Canada’s start-up visa program
Immigrant entrepreneurs are given permanent residence while receiving support to settle in Canada through the start-up visa program.
The initiative supports immigrant business owners in expanding their enterprises in Canada. Successful applicants are connected with Canadian private sector groups where they can get finance, advice, and experience for starting and running their businesses there.
Conditions for eligibility
This program seeks to bring on creative foreign entrepreneurs who will spawn new businesses and stimulate economic growth.
Candidates for a start-up visa must fulfill the following criteria to be qualified:
- The ability to communicate in English or French at the CLB 5 level or higher;
- Possess the money necessary to relocate to Canada;
Intend to relocate to a province besides Quebec; - Pass the Canadian security and medical screenings; demonstrate that your company is endorsed by a recognized group; and
- Show that your company satisfies the ownership requirements.
Under the start-up visa program, no more than five foreign people may petition for permanent residence on behalf of the same company endeavour.
Investment information
Several venture Capital funds, angel investor groups, and business incubation organizations have been approved by immigration, refugees and citizenship Canada (IRCC) to take part in the start-up visa program.
Successful candidates must obtain a minimum amount of funding for their Canadian start-up. The investment must be at least $200,000 if it comes from a recognized Canadian venture capital fund. If coming from a group of angel investors, it must be at least $75,000 in value.
There is no requirement for applicants to obtain any financing from a business incubator. However, candidates need to be approved for a program for Canadian business incubators.
No applicants are required to put any of their own money into the venture. Individuals granted permanent residency under this scheme will maintain their permanent resident status even if their Canadian start-up is unsuccessful.
Evidence of dedication
The investor organization must send a finished commitment certificate to IRCC to prove that the application has received funding from a venture capital fund, angel investor group, or business incubator. The agreement between the applicant and the investment group is described in detail in this document. Its goal is to condense the essential information about the agreement between the applicant and the investment organization.
A letter of support from the investment group will also be provided to the applicant, who must include it with their application for permanent residence. If there are several or even more applicants who are a part of a similar business endeavour, the investment organization’s commitment may be subject to the successful acquisition of permanent residency for one or more “important personnel.” an individual who has been officially designated by the investing organization as being necessary to the firm is known as an essential person. All other applicants included in the commitment certificate will likewise have their applications denied if the application of an essential individual is denied for any reason.
If there are two or more applicants who are a part of the same business endeavour, the investment organization’s commitment may be subject to the acceptance of one or more “essential person(s)” as permanent residents. An individual who has been officially designated by the investing organization as being necessary to the firm is known as an essential person. All other applicants included in the commitment certificate will likewise have their applications denied if the application of an essential individual is denied for any reason.
Multiple organizations’ support
Syndication, or assistance from many authorized organizations, is a possibility for applicants. In this scenario, all entities involved must be identified. Together, the chosen organizations will offer IRCC a single commitment certificate, and the applicant will receive a single letter of support (s).
Even if a certified angel group also invests in the same business, as soon as a designated venture capital firm invests, a minimum total investment amount of $200,000 must be made in that business.
A minimum of $75,000 must be invested in the company overall if it obtains backing from at least one authorized angel group but not from any approved venture capital groups.
Process of peer review
Peer review has been integrated into this software to safeguard it from fraud. It is intended to ensure the legitimacy of the agreements established between investment organizations and international entrepreneurs. An immigration officer may request that a commitment be subjected to an impartial evaluation by a peer review panel. A group representing the sort of investment organization committing, the industry association, formed these panels. The national angel capital organization, for instance, would be in charge of setting up the peer review panel for an angel investor club.
Alternatively, Canadas venture capital and private equity association would be in charge of the organization making the promise to be a venture capital fund. Peer reviews may be requested, but they may also be started at random if the immigration officer feels that they would be helpful in their conclusion. The peer review panel’s judgment is not regarded as legally binding on the immigration officer. Only the completion of the necessary tests and investigations by industry standards will be confirmed by it. It won’t express a view on the viability or wisdom of the given plan.
The designated organization’s level of diligence is examined by the peer review, along with:
- Confirmation if a Canadian corporation has been or will be formed;
- Verification program standards are met or not and if the business ownership has been confirmed;
- Assurance of the designated organization which has evaluated the proposed business model’s viability, evaluated the management team of the company endeavour, and confirmed the ownership of the intellectual property;
- Ensures that the company’s emphasis is on a good or service with a high chance of growth; and
- Confirms acceptance into an incubator program for applicants to business incubators
