Owner Operator LMIA – LiveBetterImmigration

Owner-Operator LMIA

For Employers & Business Owners in Atlantic Canada

The Owner-Operator LMIA offers business owners a unique advantage when applying for a Canadian work permit. By demonstrating significant ownership and operational control, applicants may qualify without the standard recruitment challenges faced by regular employers. Under this stream, the applicant must show that:

Approval can strengthen CRS scores and support future permanent residence pathways.

Service Canada (ESDC) – Key Updates

Service Canada has introduced clearer guidelines to ensure Owner-Operator LMIA applications focus on genuine business activity and economic benefit.

Important Changes:

1. Existing Business Requirement New startups are generally not eligible. The business must already be operational with a physical location and active customers.
2. Management Role Expectation The applicant must hold a senior decision-making position. Hiring additional middle management to replace the owner’s role may affect eligibility.
3. Mandatory Job Advertising The position must be advertised according to LMIA standards for a minimum of four weeks across approved platforms.

Important Considerations

Business Acquisition Advantage Acquiring an established Canadian business is often a stronger option than launching a new venture. An operating business allows applicants to clearly demonstrate ongoing commercial activity and their direct involvement in managing daily operations.
Owner-Operator’s Role Before LMIA Submission Before filing an Owner-Operator LMIA application, the applicant’s position within the business must be clearly defined. The purchased business should already be active, and supporting evidence should show that the future Owner-Operator is engaged in business operations even prior to receiving formal LMIA approval.
Ongoing Role of the Owner-Operator Applicants must prove that their role in Canada is essential to the success of the business. If a Canadian manager is already in place, it must be clearly established that the manager’s duties are limited in scope and that the Owner-Operator’s leadership is critical for strategic planning and overall business management.
Financial Capacity The business must demonstrate adequate financial strength to support the Owner-Operator position, particularly where a salary is involved. Clear and verifiable financial documentation is required to confirm the ability to meet payroll obligations.
Employment Law Compliance The business must fully comply with all Canadian employment and recruitment regulations. Additionally, it must not appear on Employment and Social Development Canada’s (ESDC) ineligible employer list at the time of application.
Alternative Pathway for New Start-Ups For individuals planning to establish a new business, pursuing an LMIA-exempt work permit may be a more suitable first step. Options may include Free Trade Agreement investor categories or C10/C11 exemptions. Once the business is operational, the applicant may then transition to an Owner-Operator LMIA.

TFWP Owner-Operator Overview

Under the Temporary Foreign Worker Program (TFWP), an Owner/Operator is a foreign national who holds a significant ownership interest in a Canadian business and occupies a senior leadership position classified under NOC 0 or 00. Unlike self-employed individuals, Owner/Operators are not required to be involved in the day-to-day operational tasks of the business, provided they maintain strategic and managerial control.

In certain circumstances, Immigration, Refugees and Citizenship Canada (IRCC) may issue an LMIA-exempt work permit under exemption codes C10 or C11, where the applicant can demonstrate a substantial economic, social, or cultural benefit to Canada. However, all Labour Market Impact Assessment (LMIA) applications continue to be assessed by Employment and Social Development Canada (ESDC).

While an employer-employee relationship is generally required for LMIA approval, ESDC recognizes specific exceptions, including Owner/Operator scenarios, where the business owner also assumes the role of the employee. In such cases, officers evaluate whether the proposed employment arrangement is genuine and justified.

During the LMIA assessment, ESDC officers examine whether employing the foreign national is likely to lead to job creation or job retention for Canadian citizens or permanent residents. All supporting documentation is reviewed in detail to ensure the application demonstrates a neutral or positive impact on the Canadian labour market.

The Principal Owner is typically the individual holding the largest ownership share in the business. Where ownership is evenly divided among multiple stakeholders, one individual may be designated as the Principal Owner for immigration and compliance purposes.

Additional Factors to Consider for Owner-Operator LMIA

Direct Ownership Structure Under current ESDC guidelines, the Owner-Operator must hold direct ownership in the operating Canadian business. Ownership held solely through a holding company or structured only for voting control may not meet program requirements and can negatively affect eligibility.
Licences and Regulatory Compliance All required licences, permits, and registrations necessary to operate the business must be either:

at the time of LMIA submission.

Business Location Requirements A physical business location must be secured before applying, such as a leased commercial space. If the business operates from multiple locations, each address should be clearly identified and documented in the application.
Completion of LMIA Application Forms Although ESDC LMIA forms are not specifically designed for Owner-Operator cases, every section must be completed. Any fields that do not apply should be clearly marked, with brief explanations provided where necessary to avoid confusion or delays.
Supporting Evidence of Active Operations Applicants must demonstrate that the business is actively operating and employing Canadian citizens or permanent residents. Supporting documents may include:

Defined Role of the Owner-Operator While day-to-day hands-on involvement is not mandatory, the applicant must clearly define and explain their management role within the organization. A well-articulated job description strengthens credibility and helps officers understand the necessity of the position.
Familiarity with the Business Applicants should demonstrate a strong understanding of the business they intend to purchase or operate. This is particularly important during ESDC interviews, where officers may assess the applicant’s knowledge of operations, finances, and market positioning.
Wage Considerations Although median wage requirements are not strictly imposed on principal owners, some ESDC officers may still request evidence of wage alignment. Applicants should be prepared to address this if raised during assessment.
Language Ability Language proficiency is not a formal requirement for Owner-Operator LMIA approval. However, applicants are encouraged to demonstrate a willingness to improve English or French skills, particularly as part of future permanent residence or transition plans.
Conditional Business Purchases Applications may face increased scrutiny if the business purchase is conditional upon work permit approval. Demonstrating genuine commitment—such as providing proof of a significant non-refundable deposit—can strengthen the application and show seriousness of intent.
Importance of a Strong Business Plan A comprehensive and realistic business plan is a critical component of a successful application. It should clearly outline:

The objective is to help ESDC officers fully understand the business and assess whether the proposed employment will result in a neutral or positive labour market impact.

Owner-Operator LMIA

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