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Significant Benefit Work Permit Canada

If you are planning to apply for your LMIA-exempt work permit under the International Mobility Program as an entrepreneur, investor, self-employed person, or even under the Startup Visa program, you need to prove significant benefits or opportunities for Canada to be approved. Whether it’s Intra-Company Transfer, C10 or C11, Startup Visa work permit under A77, or Provincial Entrepreneur work permit under T13 – this is a key factor in all these work permits which we will be covering in this short article. 


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What does Significant Benefit mean?

We’re going to do a deep dive into the significant benefit regulation-related work permits that are issued based on the IRPR R205(a) which states:

205 A work permit may be issued under section 200 to a foreign national who intends to perform work that (a) would create or maintain significant social, cultural, or economic benefits or opportunities for Canadian citizens, permanent residents; or people registered as Indians under the Indian Act.


We need to dissect this statement as per the Canadian immigration regulations and look at each keyword to understand what it means and how you can approach your significant benefit work permit application as an investor, founder and/or entrepreneur.


Here are all the components of this regulation you need to understand, we’ll cover some examples:


‘Social, Cultural, or Economic’: You have the option to bring benefit to Canada for any of these 3 categories. Of course, many businesses focus on the economic part only, but if there is an opportunity to work on the social or cultural aspect, then of course this can be an added bonus or differentiate your application from the others. If your work is going to be involved in arts, cultural occupations, or activities, or some kind of bridge between Canada and another country that can create more cultural or social ties then this can be claimed. The economic benefit is usually more about money, investment, and employment. However, social or cultural benefits are about health, advancement, and maybe even the environment. Cultural aspects would work if you were already active in this field and are recognized. It would be difficult to claim cultural benefit for Canada if you have never been recognized or active in cultural activities or organizations overseas. Of course, you can do a combination of all 3 or just 1, but keep in mind that: 


Maintaining Benefits

By maintaining benefits, this means your activities on your work permit will help keep the benefits Canadians have in either of the social, cultural, or economic aspects. An example could mean that there is a place or organization or business which is shutting down or deteriorating, but your activities will maintain it and keep it ‘alive’ for Canadians. This could be an art gallery, cultural centre, heritage centre, or even a business that is providing a key service or product or an under-serviced region or community. So, the key here is that it does not have to be the ‘creation of a benefit’ but it could be ‘maintaining’ one of these existing benefits for Canadians.


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Maintaining Opportunities

By maintaining opportunities, it’s similar to the previous point but in economic terms, it signifies keeping a business afloat if the existing owner wants to sell or close it – and by buying and maintaining the jobs for the existing Canadian staff you are maintaining their opportunities. Of course, an equivalent can be said for maintaining or keeping alive any institution, organization, or business where Canadians are involved in, working, taking services, or being trained. You can use your imagination.


Creating Benefits

This is probably the keyword many applicants focus on, and many immigration offices as well. Of course it’s important, but it’s not the only aspect of this regulation. By creating benefits you can be offering a service or product that may not be provided yet, or available all over Canada yet. You can be creating economic benefit by employing Canadians. You can be creating benefit socially or culturally by investing, or starting an activity, organization, institution that will help Canadians – maybe minorities, youth, the elderly, or Canadians with health issues. Remember that these groups are very important for the Canadian governments, which we call the underrepresented groups, in addition to native Indians which will be covered in our subsequent points.


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Creating Opportunities

Creating opportunities can be employment of Canadians, or training of Canadians. Economically creating these opportunities. You can also create social or cultural opportunities if you are perhaps in visual arts, history or other cultural activities or institutions/organizations. For social opportunities, this can be very broad and can include anything from creating opportunities for Canadians to learn, travel, explore, provide health or environmental opportunities.


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The word ‘Significant’

The word ‘Significant’ is very relative. This is the main question most applicants ask: how much should I invest? Remember that it’s not all about money but it could be if you are only focused on economic benefits or opportunities. 

