Startup Visa Canada

Settle In Canada With Your Family

Canada actively seeks innovative entrepreneurs ready to launch businesses that boost its economy and create jobs for its residents. If you’re an entrepreneur, you may qualify to immigrate to Canada through the Start-Up Visa Program.

For those considering business immigration to Canada and with access to capital between CAD $200,000 and $500,000, the Start-Up Visa Program could be the perfect fit. This program provides a unique opportunity to establish your business in Canada, paving the way for you and your family to live and work here.

This guide will walk you through how to leverage this opportunity, including program eligibility, the application process, and other key details to help you navigate the Start-Up Visa Program effectively.

What is a Start-Up Visa in Canada?

The Canada Start-Up Visa Program offers foreign entrepreneurs a pathway to permanent residence by launching innovative businesses in Canada. Successful applicants, along with their families, can relocate to Canada within 3 to 6 months and secure permanent residency within 2.5 to 3 years.

The program is designed for entrepreneurs backed by designated Canadian organizations, such as incubators, angel investor groups, or venture capital funds. Up to five business partners can collaborate on the same start-up, provided they meet the program’s specific requirements.

Start-Up Visa Canada Requirements

To qualify for the Canada Start-Up Visa Program, applicants must meet the following criteria:

Secure a Letter of Support from a Designated Organization in Canada.
Incorporate the business within Canada.
Hold at least 10% voting rights in the company individually, alongside a Designated Organization.
Collectively own over 50% voting rights with the Designated Organization.
Actively manage the business, ensuring core operations are based in Canada during and after the application process.
Demonstrate language proficiency at CLB 5 level in English or French.
Have sufficient settlement funds and operational capital, ideally exceeding $200,000.

Changes to Canada’s Start-Up Visa Program

On April 29, 2024, Canada’s Minister of Immigration, Refugees, and Citizenship, Marc Miller, unveiled major updates to the Start-Up Visa Program to tackle application backlogs and enhance processing times. Effective April 30, 2024, these changes are part of Canada’s ongoing efforts to modernize its immigration system. Here’s an overview of the updates and their impact on entrepreneurs planning to immigrate to Canada.

Key Changes:

Cap on Permanent Residence Applications: The Start-Up Visa Program now limits the number of permanent residence applications associated with it. Each designated organization, including venture capital firms, angel investor groups, and business incubators, can submit a maximum of 10 start-up applications annually. This cap will be in effect until the end of 2026.
Priority Processing for Select Start-Ups: Applications from start-ups backed by Canadian capital or supported by incubators that are members of Canada’s Tech Network will receive expedited processing. This priority applies to both new submissions and existing applications already in the queue.

Implications for Entrepreneurs:

Limited Application Slots: The new cap reduces the number of entrepreneurs who can apply through the Start-Up Visa Program each year, increasing competition for the limited slots. This is particularly significant for those who have already secured backing from a designated organization.
Faster Processing for Priority Applications: Start-ups with Canadian financial backing or partnerships with key incubators will enjoy expedited processing, providing a distinct advantage over other applicants.
Focus on Quality Over Quantity: These changes aim to encourage designated organizations to prioritize supporting the most promising ventures, enhancing the overall caliber of applications submitted.

Tips for Entrepreneurs:

Secure Canadian Support: Seek investment from a Canadian venture capital firm or incubator whenever possible, as this can significantly improve your chances of qualifying for priority processing.
Consider Alternative Pathways: If the Start-Up Visa Program isn't feasible due to the new caps, explore other options like provincial entrepreneur nominee programs, the C11 visa, or intra-company transfers.
Prepare Thoroughly: With increased competition, ensure your business plan is strong, well-researched, and aligned with Canada’s entrepreneurial objectives to maximize your chances of success.

Processing Time for Start-Up Visa Program

As of September 2024, it takes about 40 months, or just over three years, for most Start-Up Visa applications to be processed. However, this is just an estimate and the actual time can vary based on how busy the immigration office is. The backlog of applications is quite large. As of February 29, 2024, there are 29,128 people waiting across 9,125 cases. Of these, 14,508 people are waiting to move forward in the process, and 10,458 people are waiting to have their eligibility checked. Only 4,030 people are close to receiving a final decision. With such a large number of pending applications, the recent changes to the program aim to speed up processing by limiting the number of applications each year and giving priority to those backed by Canadian investors or incubators. Entrepreneurs should be aware of these long wait times when planning their immigration journey.

