What Is the ICT Startup Program?
Hi there, welcome back. My name is Donovan Francis. I’m a Canadian immigration lawyer, and I help businesses with their employees’ work permit applications, saving them from all the legal hassle. In this video, I want to talk to you about the Intra-Company Transfer Startup Program, or ICT Startup.
The ICT Startup helps multinational companies that don’t yet have operations in Canada to eventually set up and send employees here.
How the ICT Program Worked Before
In the past, a company that wasn’t even multinational—just an international company without a Canadian operation—could use the ICT program. For example, a company with only a U.S. office could set up a company in Canada, incorporate it, and transfer an employee from their U.S. office to the Canadian location.
This process was called the ICT Startup because the company had to first start a Canadian operation that would receive employees coming to work on work permits through the ICT Startup Program. This is how it worked before immigration authorities made changes in October 2024.
What Has Changed?
Now, international companies can still use the ICT Startup, but with new conditions:
- The company must already have operations in its home country.
- It must also have a revenue-generating operation in at least one other country.
So, both the home company and the second country’s office must be generating revenue. Only after meeting these conditions can the company set up an entity in a third country, like Canada, and transfer employees to the Canadian location.
Key Changes to the ICT Startup Program
Before, a company only needed two entities: one outside Canada and one inside Canada. Now, the company must also have a successful business in a second country besides its home country to qualify for the ICT Startup in Canada.
This is a big change affecting the ICT Startup Program.
ICT Startup for Multinational Corporations
The ICT Startup is still a key option for multinational corporations that may have won a contract in Canada. For example, if they win a contract but don’t have Canadian employees, they can use this program to transfer high-skilled or senior executive employees from their foreign office to Canada.
Office Location Requirement
Another important point for companies wanting to use the ICT Startup Program is that workers must be sent to a set commercial office location in Canada.
Before, under the ICT, a foreign company could set up a virtual office and allow employees to work remotely after arriving in Canada. Now, the company must have an established office location where the employee will work. A remote setup is no longer an option under the ICT Startup or other ICT programs.
Additional Crucial Requirements
Aside from the recent changes, there are other important requirements. The company needs to show immigration authorities that its business will be successful and bring benefits to Canada.
When setting up a Canadian operation, the company must submit a business plan that explains how the Canadian economy, society, and labor force will benefit from the new company. This includes how the specialized knowledge of its employees will be shared with Canadians.
A business plan is essential for the setup. The company must also prove that it has enough revenue to cover its expenses in Canada.
Conclusion
The recent changes to the ICT Startup Program have introduced new layers of complexity for international companies. Multinational corporations must now meet stricter conditions, including having revenue-generating operations in at least two countries, before they can establish a Canadian entity and transfer employees. This shift will undoubtedly affect how businesses approach their expansion into Canada.
However, for companies that meet these new requirements, the ICT Startup Program still offers a valuable opportunity to set up operations and bring high-skilled talent into Canada. It remains an essential tool for companies that need to fulfill contracts or expand their business in the Canadian market.
