Immigrating to Canada as a start-up can be a great opportunity to expand your business on an international scale. With Canada’s strong economy and friendly business climate, it’s no surprise that many entrepreneurs are looking to move here. However, it’s important to understand the specific requirements for successfully obtaining your Canada start-up visa.
Generally speaking, the process involves securing support for your business and submitting an application to Immigration, Refugee & Citizenship Canada (IRCC). Read on to find out how it works and if your business or business idea qualifies for the Canada Start-up Visa.
How it works
The Canada Start-up Visa Program is an excellent immigration pathway for entrepreneurs who have a great business idea and have secured financial backing from a designated organization (.i.e. a venture capital fund, an angel investor group, or a business incubator). To qualify, you must submit a business proposal that outlines how you plan to launch your business in Canada to any of these organizations; then get a Letter of Support from them.
About the designated organizations
They’re business organizations that have been granted permission under the Start-up Visa Program to fund or support potential start-ups. Each organization has its own process of receiving and evaluating pitches and deciding which ones to consider or assess. For instance, you might be required to give a live presentation of your business idea or submit a thorough business plan.
If a company agrees to consider your business idea, it will evaluate the viability of your plan and give you a Letter of Support if it decides to invest. Once you’ve got a Letter of Support, you’ll need to submit it along with an application for permanent residence.
Canada Start-up Visa Requirements
You need to have the following to be eligible for the Start-up visa:
Qualifying business or business idea
For your business to qualify, you must own at least 10% of the company’s total voting rights. You must also own at least 50% of the voting rights associated with all of the Company’s shares along with the Designated Organization.
In addition, the business will be incorporated in Canada and run from within Canada. Some of the business’ operations can be run from outside Canada, however, the essential parts of its operation must be run from within the country.
Related: Fresh out of business ideas? Immigrate to Canada as a self-employed artist or athletic
Letter of Support from a designated organization
Visit the government website for a list of designated organizations and pitch your business to one or more of them to get a Letter of Support. It’s proof that’ll show that your business has the support of an angel investor, a business incubator, or a venture capital fund.
Satisfactory language test result
You’ll be required to submit a language test result from an approved agency to prove that you can speak, read, write and comprehend either English or French. The minimum Canadian Language Benchmark (CLB) level for either language is 5.
Related: Get higher scores in your English Language test by avoiding these common mistakes
Sufficient settlement funds
There are no settlement services or financial support from the Canadian government for people immigrating through the start-up visa program. You’ll need to prove that you have enough money to support yourself after your arrival in the country.
For 1 person, the required amount is $13,310 CAD. For 2, 3, and 4 persons, it’s $16,570 CAD, $20,371 CAD, and $24,733 CAD respectively. Note that these amounts change annually.
How much investment does a start-up need to secure for a start-up visa?
The minimum amount you must secure in funding is:
- $200,000 from a venture capital fund
- $75,000 from an angel investor group
- Not required for business receiving support from a business incubator, however, you must prove that you’re being supported by one
How much does Canada start-up visa application cost?
The application processing fee for this program is $2,140 CAD. You must also include the cost of settlement funds and additional fees like language tests, medical exams, and courier services.
In view of the above, immigrating to Canada through the AIP will cost anywhere from $15,000 to $20,000 for a family of 2. This does not include the minimum investment amount that your start-up must secure to operate in Canada.
Related: Immigrate to Canada with the Provincial Nominee Program
How to apply
Step 1:
Contact one or more designated organizations to learn about how you can get their support.
Step 2:
Follow the instructions to create and submit your business plan to them.
Step 3:
If they agree to support your business, get a Letter of Support.
Step 4:
Create a permanent residence portal account and apply for permanent residence. Send your Letter of Support during this application.
Step 5:
Travel and start your life as a successful Canadian immigrant if your application is approved.
Related: Check out other Canada immigration pathways you can start applying to today
Pros and cons of immigrating via Canada start-up visa
The Start-Up Visa program is supported and endorsed by the Canadian government, providing entrepreneurs with access to funding, mentorship, and other resources. Consequently, immigrating via this program gives you access to Canada’s strong economy and large market. This increases your chances become established as a successful immigrant.
However, the minimum investment of $200,000 can be too expensive for some entrepreneurs. Besides, finding a designated investor to support a business might be time-consuming. To save time on this process, contact as many designated organizations as possible. After all, Canada allows for start-ups in this program to have multiple investors.
Conclusion
The selection process for immigrating to Canada as a startup can be complex and lengthy, so it’s important to make sure that you meet all the requirements and have the necessary documents and information ready before you apply. Taking the time to prepare your application thoroughly will help ensure that your application is successful.