Navigating the Startup Visa Process in Canada

October 16, 20230

Introduction to the Canadian Startup Visa Program

Canada’s Startup Visa Program is a golden opportunity for global entrepreneurs. Launched by the Canadian government, its primary aim is to attract innovative business minds from across the globe. By offering them the necessary funding and support, Canada hopes to bolster its economy and create more job opportunities for its citizens. Successful applicants can expect a fast-tracked process, with the potential of gaining permanent resident status, and eventually, citizenship.

Step-by-step guide for applying and navigating the process

  1. Secure Support from a Recognized Investor Dive deeper into the Eligibility section for a comprehensive understanding of this step. Essentially, you must obtain a support letter from an approved investor organization. This letter should confirm their commitment to finance your venture.
  2. Fulfill Language Proficiency Criteria It’s imperative that you can effectively communicate in English, French, or both. Submit evidence of your language skills to Immigration, Refugees, and Citizenship Canada (IRCC). This entails undergoing a language assessment by an IRCC-endorsed agency and achieving the stipulated language standards.
  3. Validate Your Business Ownership Compliance For this visa, a single enterprise can have up to five proprietors. Every applicant should possess a minimum of 10% of the company’s voting rights. Combined, the approved investment entity and the applicant/s should control over 50% of the company’s voting rights.
  4. Demonstrate Adequate Settlement Funds Ensure you can showcase to the Canadian authorities that you possess the necessary funds to sustain yourself and your dependents upon relocating to Canada. Note that the government won’t offer financial aid to immigrant entrepreneurs. Refer to the Eligibility section below for a breakdown of the requisite funds.
  5. In essence, these are the foundational steps of the program. Reflect on them to determine if this pathway aligns with your aspirations. If you’ve pondered over it and are eager to embark on this journey, continue reading. We’ll delve deeper into each step for a thorough understanding.

Eligibility criteria and requirements for entrepreneurs

To qualify for the Entrepreneur Startup Visa program in Canada, your initial move is to secure backing from a recognized Canadian angel investor group, business incubator, or venture capital fund. It’s essential that at least one of these organizations is ready to fund your startup venture.

Note that the endorsing organization should be an approved angel investor group, a certified business incubator, or a venture capital fund recognized by the Canadian government for participation in the Entrepreneur Startup Visa initiative.

Each endorsing entity has its distinct application procedure. It’s likely you’ll need to approach them individually, navigating different application routes to pitch your business concept. While some might require a comprehensive business plan, others might be more flexible.

Invest time in understanding these entities. Explore their online platforms to discern the kind of startups they favor. These groups might have diverse goals and might prefer investing in particular business sectors. Their application guidelines might also be available on their websites.

After successfully pitching your idea and securing the endorsement of a recognized incubator, angel investor group, or venture capital fund, they’ll provide you with a support letter. Additionally, they’ll furnish the IRCC with a detailed Commitment Certificate, which outlines the terms of the agreement between the candidate and the endorsing body.

It’s possible to gain endorsements from multiple investors, a scenario termed as syndication. In such instances, the endorsing entities will jointly submit a single Commitment Certificate to the IRCC.

With the endorsement letter in hand, you’re set to apply for the Startup Visa, provided other criteria are met.

The mandatory investment for your venture is:

  • 200,000 CAD from a Canadian VC,
  • 75,000 CAD from an angel investor,
  • 0 CAD (yes, zero) if endorsed by a Canadian business incubator.

Language Proficiency Evidence Proficiency in English, French, or both is essential. This necessitates undergoing a language assessment from an agency approved by IRCC and achieving:

  • Canadian Language Benchmark (CLB) 5 for speaking and listening and 4 for reading and writing in English.
  • Niveaux de Compétence Linguistique Canadiens (NCLC) 5 for speaking and listening and 4 for reading and writing in French.

Educational Qualification Proof A minimum of one year of postsecondary education is required. Furnish relevant transcripts, confirmation letters, diplomas, or certificates to validate this criterion.

