Changes Impact Intra-Company Transferees Headed to Start-Up Companies in Canada

Citizenship and Immigration Canada has posted new guidelines and specifications governing Intracompany Transferees. These have taken effect as of November 10, 2009.

Specifically, the new guidelines impact international companies that intend to transfer employees to Canada for the purpose of opening a new office or a start-up business. Pursuant to these changes, where an international company intents to place an Intercompany Transferee in Canada for the purpose of employment with a start-up company, that international employer must evidence:

• physical premises to house the Canadian operation
• • realistic plans to staff the new operation
• • financial ability to commence business in Canada and

compensate employee

Requirements for the Intracompany Transferee are as follows:

• • Executives/managers:

o company must demonstrate that it will be large enough to  support executive or management function

• • Specialized Knowledge:

o company must demonstrate that it is expected to be doing

business

o work must be guided and directed by management at the

Canadian operation

The duration of Work Permits issued in these circumstances are:

• • Initial Work Permit: 1 year
• • For renewals, evidence should be provided that:

o the Canadian and foreign companies still have a qualifying

relationship

o the new office has engaged in the continuous provision of goods or

services for the past year

o the new office has been staffed

The changes to the Canadian Intracompany Transferees program seem to have brought it into line with requirements already outlined in the program’s US conterpart (L-1 nonimmigrant visa), although some of the guidelines appear narrower under the Canadian branch of the test.