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To secure an arranged employment offer in Canada, a Labour Market Impact Assessment (LMIA) is typically required. An LMIA is a document issued by Service Canada that assesses the potential impact a foreign worker may have on the Canadian labour market. If the LMIA is positive, it confirms that hiring a foreign national will either benefit or not harm the local workforce. For immigration purposes, a positive LMIA can significantly boost a candidate's Comprehensive Ranking System (CRS) score — adding 50 points for jobs in NOC skill levels 0, A, or B, and 200 points for positions classified under NOC skill level 00.
The Service Canada officer will evaluate the effect on the labour market by doing a global assessment of the 7 labour market factors:
Job Creation: Whether employing the foreign national will likely create or retain jobs for Canadian citizens or permanent residents.
Skill Development: Whether the foreign national’s employment will contribute to the development or transfer of skills and knowledge benefiting Canadians or permanent residents.
Labour Shortage: Whether the position fills an existing labour shortage.
Wages and Working Conditions: Whether wages offered are consistent with prevailing rates and working conditions meet Canadian standards.
Hiring Efforts: Whether the employer has hired or trained, or made reasonable efforts to hire or train, Canadian citizens or permanent residents.
Labour Disputes: Whether employment of the foreign national could negatively affect ongoing labour disputes or the employees involved.
Commitment Fulfillment: Whether the employer has fulfilled or made reasonable efforts to fulfill previous commitments related to job creation, skill development, and hiring.
An LMIA will be approved and receive a positive decision if the Service Canada officer is satisfied that hiring the foreign worker will positively impact the Canadian labour market. To determine this, the application must pass four key “Genuineness” tests:
The business is actively operating and providing goods or services.
The business demonstrates a legitimate need for the LMIA being requested.
The business is capable of fulfilling the terms outlined in the job offer.
The business has no history of non-compliance with regulatory requirements.
Before an LMIA can be issued to a foreign worker, the employer must demonstrate that they made genuine efforts to hire Canadian citizens or permanent residents. This includes providing evidence of advertising the job position for at least 30 days and actively attempting to recruit within the local labour market.
Once the LMIA is approved, the foreign national is considered to have “arranged employment” in Canada. This leads to a significant boost in their Comprehensive Ranking System (CRS) score under Express Entry—either 50 or 200 points—depending on the skill level of the job. The skill level is based on the National Occupation Classification (NOC) code assigned to the position.
50 points are assigned for NOC 0 (management), A, and B skill levels.
200 points are assigned for NOC 00 (senior management positions).
An Owner Operator LMIA is a specific variation of the standard LMIA process, primarily affecting the advertising requirements. It is not a separate LMIA category but applies when a business owner applies for an LMIA to support their own role in the company. Under this variation, the usual advertising requirements are waived.
According to Service Canada, this pathway is intended strictly for genuine business owners—not individuals receiving company shares as part of a compensation deal. To qualify as an Owner Operator, foreign nationals must prove—both before applying and throughout their employment in Canada—that they meet the criteria established for business ownership and operational control.
They have controlling interest in the business by being the sole proprietor.
They have controlling interest by being a majority shareholder, holding at least 50.1% of the shares.
They provide official documentation confirming that one shareholder holds controlling interest.
They cannot be dismissed from their position.
Variation: No advertisement or recruitment is required.
Applicability: Applies to all provinces and territories.
Based on our experience with Service Canada and information obtained through access to information requests, we've observed that in Owner Operator LMIA applications, greater emphasis is placed on the first two labour market factors. These factors are more heavily weighted during the assessment process compared to other LMIA applications. This highlights the importance of clearly demonstrating how the business will benefit the Canadian labour market and why a foreign national’s involvement is essential.
Job retention and creation
Skills and knowledge transfer
There are various types of Labour Market Impact Assessments (LMIAs), such as those for agricultural workers, low-wage and high-wage positions, seasonal agricultural roles, and permanent residence (PR) streams. Each type has its own specific forms, advertising rules, and application requirements. However, for our business and investor clients in the economic class, the two most relevant LMIA categories are:
High Wage LMIA
Permanent Residency – PR LMIA (Also referred to as dual-intent LMIA)
Both the High-Wage and Owner Operator LMIAs can significantly boost an applicant’s Comprehensive Ranking System (CRS) score in the Express Entry system.
An approved LMIA (Labour Market Impact Assessment) enables the applicant to apply for a Canadian work permit, granting legal entry and the ability to work in Canada. Typically, this work permit is valid for up to two years and is employer-specific—meaning the applicant must work for the employer listed on both the LMIA and the work permit. In many business immigration cases, especially under the Owner Operator pathway, this employer is the applicant’s own company—whether newly established or acquired.
In addition, the applicant’s spouse may be eligible for an open work permit, allowing them to work for any employer in Canada. Dependent children under the age of 22 can also accompany the applicant, receiving visitor status and/or study permits to attend school in Canada.