Canada Start-Up Visa Success Rate

According to the most recent statistics, the approval rate for permanent residence applications under the Start-Up Visa program is 77.2%, based on IRCC data from January 2023 to November 2023. During this period, IRCC processed 3,334 applications for permanent residence and approved 2,577 of them. There were 267 applications withdrawn and 490 that were refused. Thus, based on these figures, the SUV program has a general success rate above 77%.

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How to Get a Canada Startup Visa?

Applying for a Canada Start-Up Visa involves a series of steps divided into three phases:

Ensuring the viability of your business idea and your potential as an entrepreneur.
Submitting an immigration application and.
Actively working to build your start-up in Canada while your permanent residence application is processed.

Once you confirm that you meet the basic eligibility criteria for the Start-Up Visa Program—which includes language proficiency and sufficient settlement funds—you can follow the steps outlined below to increase your chances of success in this program.

Step 1: Business Concept Development: Developing your business concept is a foundational step in turning your innovative idea into a business model with global scalability potential. It’s crucial to start with a clear vision of your start-up project, an understanding of your competitors, a strategy to compete with established players, and a detailed operational plan, including what parts of the project will be carried out in Canada. Many entrepreneurs encounter challenges in creating a robust business concept capable of attracting support from designated organizations. Our business team can assist you in brainstorming ideas, researching your target market, evaluating the competition, and defining your unique value proposition. Our in-house team is equipped to help our clients craft comprehensive business plans, outlining vision, objectives, strategies, financial projections, and the anticipated contribution to the Canadian economy. Our clients have achieved a 100% success rate in securing support from designated organizations.

Step 2: Select the Right Designated Organization: Choosing the right designated organization is a critical step in this process. As of 2024, there are 84 Designated Organizations—comprising angel investor groups, venture capital funds, and business incubators—authorized by the Canadian government to invest in or support potential start-ups for the Start-Up Visa Program. Each has distinct criteria and interests, so selecting one that aligns with your business idea involves researching their investment history, examining the types of start-ups they have previously supported, and assessing their mentoring capabilities. Moreover, most organizations charge administrative fees that range from $10,000 to $50,000. While some organizations do not charge fees, they may have limited intake capacities or be highly competitive. We have cultivated relationships with numerous designated organizations and can guide you in choosing the organization that best fits your project.

Step 3: Obtain Support from the Designated Organization: Once you have selected several designated organizations, follow the instructions on their websites to apply for the Start-Up Visa (SUV) program. The process typically involves pitching your business concept to them with a compelling presentation and demonstrating the potential of your idea. If they are convinced of your start-up’s viability, they will issue a Letter of Support, a critical document for your SUV application. If you feel intimidated by this process and need support, our team can assist you throughout the application process and can accompany you during the pitch to provide support.

Step 4: Prepare Your Documents: Gather all necessary documents, including the Letter of Support from a Designated Organization, proof of language proficiency at CLB 5, proof of settlement funds, business plan, and other required documents per the application guide.

Step 5: Submit Your SUV Immigration Application: Complete the application forms for the Start-Up Visa Program and submit them along with the required documents and the application fee. Along with your personal documents, submit a Pitch Deck that clearly communicates your business vision, Articles of Incorporation to prove legal business formation, and a Capitalization Table detailing the start-up ownership structure. Include your start-up’s logo, comprehensive customer or supplier lists, documentation of any intellectual property, and financial statements for financial transparency. Also include forward-looking financial forecasts, which are essential for assessing the potential success of your enterprise. Before submission, review your application for completeness to prevent any unnecessary delays.

Step 6: Start Your Business in Canada: After you’ve submitted your application for permanent residence, you can turn your attention to launching and nurturing your business in Canada according to your business plan and the commitments you’ve made to the Designated Organization. If you’re an essential member of your start-up and need to be in Canada sooner, you may apply for and obtain a work permit. This will allow you to move to Canada while the Canadian immigration authorities process your PR application.

