Canadian immigration lawyers based in the US often help companies leverage the Canadian immigration system and to bring top talent into and thus expand in Canada. Often, the US company is also advised to establish a legal entity in Canada, especially if they will try to take advantage of the Global Talent Stream program to easily hire tech workers.

However, this approach can present challenges for companies that lack the resources or desire to establish a physical Canadian office. Even with a Canadian entity, an employer may struggle to leverage Canadian immigration options due to the absence of a physical office, e.g. with a signed lease. Indeed, Immigration, Refugees and Citizenship Canada (IRCC) usually wants to see a physical office, or plans to open some form of office.

This leaves Canadian immigration attorneys facing a dilemma: how can they help their US clients expand into Canada and employ Canadian talent when a traditional physical office setup isn’t viable for that US company?

That’s where working with a Canadian Employer of Record (EOR) comes in.

Three scenarios when US employers who want to hire foreign talent in Canada can’t open a physical Canadian office

There are a number of reasons why it may not be feasible for a US company to open a physical Canadian office, even if that company wants to take advantage of Canada’s immigration programs to hire high-skilled foreign tech workers. These are some of the most common grounds for not opening a physical office in Canada:

1) The US employer may be too small to open a Canadian office

If the US employer that wants to hire tech talent in Canada is a smaller company, e.g. a VC-backed startup or scale-up, having a Canadian office and therefore hiring staff to manage that office, oversee tax, HR, legal, payroll, etc., may be overkill. Staying on top of Canadian labor laws and the technicalities of business in Canada, can also be complicated, and using US-based staff to oversee Canadian tax, HR, legal, etc., isn’t recommended. So, in this situation, establishing a Canadian office may not make sense.

2) The US employer may have a legal entity in Canada, but not a physical office.

Many US companies actually already have a legal entity in Canada, often because they remotely hire Canadians through that entity. However, if they want to bring foreign nationals into Canada and thus use the Canadian immigration system, just having a Canadian legal entity isn’t sufficient for most immigration applications — including the Global Talent Stream, which facilitates work permits within weeks — as they often need to show a physical office. Setting up a physical office doesn’t make sense from a cost perspective for the US employer, especially if existing Canadian employees work remotely.

3) The US company doesn’t have plans to open a Canadian office

Then there’s the matter of strategic priorities, they may simply not want to open an office in Canada. Whether it’s not in their strategy right now, they deem it distracting, or simply not necessary for their immediate goals, a company may simply not want to go through the trouble of opening up a Canadian legal entity and office. 

None of these reasons have to stop a company from taking advantage of Canada’s immigration system and hiring the global talent it needs.

A Canadian Employer of Record (EOR) can help US companies hire remotely in Canada

One of the simplest solutions Canadian immigration attorneys can recommend to US companies hiring in Canada is to leverage an EOR. An EOR shoulders the legal, HR, tax, payroll and other burdens and seamlessly ensures compliance with Canadian business and immigration regulations. 

An EOR acts as an employee’s legal employer and provides all the HR, legal, tax, payroll, and, along with Canadian immigration counsel, immigration services needed to enable US employers to hire high-skilled tech workers remotely in Canada. So, US employers who want to hire a remote tech worker in Canada don’t need expertise in Canadian immigration or employment law, nor do they need to hire attorneys, accountants, and other professionals. Instead, by leveraging an EOR, compliance, tax, and hiring (or firing) and immigration, along with counsel, are handled in a smooth, compliant, and stress-free way.

 
By working with a Canadian EOR, US companies can get value both in the short term, given the quick timeline of Canada’s immigration princess compared to, say, the H-1B visa in the US, and in the long term, with Canada’s quick route to permanent residency and eventual citizenship. 

Ultimately, if they want the employee in the US, they can strategically try again for H-1B while they are carrying out their work in Canada or even eventually bring them in on a TN once they get their Canadian citizenship. Plus, as US companies continue to expand into Canada, that means more tech talent in Canada which can benefit future hiring.

Syndesus is the Canadian employer of record for Canadian immigration lawyers in the US helping US employers

Syndesus is highly specialized in Canadian employment and immigration, and unlike large, global PEOs and EORs, we only operate in Canada. This means we understand Canadian employment law and can work with Canadian immigration attorneys to expertly handle their clients’ Canadian immigration needs. 

 
Whether that’s making sure a tech worker is able to get a work permit and come to Canada or setting up entire remote teams, with extensive expertise in managing operations for US clients, we can provide a streamlined, comprehensive solution whatever the situation. Administrative processes are taken care of while your clients can focus on expanding their workforce and moving their company forward.  

Reach out to us to learn more about how we can help your US employer clients take advantage of the Canadian immigration system!