There is no blanket rule that a newly incorporated company cannot sponsor this status or that a loss automatically means refusal. But the application does not examine only the worker’s education. Immigration also looks at whether the employer has a real business and can continuously employ the professional.
New companies can apply
Immigration’s document lists specifically contemplate a business plan where the business is new. A new company is therefore not excluded by the system. But because there is little past performance, the company must explain what it will do, how revenue will be generated, and why this professional is needed now, supported by objective evidence.
A loss does not automatically mean refusal
Startups and companies after major investment can temporarily be in the red. What matters is whether the reason for the loss, cash flow, expected improvement, salary-paying ability and business continuity can be explained.
Conversely, if there is almost no revenue, fixed costs cannot be covered, the balance sheet is seriously impaired, transactions cannot be verified, and several foreign professionals are added at once, the explanatory burden becomes much heavier.
Five points we especially review for small companies
- Workload: Is there enough professional work every day?
- Organization: Who gives instructions, trains and evaluates?
- Sales: Can the business support the payroll?
- Workplace: Is there a real place and equipment for the work?
- Headcount: Is hiring too sudden for the company’s size?
Batch hiring is a separate issue
A company that can reasonably hire one person does not automatically have the structure to hire ten. As headcount increases, the company must explain professional duties for each person, management, desks/equipment, revenue and labor costs.
We assess the company and the candidate together. A famous university degree cannot substitute for the absence of real work at the employer; conversely, a small company can still be viable if the business is real and the need and funding for the professional can be shown.