Canada's Start-Up Visa Program
The Start-Up Visa program offers immigrant entrepreneurs the opportunity to gain permanent residence in Canada while providing support to help them establish their businesses successfully.
The program aims to foster the growth of immigrant-led businesses in Canada. Successful applicants connect with private sector organizations that offer funding, mentorship, and expertise to help them launch and manage their enterprises effectively.
Eligibility Requirements
The Start-Up Visa program aims to attract innovative entrepreneurs from abroad to create jobs and stimulate economic growth in Canada. To qualify, applicants must meet several criteria:
Achieve minimum language proficiency in English or French (CLB 5 across all abilities).
Demonstrate adequate financial resources for settling in Canada.
Intend to reside in a province outside of Quebec.
Successfully pass Canadian security and medical checks.
Obtain support for their business from a designated organization.
Meet specific ownership criteria for the business.
Additionally, up to five foreign nationals can apply for permanent residence under the same business venture within this program.
Investment Details
Immigration, Refugees and Citizenship Canada (IRCC) has partnered with various venture capital funds, angel investor groups, and business incubators to support the Start-Up Visa program.
To qualify, applicants must secure a minimum investment for their Canadian start-up: at least $200,000 from a designated venture capital fund or $75,000 from an angel investor group. While securing investment from a business incubator is not necessary, applicants must be accepted into a Canadian business incubator program.
Importantly, applicants do not need to invest their own funds. If their start-up does not succeed, individuals granted permanent residence through this program will still retain their status as permanent residents.
Evidence of Commitment
To demonstrate support from a venture capital fund, angel investor group, or business incubator, the investor organization must submit a completed Commitment Certificate directly to IRCC. This document outlines the agreement between the applicant and the investment organization, summarizing key details of their commitment.
Additionally, the applicant will receive a letter of support from the investment organization, which must be included with their permanent residence application. If multiple applicants are part of the same business venture, the commitment can be conditional on one or more designated “essential persons” obtaining their permanent residence. An essential person is specifically identified by the investment organization as crucial to the business. If the application of any essential person is denied, the applications of all other individuals named in the Commitment Certificate will also be rejected.
Support from Multiple Organizations
Applicants can secure support from multiple designated organizations, a process known as syndication. In this case, all participating entities must be identified. Collectively, these designated organizations will submit a single Commitment Certificate to IRCC, and the applicant(s) will receive one Letter of Support.
When a designated venture capital firm invests in a business, the minimum total investment required is $200,000, even if a designated angel group is also contributing to the same venture.
Conversely, if the business only receives support from at least one designated angel group, without any involvement from venture capital groups, the minimum total investment required drops to $75,000.
Peer Review Process
To safeguard the Start-Up Visa program against fraud, a peer review process has been implemented. This process ensures that the agreements made between investment organizations and foreign entrepreneurs are genuine. An immigration officer may request an independent assessment of the commitment by a peer review panel, which is established by an industry association relevant to the type of investment organization involved. For example, the National Angel Capital Organization oversees the peer review process for angel investor groups, while Canada’s Venture Capital and Private Equity Association does so for venture capital funds.
This peer review can be initiated at the discretion of the immigration officer, either when they deem it necessary for decision-making or randomly. However, the results of the peer review are not binding; they merely confirm that the investment organization has adhered to industry standards for due diligence. The panel does not evaluate the viability or feasibility of the proposed business.
The peer review assesses several aspects:
Confirms that the business has been or will be incorporated in Canada.
Verifies business ownership to ensure compliance with program requirements.
Evaluates the designated organization’s assessment of the business model’s viability, the management team’s qualifications, and the ownership of intellectual property.
Ensures the business focuses on high-growth potential products or services.
Validates acceptance into an incubator program for business incubator applicants.
Contact The Millennium Immigration
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