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Canadian Start-Up Visa program is a program designed to attract foreign entrepreneurs who have the potential to contribute to the growth and development of the Canadian economy. This visa allows entrepreneurs who have proven to have the required language skills in English or French to start or buy a business in Canada and become permanent residents with an entrepreneur work permit after the processing time is over. The process’s requirements involve meeting specific criteria, such as obtaining a letter of support from a designated organization, demonstrating the ability to communicate in English or French, and having sufficient funds to settle in Canada. The start-up visa program offers a pathway for talented individuals to bring their innovative ideas and skills to Canada, fostering entrepreneurship and creating new opportunities. If you are considering starting a business in Canada, the Canadian Start-Up Visa could be a promising option to explore.
While the number of applicants for this program have been increasing, some may wonder why start a business in a foreign land rather than their home countries. Well in Canada, the government is invested in creating incentives and programs to attract business owners to form their own business or to work within Canada for example, the Scientific Research and Experimental Development tax credit program offers tax credits for research and development activities not just for individuals but corporations as well. There are plenty of different grants, programs and other government provided funding opportunities for any business owner to take advantage of while operating within Canada such as within the Start-up Visa program as part of the application process for the Start-up Visa requires you to contact and obtain proof of investors or groups willing to invest a substantial amount of money into the program.
Canada’s various supportive government policies that help businesses obtain funding along with its robust infrastructure make it a well-suited favourable business environment. Moreover, Canada's proximity to the United States provides easy access to the largest consumer market in the world. Canada also has a highly skilled and diverse workforce with access to top talent and a multicultural market so you will not be lacking in employee options or target audiences to appeal to for your business's products. Lastly, Canada's healthcare system, and safe communities make it an ideal place to live and for some to raise a family in. Overall, Canada offers a welcoming and conducive environment for people and their families to live in and for foreign entrepreneurs to establish and grow their businesses with there being many successful applicants of the Start-up Visa who have successfully launched their own personal business within Canada.
Is it worth paying a processing fee of $1625, a right of permanent residence fee of $515 and a biometrics fee of $85 with the cost going up the more family members you transfer over? Well, if you have applied for a permanent residence through the Start-Up Visa Program (SUV), you might also be able to get an optional work permit. This would let you do the work to start your business while we process your start-up visa application by applying for your work permit and submitting an offer for employment for yourself. This work permit is not an open work permit but one that lets you start up earlier as an entrepreneur with the possibility of being able to apply for an extension past a single year if you have gotten permission from your designated funder.
The requirements to obtain this SUV specific work permit is that your designated funder explains why you are critical to the business and are urgently needed through the IMM5667 Start-up business class commitment certificate form. You also need to show that your work or business will provide a significant economic benefit to Canada though matters such as: job creation, product, or service innovation, boost to remote economies, training opportunities for Canadians. This is done through supporting documents in your application that show how your business will provide one of the economic benefits and that you are an experienced entrepreneur.
However even without being able to obtain this fee, you are still capable of obtaining a regular work permit to be capable of working paid jobs for an employer within Canada.
There are certain requirements you must meet before you can apply for the Start-Up Visa Program.
The last and unstated one is to have a permanent residence available to you that is not in Quebec. It is technically not a requirement, but you will need one if you wish to make use of your Start-Up Visa and you are required to obtain the associated Visa within a year of obtaining the Start-up Visa. This will require having filled out a permanent residence visa.
Presumably if you are capable of reading and understanding this blog post without the need for a translator you can pass the English language requirement tests. However, you still must take a language test from an approved agency, send them along with your application and have your results are bare minimum meet level 5 of the Canadian Language Benchmark in English or French for the following: speaking, reading, listening, and writing. The tests that qualify for this application are as follows:
There are limited testing centres for each option, however for those applying for a start-up visa you must not go to Language Instruction for Newcomers to Canada (LINC) centres for testing as they are not approved of for Start-Up Visa applicants.
For your start-up business to be approved of it must meet the criteria to be considered a qualifying business. Which means that you must have received a commitment from one of the following:
There are other requirements for a business to qualify for the SUV program. As this is a Canadian Visa and the initiative is intended to benefit Canada and the entrepreneurs applying, the business must meet certain requirements to prove that it is contributing back. Any qualifying company must prove that they are working within Canada and that the business is centred in Canada. So, at the time an applicant receives their permanent residence, they must provide active and ongoing management of this business from within Canada, an essential part of the operations of the business must occur within Canada and this business is incorporated in Canada.