Step 7: Update IRCC about Your Progress with Business: While awaiting your permanent residence status, it is crucial to keep IRCC updated on the progress of your start-up project. Updating IRCC has become increasingly important, especially after a notable decline in approval rates in early 2023 (January to April 2023), which fell to 51% from the historical average of about 75% from 2016 to 2022. IRCC officers have been known to routinely refuse SUV applications if they are not satisfied with the business progress thus far. Many rejections occur because the applicant has made minimal progress, presented a poor business model, or appeared to lack serious intent. To mitigate IRCC’s concerns, it’s advisable to proactively provide updates on your business’s progress every 6 months. This regular reporting can demonstrate your commitment to the venture and may help alleviate any potential issues regarding the seriousness of your intentions or the quality of your business model.

Step 8: Receive a Decision: After evaluating your application, IRCC will notify you of their decision. The communication will come via the contact details in your application, so it’s important to ensure they are current and accurate. If your application is successful, you will be granted PR status, a significant milestone on your entrepreneurial journey in Canada. Should the decision be negative, you will be given reasons and, if applicable, instructions on how to address any deficiencies or appeal the decision.

Advantages and Disadvantages of Start-Up Visa

It would be best to consider the benefits and drawbacks of this program before taking any further steps. It is crucial to fully understand what this program offers and whether it is right for you.

Advantages of the Program

A direct pathway for permanent residence in Canada.
Open to all nationalities.
No limitations on business activities in Canada.
No net worth requirement or verification.
Allows for a partnership of 5 individuals in the same start-up (min. 10% of ownership for each partner is required) and
Opportunity to relocate to Canada by obtaining a work permit while the permanent residence application is processed.

Disadvantages of the Program

High competition to obtain support from designated organizations in Canada; thus, it can be challenging to get such support.
Lengthy processing times (3+ years) to obtain permanent residence.
High capital investments by the founding partners are often required to secure support from a designated organization.
An extremely well-developed, viable, and scalable business model is needed with a proven track of success and
There is a moderate risk of refusals at the permanent residence stage and/or delays due to peer reviews.

How Migrate.ca Can Help You?

Qualified advice
Advise on investments
Dedicated support

Key Features of the Canadian Startup Visa

Lower Costs

Unlike traditional investment immigration programs, this one offers relatively affordable options.

Investment Support

Secure stable business operations with investment backing from Canadian firms

Family Inclusion

Immigration applications can include up to five individuals, covering the applicant's family.

Permanent Residency for Family

Spouses and dependent children (under 22 years old) can gain permanent residency and travel together.

Expedited Immigration

Applicants can apply for a work visa for faster entry to Canada.

No Experience Required

No specific job experience or managerial skills are necessary.

Business Registration Flexibility

You can register your business in Canada before securing permanent residency.

High Approval Rates

The government evaluates business plans and due diligence reports through authorized agencies, ensuring higher approval chances.

FAQ's

Below you will find answers to the most frequently asked questions that are based on our experience with Start-Up visas:

How much money is required for a Startup Visa in Canada?

While the Canadian Startup Visa program does not require a set investment amount, applicants should be financially prepared for significant expenses associated with launching and sustaining a business. Typically, the total cost ranges from CAD 120,000 to CAD 300,000, depending on the complexity of the business concept, family size, and various necessary expenditures, including:

Business concept development: CAD 20,000 - CAD 100,000.
Designated incubator fees: CAD 25,000 - CAD 50,000.
Legal fees: CAD 10,000 - CAD 30,000.
Company formation fees: CAD 3,000 - CAD 5,000.
IRCC government fees per family: CAD 3,500 - CAD 5,000.
Operational costs over three years (includes hiring, taxes, and expenses): CAD 50,000 - CAD 150,000

These figures are estimates and vary based on the specifics of your Startup and personal circumstances.

Can I get a Startup visa without investment in Canada?

While it is theoretically possible to secure a Startup Visa (SUV) without initial investment in Canada, the reality is that it's extremely challenging. Success in the SUV program hinges on an entrepreneur's ability to establish a business that is not only innovative but also scalable on a global level. This typically requires significant capital investment. Entrepreneurs must either possess personal funds to drive their business ventures or possess exceptional skills in securing funding. Additionally, a well-developed product with an existing customer base or substantial market traction is crucial to gaining the interest of designated investors such as angel investor groups or venture capital funds. These investors tend to favour businesses that have either secured prior capital or have a stream of revenue from customers. Thus, while the program does not explicitly mandate capital investment, the landscape of institutional investment makes it a de facto requirement, with only a handful of entrepreneurs navigating the SUV pathway without it.

What are the disadvantages of a Startup visa in Canada?

