Canada's Start-up Visa: Application Process, Requirements, and Tips!

The start-up visa in Canada might be perfect for you if you're an entrepreneur with an innovative business idea. Launching a business is challenging enough, but doing it in a foreign country can be even more difficult.

The good news is that Canada is open to welcoming international talent and helping them turn their business dreams into reality. Once you've got your visa, you'll be able to enjoy all the benefits of being a Canadian entrepreneur!

What is Start-up Visa Canada?

Canada is always looking for qualified entrepreneurs who want to launch businesses that will boost the Canadian economy while providing employment opportunities for its citizens.

The Canada Startup Class, more commonly known as the Startup Visa Program (SUV), is a program that grants immigrant entrepreneurs permanent residence while getting assistance settling in Canada. The program began as a three-year pilot program before becoming permanent on March 31st, 2018.

Start-up visa candidates may enter Canada on a work permit endorsed by their specified Canada-based investor before qualifying for permanent residence when their business is already operational.

Private-sector investors are classified into three types:

1. Angel investors

They must make a minimum investment of $75,000 in the qualifying business. Candidates may also meet the criteria with two or more investments totalling $75,000 from angel investor groups.

2. Venture capital fund

They must prove an investment of at least $200,000 in the qualifying business. Candidates may also fit the criteria if they have two or more agreements totalling $200,000 from specified venture capital funds.

3. Business incubator

They must accept the applicant into its business incubator program.

Successful candidates are then communicated with these Canadian private sector organizations where they can obtain financing, advice, and knowledge for beginning and managing their businesses in Canada.

Who can apply?

The following are the primary candidates’ eligibility for the Start-up Visa:

Qualifying business

A qualifying business is one that you established and satisfies the conditions listed below: - A. When you receive a commitment from a specific organization:

Each applicant owns 10% or more of the voting rights linked to all the outstanding shares of the Corporation (up to 5 individuals can apply as owners).

At that time, the combined voting power attributable to all outstanding shares of the Corporation held by the Applicant and the Designated Organization exceeded fifty percent (50%)

• B. When you are granted permanent residence:

• You operate this business actively and regularly from within Canada
• The leading company's operations are carried out in Canada
• This company is incorporated in Canada

Requirements

1. Letter of Support and Certificate of Commitment from a Designated Entity A letter of support from a business group authorized to invest in or support possible start-ups is required.

You will have to:

• Get in touch with the authorized organization to learn how to receive support from it
• Persuade the organization that your business idea is one they should support
• Obtain an endorsement letter from the designated organization

Each organization has a different method for presenting ideas. And every organization has unique needs. For instance, you might be required to give a live presentation of your business idea or submit a thorough business plan.

A letter of support will be provided if you and the specified group agree. And when you file your immigration application, you must include this letter. This is the evidence you have to present to prove your business idea's endorsement from an angel investor group, venture capital fund, or business incubator.

The organization will also deliver a commitment certificate to the immigration directly. They'll evaluate your application using the organization's commitment certificate and the letter of support you provided.

Please be aware that to arrive at a final assessment of your application, they may ask you for further business information. The immigration officer will reject your application if you don't submit the letter of support or satisfy any additional requirements.

2. Adequate transferrable, available, and unencumbered settlement funds

The Canadian government does not offer financial assistance to new immigrants on start-up visas. So, in your application, you must prove that you can support yourself and any dependents you bring with you to Canada. Please remember that you cannot borrow this money from a third party.

Your required amount will vary based on the size of your family. Every year, Canadian immigration update these sums. Look at the table below for reference:

No. of family members Funds required (in Canadian dollars)

Proficiency in English or French

If you're planning on doing business in Canada, it's best to brush up on your language skills. Communicating and working in English, French, or both languages will help your business succeed. Take a language proficiency test only from an approved agency and submit the results with your application, or they will reject it.

You must accomplish the Canadian Language Benchmark (CLB) 5 in all four areas: speaking, reading, listening, and writing in either English or French. The results of the test will be used to calculate your CLB level. If you do not have the required language skills, immigration will refuse your application.

How To Apply

The steps you must follow to apply are summarized here:

Step 1: Get the application package

The start-up visa application package includes an instruction manual and a document checklist.

Step 2: Fill up the application form

On your computer, complete the Generic Application Form for Canada. On the form, click the "Validate" button. If you still need to fill out any fields, they will be highlighted in red.

Print the application form (all pages, including the barcode page) that has been validated. After you validate the form, the barcode page will appear. If you have multiple packages, make a separate barcode page for each one. Sign and date the form where indicated.

Step 3: Complete the document checklist

1. Consolidate all supporting records and data according to the Document Checklist's numbered order.
2. Mark each item
3. A sealed envelope should contain all identification and supporting documents
4. The document checklist should be printed out and signed
5. On the cover page of your application, enclose the document checklist

You must submit all paperwork, supporting papers, signatures, test results for your language ability, and evidence that you've paid the processing costs. Your responses must all be accurate and complete. If the immigration discovers that you misled them or omitted crucial information:

1. Your application can be turned down
2. You could be rejected as an applicant and
3. You could face a five-year ban on making any immigration application to Canada

Step 4: Pay the application fees

On April 30th, 2022, the fees for all applications for permanent residence increased. Typically, your expenses will consist of:

1. Processing costs for you and everyone on your application
2. The Right of Permanent Residence Fee (RPRF)
3. Biometrics
4. Third-party fees (medical exams, police certificates, language testing, etc.)

Note: pay your fees online!

Submission of your application

The immigration won't begin processing any applications until they have received all of the partners' permanent residency (PR) applications if there are numerous applicants.

Please don't send all applications in one envelope. Every business partner is required to submit a separate application. Use the web form to let the immigration know as soon as possible if a team member won't proceed to permanent residence application anymore.

To ensure your application is complete, you must:

1. Respond to all inquiries
2. Sign your application and all other paperwork
3. After paying your processing fees, obtain your receipt and include it with your application
4. Include all the backing documentation

Some things to remember: Immigration will send your application back to you if you forget anything. You must correct any mistakes and submit them again. Send your entire application via mail to the address in the instruction guide. Sending your application to a different processing center or visa office is not advisable.

Pros and Cons

The Canada Startup visa has several benefits, including: A job offer from an employer in the country is not necessary. The only need for the visa is for your start-up company to maintain an operational presence in Canada.

Speedy application procedure. You can apply for a visa within two months of launching your firm in Canada. Capital is not necessary. The Startup Visa in Canada has no capital restrictions, unlike many other visas. This implies that you require very little money to launch your firm.

Low rate of corporate tax. Canada has a lower corporation tax rate than most other nations, at only 15%. As a result, your small business will pay fewer taxes than it would if it were based elsewhere.

However, the following are its disadvantages:

1. It is only a temporary visa with a validity of three years. Following that, the individual must apply for a Permanent Resident card or a work permit.

2. A lot of paperwork is involved, and you cannot renew it. For example, contracts, business plans, and financial statements can take up to six months to process and compile.

3. It is only helpful for already up and running businesses with employees. If the company starts from scratch or does not yet have employees, it will not be eligible for the visa.

Benefits

Some benefits of having a start-up visa are as follows:

1. Your family can also acquire a Permanent Residency through your application. Your children below 22 and spouse are included.
2. You and your family can visit Canada to benefit from its healthcare and education systems.
3. Because it is a federal program, you can reside in any Canadian province.

You'll get funding and advice from a reliable source. The Canadian Immigration Authorities choose a pool of qualified investors to collaborate with applicants and assist in establishing multi-tier support through syndication and a trusted peer review process.

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