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Guidelines for Processing Self-Employed Persons


Last Updated on December 23, 2016

The Guidelines for Assessing Eligibility – The Selection Criteria

Applicants keen on applying in the self-employed category would need to be eligible for consideration first. For this, they would need to first meet the prescribed regulatory definition. The authorities select or refuse applicants because they meet or are unable to meet the definition respectively.

Does the Applicant Meet the Definition of Self-Employed?

The authorities have defined a self-employed applicant as an individual who:

  • Possesses the relevant experience
  • Has the intention and ability to be self-employed in Canada and,
  • Intends to make a significant contribution in specified economic activities as outlined in the Regulations through either:
    • Self-employment in cultural activities
    • Self-employment in athletics or,
    • Self-employment in the purchase and management of a farm

The Guidelines for Determining Experience, Intention and Ability

Officers would typically need to assess the applications of self-employed applicants. For this, they would need to evaluate the experience, intent and the ability of the applicants to create their own employment in Canada.

  • Self-employed experience in cultural activities or athletics
    • This category will capture the details of those applicants who traditionally apply in this category
    • For instance, music teachers, painters, illustrators, film makers and freelance journalists would traditionally need to apply in this category
    • In addition, the authorities introduced this category to capture those individuals who typically work behind the scenes
    • For instance, individuals who are choreographers, set designers, coaches and trainers would also belong to this category
  • Management experience in the world of arts and culture could also be a viable measure of self-employment
    • For instance, this would typically include theatrical or musical directors or impresarios
  • A person’s financial assets could also be a measure of their intent and ability to establish themselves economically in Canada
    • It is worth mentioning that there is no minimum investment level for a self-employed person
    • In many cases, the capital required typically depends on the nature of the work
    • Therefore, applicants would need to have sufficient funds for creating employment opportunities for themselves
    • In addition, they would need to have sufficient funds for maintaining themselves and their family members
    • These applicants would need to demonstrate to the officers that they have been able to support themselves and their family through their talents and would be likely to continue to do so in Canada
    • This requirement would typically include the ability to be self-supporting until the applicants have been able to create the self-employment
  • Participation at a world-class level in cultural activities or athletics intends to capture performers
    • This category typically comprises individuals who perform in the arts and in the world of sport
    • The authorities define ‘world-class’ as individuals who have gained international renown or fame
    • It also identifies individuals who might not be known internationally, but continue to perform at the highest levels in their disciplines
  • Officers need to remain mindful of the fact that farming is a highly skilled and capital intensive industry
    • In many cases, real estate often makes up 54 percent of an average farmer’s assets
    • The Canadian Federation of Agriculture (CFA) reports that the average value of farmland in Canada varies significantly from province to province
    • This value could typically range from $330 to $4,600 per acre
    • Farmland situated closest to urban centres will tend to have a higher market price
    • The average farm sizes will vary from province to province with Newfoundland reporting an average farm size of 146 acres while Saskatchewan reports an average farm size of 1,152 acres
    • This is why officers would need to be careful when they determine an applicant’s intent and ability to purchase and manage a farm

According to the 1996 census, about 98 percent of farms are family-operated businesses. The Canadian Federation of Agriculture (CFA) specifies that more than ever before, the successful Canadian farmer would need to be adaptable to the different requirements of running a farm business. For instance, the farmer would need to be able to:

  • Recognise that an animal is ill
  • Fix a malfunctioning combine and,
  • Round off the day by hooking up to the internet for checking the state of the world markets

Traditionally, farming has been a business that requires traditional agricultural skills. In recent times though, it has become a business that requires a working knowledge of computers and other high-tech equipment. Data from the 1996 census reveals that more than 21 percent of Canadian farm households own one or more computers. The census reported a trend to higher education in the farm community as well.

In other words, the officers would need to check that the successful applicant meets a rigorous threshold of parameters such as:

  • Ample reserves of capital
  • Appropriate experience and,
  • The relevant skills

The Guidelines for Making a Significant Contribution to Cultural or Artistic Life or to Athletics

The authorities expect the self-employed class to enrich Canadian culture and sports. As such, when the applicants meet the prescribed test of experience, intent and ability and when reasonable expectation exists that the applicants will become self-employed in culture or sport, the test of significant contribution becomes relative. For instance, a music teacher destined to a small town could become significant at the local level. Similarly, a freelance journalist who contributes to a Canadian publication could also end up meeting the test. In the end, the definition of ‘significant contribution’ remains at the discretion of the officers. It is worth highlighting here that this definition does not aim at barring qualified self-employed individuals who are applying in good faith. Rather, its inclusion aims at barring frivolous applications.

Note:

  • Officers would need to refuse the application without further assessment if an applicant does not meet the regulatory definition of a self-employed person
  • This is in accordance with the provisions specified in R100 (2)

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