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Canada’s Start-up Visa Program offers immigrant entrepreneurs and their families a path to permanent residency. Participants can obtain a temporary work permit while waiting for permanent status, allowing them to start their business in Canada.

 

 

 

Note that effective from April 30, 2024, the Start-up Visa Program, IRCC is implementing only the most promising start-up proposals receive attention by:

      1. Limiting the number of permanent residence applications processed annually to a maximum of 10 start-ups per designated organization.
      2. Offering priority processing to entrepreneurs whose start-ups are backed by Canadian capital or are supported by a business incubator part of Canada’s Tech Network. This applies to both existing inventory and new submissions.

     

    Eligibility Criteria

    To qualify for the Canadian Startup Visa, entrepreneurs must meet specific criteria.

      • Innovative Business Idea: To qualify for the Canadian Startup Visa, entrepreneurs need to have an innovative business idea that demonstrates potential for growth and job creation. This idea should be unique, scalable, and financially viable, with the ability to compete on a global scale. Designated Canadian organizations, such as angel investor groups and venture capital firms, assess the feasibility and market potential of the idea, along with the capabilities of the founding team. Their endorsement plays a vital role in the visa application process, highlighting the significance of the business concept in contributing to Canada’s economy.
      • Obtain a Letter of Support: Securing Commitment from a Designated Organization

    Canadian designated organizations endorsed by Immigration, Refugees and Citizenship Canada (IRCC) to invest in or support potential startups are:

    • Venture capital funds, angel investor groups, or business incubators.
    • Your business idea or venture should get the support of one or more of the three categories of designated organizations. These designated organizations are business groups which are approved to invest in or support feasible startups through this program.
    • Assessing the viability and potential of the entrepreneur’s business proposal.
    • The designated organization must provide a Letter of Support, indicating their commitment to supporting the business’s development in Canada.
    • The Letter of Support is a crucial part of the application and is valid for six months from the date of issue.
    • It is a mandatory document for the Startup Visa application.

    All these three categories of designated organization are mentioned below:

    Angel Investor Groups

    You must get one or more investors connected to these groups to agree to invest a minimum of $75,000:

    Venture Capital Funds

    You must get at least one of these groups to agree to invest a minimum of CAD $200,000:

    Business Incubators

    You must be accepted into one of these programs. No financial investment is required:

    Ownership Requirements

    • A maximum of five individuals can jointly apply as owners of a single startup.
    • Each owner must hold a minimum of 10% of the voting rights associated with all outstanding shares of the business.
    • Together with the designated organization, the applicants must collectively possess over 50% of the total voting rights.
    • The ownership structure needs to be clearly delineated to ensure compliance with these stipulations.

    Language Proficiency – English or French

    • Applicants must demonstrate proficiency in either English or French, the official languages of Canada.
    • Candidates need to take an authorized language test to showcase their language skills.
    • Test results must indicate proficiency at Canadian Language Benchmark (CLB) Level 5 or higher in Speaking, Reading, Listening and Writing.
    • Language test results should be obtained within the last two years from the date of application submission for the Start-up Visa Program.
    • Canadian immigration authorities currently accept English test results from the following test providers:
    • IELTS (General test)
    • CELPIP (General test)

    Test results from either of these two French tests may also be submitted:

    • TEF
    • TCF

    Bring Adequate Settlement Funds

    Applicants must demonstrate financial stability to support themselves and their family members in Canada. They need to meet the financial requirement set by the Immigration, Refugees and Citizenship Canada (IRCC), which varies based on the family size.

    These amounts are adjusted annually by the IRCC.

    Number of
    family members    		 Funds required
    (in Canadian dollars)
    1 $13,757
    2 $17,127
    3 $21,055
    4 $25,564
    5 $28,994
    6 $32,700
    7 $36,407
    If more than 7 people, for each additional family member $3,706

