The Intra-Company Transfer Program
To transfer an employee to Canada, companies often use the ICT—the Intra-Company Transfer program. This Canadian immigration program is mainly for multinational companies.
By “multinational,” we mean companies that operate in at least two countries outside Canada, in addition to their Canadian operations. In total, they must have three different businesses in three countries.
As far as Canadian immigration law and the ICT program are concerned, those are considered ICTs: multinational companies.
Proving Multinational Status
To bring workers to Canada under the ICT program, a company must prove it is a multinational or international company.
This means showing not only that it has revenue-generating businesses in three countries, including Canada, but also that there is a legal relationship connecting these companies.
If a company fails to meet this requirement, it does not qualify as a multinational company for immigration purposes under the ICT program. As a result, it would not be able to secure work authorization for its employees.
What Is a Legal Relationship?
There’s a clear definition of what qualifies as a legal relationship.
Legally Established Businesses
First, both the Canadian and the foreign company must be legally established businesses. The Canadian entity must exist in Canada as a legal entity.
A “legal entity” means any organization established under the laws of Canada, the U.S., or another country. This can include corporations, joint ventures, religious organizations, charitable organizations, or not-for-profits. These entities can be privately owned or owned by the government.
Parent, Branch, Subsidiary, or Affiliate Relationships
To qualify, there must be a legal entity that acts as a parent, branch, subsidiary, or affiliate in different countries.
For example, a Canadian company could be the parent company with branches in the U.S. and India. Or, it might have subsidiaries or affiliates in other countries. The key is that these entities must be related.
Ownership and Control: The Defining Factors
The existence of a legal relationship depends on ownership and control.
- Ownership means having the right to possess, manage, and control the entity. The same person or group must control the Canadian company and its branches or affiliates in other countries.
- Control refers to having the authority to direct or manage the business.
These factors are crucial for determining whether a legal relationship exists for applying for an ICT work permit under the program.
Non-Qualifying Business Relationships
Some types of business relationships do not qualify under this definition.
For example, if your company has a contractual relationship with another entity, that does not qualify because there’s no shared ownership or control between the entities.
Employers must differentiate between contractual relationships with unrelated entities and relationships with related companies. This distinction is important for securing work authorization for employees being transferred from an overseas operation to a Canadian one.
Conclusion
To use the ICT program successfully, companies must ensure they meet the requirements for a legal relationship. Ownership and control between all entities involved are essential. Without this, businesses may face difficulties in transferring employees to their Canadian operations.
