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PR - Working overseas for a Canadian Ltd company?

PR - Working overseas for a Canadian Ltd company?

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Old Feb 7th 2011, 4:17 pm
  #1  
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Default PR - Working overseas for a Canadian Ltd company?

Background
Assuming all goes well, shortly after arrival as PR's, plus having processed all the required documentation, both my wife and I are planning on registering a limited company in BC (I am aware that there are different levels of incorporation in Canada). The overriding reason for setting up a Ltd Co is our work in the Offshore Oil & Gas Industry (Construction and Inspection) often requires us to subcontract our services to international overseas Construction companies.
Here in Portugal, we are directors of a small limited company (three employees) of which my wife and I are the majority equity holders. We are both employed by our company on a full time basis with fixed monthly salaries (set by us!).
As mentioned earlier our company sub contracts our services out to other overseas companies. These contracting companies prefer us to be employees of a limited company for many reasons, billing and liability insurance being just two of them. In effect we are no liability for the contracting companies and thus work to the ebb and flow of seasonal demand.
On leaving Portugal we would close our Ltd company here.

We plan on living in Victoria, BC. with no ties (financial, property or otherwise) to any other country other than Canada.
We plan to work under our new BC registered Ltd company as employees and sub contract our services to overseas companies e.g.. North Sea UK sector.

This will of course entail us having to travel away from Canada for work.
It is my understanding that days spent overseas, working as an employee of a Canadian registered company, count as days in Canada (for PR purposes), but I'd appreciate some input on this from those a little more knowledgeable than I.

I want us to go into this eyes wide open, so therefore I have a couple of questions.

Question 1.
We would both be directors/employees of a Canadian (BC) registered limited company and that company would be sending us overseas for work as employees.
Would the time overseas count as days in country as far as days towards maintaining PR (as I understand two out of five years in country) is concerned?

Question 2.
Given the same scenario above (in Q1)
We don't plan on living anywhere else other than Canada.
So.. either we will working in Canada or overseas (in both instances as employees of the same company). If we are not working overseas we will be living in Canada.
Would the days spent overseas, working as employees of our Canadian company, count towards Citizenship (as I understand it, three years in any four) as days in country?

All advice/input would be gratefully appreciated.
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Old Feb 7th 2011, 4:37 pm
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Default Re: PR - Working overseas for a Canadian Ltd company?

It will count towards PR, assuming you meet the criteria, but not towards citizenship. http://britishexpats.com/wiki/Catego...cy_Obligations

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Old Feb 7th 2011, 4:40 pm
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Default Re: PR - Working overseas for a Canadian Ltd company?

Hi

Originally Posted by james.mc
Background
Assuming all goes well, shortly after arrival as PR's, plus having processed all the required documentation, both my wife and I are planning on registering a limited company in BC (I am aware that there are different levels of incorporation in Canada). The overriding reason for setting up a Ltd Co is our work in the Offshore Oil & Gas Industry (Construction and Inspection) often requires us to subcontract our services to international overseas Construction companies.
Here in Portugal, we are directors of a small limited company (three employees) of which my wife and I are the majority equity holders. We are both employed by our company on a full time basis with fixed monthly salaries (set by us!).
As mentioned earlier our company sub contracts our services out to other overseas companies. These contracting companies prefer us to be employees of a limited company for many reasons, billing and liability insurance being just two of them. In effect we are no liability for the contracting companies and thus work to the ebb and flow of seasonal demand.
On leaving Portugal we would close our Ltd company here.

We plan on living in Victoria, BC. with no ties (financial, property or otherwise) to any other country other than Canada.
We plan to work under our new BC registered Ltd company as employees and sub contract our services to overseas companies e.g.. North Sea UK sector.

This will of course entail us having to travel away from Canada for work.
It is my understanding that days spent overseas, working as an employee of a Canadian registered company, count as days in Canada (for PR purposes), but I'd appreciate some input on this from those a little more knowledgeable than I.

I want us to go into this eyes wide open, so therefore I have a couple of questions.

Question 1.
We would both be directors/employees of a Canadian (BC) registered limited company and that company would be sending us overseas for work as employees.
Would the time overseas count as days in country as far as days towards maintaining PR (as I understand two out of five years in country) is concerned?

Question 2.
Given the same scenario above (in Q1)
We don't plan on living anywhere else other than Canada.
So.. either we will working in Canada or overseas (in both instances as employees of the same company). If we are not working overseas we will be living in Canada.
Would the days spent overseas, working as employees of our Canadian company, count towards Citizenship (as I understand it, three years in any four) as days in country?

