Hiring a Foreign National Using an LMIA
When a Canadian or foreign business wishes to hire a foreign national inside Canada using a Labour Market Impact Assessment (LMIA), one of the key requirements is for the business to provide supporting documentation to immigration authorities. This documentation proves that the business is legitimate, actively carrying out operations in Canada, and in a strong financial position to pay the foreign national.
The LMIA Application Process
The LMIA application is submitted by the employer, not the prospective employee. The application essentially states that the business has not been able to find a Canadian to fill the role. The employer must demonstrate that they’ve posted the job for at least four weeks, made efforts to hire suitably qualified Canadians, and been unsuccessful.
If the government approves the LMIA application, they issue what’s known as a positive LMIA. The employer can then provide this positive LMIA to the prospective employee, who can use it to support their work permit application. That’s the LMIA process in a nutshell.
Proving Business Legitimacy
As part of the LMIA application, one of the key responsibilities of the employer is to convince immigration authorities that their business is legitimate. This is especially important if the business hasn’t applied for an LMIA in recent years.
The government needs to confirm that the business is actively carrying out operations in Canada. To meet this requirement, employers must provide supporting documentation, such as business licenses (municipal, provincial, or federal) and tax documents like T4 statements to show that the business is operating in Canada.
In cases where these documents cannot be provided at the time of submission, an attestation letter from a lawyer or certified accountant in Canada may be used as a substitute.
Financial Ability to Meet the Job Offer
Another key requirement of the business legitimacy section of the LMIA application is for the business to show that it can meet the terms and conditions of the job offer made to the foreign national. This includes proving that the business has the financial means to pay the foreign national’s salary.
Employers can demonstrate this by providing tax documents that show the company’s financial situation. Again, an attestation letter from a lawyer or accountant may be used when these documents aren’t immediately available.
Bolstering the Application
In some cases, a company may feel that the documents provided are not convincing enough. Perhaps the figures in the required tax documents don’t reflect the business’s full capabilities. In such situations, employers might want to strengthen the application by providing additional supporting documentation.
For example, one of our clients, who operated internationally in the U.S. and other countries, included financial documents from its non-Canadian entities. This helped convince immigration authorities that the company was well-established with sufficient finances to meet the terms and conditions of the employment offer in its LMIA application.
Conclusion
The business legitimacy requirement is a crucial component of the LMIA process. Employers must be prepared to demonstrate that their business is genuine, operational, and financially stable to support the employment of a foreign national. By providing the necessary documentation and, when needed, additional supporting materials, employers can enhance their chances of obtaining a positive LMIA. Understanding these requirements not only facilitates a smoother application process but also ensures compliance with immigration regulations, ultimately benefiting both the business and the prospective employee.
