International entrepreneurs willing to relocate their businesses to Canada must understand the difference between Canadian Permanent Residency (PR) and Canadian Citizenship. This insight will guide your decision-making and planning processes.
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Legal Status and Residency Obligations
- Permanent Residents: Residents may live, work, or visit any part of Canada. However, this status isn’t irrevocable, and PR holders must reside in Canada for a minimum of 730 days during a five-year window to maintain their PR status. These days need not be consecutive.
- Citizens: Canadian citizens do not have any residency requirements and can stay in or out of Canada without losing their status.
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Political Participation
- Permanent Residents: They cannot vote or run for office in Canada. Some (rare) provinces do allow PRs to vote in local elections.
- Citizens: Are permitted to vote in federal, provincial, and municipal elections and are allowed to run for public positions.
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Employment Opportunities
- Permanent Residents: Can work in Canada without requiring work permits but are unable to obtain government positions that necessitate high-level security clearance.
- Citizens: Are not restricted from any positions, including those requiring extensive security clearances.
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Travel Documents
- Permanent Residents: The PR card is necessary to re-enter Canada while travelling. However, it does not grant the same level of visa-free access as a Canadian passport, and the traveller might have to ask for a specific visa depending on their destination.
- Citizens: Have access to a Canadian passport, which provides visa-free or visa-on-arrival travel to most countries in the world (188 as of 2025).
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Security of Status
- Permanent Residents: Face the possible loss of status if they don’t fulfil residency requirements or are found guilty of serious criminal activity.
- Citizens: Hold a more secure status that can only be revoked in the extraordinary case of fraud or misrepresentation while qualifying for citizenship.
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Transfer of Status to Children
- Permanent Residents: A child born in Canada to PR holders is a Canadian citizen; however, children born abroad do not automatically gain PR status and require sponsorship for immigration.
- Citizens: Can convey citizenship to their children regardless of where they were born, though there are certain qualifying conditions and restrictions.
Pathway to Citizenship
By mid-2024, Canada had granted citizenship to 206,854 individuals in the first half of the year, representing a 16% increase from the same period in 2023.
Permanent Residents may apply for Canadian citizenship after physically living in Canada for at least 1095 days (three years) within five years, in addition to meeting other criteria.
The Start-Up Visa Program
The Start-Up Visa Program has made Canada more accessible to Permanent Residents intending to relocate and innovate. Some of the primary prerequisites are:
- Support from a Designated Organization: The applicant must be able to show a commitment from a designated venture capital fund, angel investor group, or business incubator.
- Language Proficiency: Applicants must show evidence of speaking English or French by achieving Canadian Language Benchmark 5 in all abilities.
- Settlement Funds: Have enough financial resources to meet Canadian immigration standards concerning self-supporting and supporting other dependents.
Successful applicants receive permanent residency, which comes with associated rights and responsibilities. After meeting residency requirements and other criteria, these residents may later desire Canadian citizenship to access the additional benefits listed above.
Entrepreneurs need to distinguish between citizenship and permanent residency to effectively plan their immigration strategies and the future of their businesses in Canada. Startup Visa Services works with immigration professionals to help with migration strategies and form a business path to Canada documentation.
Contact us directly for more information.
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