    Finding Your Way to Support from a Designated Organization

    • Start by exploring the list of Designated Entities approved by the Start-up Visa Program. Each organization has unique preferences and criteria, so understanding their focus areas is essential.
    • Delve into each organization’s sector preferences, startup maturity requirements, and investment strategies. This understanding helps in aligning your startup with the right supporter.
    • Attend startup events and forums to network with the entrepreneurial community. Building connections may lead to introductions and pitch opportunities with potential backers.
    • Develop a persuasive pitch that aligns with the organization’s goals. Your pitch should clearly articulate your startup’s vision, potential, and market viability, supported by thorough research and financial forecasts.
    • Common Qualities Organizations Seek:
    • Present a well-structured business plan outlining objectives, market research, financial projections, and operational strategies.
    • Demonstrate the scalability and growth potential of your business without disproportionate costs.
    • Highlight your background, qualifications, and past successes or failures in entrepreneurship.
    • Showcase how your startup can create jobs for Canadians and contribute to economic growth.
    • Emphasize the uniqueness and innovation of your business concept.
    • Target a sizable market with significant growth opportunities.
    • Seek a Designated Organization that offers more than just funding. Look for guidance, connections, and resources that can propel your startup forward in addition to financial support.
    • Your diligence may lead to securing a Letter of Support from a Designated Organization, a crucial step in your Start-up Visa application. Approach each interaction as an opportunity for learning and growth.

    Open Work Permit (OWP) for Start-up Visa holders

    • Canada has introduced new measures for the Start-up Visa program, aiming to facilitate entrepreneurship and innovation in the country.
    • One significant change is the provision of an Open Work Permit (OWP) for Start-up Visa holders, allowing them to work and live in Canada for up to 3 years while establishing their businesses.
    • This OWP replaces the previous temporary work permit option, which only allowed holders to work for their own start-up. With the new OWP, they can work anywhere in Canada.
    • The OWP is available to all members of the entrepreneurial team, not just those recognized as essential by the designated organization supporting the start-up.

    A Route to Permanent Residency (PR)

    Startup Visa for foreign entrepreneurs is a route to Permanent Residency who have secured backing from designated Canadian entities such as venture capital funds, angel investor organizations, or business incubators.

    • To alleviate lengthy waiting times for applicants, the program has been expanded with more spots allocated under the 2023–2025 multi-year levels plan.
    • Consequently, the targets for granting Permanent Residency in the Federal Business category have tripled compared to 2022, with further increases planned for 2024 and 2025.
    • This expansion aims to streamline the application process and reduce the backlog by accommodating and processing more applications.
    • This increase in spots aims to address long wait times for applicants and reduce application backlogs. The IRCC will prioritize applications supported by committed capital or endorsed by designated business incubators.
    • Furthermore, the IRCC may introduce additional strategies to improve processing times and program effectiveness in the future.

    Fees Required for Canada Startup Visa

    • For a single applicant, the initial fee for the Canada Startup Visa is CAD 1810.
    • A Permanent Residence Fee of CAD 575 is also required, totaling CAD 2385 for the primary applicant.
    • If there is an additional applicant, such as a spouse, the fee is CAD 825, with an additional Permanent Residence Fee of CAD 575, totaling CAD 1400.
    • For dependent children, there is a fee of CAD 260.
    • There are also miscellaneous fees that may apply:
      • Biometrics fees: CAD 85 for a single applicant and CAD 150 for a family of at least two (CAD 170).
      • Police Clearance Certificate fees, which vary depending on the country.
      • Language ability exam fees, such as IELTS (INR 13,250) and PTE (INR 13,300).

    Note: IRCC may revise the fees at any time.

    Application Process

    • Check Eligibility: Ensure you meet Startup Visa requirements such as having a qualifying business and sufficient funds to support yourself.
    • Craft Business Plan: Develop a detailed plan outlining your business model, market analysis, and financial projections, seeking feedback to refine it.
    • Get Endorsement: Build relationships with Canadian organizations, presenting your business idea to secure support and partnership.
    • Apply Online: Complete the application accurately, ensuring all required documents are attached and meet specified criteria.
    • Submit Documents: Organize and present documents professionally, demonstrating your attention to detail and professionalism.
    • Medical and Police Clearance: Schedule necessary exams early to avoid delays in the application process.
    • Await Processing: Use the waiting period to prepare for potential relocation, researching locations and networking within the Canadian business community.
    • Receive Visa: Upon approval, plan your relocation to Canada, considering factors like housing and business setup.
    • Establish Business: Execute your business plan upon arrival, actively seeking opportunities for growth and collaboration within the local market.
    • Aim for Permanent Residency: Work towards meeting conditions for permanent residency, keeping your long-term goals in mind as you build your business in Canada.

    Post-Application Expectations

    Upon submission of your Startup Visa application, it enters a thorough processing phase led by Canadian immigration authorities. Typically, this stage spans approximately 12 to 16 months, though actual durations can vary based on factors such as application complexity and immigration office workload.

