It is illegal for someone who is not a Canadian citizen or a permanent resident to work in Canada without a work permit or without special permission under the Canada-United States-Mexico Agreement (CUSMA).

CUSMA allows American or Mexican citizens to enter Canada on a temporary basis to trade goods, provide services, or participate in investment activities, without needing a Labour Market Impact Assessment (LMIA). CUSMA replaced the original North American Free Trade Act (NAFTA) on July 1, 2020, which was created to make it faster and easier for many business people to gain temporary entry to Canada for business purposes.

To qualify for temporary entry under CUSMA, applicants:

• must be a citizen of either Mexico, Canada, or the United States;
• must show proof of their citizenship; and
• must qualify as a business person

Important: Only citizens of the U.S. or Mexico qualify for CUSMA work permits. Permanent residents (green card holders), H-1B visa holders, F-1 students, and other non-citizens are NOT eligible, regardless of their lawful status in the U.S. or Mexico.

Labour Market Impact Assessment (LMIA) exempt

A Labour Market Impact Assessment (LMIA) is a document that employers in Canada must sometimes get from Employment and Social Development Canada (ESDC) before hiring a foreign worker. A positive LMIA – sometimes called a Confirmation Letter – will show that there is a need for a foreign worker to fill the job in Canada. All business people covered by CUSMA are exempt from the need for an LMIA. This means Canadian employers do NOT need to have a job offer approved by ESDC to employ an American or Mexican business person under CUSMA.

While CUSMA work permits are LMIA-exempt, employers must still pay an Employer Compliance Fee of approximately $230 CAD per worker through the IRCC Employer Portal. This fee funds employer compliance inspections and is non-refundable, even if the work permit is refused.

Who qualifies as a ‘business person’?

Applicants must qualify in one of the following four categories of business people:

1. Business visitors
2. Professionals
3. Intra-company transferees
4. Traders or investors

1. Business visitors

Business visitors are people who plan to engage in business activities. They have no intention to enter the Canadian labour market, and their primary source of income and place of business remain outside of Canada. Business visitors will be asked to provide evidence that they will engage in international business activity. Business visitors do not need a work permit.

As set out in CUSMA, a business visitor is an American or Mexican traveling to Canada for one of the following activities:

• Research and Design
• Growth, Manufacture and Production
• Marketing
• Sales
• Distribution
• General Service
• After Sales Services

Duration of stay: Business visitors are authorized for short-term periods only, unless there are extenuating circumstances.

2. Professionals

Professionals are people who plan to engage in a business activity related to providing services or performing training functions at a professional level in a designated profession.

Requirements:

• must have professional work experience in one of the 63 CUSMA Professionals List of Occupations, each with detailed education requirements. See CUSMA Chapter 16, Appendix 2
• (must have an offer of employment to practice their profession with an employer in Canada
• must demonstrate the necessary qualifications to work in their profession, found on the CUSMA Professionals List of Occupations
• must have a work permit
• cannot be self-employed (but can work on service contracts with Canadian companies

Because professionals must have pre-arranged employment with a Canadian organization, they cannot enter the country to work as a temporary professional if they are self-employed. There is no limit on how long a professional may remain in Canada, if they have a valid work permit, and their employment is still temporary.

Work Permit duration:

• Initial Duration: Up to 3 years
• Extensions: Up to 3 years per extension
• Maximum Duration: No limit on number of extensions (as long as employment remains temporary)

There is no limit on how long a professional may remain in Canada, if they have a valid work permit and their employment is still temporary.

3. Intra-company transferees

Intra-company transferees are people employed full-time by an American or Mexican organization, in a managerial, executive, or specialized services position for at least one year and who are being transferred to Canada, to provide managerial, executive, or specialized services to the same or related organization in Canada.

Requirements:

• Must be currently employed by U.S. or Mexican enterprise
• Must have worked for the company for at least one continuous year in the past three years
• Must be transferring to Canadian branch, subsidiary, affiliate, or parent company
• Position must be in executive capacity, managerial capacity, or requiring specialized knowledge
• Must have a work permit
• Cannot be self-employed

Work Permit duration:

• Initial Duration: Up to 3 years
• Extension Duration: Up to 2 years per extension
• Maximum Cumulative Duration:
  • Executives and Senior Managers: 7 years total
  • Specialized Knowledge Workers: 5 years total

Important: The 7-year and 5-year limits are cumulative maximum stays. After reaching the cap, the worker must leave Canada for a period before re-qualifying for CUSMA ICT status.

Business visitors, professionals, and intra-company transferees who are American citizens can apply to enter Canada at a Canadian border or airport, if they do not have a criminal record, medical condition or prior violation of Canadian immigration law that would bar their entry into Canada.

4. Traders and Investors

TRADERS

Traders must work for a company with either American or Mexican nationality, that does business principally between Canada and either the U.S. or Mexico. The trade or investment must be substantial.

