Start-up Visa: The PR Path for Innovative Entrepreneurs
IMMIGRATION HAS PLAYED A VITAL ROLE IN CANADA’S HISTORY AND ADVANCEMENT AS A NATION.
With the assortment of job opportunities that individuals from overseas use to come to Canada, immigration will continue to be a crucial portion of the development of Canadian society and the Canadian economy. Each year, millions of individuals from around the world come to Canada to temporarily visit, work, or study. More than 300,000 people gain permanent residency each year through different immigration programs. The Start-up Visa program is another great initiative by the Canadian Government that targets innovative entrepreneurs seeking to settle permanently in Canada with their families.
Overview of the Start-up Visa program:
• This is one of the only two federal programs for Canadian business immigration (the Self-employed persons class is another option for athletes and cultural persons to settle in Canada).
• The government launched this program in April 2013 as a five-year pilot to test a new way of supporting business immigration.
• It became a permanent program in April 2018.
• Targets innovative entrepreneurs who have the potential to build innovative businesses in Canada.
• The program aims to grow the economy by creating globally competitive jobs in high-growth sectors.
• Basically, this program emphasises the quality of business ideas.
• Up to five people can apply as owners – each applicant must hold 10% or more voting rights individually.
• Applicants & the designated organisation must jointly hold more than 50% of the total voting rights.
• Applicants can apply for permanent residency as well as for a work permit after getting the letter of support.
To Qualify for the Start-up Visa Program, You Must Meet the Following Requirements:
• A qualifying business or business experience.
• A designated organisation in Canada (incubator, angel investor, or venture capitalist) must support your business and issue a Letter of Support.
• Obtain acceptance into a business incubator program OR
• You must secure a minimum. $75,000 investment from an Angel Investor group OR
• You must get a minimum. $200,000 investment from Venture Capital Fund
• Meet the minimum level of CLB 5 in either English or French
• Must bring enough money to settle in Canada
• Settlement funds requirement is different for Work Permit & PR
Advantages of the Start-up Visa program:
• It does not require any minimum business investment.
• Unlike other entrepreneur programs, there is no need for net worth verifications
• It is a direct pathway for permanent residence in Canada
• There are no limitations on business activities in Canada
• Allows 5 people to apply to the same business idea for a minimum of 10% of ownership per partner
• You can come to Canada on a temporary residence permit while your PR application is in process.
• Much more cost-effective than any other entrepreneur program
• Access to capital – some investors look for certain great ideas to invest in at low interest rates, which can be beneficial for the start-ups.
• Favourable tax incentives – The SR&ED (Scientific research & experimental development) tax credit program can provide up to 35% tax incentives to eligible founders for what they spend on R&D (research & Development) costs for a maximum threshold of $3 million.
• The process moves faster compared to other business immigration programs.
• It will enable immigrant entrepreneurs to launch innovative companies that will create jobs in Canada and eventually compete globally
How it works
• Prepare a pitch deck (a brief presentation that provides investors with an overview of your business)
• Approach designated organisations
• Receive support from a designated organisation in the form of a Letter of Support
• Form a company in Canada
• Apply for permanent residency
• Apply for a work permit
• Become a permanent resident. List of designated organisations for start-up programs:
This article provides a general explanation of the program and its requirements and is neither a specific case nor a legal opinion. If you plan to apply, visit the IRCC website or consult an authorised representative before starting your application.
