What is a Canadian Startup Visa

The Canada Startup Visa Explained

Do you have a groundbreaking idea that can change the world? Are you a businessperson with an indisputable track record of success? Do you want to move to the Great White North?

Opportunities await you, especially through Canada's Startup Visa (SUV) Program.

In fact, foreigners who boost the economy and employ locals have always been welcome in the country. But like other potential immigrants, those seeking to immigrate on a Startup Visa must meet certain requirements.

What Are the Requirements for Canada’s Startup Visa Program?

As a business owner who wants to live in Canada permanently, you must meet four conditions to be eligible for the SUV program:

• You own a qualifying business with 10% of voting rights or shares and over 50% of joint voting rights or shares with a Designated Organization (DO) in Canada.
• You hold a Letter of Support from a DO.
• You have a Canadian Language Benchmark (CLB) score or level of 5 or higher as proof of your proficiency in English or French (speaking, reading, listening, and writing).
• You have adequate funds, allowing you and your family to settle in Canada. (You may need anywhere between 12,000 CAD and 35,000 CAD, depending on the size of your family.)

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

What is a Designated Organization (DO) in Canada?

In Canada, Designated Organizations are business groups the Federal government allows to invest in or support potential startups coming under the SUV Program. These organizations decide which business proposals to accept based on their independent evaluation criteria.

A Letter of Support from a DO tells you everything you need to know about your arrangement. As such, it is a crucial component of your application.

How To Get a Letter of Support?

While it's not easy to get the approval of a DO, it's highly possible after you prove your startup has strong market validation or repeatable, scalable income. If you have a great business idea and the skills and money to make it happen, it is wise to talk to an expert before approaching a DO.

In any case, here are the steps to take when seeking a Letter of Support from a DO:

• Prepare your Business Plan.
• Submit your application to your chosen DO.
• Show up for an interview.
• Sign an agreement.
• Pay fees.
• Get your Letter of Support.

Required Investments

Unlike federal and provincial investor programs, the SUV does not require investing your own money. However, you must secure at least 75,000 CAD from a Canadian angel investor (a wealthy individual who invests personal money in startups) or 200,000 CAD from a government-recognized Canadian venture capital fund. If accepted into a recognized Canadian business incubator, you would not be required to seek investment capital.

How To Apply for Canada’s Startup Visa Program?

Here are the four steps required when applying to the Canada SUV program:

Step 1: Accomplish the Generic Application Form for Canada.

Click "Validate" at the bottom of the form to ensure you've filled out all the required fields. Print the validated form, including the barcode page, and sign and date the document.

Step 2: Review the checklist.

Arrange your documents in the order indicated in the checklist, and put everything in a sealed envelope. Print and sign the checklist, and place it on top of your other documents. It should serve as the cover page of your application.

Step 3: Pay the fees, including:

• Processing fees
• Right of permanent residence fee
• Third-party fees (for medical exams, language testing, and police certificates)
• Biometric fees

Step 4: Submit your application.

Ensure the forms and supporting documents are complete and signed and all the fees are paid, with receipts. Place everything in a 9-inch x 9-inch envelope and bring it to your nearest Visa Application Center. The current average processing time for a Canada Startup Visa is 31 months.

Frequently Asked Questions

What is the success rate for SUV applicants?

There is no guarantee an SUV application will be approved, but the result is generally positive as long as all the program conditions and requirements are met, including vital documentation.

According to Immigration, Refugees and Citizenship Canada (IRCC), immigration applications under the SUV program have an overall success rate of 76.3%.

Startups supported by angel investors also have the highest rate of approvals, followed by business incubators and venture capital funds.

What are the most common reasons for rejection?

In some cases, the immigration officer will initiate a peer review of an application deemed suspicious or unfeasible. The purpose is to determine whether the DO has performed the necessary checks and investigations.

The following are the most common reasons an immigration officer may recommend a review of an SUV application or deny it together:

• The applicant's percentage of shares is disproportionately high or low.
• All or most applicants are relatives or short of education or experience.
• The business plan is too general and has no intellectual property component.
• The DO fees are exorbitant.
• The applicant holds minimum or no control or equity in the venture.
• The core team has little to no experience with startups.
• The applicants failed to substantiate their "role" in the startup or could not provide evidence of collaboration with potential partners.

How can I increase my chances of getting approved for the Canada SUV program?

Applying to the Canada SUV Program comes with specific instructions that are generally easy to follow. However, on top of the steps required to complete the process, you may consider a few tips that can boost your chances of success. Below are six you can begin with:

Create a killer business plan.

Immigration authorities will consider many things when deciding on your SUV application, but your business plan is critical. Ensure it's detailed, especially your strategy, objectives, financial forecasts, and profitability timeline. More than anything, you need to prove you are financially stable and your startup has great potential to succeed in Canada.

Get your documents straight.

Creating a killer business plan is one thing. Substantiating it with documents is another. Documents can include proof of business ownership, funding, and substantial knowledge and experience in running a company. Your resume should stand out, focusing on your startup experience, accomplishments, or awards as an entrepreneur.

Stay up to date with Canadian immigration laws.

Canadian immigration laws change from time to time, possibly impacting your SUV eligibility. Hence, make it a point to read news articles and visit online resources where they publish information related to the country's immigration policies. Being vigilant allows you to make necessary adjustments as soon as possible and saves you time with a returned application.

Be realistic.

Some entrepreneurs get carried away with their passion and apply for an SUV despite their lack of experience. Even if they have the most brilliant idea and all the money to invest in a startup, immigration authorities and DOs will always examine the applicant's entrepreneurial background.

Thus, before you file an SUV application, provide strong, real-world evidence of your ability to run a profitable company.

Do not rush.

The worst way to apply to the SUV program is hurried. No matter how compelling your reasons are for moving to Canada, it's crucial to give yourself time to prepare your documents and other requirements. Rushing to complete your application can lead to various issues that can cause processing delays or, worse, rejection.

Partner with an expert for your Canada SUV application.

Sometimes, even the most promising entrepreneurs need help with their SUV applications.

Immigration is a legal process requiring extensive documentation and an eagle eye for details. So when you're too busy growing your empire, you can rely on an expert to handle your Canadian immigration, from your papers to your interview date.

This expert can be an immigration lawyer, an agency, or even a fellow entrepreneur who has found success in Canada through the SUV Program. The only requirement is you trust them.

The Bottom Line

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