All advice/input would be gratefully appreciated.
1. I don't think that your idea is going to work for preserving your PR status. I think that CIC is going to take the following attitude towards your company.

"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 under 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.


2. If your company complied with the above, the time abroad doesn't count towards citizenship.
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Old Feb 7th 2011, 6:31 pm
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Default Re: PR - Working overseas for a Canadian Ltd company?

Thanks for the input. I can see now how the overseas contracts may not count towards Citizenship. Thanks for the link on that.

With regard to PR.
I mentioned in my original post that we will be residing in Canada with no financial, property or otherwise, ties outside Canada. We would only be working overseas on contract as and when required to do so. Personally speaking we have no wish to live anywhere other than Canada which is why we are doing the whole FSW PR thing anyway. At this stage I'm simply trying to anticipate and negate where possible potential problems way ahead of the game.

Maybe if I expand a little, with regards to our intentions:
  1. We would be living in Canada.
  2. We would be renting or will have bought property in Canada.
  3. We would have clear irrefutable evidence of living in Canada between contracts.
  4. We would be banking and paying taxes in Canada.
  5. We would have no other financial or residential ties to any other country other than Canada.

Contract wise.
One, or both of us, could fly out for say.. a six weeks to work and then back in country for (say a few weeks) until the next job happens.

These periods will vary, as would their frequency but in most instances:
  • Our company would be billing for days our employees are on contract out of Canada, so it would be clear that work is being performed for the company by it's employees (us) leaving Canada only to perform such work but clearly returning when not working, give or take a couple of days transit here and there.
  • The employees (us) could be flying to any number of different countries to work. UK North Sea, West Africa, Asia etc.

So, with regard to our proposed company, it appears it would meet all the requirements laid out in the definition of a Canadian business, and it would also generate some revenue from within Canada. It's the bit about us (employees of the company) travelling overseas so much as PR's on company business that is of interest to me.

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.


Given what I have written above does anyone still feel that the exclusion above in red might still apply?

Last edited by james.mc; Feb 7th 2011 at 6:33 pm.
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Old Feb 7th 2011, 7:20 pm
  #5  
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Default Re: PR - Working overseas for a Canadian Ltd company?

Hi

Originally Posted by james.mc
Thanks for the input. I can see now how the overseas contracts may not count towards Citizenship. Thanks for the link on that.

With regard to PR.
I mentioned in my original post that we will be residing in Canada with no financial, property or otherwise, ties outside Canada. We would only be working overseas on contract as and when required to do so. Personally speaking we have no wish to live anywhere other than Canada which is why we are doing the whole FSW PR thing anyway. At this stage I'm simply trying to anticipate and negate where possible potential problems way ahead of the game.

Maybe if I expand a little, with regards to our intentions:
  1. We would be living in Canada.
  2. We would be renting or will have bought property in Canada.
  3. We would have clear irrefutable evidence of living in Canada between contracts.
  4. We would be banking and paying taxes in Canada.
  5. We would have no other financial or residential ties to any other country other than Canada.

Contract wise.
One, or both of us, could fly out for say.. a six weeks to work and then back in country for (say a few weeks) until the next job happens.

These periods will vary, as would their frequency but in most instances:
  • Our company would be billing for days our employees are on contract out of Canada, so it would be clear that work is being performed for the company by it's employees (us) leaving Canada only to perform such work but clearly returning when not working, give or take a couple of days transit here and there.
  • The employees (us) could be flying to any number of different countries to work. UK North Sea, West Africa, Asia etc.

So, with regard to our proposed company, it appears it would meet all the requirements laid out in the definition of a Canadian business, and it would also generate some revenue from within Canada. It's the bit about us (employees of the company) travelling overseas so much as PR's on company business that is of interest to me.

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.


Given what I have written above does anyone still feel that the exclusion above in red might still apply?

IMHO? Yes, especially if you two are the only employees.. But talk to an Immigration lawyer, you really don't wish to get a shock in a couple of years, when CIC decides you haven't met your residency requirements.
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Old Feb 7th 2011, 8:30 pm
  #6  
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Default Re: PR - Working overseas for a Canadian Ltd company?

We'll certainly not be residing out-with Canada, but will take your advice and follow up with an immigration lawyer.

Seems a bit odd if we create a business that brings revenue into Canada, the country we'll be residing in, and yet our long term PR compliance may come into doubt, but I guess second guessing CIC is not the way forward.
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