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How to prove the employer’s “business legitimacy” in an LMIA application

• By Stella Kotchetkova
• Featured, Immigration
• 0 comments

When a foreign worker is hired by a Canadian employer , more often than not, they are required to apply for a “Labour Market Impact Assessment” also known as an “LMIA”.

The LMIA application is submitted for evaluation to Employment and Social Development Canada, so as to ensure that hiring a foreign worker will not have a negative impact on the Canadian labour market.

Employers have to demonstrate that they have met all the requirements of the Labour Market Impact Assessment (LMIA) process to be approved to hire a foreign worker. Amongthese requirements is the need to show that the business, job offer, and need to hire a temporary foreing worker are genuine. The company also needs to prove that it “operates a legal business that provides goods or services in Canada”

We would like to share some of the ways to prove business legitimacy when it comes to federal and provincial laws regulating employment.

The Labour Market Impact Assessment application and accompanying additional supporting documents must be assessed by ESDC in order to confirm that your business:

Has no past compliance issues

Can fulfill all of the terms of the job offer

If you have received a positive LMIA decision in the previous two years and your most recent LMIA decision was positive, you are not required to provide evidence that you are running a business in Canada that provides a good or service.

Other Businesses: To prove that you have a legal business that provides a product or service in Canada, you must submit one of the following documents:

• municipal/provincial/territorial business license(valid, i.e. not expired)

• T4 Summary of remuneration paid

• PD7A Statement of account for current source deductions

• an attestation confirming that you are engaged in a legal business that provides a good or a service in Canada where an employee could work and a description of the main business activity. Permanent residency stream only, confirmation that the business has been operating for at least one year must also be included in the attestation.

• if you are a foreign employer without a Canada Revenue Agency number whose business address and operation is outside of Canada, you may submit your contract or invoice for the goods or services that you are providing in Canada
• a copy of the Coasting Trade letter of authority issued by the Canada Border Services Agency for positions onboard a foreign vessels undertaking coastal trade in Canadian waters

If you have not received a positive LMIA decision in the past two years, you will need to demonstrate that you can fulfill the demands of the employment offer, you must submit one of the following documents:

• T2 Schedule 100 Balance sheet information and T2 Schedule 125 Income statement information

• T2042 Statement of farming activities (redact social insurance number)

• T2125 Statement of business or professional activities (redact social insurance number)

• T3010 Registered charity information return

• T4 or payroll records for a minimum of 6 weeks immediately prior to the submission of this LMIA application, if the temporary foreign worker already works for you (redact social insurance number)

• an attestation confirming that your business is in good financial standing and will be able to meet all financial obligations to any temporary foreign worker you hire for the entire duration of their employment
• if you are a foreign employer without a Canada Revenue Agency number whose business address and operation is outside of Canada, you may submit your contract or invoice for the goods or services that you are providing in Canada

So, how do you prove LMIA business legitimacy?

One of the methods to prove business legitimacy is through attestation letters . An attestation letter is written or signed to confirm a statement, action, or behavior. The writer is certifying or attesting that they personally witnessed or know something to be true. Attestation letters are necessary for when legal requirements demand a witness for a document to be fully valid.

As per the Employment and Social Development Canada (ESDC), attestation letters must be prepared by either:

• a lawyer of any other member in good standing with a law society
• a Chartered Professional Accountant in good standing with the respective professional body (attestations from Chartered Accountants in Quebec are not authorized by the Ordre des comptables professionnels agréés du Québec)

Instances where one may obtain a letter of attestation include:

• Business which is willing to confirm that their business is in good financial standing and can meet all financial obligations to any temporary foreign worker they may hire for the entire duration of employment
• Business which is willing to have any business legal documents certified or attested such as operating agreements, articles of incorporation, company bylaws for corporations, employment agreements, business plans, terms of use, privacy policies, memorandum of understanding documents, etc.
• Businesses wanting to confirm that they are engaged in a legal business that provides a good or a service in Canada where an employee could work
• Businesses wanting to confirm the nature or description of their business activity
• Employers who are required to include an offer of employment letter to its hired foreign national who is applying for a work permit under their company
• Employers providing an employment verification letter or an employment reference letter to a former employee who is applying for a work permit to a new company
• Applicants who have completed a specialized training in a form of a self-certification but holds a relatively valid document to confirm specific details
• Applicants who are required to submit a letter for good character and confirming that they do not have a criminal record or any charges or convictions

A person of authority prepares the attestation letters after confirming the facts. Lawyers are considered persons of authority due to the thorough regulations and rules from their regulatory bodies. Not all immigration practitioners are lawyers; some are regulated Canadian immigration consultants.

By following all of the necessary steps and taking care in compiling your application package, you can give yourself the best chance of success in securing an LMIA for your business.

If you have any questions about this process or would like us help putting together your application, please, contact us at inquiries@adventureimmigration.com.

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You can also book an appointment with us to speak to our Regulated Canadian Immigration Consultant or one of our immigration representatives.

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