Can I Start a Business in Canada Without Permanent Residency?

Starting a business in another country can seem daunting, especially if you don’t have permanent resident (PR) status. However, Canadian regulations make it possible to engage in business activity even without PR. The key is understanding what opportunities are available and which actions could violate your visa conditions. Much depends on your chosen business model, the province, and your long-term goals.

Yes, you can, but only at the provincial level. Canadian law allows foreign nationals without permanent residency to register and own a business. This is even possible if you are a temporary resident, such as a work or study permit holder, or if you are in the process of applying for a Start-Up Visa.

People most commonly start a business under the following circumstances:

• Temporary workers looking to formalize their entrepreneurial activity
• International students planning to stay in Canada after graduation
• Start-up founders with a letter of support from a designated Canadian organization
• Entrepreneurs registering a Canadian company remotely to operate internationally

Still, there are certain limitations if you do not have PR status. You cannot register a company at the federal level. Moreover, opening a corporate bank account may be more difficult, as some banks require a Canadian address and a Social Insurance Number (SIN). Business credit options are limited, and not all provinces allow remote registration without your physical presence. Additionally, income sourced from Canada can result in higher tax obligations.

Canadian Business Growth Advisors provides consulting services to foreign nationals who want to start a business without PR. Their services include company registration, province selection, obtaining a business number, preparing to open a bank account, and understanding tax obligations. Without expert guidance, you may encounter bureaucratic obstacles early in the process. Schedule a free consultation to discuss your goals and options.

Important: If you do not have a work permit, you cannot manage your Canadian company yourself. Violating this rule can result in visa cancellation or denial of future PR applications. Management is only permitted if you hold a valid work permit or if a Canadian resident is appointed as your company’s director.

Business registration is available to nearly any foreign national, but actively managing and operating the company depends on your visa status. This distinction is critical for planning your business strategy.

In practice, here’s who can register and/or run a business:

• Tourists and non-residents can legally register a business but cannot operate it without a work permit. These registrations are often used for passive investment or remote operations.

• Work permit holders may operate a business if their permit allows them to work in their own company or engage in self-employment.

• International students can register a business but can only manage it if their visa allows off-campus work. Eligibility varies by province and immigration policy.

• Start-Up Visa applicants may register and begin working on their business once they receive a letter of support—even before they receive PR status.

• Participants in provincial entrepreneur programs are usually allowed to register, operate, and meet business requirements tied to future PR eligibility.

In some cases, foreign owners appoint a Canadian resident director to manage the company. This is legally acceptable, particularly in provinces that require a local presence. However, this approach requires trust and proper oversight.

Note: Registering a business in Canada does not influence your immigration status. It does not grant you the right to reside in the country, waive visa requirements, or serve as a basis for PR. Therefore, it’s wise to pursue business and immigration plans in parallel if relocation is your goal.

Starting a business in Canada can be more than just an economic strategy, it can be a pathway to immigration. The Canadian government supports entrepreneurs who are ready to create jobs and contribute to the economy. Several immigration programs consider business activity a valid basis for permanent residency.

1. Start-Up Visa Program

This federal program is for entrepreneurs with innovative ideas and the ability to grow a business in Canada. To qualify, you must secure a Letter of Support from a designated Canadian organization (an incubator, angel investor group, or venture capital fund). No personal investment is required, but your business must be viable and compelling in the Canadian market.

Once you receive the letter, you can apply for PR without waiting for the business to be fully operational. You and your family may also receive work and residence permits, allowing you to begin your business while your PR application is processed.

2. Provincial Nominee Programs (PNP)

Most provinces offer their own entrepreneur streams within their immigration programs. Successfully meeting program requirements can lead to a provincial nomination and, eventually, PR. This path suits those willing to take an active role in their business and live in a specific region.

Typical requirements include:

• Investing between CAD 100,000 and 300,000 in the local economy
• Proving net worth of CAD 300,000 to 600,000
• Submitting a solid business plan
• Attending an in-person interview or exploratory visit
• Managing the business directly for 12 to 24 months

3. LMIA-Based Work Permit

This pathway involves registering a business in Canada, appointing yourself as its manager, and applying for a work permit through a Labour Market Impact Assessment (LMIA). This document proves there is no suitable Canadian candidate for the role. Once approved, you can relocate to Canada, manage the company, and later apply for PR through the Canadian Experience Class.

This option works well for experienced managers who want to act quickly, though it requires significant legal preparation.

Many entrepreneurs begin as temporary residents, register a company, hire a local manager, and develop the business while preparing their immigration case. This staged approach offers flexibility, especially when immediate eligibility for a Start-Up Visa or PNP is not possible.

