The company needs to have physical premises for their Canadian operation. In certain cases for executives and senior managers, it is acceptable that the start-up address has not yet been secured. The company may use a temporary address till the premises is purchased or leased by the executive.
Apart from an address, the company has to provide realistic plans related to staffing the operation. Financial ability to pay employees and commence business operations in Canada will also have to be demonstrated.
When transferring managers or executives, the company has to show that it is large enough in order to support management or executive function. If a specialized knowledge worker is being transferred, the company needs to demonstrate that the work is directed and guided by the Canadian operations management.
Additionally, a qualifying relationship has to be demonstrated between the Canadian entity and the foreign company. The Canadian company has to be a subsidiary, parent, affiliate or branch of the foreign company. For instance, if the international company owns 50 percent of the Canadian subsidiary, the former controls the subsidiary. An affiliate means that another individual, group or company owns both the foreign company and the Canadian affiliate. A Canadian branch is the office or operating division of the multinational company in Canada.