The Labour Market Impact Assessment (LMIA) process stands out for its meticulous attention to detail, especially when it comes to proving the legitimacy of a business. Below I break down the essential documents required to validate business legitimacy for an LMIA application, and why the attestation letter holds significant weight in this process.
Understanding the LMIA:
Before delving into the documents, let's grasp the essence of an LMIA. Essentially, it's a process that demonstrates the necessity for hiring a foreign worker because no Canadian citizen or permanent resident is available to fill the position. To obtain an LMIA, an employer must provide extensive evidence of their business's legitimacy and the need for foreign labour.
Part of the application process includes mandatory business legitimacy documents, I’ve summarized what these documents entail, which employers must include in their LMIA application:
At least 1 document showing you are providing a good or service
A valid municipal/provincial/territorial business license
Your most recent T4 Summary of remuneration paid
Your most recent PD7A Statement of account for current source deductions
An attestation confirming that you're 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. You can use this sample attestation as an example, this has to be completed by a lawyer, a CPA or a bank official.
Ability to fulful the terms of the job offer:
Your most recent T2 Schedule 100 Balance sheet information and T2 Schedule 125 Income statement information
Your most recent T2042 Statement of farming activities
Your most recent T2125 Statement of business or professional activities
Your most recent T3010 Registered charity information return
Your most recent T4 or payroll records for a minimum of 6 weeks immediately prior to the submission of this LMIA application, if the temporary foreign worker (TFW) already works for you
An attestation confirming that your business is in good financial standing and will be able to meet all financial obligations to any TFW you hire for the entire duration of their employment. You can use this sample attestation as an example, this has to be completed by a lawyer, a CPA or a bank official.
You’ll note that the attestation letter can be included to satisfy both requirements. The reason for this is that the attestation letter directly addresses the key criteria for an LMIA, including the need for foreign workers and the business's legitimacy. Given the weight of the attestation letter in the LMIA process, I advise our clients to include it in every application. By doing so, employers demonstrate their genuine commitment to compliance and transparency, thereby increasing the likelihood of a successful LMIA approval.
Note that you’ll likely get a request for additional information (usually pd7as and schedules 100 and 125 from the CRA), but if you are rushed, the attestation letter can be used to submit the LMIA application. It also is helpful in cases where you perhaps have run a deficit in your last tax year to show that you can afford the proposed worker’s salary.
Navigating the LMIA process requires careful attention to detail, especially when it comes to proving business legitimacy. By compiling essential documents such as business registration papers, financial records, and contracts, employers can provide comprehensive evidence of their operations.
Our role at Calver Immigration is to guide employers through the process, ensuring that their LMIA applications stand out for all the right reasons. If you have any questions or need further clarification, don't hesitate to reach out. book an online consultation with us here.
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