Rule unclear re: being employed by canadian business outside of canada

[meley]

Hello everyone....
First, thanks much for the mediators of this website.
Q. I am slightly confused, and wish to clear my doubts. I will be landing in canada in the next few months. Very happy. But we have a thriving business in my home country. I assume it is possible to register our company as a canadian business, pay all canadian business tax, have an address for the company (because the company will indeed be operational in canada as well-mainly through distribution) in canada and thus maintain our PR status while outside of Canada, being employed by our business in our home country? BTW, what does canadian business mean? does it mean the company has to make profits above a certain amount of money? Please explain. I have read the regulations many times, but seem to get contradictory answers from various websites about the interpretation of this law re: maintaining PR status and employment outside of canada by canadian business...
many manythanks.
mel

 

[PMM]

Hi

Hello everyone....
First, thanks much for the mediators of this website.
Q. I am slightly confused, and wish to clear my doubts. I will be landing in canada in the next few months. Very happy. But we have a thriving business in my home country. I assume it is possible to register our company as a canadian business, pay all canadian business tax, have an address for the company (because the company will indeed be operational in canada as well-mainly through distribution) in canada and thus maintain our PR status while outside of Canada, being employed by our business in our home country? BTW, what does canadian business mean? does it mean the company has to make profits above a certain amount of money? Please explain. I have read the regulations many times, but seem to get contradictory answers from various websites about the interpretation of this law re: maintaining PR status and employment outside of canada by canadian business...
many manythanks.
mel

Nice try, but no cigar. Please read the following

Residency Obligation

Canadian business
61. (1) Subject to subsection (2), for the purposes of subparagraphs 28(2)(a)(iii) and (iv) of the Act and of this section, a Canadian business is

(a) a corporation that is incorporated under the laws of Canada or of a province and that has an ongoing operation in Canada;

(b) an enterprise, other than a corporation described in paragraph (a), that has an ongoing operation in Canada and

(i) that is capable of generating revenue and is carried on in anticipation of profit, and

(ii) in which a majority of voting or ownership interests is held by Canadian citizens, permanent residents, or Canadian businesses as defined in this subsection; or

(c) an organization or enterprise created by the laws of Canada or a province.



Exclusion
(2) For greater certainty, a Canadian business does not include a business that serves primarily to allow a permanent resident to comply with their residency obligation while residing outside Canada.


PMM

 

[thaiguy]

Exclusion
(2) For greater certainty, a Canadian business does not include a business that serves primarily to allow a permanent resident to comply with their residency obligation while residing outside Canada.

Ahhh .. it's always the fine print that gets ya!

 

[meley]

Dear PMM and Thaiguy
Thanks much for the response....
Yes, indeed, i have also read the laws carefully. Clarify, if possible, this Q for me. How will the concerned authorities in Canada be able to prov e the fact that the business established outside of canada by Permanent Residents is PREMEDITATED, i.e. to meet the residency requirement? I have read that statement many a times and it seems difficult, i think, to separate the grain from the chaff-those who are genuine and those who are setting up a business to escape the residency requirements....any thoughts...?

mel

 

[thaiguy]

It's not up to CIC to prove anything. It's up to you to prove you are satisfying the requirements of Canadian law.

If you can't prove your business is a legitimate Canadian business, then you may find yourself accompanying the chaff.