Requirements:

• Must carry on substantial trade in goods or services between Canada and U.S./Mexico
• “Substantial trade” means more than 50% of trade (by volume or value) is between Canada and one of these countries
• Company must have American or Mexican nationality (50%+ ownership by U.S./Mexican citizens)
• Must be employed in supervisory or executive capacity, or role involving essential skills
• Existing trade relationship must already exist (cannot enter to establish new trade)
• Require a work permit

Work Permit duration:

• Initial Duration: Up to 1 year
• Extensions: Available with no specified limit
• Requirements: Demonstrate ongoing substantial trade

INVESTORS

Investors must demonstrate they have committed, or are in the process of committing, a substantial amount of capital in Canada.

Requirements:

• Must have made substantial investment in new or existing Canadian business
• Investment must be irrevocably committed (cannot simply be redeemed on demand)
• No minimum investment amount specified, but must be significant relative to business
• Must be seeking entry to develop and direct the Canadian business
• Must be employed in supervisory or executive capacity, or role involving essential skills
• Require a work permit
• Can be self-employed in developing/directing the investment

Work Permit duration:

• Initial Duration: Up to 1 year
• Extensions: Available based on continued investment and business development
• Requirements: Demonstrate ongoing investment and active business management

Note: Investors can also obtain work permits for essential staff members who are considered critical to the business operations.

American or Mexican nationality means that the individual or corporate persons who own at least 50 percent interest in the entity (directly or by stock), must hold American or Mexican citizenship.

Special rules apply to traders and investors. Due to the complexity of the application and the need for consistency between countries, an application for a work permit for entry as a trader should be submitted at a visa office. Once the entry requirements are met, there is no time limit on how long traders and investors can remain in Canada.

Other requirements

Business people who are covered under CUSMA must still meet the general immigration requirements that govern entry to Canada. People with certain medical conditions or a criminal record may not be allowed to enter Canada. Visit canada.ca to find out who is admissible.

If you need to extend your stay in Canada, you can apply for an extension of your work permit at any time before your work permit expires. To extend a CUSMA work permit, the employer must submit a new offer of employment and the applicant must comply with regular work permit extension requirements.

Important: The validity of your work permit cannot exceed the validity of your passport. Ensure your passport will be valid for longer than your requested work permit duration.

Electronic Travel Authorization (eTA)

Most visa-exempt foreign nationals (persons who are not Canadian citizens or permanent residents or are stateless persons) require an Electronic Travel Authorization (eTA) for travelling to Canada, but only when travelling by air. Specifically, visa-exempt foreign nationals must obtain an eTA to travel to or transit through a Canadian airport, but they are not required to have an eTA when arriving by car, bus, train, or boat (including cruise ships).

An eTA is electronically linked to a traveller’s passport and is valid for up to five years or until the passport expires, whichever comes first.

United States applicants: As of April 26, 2022, U.S. citizens and lawful permanent residents of the United States are exempt from the eTA requirement. They must carry proper identification, such as a valid U.S. passport or official proof of status, and a valid passport from their country of nationality (or an equivalent travel document).

Note: While U.S. permanent residents (green card holders) are exempt from eTA requirements, they are NOT eligible for CUSMA work permits. Only U.S. and Mexican citizens qualify for CUSMA.

Applicants from a visa-exempt country who receive a study or work permit on or after August 1, 2015, will automatically be issued an eTA along with their permit, while those who received their permit before that date will have to apply for an eTA.

Canadians doing business abroad under CUSMA

CUSMA has also made it easier for Canadian business people to gain temporary entry to the United States or Mexico for business purposes. Canadian citizens who want to trade goods, provide services, or participate in investment activities may enter the United States or Mexico under special CUSMA immigration rules. Canadians doing business abroad must qualify in one of the same four categories as people who are entering Canada from the U.S. or Mexico to do business here. They must also satisfy the same general health and security requirements.

In general, Canadian citizens who apply for admission to the United States as a business person do not need a visa. Business visitors, professionals, and intra-company transferees can apply to enter the United States or Mexico at a port of entry, if they do not have a criminal record, medical condition or prior violation of U.S. immigration law that would bar their entry into the United States. Refer to the USA Travel and Immigration section of Legal Line for more information on working and visiting the United States.

Individuals who are not covered under CUSMA are still eligible to work temporarily in the member countries if they qualify under the general provisions governing the temporary entry of foreign workers.

A criminal record will delay, and can even prevent you from getting your immigration status. To erase your criminal record, call toll-free 1-888-808-3628 or learn more at Pardon Partners. It’s easier than you think.

Get legal help

For strategic guidance on expanding your business to Canada—whether through the C11, ICT, LMIA, or investment-driven pathways — contact our preferred immigration lawyer, Sobirovs Law Firm at 1-416-895-3026 or wecare@sobirovs.com. The Sobirovs team helps entrepreneurs navigate Canada’s business immigration system with clarity and a structured plan for long-term success.

								
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