The word ‘significant’ is relative to industry, region or community. To give you examples, to invest in a manufacturing plant $250,000 would seem too low unless it was in a rural area. But if you are starting a coffee shop $150,000 could be significant. 

Now you need to consider the region. If you’re planning to invest anything under $250,000 in Toronto, Vancouver, Ottawa, Montreal, or Calgary then forget it – unless you are focusing on social or cultural benefits or opportunities which are less monetary in nature. If you go to the rural region of Canada, you can easily get away with a $125,000 investment – but not in the big cities. Remember, $100,000 in a rural town or underserved region is a lot of money, but $200,000 in Toronto or Vancouver as an example is not as significant. 

Also, keep in mind that social or cultural aspects are less dependent on investment funds unless you are creating or maintaining a facility or institution. If you really want to be successful in proving and convincing the visa officer that your plan will create or maintain significant benefits for Canada, you need to identify key pain points for Canada. This means you need to know where or what Canadian society is missing or has less of, by searching the government initiatives and local news.


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‘Canadian citizens, PRs, or aboriginal Indians’: This part of the wording of the regulations mentions that the benefits or opportunities should be for Canadian PR or citizens and/or Aboriginal Indians. This is a key part many applicants forget and undervalue, benefiting Aboriginals in Canada. They have a lot of challenges for their communities, the highest unemployment amongst any Canadians, suicide rates, the least opportunities for their youth, and services for their communities. Food for thought, when you’re doing your next project under the significant benefit factors of these LMIA Exempt work permits for businesspersons and self-employed applicants.


Key aspects you need to add to your application

What some applicants misunderstand about all this is that they quickly come up with some social or cultural idea, for which they have no previous track record. This is a huge red flag. Stick to your strengths, your work, and your professional history. You can prove and maneuver around that by sprinkling key benefits and opportunities in these various categories. You can’t just say you are a digital marketer overseas and are going to launch art classes for Canadian children in the middle of nowhere – because there is nothing in your past that justifies this. Think outside of the box, create grants or subsidies for local communities or businesses, scholarships for youth, opportunities to learn, training or internships…. just to name a few examples.


Also, another key aspect of your application is to make it reasonable and logical. Do not overestimate or promise unrealistic investments or activities if you have not already implemented them. IRCC officers receive hundreds of these types of applications per week. They all look the same to them unless you already started the business or activity you intend to continue to manage by entering Canada.


All the factors must make sense and combine with your profile to make it a reasonable application. Remember that most applicants don’t start the business before they apply for their work permit – but if you do, and you have the operational documents after 6 months, your chances are 10x more than if you didn’t start anything yet or put into place any key components for the proposed project or business inside Canada.


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Real visa refusal cases – Significant Benefit

These are a few Judicial Review Federal court cases regarding significant benefit to Canada, where the officers have used this wording and reasoning to refuse the applicants:


“The applicant’s intended employment in Canada does not appear reasonable given:

The applicant has applied for a work permit under LMIA exemption C11 Canadian interests – Significant benefit.

The business plan proposes to open a ____ restaurant in Georgina, Ontario, a smaller community of approximately 45,000 people. A physical location has not yet been secured for the restaurant. The business case presents high sales estimates but considering significant competition in the food service industry, high overhead and payroll costs it is unclear if these projections are realistic……

….The applicant’s travel history is not sufficient to count as a positive factor in my assessment.”


Here is another one….

“….. the application is “for C11 Entrepreneur in PEI”; and, according to the business plan, the Applicant proposes to offer residential and commercial home décor products and furnishings imported from _____. The GCMS notes also state that “[f]oreign nationals applying to work for themselves or to operate their own business on a temporary basis must demonstrate that their admission to Canada to operate their business would generate significant economic, social or cultural benefits or opportunities for Canadian citizens or permanent residents pursuant to paragraph R205(a). Given that there will be no products manufactured/supplied from Canada and the job creation is minimal, it is difficult to see the significant benefit to Canada. The business plan provided does not indicate how PA’s [the Applicant] involvement will provided economic stimulus, job creation for Canadians and/or significant benefit to Canada.”

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