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Can Refugee Claimants Start a Business or Work as Freelancers in Canada?
Hi everyone,
Hope you’re all having a peaceful day. I’ve seen this question come up again and again, and I know many newcomers feel unsure about it — “Can I start a business in Canada as a refugee claimant?” or “Am I allowed to work as a freelancer or self-employed person before my case is decided?”
So I thought it’s time to create a clear, simple, and helpful thread for everyone.
Let’s walk through the real answer together.
1. Yes — Refugee Claimants Can Work or Start a Business (If They Have a Valid Work Permit)
The key requirement is a valid Canadian work permit. Once your refugee claim is officially submitted and IRCC processes your paperwork, you become eligible to apply for an open work permit.
With that work permit, you can:
2. Self-Employment Is Legal — As Long As Your Work Permit Is Valid
Canada does not restrict refugee claimants from being self-employed.
Your open work permit allows:
3. Registering a Business as a Refugee Claimant
If you want to open something more formal, you generally have two options:
A. Sole Proprietorship
Easy, cheap, fast.
You can register under your own name or a business name.
Most freelancers choose this option.
B. Incorporation
More expensive, more paperwork.
But still allowed if you have a valid work permit and a Canadian address.
Some provinces may require a Canadian citizen/permanent resident director — but others do not.
(For example, Ontario, Alberta, BC do not require PR/citizen status to incorporate.)
4. Taxes — You Must Report Your Income
Just like any Canadian worker, freelancers and business owners need to file taxes:
5. What About Government Benefits or Social Assistance?
If you are receiving provincial financial assistance (like welfare), starting a business or freelancing may affect your eligibility.
Every province has different rules.
For example:
6. Will It Affect the Refugee Case?
No — working or running a small business does NOT harm your refugee claim.
In fact:
7. The ONLY Thing You Must Avoid
Do NOT work without a valid work permit.
Unauthorized work can seriously damage your immigration history.
But once you have the work permit, you’re fully legal to work, freelance, or start businesses.
My Thoughts & Yours
Canada is one of the few countries that gives refugee claimants the right to work legally while waiting for their decision. Whether you’re freelancing online, doing Uber Eats, doing graphic design, or opening a small cleaning business — you are allowed, as long as you have your open work permit.
Have any of you or your friend tried freelancing or starting a small business while your refugee claim was in process?
What kind of work did you do?
Was it easy or difficult to register and manage?
Your experiences can really help others who are confused or worried — so feel free to share your story below.
Hope you’re all having a peaceful day. I’ve seen this question come up again and again, and I know many newcomers feel unsure about it — “Can I start a business in Canada as a refugee claimant?” or “Am I allowed to work as a freelancer or self-employed person before my case is decided?”
So I thought it’s time to create a clear, simple, and helpful thread for everyone.
Let’s walk through the real answer together.
1. Yes — Refugee Claimants Can Work or Start a Business (If They Have a Valid Work Permit)
The key requirement is a valid Canadian work permit. Once your refugee claim is officially submitted and IRCC processes your paperwork, you become eligible to apply for an open work permit.
With that work permit, you can:
- Work for any employer
- Start your own business
- Work as a freelancer
- Register a small company
- Offer services online or offline
- Bill clients, use invoices, etc.
2. Self-Employment Is Legal — As Long As Your Work Permit Is Valid
Canada does not restrict refugee claimants from being self-employed.
Your open work permit allows:
- Freelancing
- Gig work
- Contract work
- Home-based business
- Online services
- Consulting or creative work
3. Registering a Business as a Refugee Claimant
If you want to open something more formal, you generally have two options:
A. Sole Proprietorship
Easy, cheap, fast.
You can register under your own name or a business name.
Most freelancers choose this option.
B. Incorporation
More expensive, more paperwork.
But still allowed if you have a valid work permit and a Canadian address.
Some provinces may require a Canadian citizen/permanent resident director — but others do not.
(For example, Ontario, Alberta, BC do not require PR/citizen status to incorporate.)
4. Taxes — You Must Report Your Income
Just like any Canadian worker, freelancers and business owners need to file taxes:
- Keep records of income
- Save receipts for expenses
- Declare earnings to CRA
- You may need a business number (BN)
5. What About Government Benefits or Social Assistance?
If you are receiving provincial financial assistance (like welfare), starting a business or freelancing may affect your eligibility.
Every province has different rules.
For example:
- In Ontario, some self-employment is allowed but must be reported
- In Quebec, income affects your monthly benefits
- In BC, they allow a small exemption before reducing benefits
6. Will It Affect the Refugee Case?
No — working or running a small business does NOT harm your refugee claim.
In fact:
- Being financially independent
- Paying taxes
- Showing you’re contributing
7. The ONLY Thing You Must Avoid
Do NOT work without a valid work permit.
Unauthorized work can seriously damage your immigration history.
But once you have the work permit, you’re fully legal to work, freelance, or start businesses.
My Thoughts & Yours
Canada is one of the few countries that gives refugee claimants the right to work legally while waiting for their decision. Whether you’re freelancing online, doing Uber Eats, doing graphic design, or opening a small cleaning business — you are allowed, as long as you have your open work permit.
Have any of you or your friend tried freelancing or starting a small business while your refugee claim was in process?
What kind of work did you do?
Was it easy or difficult to register and manage?
Your experiences can really help others who are confused or worried — so feel free to share your story below.