Incorporating a business on CEC BOWP

[Iwanttoimmigrate]

Hello All,

My CEC application is in process and having being received AOR in last month, I'm now eligible for applying for an BOWP. I'm in a tricky situation now and I want some suggestions from the fellow aspirants.

My current work permit with an employer in Montreal expires in March 2014 and they are willing to renew my permit if I continue to work in Montreal with them since they have business. I have to move from Quebec to any other province before my work permit expires since my residency is at stake and it will be difficult for me to convince the immigration officer on this.

1. Can I incorporate a business in Ontario (or any other province apart from Quebec) on BOWP? and Can I have a contract with Quebec based employer?
2. I read that in order to incorporate, I need Canadian citizen/resident on the list of directors or partners list. Is it really a mandatory requirement? I'm not sure but i have seen spousal open work permit candidates working on open work permit with incorporation.
3. If incorporated, will my family be eligible for provincial healthcare benefits?

Any links for the reference would surely help. Thanks in advance.

 

[scylla]

If the contract is in Quebec, then you would want to incorporate in Ontario rather than any other province. If you incorporate in a province other than Ontario, then you will need to go through an additional (and expensive) registration process to allow you to accept a Quebec contract. The provinces of Ontario and Quebec have a special agreement where this additional registration isn't required.

Unfortunately I can't answer your other questions.

 

[Iwanttoimmigrate]

Thank you scylla for your reply.

Does it mean I can incorporate on BOWP?

Other experts, request you folks to help me out!

 

[scylla]

Does it mean I can incorporate on BOWP?

Sorry - that's the part of your question I can't answer. Hopefully someone else will be able to help.

 

[leothelion123]

I was checking this some weeks back and it seems you can incorporate only when one of your board members in a citizen or PR. So you by yourself won't be able to incorporate one unless you get your PR.

 

[Iwanttoimmigrate]

leothelion123,

Yeah I had the same impression as you had but when i inquired with my tax consultant over an email, he said I can do it. The statement/prerequisite on CRA site does mention citizens and residents can apply. But it does not specifically say "Permanent Residents" that means those who living in canada on a valid work permit may also be able to incorporate.

Although I'm yet to contact CRA on this but i will first meet my tax consultant in person and later CRA to double check.

Fingers crossed.

 

[leothelion123]

leothelion123,

Yeah I had the same impression as you had but when i inquired with my tax consultant over an email, he said I can do it. The statement/prerequisite on CRA site does mention citizens and residents can apply. But it does not specifically say "Permanent Residents" that means those who living in canada on a valid work permit may also be able to incorporate.

Although I'm yet to contact CRA on this but i will first meet my tax consultant in person and later CRA to double check.

Fingers crossed.

By residents it is generally meant PRs as in the airport in the immigration queue there were separate queues for Citizens/Residents and Visitors...I went through the Visitor queue despite of being a Canadian resident for more than a year. But please update us about the outcome - even I am curious about the same.

 

[nickutis]

By residents it is generally meant PRs as in the airport in the immigration queue there were separate queues for Citizens/Residents and Visitors...I went through the Visitor queue despite of being a Canadian resident for more than a year. But please update us about the outcome - even I am curious about the same.

Well with CRA it works the other way around - as long as you have some ties with the country (car, house, job), you are Resident and have obligation to pay taxes. I don't think anyone can stop you from incorporating when you pay taxes as resident

 

[Iwanttoimmigrate]

nickutis,

Exactly that's what my tax consultant said! Did you inquire with CRA? or any link which states this?

 

[crediblesam]

Expense wise you are looking for $200 registration + $10/monthly Business account.

I did that recently, by adding up my friend (who is PR), you need at least 25% owner ship of PR/citizen. As far as know, once you incorporate and if your company is ready to pay you as incorporate. then your company is practically dealing with another company not a individual. So you can possibly open the incorporated firm not only in Ontario but all over Canada(same process).

So you have to do two things,
-find a friend/ family(even any retired uncle will work ) who can just add there name as passive Director.
-Then keep track of your expense, because you can save a lot of taxes as incorporated business.
I hope this info helped, good luck

 

[cecnov2012]

Expense wise you are looking for $200 registration + $10/monthly Business account.

I did that recently, by adding up my friend (who is PR), you need at least 25% owner ship of PR/citizen. As far as know, once you incorporate and if your company is ready to pay you as incorporate. then your company is practically dealing with another company not a individual. So you can possibly open the incorporated firm not only in Ontario but all over Canada(same process).

So you have to do two things,
-find a friend/ family(even any retired uncle will work ) who can just add there name as passive Director.
-Then keep track of your expense, because you can save a lot of taxes as incorporated business.
I hope this info helped, good luck

If you are not able to find friend/someone who is PR, then you can ask the consulting firm through which your employer will hire you, to run payroll for you. They would be able to run T4 for you but they will give you less pay. For ex: if you are paid $50 an hour, they will give you only $40 an hour.

 

[leothelion123]

If you are not able to find friend/someone who is PR, then you can ask the consulting firm through which your employer will hire you, to run payroll for you. They would be able to run T4 for you but they will give you less pay. For ex: if you are paid $50 an hour, they will give you only $40 an hour.

Hi
What are the taxes on such a T4 rate? - one of the consultants told me its just the HST.

 

[cecnov2012]

Hi
What are the taxes on such a T4 rate? - one of the consultants told me its just the HST.

I believe you might have to pay Income tax as well. T4 means you are like a full time employee of them, so I assume income tax would be deducted. I am new to this too, so not very sure. It would be better to consult an accountant for clear cut information.

 

[venuamancha]

Hi Iwanttoimmigrate,

Have you incorporated your business? Can you please share your experience, advice, suggestions, pain-points? I am now exactly in same boat as you were in November?

Thanks,

Hello All,

My CEC application is in process and having being received AOR in last month, I'm now eligible for applying for an BOWP. I'm in a tricky situation now and I want some suggestions from the fellow aspirants.

My current work permit with an employer in Montreal expires in March 2014 and they are willing to renew my permit if I continue to work in Montreal with them since they have business. I have to move from Quebec to any other province before my work permit expires since my residency is at stake and it will be difficult for me to convince the immigration officer on this.

1. Can I incorporate a business in Ontario (or any other province apart from Quebec) on BOWP? and Can I have a contract with Quebec based employer?
2. I read that in order to incorporate, I need Canadian citizen/resident on the list of directors or partners list. Is it really a mandatory requirement? I'm not sure but i have seen spousal open work permit candidates working on open work permit with incorporation.
3. If incorporated, will my family be eligible for provincial healthcare benefits?

Any links for the reference would surely help. Thanks in advance.