NAFTA/USMCA Investor Work Permit

You need to make a substantial investment in Canada to qualify for a NAFTA investor work permit. So, what exactly is a substantial or significant investment?

The value of any investment is what determines if it is a substantial investment or not. You should know that there is no exact numerical figure for what qualifies for a substantial trade. Instead, immigration officers will determine if your investment is a substantial amount or not based on:

• The total net value of the Canadian company that you are investing in or
• The total amount that is usually needed to start or launch a sustainable Canadian business in that particular industry or sector.

To help the Canadian immigration office assess your substantial investment, you will need to provide all the information regarding the investment, including details of the contract signed, how the funds were sources, the total investment, and any documents issued because of the investment.

Yes, employees of the investing American or Mexican business can also be granted a NAFTA investor work permit as long they are employed in a role that requires essential skills.

The eligibility criteria for employees to obtain a NAFTA investor work permit to enter Canada are:

• The employer in the Canadian enterprises must be an American or Mexican citizen.
• An investor status must have been granted to the employer.
• In cases where the employer is a company, an American or Mexican citizen with an investor status must have majority ownership of the company.
• The employee coming into Canada must also be an American or Mexican citizen.
• The employee must be employed in an executive or supervisory position or possess essential skills critical to the day-to-day operations of the Canadian enterprise.
• The employee must meet all the requirements for temporary entry into Canada.
• The employee cannot have a permanent resident status in Canada. In cases where the employer is a business entity, the employee cannot have a permanent resident status granted by ownership.

You should know that if the Canadian enterprise is just launching or starting out, the employee doesn’t need to have essential skills. However, the employee is usually only granted permission to stay in Canada for about one year. The Canadian Government views such immigration as only necessary for establishing the Canadian enterprise and training a Canadian to rake on that role within the year.

American citizens may apply at a visa office or at Point of Entry (POE). You will need to submit an application to the Canadian visa office in your home country to start the application process for a NAFTA Investor work permit. However, as the visa type is more complex than the usual visa application, it is recommended that you apply much earlier than the time you have to travel to Canada at a Canadian visa office in your home country.

While making a substantial investment means you do not need to have an LMIA, you will have to apply for employment authorization and completer the IMM5321 form, formally known as the Application for Trader/Investor Status form. You can obtain these forms at any Canadian visa office and submit your filled copy at the visa centre. Investors must also submit the following documents;

• Proof of Citizenship. This proof could be your certificate of citizenship given by your home country, America or Mexico.
• Proof of the company or business’ nationality. This proof shows that an American or Mexican citizen owns the Canadian enterprise.
•  Proof of investment
• A valid Mexican or American passport

All these documents will be subject to review by the Canadian immigration office while processing your application. You will be issued a NAFTA investor work permit in compliance with the International Free Trade Agreement for investors (R204, T22) for a maximum period of one year if your application is approved.

Your work permit and approved status will also undergo review at the point of entry by a Canadian immigration officer. The officer will then determine if you can have a work permit and how long you will be allowed to stay in Canada.

The total cost for obtaining a NAFTA investor work permit is dependent on your personal circumstances and geographical location. Typically, temporary Canadian work permits go for about $155 per person. However, this cost may change if the application is for a group of people.

You may also have to pay a different fee if you are providing biometric data. In this case, the cost of the NAFTA investor work permit varies based on your visa application centre.

The time it takes to process your application for a NAFTA investor work permit is dependent on the standard processing period of the Canadian visa office in your home country. The standard processing time for applications in the US is about five weeks, while the standard processing time for applications in Mexico is about 14 weeks.
You should know that this waiting period may vary based on your unique circumstances. Also, this processing period does not account for how long it takes to send your application from the visa office to the immigration office and back, the time it takes to capture your biometrics, and Refugees and Citizenship Canada (IRCC).

You can apply for an extension of your NAFTA investor work permit. Typically, investors that have invested a substantial amount in a Canadian enterprise are given permits that are only valid for a year. However, once the permit expires, investors may choose to request an extension for an additional two years as long as they still meet all the necessary requirements.

If you choose to apply for your NAFTA investor work permit to be extended, the visa office will make a comparison of the details you provided in your first application and the information provided in your request for an extension.

You should also keep in mind that if you gain employment in another job while Canada, or participate in activities that are not compliant with your work permits, then your investor status will expire, and you will lose your temporary entry into Canada.

Typically, most immigrant and work visas will allow you to bring along members of your family or spouse into Canada. However, the NAFTA investor work permit does not cover dependents, meaning you cannot have your spouse or family members accompany you on your trip. If they have to gain temporary entry into Canada with you, they will have to apply for the correct permit in compliance with Canada’s Immigration and Refugee Protection Act.

Permanent residents are also not allowed to make an application for a NAFTA work permit. They will have to wait to be granted American or Mexican citizenship before they can claim the benefits of the NAFTA program and gain temporary entry into Canada. You should also bear in mind that the NAFTA program does not in any way help with gaining permanent residence in any of the participating programs.

Furthermore, while NAFTA can help with gaining temporary entry into Canada to conduct business, you will still have to meet all the certification and licensing requirements or provisions for admitting foreign employees into Canada.

A NAFTA professionals visa is an opportunity for professionals in certain fields to apply for a work permit in Canada. Professionals under this visa program do not need to obtain an LMIA before being allowed into Canada. However, the eligibility criteria for this visa differs significantly from the NAFTA investors work permit

Professionals, as defined by the NAFTA program, refers to any American or Mexican citizen who has significant work experience in any of the occupations under the NAFTA Professionals List of Occupations.

Some of the occupations on the NAFTA Professionals List of Occupations include accountants, architects, computer systems analysts, disaster relief insurance claim adjuster, economists, engineers, foresters, graphic designers, and hotel managers. Each of these occupations have minimum education requirements that you must meet to be considered a professional under the NAFTA program.

Professionals seeking to enter Canada must prove their qualifications in their specific field either by presenting their certification or degree in that field to Canadian immigration. They must also provide proof of employment with the Canadian enterprise.

The NAFTA investor work permit only grants temporary entry into Canada for those willing to conduct business in Canada. It does not in any way influence your permanent residence in Canada.

This permission is granted under the condition that they have invested in and hold a controlling interest in an American or Mexican business operating in Canada without the need to secure a positive LMIA (Labour Market Impact Assessment).

Typically, foreign investors or companies trying to operate in Canada have to acquire an LMIA or Labour Market Opinion. The LMIA is a document that can only be obtained from the Economic and Social Development Canada (ESDC). It rates if there is a positive or negative need for the investor or company in Canada.