CBGA’s team helps with program selection, document preparation, and application support. Without professional assistance, it’s easy to miss critical details that may lead to application denial.

Example: Irina from Almaty came to Canada on a work visa as a marketing specialist. She later decided to launch her own organic cosmetics brand. With help from CBGA, she registered her company, hired a Canadian director, opened a bank account, and began test sales. Six months later, she applied through Manitoba’s PNP. Eighteen months after that, she became a permanent resident and now manages her business independently.

Your choice of province significantly impacts the complexity of business registration, tax rates, access to support programs, and immigration opportunities. Conditions vary by region and industry. Here’s a quick overview of popular options:

• Ontario: Well-suited for IT, e-commerce, consulting, and retail. Strong infrastructure, access to major cities and universities. High competition, but also a large customer base.

• British Columbia: Great for tech startups, green initiatives, and marketing firms. Vancouver has an active, diverse business community. Cost of living is high.

• Alberta: Popular for retail, food services, workshops, and logistics. Business-friendly with low tax rates and streamlined registration.

• Manitoba: Lower startup capital requirements. The province actively supports small businesses. Good for services, manufacturing, and small retail chains.

• Nova Scotia: Strong potential in tourism, food, and service industries. Actively supports local entrepreneurs and PNP participants.

CBGA helps clients choose the right province based on industry, available capital, immigration goals, and lifestyle preferences. This step is particularly important if you intend to settle in the region long-term.

Note: In many provinces, a business immigration application requires a prior visit, an in-person interview, and presentation of your business plan. Without this step, your application may not be accepted.

The process of launching a business in Canada is straightforward and well-regulated, but foreign nationals without PR must consider some additional steps.

Here’s a general outline:

1. Choose a business structure: Sole proprietorship, partnership, or corporation
2. Register your business name and obtain any necessary licenses
3. Apply for a Business Number (BN) with the Canada Revenue Agency
4. Open a corporate bank account using your business documents, BN, passport, and proof of address
5. Hire an accountant to manage HST/GST filings, expenses, and annual reports
6. Set up essential systems like a website, CRM, documentation flow, and customer communication channels

CBGA supports clients throughout every stage—from choosing a jurisdiction to opening a bank account and registering for taxes. This is especially valuable for non-residents navigating various provincial rules.

Most steps can be completed remotely, but some banks and institutions may require an in-person visit. Planning ahead and choosing a province with clear, non-restrictive policies will make the process much smoother.

The Start-Up Visa Program is ideal for entrepreneurs with scalable, innovative ideas. Unlike other immigration programs, it doesn’t rely on personal capital or existing PR status. Instead, it focuses on your business potential and your ability to grow in the Canadian market.

Who Should Apply?

The program is suitable for:

• Founders with a marketable product or service
• Entrepreneurs in IT, fintech, education tech, green tech, automation, or AI
• Teams of up to five individuals, each eligible for PR

The Process:

1. Develop your idea and create a business plan, financial model, and pitch materials
2. Find a designated investor or incubator to sponsor your project
3. Secure a Letter of Support from that organization
4. Submit your PR application along with personal documentation and medical checks
5. Apply for a work permit and begin business operations while your PR is processed

Example: Ruslan and Oleg from Minsk created an AI platform for legal document analysis. After joining a Canadian incubator’s online program, they received a Letter of Support. Two months later, they opened their company in Toronto, built a team, and launched the first version of their product. They’re now in Canada on work permits and are awaiting final approval for PR.

With the right preparation, clear goals, and the help of experienced advisors, this immigration route is both achievable and efficient.

Starting a business in another country is always a challenge—especially without permanent resident status. To avoid costly mistakes, it’s essential to rely on official sources and work with trusted advisors.

Here are some recommended resources to get started:

• Business Guide for Newcomers – FedDev Ontario

business-guide-newcomers-canada

• Canada.ca – Start a Business as a Non-Resident

canada.ca/en/services/business/start.html

• CBGA (Canadian Business Growth Advisors)

Specializes in guiding foreign entrepreneurs from idea to immigration. Offers tailored support, especially for Russian-speaking clients.

Each Canadian province also maintains its own online portal for company registration and licensing:

• Ontario: ontario.ca
• British Columbia: bcbusinessregistry.ca
• Alberta: alberta.ca
• Manitoba: companiesoffice.gov.mb.ca

Summing up, it is possible to start a business in Canada without permanent residency. The key is understanding your legal position, knowing what is allowed, and aligning your business strategy with your immigration plans. Launching a business while applying for an immigration program is often the best approach, it shortens the path to PR and offers a stable future.

In Canada, great ideas matter more than capital. If you have a strong vision, the path to this northern country is open.