Short answer: yes, if your business genuinely operates, the position matches a reasonable business need, and you can document the financial ability to pay the wage. If any one of those can't be shown on paper, the LMIA is refused. ESDC publishes the exact four factors it assesses.
What disqualifies employers first
- Loss-making financials with no supporting evidence. Ability to pay wages is one of the four assessment factors; a negative T2 income statement (Schedule 125) with nothing else on file can sink the application on its own.
- No proof the business really operates. New or paper-only corporations without a municipal business licence (or equivalent) fail the legitimacy check.
- A position that doesn't fit the business. A management role in a three-person shop won't pass the "reasonable employment need" factor.
- Low-wage positions in high-unemployment metro areas. Applications below the provincial median wage are refused processing in census metropolitan areas with 6%+ unemployment (Vancouver and Calgary are currently on the list; updated quarterly).
- Compliance history. Prior violations, or an LMIA revoked in the past 2 years, can block processing.
The four official factors (ESDC)
| Factor | What's checked | Typical documents |
|---|---|---|
| 1. Providing a good or service | The business actually operates | Municipal business licence |
| 2. Reasonable employment need | The job offer fits the business | LMIA application details |
| 3. Ability to fulfill the job offer | The wages can actually be paid | CRA documents (T2 Schedule 100/125 for corporations, T2125 for sole proprietors) |
| 4. Compliance with laws | Federal/provincial employment law record | Government verification |
All four must be met. Missing one means a negative decision.
Worth knowing
- A positive LMIA in the past 2 years exempts you from submitting the legitimacy and financial documents again. The first application is the hardest.
- A loss year isn't automatically fatal. ESDC explicitly allows other documents in addition to the CRA forms. Employers with temporary losses have been approved with a properly built ability-to-pay case — that supporting argument is where the real work is.
- The processing fee is $1,000 per position, non-refundable on refusal, and can never be charged to or recovered from the worker.
- Full-time means at least 30 hours per week.
FAQ
Is a brand-new company automatically excluded? No. Employers with no foreign-worker history in the past 6 years face an additional review and a heavier documentation burden — harder, not impossible.
Can I appeal a refused LMIA? There is no appeal. A reconsideration request exists, and depending on the refusal reason, reapplying may be faster.
