If you have a great business idea or are looking to take your business global, Canada is a great country to do that. The Canadian Startup Visa is a unique visa option for immigrant entrepreneurs who want to build and grow a business that can provide jobs for Canadians and eventually pursue permanent residence.
Start-Up Visa Program Eligibility Criteria
The Canadian Startup Visa program is a federal entrepreneur program that aims to attract entrepreneurs from around the world to establish innovative businesses in the country. However, you need more than just a solid business idea to be eligible for this Canadian visa.
What sets this visa program apart from others is that it requires the applicant to have support from a designated organization in Canada. This helps ensure that foreign entrepreneurs have a solid foundation in Canada. To qualify for the Startup Visa, you need to meet these eligibility requirements:
- Qualifying Business: The business you want to bring to Canada must be incorporated there, and you must own a large portion, if not all, of it. This helps prove that you have a vested interest in the growth and success of the business in the Canadian market.
- Support from a Dedicated Organization: You can’t obtain a Startup Visa without support from an angel investor group, business incubator, or venture capital fund. Whichever one you choose will have to provide a letter proving their support for your business.
- Proficiency in English or French: You have to prove that you are proficient in either English or French before you can get the visa. The requirement is the Canadian Language Benchmark 5 in reading, speaking, listening, and writing.
- Settlement Funds: You’ll need to make sure that you have enough settlement funds to support yourself and any family members traveling with you upon arrival. The exact amount varies, and it’s determined by Immigration, Refugees and Citizenship Canada (IRCC).
Types of Designated Organizations
As we mentioned, you’ll need support from a dedicated organization to obtain your Startup Visa. Which one you’ll get depends on you and your business, but these are what will qualify as dedicated organizations:
- Angel Investor Group: These are individual investors who generally require a minimum investment of CAD 75,000. They typically provide capital to fund the business but also mentorship and industry connections to help the business grow and succeed.
- Business Incubator: You can apply to be part of a Canadian business incubator program, and if you’re accepted, you won’t have to worry about getting a minimum investment. These organizations will provide entrepreneurs with mentorship, resources, and even office space to help their businesses grow and create jobs.
- Venture Capital Funds: Venture capital funds require the most when it comes to a minimum amount of investment funds. They require a commitment of CAD 200,000. They look for a business that has a high-growth potential and provides large returns on investment (ROI).
How to Secure a Letter of Support
It’s not enough to simply have the support of an organization. The organization will have to provide you with a letter of support that you’ll include in your Startup Visa application. If you need help understanding what the process looks like for finding a dedicated organization and getting your letter of approval, it generally looks like this:
- Research Organizations: You’ll begin by researching different organizations that might be interested in supporting your business venture in Canada. It’s best to look into organizations that align with your overall business goals, are within your intended industry, and are in your growth stage.
- Prepare Your Pitch: Create a strong business plan and pitch that will showcase what your business is, its market potential, and how you plan to grow your business when you start it in Canada. You’ll want to keep it as concise as possible without leaving out any valuable information that can sway their decision.
- Submit and Present: You’ll apply to the organization(s) you choose. Part of the application process might include presentations with key stakeholders, so be prepared to answer any questions they might have.
- Secure Your Support Letter: If you succeed in getting a dedicated organization on your side, you’ll be able to secure your letter of approval, which you’ll include in your Startup Visa application.
To stand out to investors, you’ll need to make sure your business idea is innovative, will create jobs, and has the potential to thrive in Canada.
Start-Up Visa Program Application Process
After you get your letter of support, you’re ready to start the official Startup Visa application process:
- Fill out all the necessary application forms.
- Gather all the documents you’ll need, like your letter of support, evidence of settlement funds, and proof of language proficiency.
- Submit your application through the IRCC or a Visa Application Center (VAC)
- Pay all your application fees
Processing Times and Costs
Once you complete your Startup Visa application and pay all the appropriate fees, you’ll have to wait to hear whether you’re approved. The processing time for this Canadian visa varies. It depends on your country of residence and the complexity of your application. To be safe, be prepared to wait several months for an answer.
The Startup Visa has several fees that you’ll need to pay before you can officially submit your application or enter the country. This includes:
- Application Fee: CAD 1,810
- Right of Permanent Residence Fee: CAD 575
- Biometrics Fee: CAD 85
- Medical Examination Costs: Variable
- Business-Related Expenses: Variable
- Potential Legal Fees for Application Assistance: Variable
If you’re immigrating with a spouse, you’ll pay an additional CAD 950 and the permanent residence fee. If you want to add a dependent child, it’s another CAD 260.
Pathway to Permanent Residency
One of the most attractive attributes of the Startup Visa for foreign entrepreneurs is that it provides a clear pathway to permanent residency in Canada. What you need to know about this includes:
- Once you have permanent residence, you can legally work and live anywhere in Canada
- Your children and spouse will also gain permanent residency
- You may be eligible to apply for Canadian citizenship
- You must continue to operate your business to maintain your status
Frequently Asked Questions
What happens if the business fails after receiving the Startup Visa?
It doesn’t automatically jeopardize your permanent residence status, but you’ll have to prove that you’ve made a strong effort to establish the business and meet the visa requirements.
Can multiple founders apply together under the same business?
Yes, for your startup visa, you can have up to five co-founders in the same business. Each founder must meet the requirements.
What are the tax implications of starting a business in Canada?
Depending on your business, you’ll be subjected to paying federal taxes in Canada, corporate taxes, and potentially others. Always consult with a tax professional to ensure you follow all tax laws.