Based on recent trends in Express Entry draws, candidates with a Comprehensive Ranking System (CRS) score above 470 typically receive an Invitation to Apply (ITA) for permanent residence within weeks. Applicants with a CRS score of 420 or higher who secure a 50-point LMIA are well-positioned to receive an ITA shortly thereafter. For those with CRS scores between 270 and 419, obtaining a 200-point LMIA is generally required to become competitive and receive an ITA for permanent residency in the near term.
It may seem obvious by now that a 200-point LMIA is almost always more favourable than a 50 point.
We typically target the 200-point LMIA to maximize Express Entry competitiveness. However, in some cases, Service Canada officers may question the seniority level of the position and downgrade it to a 50-point LMIA. This usually happens when the role doesn’t clearly involve “Senior Managerial Duties,” such as overseeing teams or managing multiple departments—criteria that can be difficult to meet for small business owners. For applicants with a CRS score between 270 and 419, receiving only a 50-point LMIA may not be sufficient to reach the current cut-off threshold of 470, reducing their chances of receiving an Invitation to Apply (ITA) for permanent residency.
So how does the pathway to permanent residency work from there?
An LMIA—whether it adds 50 or 200 CRS points—allows the applicant to apply for a Canadian work permit. It also enables their spouse to obtain an open work permit, and dependent children to receive visitor records and study permits. This provides the family with legal entry into Canada, the right to work, access to healthcare, and other benefits available to temporary workers in Canada.
Things to note:
Service Canada is responsible for issuing the LMIA
IRCC evaluates Work Permits and Permanent Residency
In many cases, an LMIA (arranged employment) is essential either to obtain a Canadian work permit or to gain valuable CRS points needed for an Express Entry draw. Therefore, it’s important to meet the requirements of both Service Canada (for the LMIA) and Immigration, Refugees and Citizenship Canada (for Express Entry). Each department has its own criteria, and both must be properly addressed to ensure a successful application.
Key differences:
Service Canada is focused on the company. IRCC is focused on the individual.
Service Canada focuses on genuineness of the job offer based on the 4 factors:
Reasonable employment need: Does the employer require the position being requested?
Ability to fulfill: Can the employer pay the worker the wages stated?
Actively engaged: Is the employer operational in providing a good or service in Canada?
Past compliance: What is the company’s history with LMIA issuances and compliance?
Service Canada (ESDC) does not assess whether you, as the applicant, are qualified to perform the duties outlined in the NOC for your LMIA. Their focus is solely on the employer and the impact hiring a foreign worker will have on the Canadian labour market. When applying as an Owner Operator, it’s critical that your work experience aligns with the responsibilities of the position to ensure a smoother path to obtaining a work permit or transitioning to permanent residency.
Citizenship and Immigration Canada (CIC), not ESDC, evaluates your qualifications, skills, and education. Additionally, ESDC communicates only with the employer or their authorized representative—not with the applicant directly.
To enhance your Express Entry Comprehensive Ranking System (CRS) score, gaining Canadian work experience through an LMIA-based job and work permit can be beneficial. This is often the case for individuals employed under a traditional employer-employee LMIA arrangement.
However, candidates who obtain an LMIA as Owner Operators—based on their ownership stake in a Canadian business—may be viewed differently by IRCC (Immigration, Refugees and Citizenship Canada). IRCC may consider them self-employed, which could limit their eligibility to claim Canadian work experience points under Express Entry. It's important to plan your immigration strategy accordingly to maximize your chances of success.
Most Recent Ministerial Instructions Respecting the Express Entry System
The latest ministerial instructions, still considered valid, govern Canada’s Express Entry system across all three immigration categories: Federal Skilled Worker (FSW), Canadian Experience Class (CEC), and Federal Skilled Trades (FST). Key details regarding eligible work experience are highlighted in these official guidelines.
Section 15 – Canadian Work Experience
Sub-Section 7 – Work Experience -requirements
(b) a period of self-employment or unauthorized work is not to be included in calculating a period of work experience;
If the immigration officer determines that your time spent operating your own business in Canada qualifies as self-employment, you may not be eligible to earn additional CRS points for Canadian work experience under the Express Entry system.
If an applicant lacks enough Express Entry CRS points and cannot gain additional points through Canadian work experience, they can still achieve permanent residence through alternative pathways such as:
If the company listed in the application is initially too small, but the applicant has obtained a work permit in Canada, they can focus on expanding and developing the business. As the company grows, it may eventually qualify for an LMIA with a 200-point job classification, improving the applicant’s chances in the immigration process.
If an applicant has an active Express Entry profile and holds an LMIA, they may become eligible to receive a provincial nomination or an invitation through an expression of interest, enhancing their chances for permanent residence.
If the applicant’s spouse accompanies them to Canada, they may also earn additional Canadian work experience points.
Depending on the applicant’s situation, multiple pathways to permanent residence may become available after arrival.
At Aswad Consultants, we are dedicated to providing exceptional travel and immigration services. Our team ensures that every journey is seamless and every visa application is handled with care, offering you peace of mind from start to finish.
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