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ROXTON POND · L-1A FIELD GUIDE

Does a Roxton Pond company qualify for L-1A when its founder owns the United States entity personally?

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THE DIRECT ANSWER

Possibly, but not automatically. The relationship required is between the two organizations, so personal ownership of one and corporate ownership of the other only helps if common ownership and common control can be shown on the records. Where they cannot, the structure has to change before a petition is worth filing.

Trace ownership between the two companies

Affiliate status normally rests on the same person or group owning and controlling both entities in substantially the same proportions. That is provable, but it is provable with instruments rather than assertions: share registers, subscription documents, unanimous shareholder agreements, and evidence of who exercises control in practice. Where the founder set up the American company in her own name for speed or on an accountant’s advice, the fix is usually corporate rather than argumentative, and it takes time that has to be built into the plan. Filing first and explaining afterwards converts a solvable structural point into an adverse decision on the record.

Hypothetical example: a hardwood flooring manufacturer near Roxton Pond incorporated a distribution company in the United States two years ago, held personally by the founder, while the Canadian operating business is owned by a family holding company with four shareholders. Nobody drew the ownership diagram until the transfer was proposed. Drawing it shows immediately that the two are not obviously affiliates, and that the question is whether the same individuals own and control both in substantially the same proportions. Both entities must also be doing business — actively providing goods or services — so dormant registration on either side is a second problem to solve rather than a formality.