Canada is home to many immigrants who come here for employment purposes. This is also because many Canadian companies are required to hire foreign personnel, as the number of the local population cannot cover the available job market. In this background, the recruitment sector has flourished in Canada.
Both local and foreign investors can open recruitment agencies in Canada. It is useful to know that most of the foreign citizens seeking jobs through employment agencies come from European countries. The opening of a recruitment company in Canada is subject to the Employment Standards Act.
Starting a recruitment agency is subject to several requirements which are explain below by our Canadian company formation agents.
Types of Canadian employment companies
There are two types of recruitment companies one can set up in Canada: national and international agencies. The first type will only hire Canadian citizens and residents, while the second type will specialize in hiring foreign citizens who will relocate here.
Registering a recruitment company in Canada does not imply any special business form and can be completed with the Federal Trade Register or the local Companies Registrar in the province the company will operate.
Our company registration consultants in Canada can guide you through the incorporation process of a recruitment agency.
Licensing requirements for recruitment agencies in Canada
According to the Employment Standards Law, there are two types of licenses available for those who set up recruitment companies in Canada:
- the license for a national recruitment agency;
- the license for an international recruitment agency.
There are no restrictions for companies that want to apply for both types of licenses.
The application for an employment agency license must be submitted with the Employment Standards Branch Office in the province the Canadian company will operate in.
International employment companies must also deposit a security of 25,000 CAD if they recruit certain types of employees. The classification of employees is given by the National Occupational Classification codes.
For full information on the requirements and assistance in setting up a recruitment agency in Canada, please contact our local representatives.