Opening a Canadian branch from a Vietnamese company

Many Vietnamese business owners are told to "open a branch in Canada and transfer over". IRCC's instructions contain a key condition many people don't know about.

The "multinational" condition for C61

According to IRCC's ICT processing instructions:

• to use code C61 (establishing a new enterprise in Canada), the foreign company must be an existing multinational with revenue-generating business operations in at least 2 countries (its country of incorporation and at least one other) before setting up in Canada;
• a company can't become a multinational by using the ICT category to set up its first foreign entity in Canada;
• IRCC's example: a company operating only in its country of incorporation isn't eligible for C61.

In practice: a Vietnamese company doing business only in Vietnam can't use C61 to open its first branch in Canada.

If the company is already a multinational

• It must show, with evidence and a timeline, when the Canadian entity will start doing business; an agent or office alone isn't enough.
• Officers look at ownership, control, business premises, investment, organizational structure, goods or services, and the ongoing viability of foreign operations.
• C61 is limited to 1 year, with no extension under this code.

Other options IRCC mentions

According to the instructions, people coming to set up a new business on behalf of a non-multinational company may be considered under the LMIA-exempt category for entrepreneurs and the self-employed (C11) if they qualify, which requires temporary intent only.

If permanent residence is the goal, look at provincial entrepreneur streams (PNPs).

Registering a business in Canada

• A business can be incorporated federally (Corporations Canada) or provincially; each has its own process.
• You need a CRA business number and the licences required by your sector and municipality.
• The Government of Canada's "Starting a business" page covers the basic steps.

Note Be wary of packages to "open a branch and bring the whole family" that don't check the multinational condition. An application under the wrong category can be refused, losing the cost of setting up the company.