The rest of the requirements are that each applicant holds 10% or more of the voting rights attached to all shares of the corporation outstanding at that time with a maximum of up to 5 people being allowed to apply as company owners. Applicants and the designated funder jointly hold more than 50% of the total voting rights attached to all shares of the corporation outstanding at that time of the application for the start-up visa. The final requirement is that you must provide a Letter of Support and that your designated organization also provides a commitment certificate to the Immigration, Refugees and Citizenship Canada (IRCC) along with the term sheet or client agreement as proof that you have fulfilled the requirements. If you are unable to convince one of the designated groups, organizations, or funders to commit that much investment into your business then it means that your business idea and plan is not good enough for the Visa’s standards. A commitment of support from a designated Canadian business incubator, angel investor group or venture capital fund is required before you can apply for a permanent residence or a work permit.
To summarize, to be eligible for the Canadian Start-Up Visa, there are specific criteria that entrepreneurs must meet. Firstly, applicants must obtain a letter of support from a designated organization in Canada, such as a venture capital fund, angel investor group, or business incubator. This letter acts as proof that the entrepreneur's business idea is innovative, has the potential for growth and success and that they have a commitment of support. Additionally, applicants must possess the ability to communicate effectively in either English or French, as this is crucial for business operations and integration into Canadian society. Lastly, entrepreneurs must demonstrate that they have sufficient funds to settle in Canada, which includes covering living expenses and initial business investments.
How popular is this visa you may be asking? Well, by July of this year Canada had welcomed 480 new permanent residents through the SUV. The estimates predict that Canada will welcome 823 immigrant entrepreneurs through the Start-Up Visa program this year, which is an increase of 43.1 percent compared to the 575 newcomers that arrived under the program last year.
This is a notable increase from past years as between April 2018 and March 2022 IRCC received only 935 SUV applications and launched 252 companies in Canada. With the higher numbers of successful applicants there have been more companies and initiatives launched within Canada by these new entrepreneurs. In response, the IRCC has allocated substantial planned admissions for permanent residence to Start-Up Visa applicants to take advantage of these increased numbers. Whereas this number has only been 1,000 per year during the past few years, in 2023, 2024 and 2025, this number will increase dramatically to a maximum of 4000, 7000 and 8000 respectively for immigrants who intend to become self-employed or become entrepreneurs. So now is the perfect time to apply to take advantage of this opportunity.
It is true that for 80% of applicants the processing time can take up to 37 months, however there have been successful applicants that have launched their own businesses. And the process of the wait time can be influenced by a variety of factors.
Depending on the type of company you wish to make, the government could expedite your process and application quickly. The more attractive your application is, the sooner your application could go through, but it is best to be prepared to be patient. It is ideal that you apply for both a Canadian Start-Up visa and a Permanent Resident Visa, with some choosing to apply for a regular Work Visa while waiting for the Start-up Visa to ensure that they can have a steady cash flow while waiting for the processing time to be able to start their business or they apply for the Work Permit associated with this program to start their entrepreneurship early.
It is vital that research in advance the locations you intend to start your business in. The city you choose will determine what opportunities and potential resources you will have available to you. For example, Toronto’s economy is driven by several industries, including finance, technology and manufacturing and is home to many prestigious universities and research institutions which allows for potential collaboration opportunities as well as a source of potential employees. So, depending on the type of company you wish to create, Toronto could be your ideal choice. However, it isn't the only ideal choice to start a business in.
Another example is with Edmonton. It is an immensely popular city for entrepreneurs and start-up owners due to several factors. The first are that there are a wide range of opportunities for businesses to collaborate and innovate within the city. The second is its location within Canada, Edmonton is an excellent hub for logistics and distribution because the city provides easy access to Western Canada’s major transportation routes such as its railways and highways. Finally, there is a program known as Startup Edmonton which offers mentorship and training to entrepreneurs such as yourself or any others who are interested in the Start-Up Visa.
These are two examples of how choosing where you wish to start your business is vital within Canada. It will determine the opportunities available to you as many grants or funding opportunities are province or city based. So, when conducting and creating your business plans it is vital to not neglect your location as some business plans will work better within certain cities than in other locations within Canada.
In conclusion, the Canadian Start-up Visa program presents an exciting opportunity for foreign entrepreneurs to establish their businesses in Canada. This program not only offers a path to permanent residency but also provides access to a supportive ecosystem and a thriving start-up community. Despite the long processing times, the Canadian Start-up Visa program is worth exploring further if you wish to move or start a business within Canada. Canada’s target immigration goals for immigrants who plan to make their own federal businesses within Canada for the next three years will be 3500, 5000, and 6000 so do not miss this opportunity to be one of those select people. Aim to become part of Canada's vibrant start-up ecosystem and create your own business by taking advantage of the many opportunities within Canada itself as this is an opportunity worth taking.
The information contained in this post is considered true and accurate as of the publication date. However, the accuracy of this information may be impacted by changes in circumstances that occur after the time of publication. Ashton College assumes no liability for any error or omissions in the information contained in this post or any other post in our blog.