The top 3 disadvantages of the SUV program, in our view, can be narrowed down to the following:

Lengthy processing time for permanent residency applications. It's not uncommon for entrepreneurs to wait for about 3 years for a decision from Immigration Canada. This prolonged period of uncertainty can be a significant barrier, complicating business planning and operations due to restricted access to Canadian capital and business opportunities. While waiting for permanent resident status, start-up visa applicants often find themselves in a temporary status limbo that can affect their ability to execute their business plan fully.
There's no assurance of a successful outcome. Despite the long wait, around 30% of Startup Visa applications are denied. Common reasons for refusal include questions about the business's potential for success, insufficient progress, or other errors in the application. The Federal Court has recently upheld that IRCC officers are not obligated to follow the recommendations from designated organizations that support these start-ups. They are permitted to conduct their own evaluations of the applications, which can lead to unexpected reasons for rejection, especially as IRCC gains more expertise in scrutinizing these complex applications.
Financial self-reliance is another significant concern. Applicants must demonstrate they have adequate financial resources to support themselves and their families while their permanent residency is being processed. They also need to ensure they have the funds available to maintain their business and continue developing their project. This requirement becomes even more challenging because, during this waiting period, if the applicants are in Canada, they are not allowed to take on employment outside their Startup business, putting additional financial pressure on them.

Can my work permit for a Startup visa be rejected?

A work permit application under the Startup Visa program can be rejected. The top three reasons for such rejections include:

Unclear Business Intent: When applying for an SUV Work Permit, you must convince the officer that there is an urgent need for your presence in Canada. Therefore, if your work purpose is unclear and not described in your application precisely, the Immigration Officer can reject your application. Also, do not forget to include your comprehensive business plan and description of all activities planned in Canada.
Lack of Demonstrated Significant Benefit: Your application must be accompanied by evidence that your business activities will significantly benefit Canada. If no documentation supports this claim, the likelihood of the permit being granted is reduced.
No Evidence on Dual Intent: Even if you are applying for permanent residence, you must still convince the immigration authorities that you will leave Canada if your PR application is rejected. If you fail to include evidence of your ties to your home country, it is open for an Officer to conclude that you only have a singular intent, and you may not adhere to the conditions of your temporary stay in Canada.

To avoid these pitfalls, provide ample evidence on critical areas of your Work Permit application.

How long does the processing of an SUV PR application take?

As of March 2024, the IRCC estimates the processing time for a Start-Up Visa application to be about 37 months, which is just over 3 years. These estimates are based on historical data and are a general guide. Actual times may vary as they depend on the volume of applications received and how quickly they can be processed. Another way to look at it is by current application backlogs and planned processing rates. With about 8,000 applications in the queue (as of April 2023) and an annual processing goal of 5,000 in 2024, increasing to 6,000 in the following years, it would take over two years to work through the existing applications, assuming no new ones are added. Both methods indicate a processing time of around 2.5- 3 years, but these are estimates and the actual time may be different.

Can my SUV PR application be rejected?

Yes, your Start-Up Visa (SUV) application can be rejected. According to Federal Court data from the past three years, the reasons for rejection include:

Lack of Progress and Accomplishments: Applicants often failed to show significant progress or achievements in developing their business venture since it started. They also struggled to prove their active involvement in the business or to give detailed information about their contributions and roles.
Inadequate Experience: Applicants lacked relevant experience, especially in critical areas like technology, which is vital for the proposed business.
Questionable Business Necessity in Canada: There were doubts about the need for the business venture to be in Canada or the applicant's dedication to operating within the Canadian market.
Faulty Business Model: The business model raised concerns due to its feasibility and the research behind it. This includes unclear business plans, unrealistic financial projections, or insufficient market research. Often, the issue was a lack of focus on the Canadian market, with the business primarily targeting customers outside Canada and showing little evidence of benefiting the Canadian market.
Absence of Seriousness: There was an overall impression of a lack of seriousness towards the business venture, shown through poor planning, inadequate preparation, and neglecting essential operational details. This lack of seriousness suggested that the main goal of the application was to gain immigration status rather than to genuinely engage in the proposed business activity.

To improve the chances of approval, applicants should ensure their business plan is thoroughly researched, clearly presented, and shows a real intention to contribute to the Canadian economy. Providing detailed evidence of progress, personal involvement, and a solid plan for operating within Canada can help address these issues.

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