intra-Company Transfer work permit applicants qualify for 2-week processing under the Global Skills Strategy. To benefit from this faster service, the job must be a NOC O or A and the applicant must be applying from outside Canada.

Otherwise, standard processing times for work permits can be expected and may vary by 6 weeks to several months depending on the country.