    • Potential Application Outcomes: Following processing, your application may yield one of three outcomes: approval, denial, or a request for additional information.
    • Startup Visa Approval: Should your application receive approval, you’ll be granted a Startup Visa, affording you permanent residency in Canada and empowering you to embark on your entrepreneurial journey.
    • Application Denial: In the event of application denial, you’ll be informed of the reasons for refusal and presented with options for recourse. You may choose to address the concerns raised and reapply, or seek legal guidance if you perceive the decision to be unjust.
    • Post-Approval Preparations: Upon securing approval for your Startup Visa, you’ll need to strategize your relocation to Canada, including arrangements for housing, healthcare, and education for your family members.
    • Continuing Your Entrepreneurial Endeavor: Acquiring the Startup Visa marks the commencement of your entrepreneurial endeavor in Canada. You’ll persist in nurturing and expanding your business, thereby contributing to the growth of the Canadian economy and fostering job creation.

    FAQs

    Despite the common fear of business failure, the Start-up Visa program offers assurance. Even if your business venture fails in Canada, your Permanent Residency Permit remains intact. This means you can still enjoy the benefits of Permanent Residency. The program is structured to share the risk between the public and private sectors, providing a safety net for entrepreneurs.

     

    The processing time for each stage of the application is as follows: 1-2 months for business plan creation, 6-10 months for obtaining a letter of recommendation, and 8-12 months for applying for a PR visa.

     

    The essential documents include a copy of the applicant's resume, a draft of the business plan, a photocopy of a valid passport, a certificate of birth, a marriage license (if applicable), a police clearance certificate from the native country, proof of funds for the last 6 months, a bank reference form, language test results, a confirmation of medical examination, and a letter of support from a Canadian Designated Organization.

     

    Venture capital funds are established by professional firms to invest external funds, while angel investors are individuals who personally invest money and expertise in early-stage businesses. On the other hand, business incubators support new ventures by offering services like office space and management training. For the Start-up Visa, immigrant entrepreneurs require support from designated organizations, which assess their business proposals and provide a Letter of Support if selected.

     

    For venture capital funds, a minimum investment of $200,000 is necessary, while angel investor groups require a minimum investment of $75,000. However, the business incubator program does not mandate a minimum financial investment for approval.

     

    The designated organization evaluates the business proposal initially. If approved, applicants submit their immigration application to IRCC, ensuring all required documents are provided. IRCC verifies support from the designated organization and assesses eligibility for permanent residency. Processing takes 12 to 16 months, with decisions based on meeting criteria and providing necessary clearances.

     

    Yes, they can. Up to five individuals can apply as owners of a single business. Designated organizations assess each member's importance to the proposed start-up. If an essential member is refused, all related applicants face refusal.

     

    An Essential Person is vital to the business, identified by the designated organization. If their application is rejected, all related applications are refused.

     

    No, personal investment is not required. Applicants must secure a minimum investment from a designated Canadian venture capital fund or angel investor group. Once obtained, they can establish their start-up in Canada. While no direct personal investment is mandated, additional financial commitment may be requested by the designated organization if the business idea warrants it. However, applicants must have minimum settlement funds to support their initial stay in Canada.

     

    Receiving support from multiple designated organizations, known as syndication, can enhance visibility and improve chances. However, each interested investment body must provide a commitment certificate to secure your Letter of Support. In syndication scenarios, if both a designated venture capital fund and an angel investor group invest, the minimum investment required is CAD 200,000. If only a designated angel group invests, the minimum is CAD 75,000.

     

    A Qualifying Business is an innovative, viable venture with the potential to create jobs, contribute to the economy, and compete globally. It must showcase innovation, viability, job creation potential, economic benefit, and scalability. Entrepreneurs must provide detailed business plans for evaluation by designated organizations to obtain the necessary Letter of Support for the visa application.

     

    Losing a Start-up Visa endorsement from a designated organization can significantly impact an entrepreneur's application and their chance of obtaining permanent residency in Canada. Reasons for losing endorsement vary and may include failure to meet milestones, changes in the business concept, misrepresentation, inactivity, legal issues, or violation of program terms. This jeopardizes the immigration process, as the endorsement is a crucial component of the application.

    Note: “The information herein is provided for informational purposes only and should not be construed as legal advice. Read our complete Legal Disclaimer on Website”

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