Navigating the Startup Visa Process in Canada, visa Canada, top100startups, visa applicant

Proof of Sufficient Settlement Funds

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

References link: www.canada.ca

Security clearances and medical clearances

To determine whether you and your family members qualify for a security clearance and a medical examination, you must:

  • Threaten the country’s security,
  • The Canadian healthcare system would be burdened by a severe health condition.

Application Costs

Here is a breakdown of the fees:

Application Fee Required Funds (Canadian Dollars)
Main Applicant 1,540 CAD
Spouse 1,040 CAD
Dependent Child 150 CAD
Legal Fees Depending on the law firm

Application Procedure

If you fulfill the stated eligibility criteria, you’re eligible to pursue a Permanent Residency. The entire process spans 12 to 18 months and is divided into the following stages:

  1. Business Plan Drafting (1-2 months) Begin by submitting a comprehensive CV for initial assessment, accompanied by other essential preliminary documents. We’ll explore these documents in detail later in this piece. During this stage, you should also be working on drafting your business plan.
  2. Securing a Support Letter (6-10 months) By now, your business plan should be finalized and presented to a specified investment body. As mentioned earlier, this could be a recognized angel investor group, a business incubator, or a specified venture capital fund. The chosen organization(s) should endorse your plan and provide you with a support letter, while also sending a Commitment Certificate to the IRCC.
  3. Application for Permanent Residency (8-12 months) This is the concluding stage. Here, you’ll submit your application for Permanent Residency, accompanied by your investment letter and other requisite documents. The state department will review your application and subsequently approve or decline your petition.

Required Documents

  • Detailed Resume (CV) of the candidate
  • Draft Business Proposal
  • Copy of Passport or Legal Travel Document
  • Birth Certificate
  • Marriage Certificate (if married)
  • Police Clearance Record from your country of origin and residence
  • Proof of Funds: a recent Bank Statement covering at least six months
  • Bank Reference Letter
  • Language Test Results (IELTS CLB Level 5 or NCLC Level 5)
  • Medical Examination Confirmation from a certified health institution
  • Letter of Support from a designated entity in Canada

All documents must be translated into English or French and certified or apostilled by the corresponding country.  For further information, the immigration office may request additional documents.

FAQ

What happens if my business doesn't succeed?

 Even if your venture doesn’t succeed, your Canadian permanent residency remains intact.

Can you explain the Canada Startup Visa Program?

The Startup Visa Program (SUV) provides an opportunity for entrepreneurs and their families to achieve permanent residency by initiating a qualifying business in Canada. Immigrant entrepreneurs must present a business proposal and personal details. Once endorsed by the immigration authorities, they can relocate to Canada.

Who is considered a Dependent in the SUV?

Dependents under the SUV include the primary applicant’s spouse and children. However, children must be below 22 years of age.

What benefits does Canada's Startup Visa offer?
  • Successful entrepreneurs and their families receive permanent residency.
  • This permanent residency also acts as a work permit.
  • Eligibility to apply for Canadian citizenship.
  • Dual citizenship is permitted for Canadian nationals.
  • No need to disclose the fund source for the application.
  • No age restrictions for the primary applicant.
  • Quick processing duration.
Is it mandatory to visit Canada during the SUV application process?

Traveling to Canada isn’t mandatory during the application process. However, post-approval, you might need to stay in Canada to manage your business actively. It’s essential to demonstrate a genuine intent to migrate to Canada and utilize the work permit to avoid any validation issues.

How much capital should I possess?

Please refer to the aforementioned Eligibility section for a detailed breakdown of the necessary funds for settling.

Do I have to show the origin of my funds for settlement or business investment?

No, there’s no need to trace the origin or path of your funds. You just need to prove that you have the required amount to meet the criteria.

How do I become eligible for the Start-Up Visa Program?

To be eligible for the Start-up Visa, ensure you fulfill all the criteria mentioned above.

What's the usual processing duration?
  • 1st Phase: Drafting the Startup Plan (1-2 months)
  • 2nd Phase: Securing a Support Letter (6-10 months)
  • 3rd Phase: Application for Permanent Residency (8-12 months)
How challenging is the Language Requirement?

You should be proficient in English, French, or both. A minimum competency level must be proven by taking the respective language exams, available at multiple global locations.

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