Do you have an innovative business idea and dream of building it in Canada? Canada’s Start-Up Visa program may offer you the opportunity to turn that dream into reality.
This program is designed to attract and support foreign entrepreneurs who possess the skills and potential to establish successful businesses in Canada. Through the program, qualified individuals and their founding partners (up to five) can obtain permanent residency in Canada, opening doors to a thriving entrepreneurial ecosystem and a brighter future.
This comprehensive guide is your one-stop resource for navigating the Start-Up Visa program. We’ll delve into the program’s eligibility criteria, application process, and key requirements, providing you with clear and accurate information beyond what you might find elsewhere. Additionally, we’ll share valuable tips and insights to help you increase your chances of success.
So, whether you’re just starting your entrepreneurial journey or have a fledgling business ready for expansion, this guide is your roadmap to pursuing permanent residency through Canada’s Start-Up Visa program.
Let’s begin your journey to Canada.
Eligibility Criteria for Permanent Residency (2024)
The Start-Up Visa Program (SUV) provides talented entrepreneurs with a pathway to permanent residency in Canada by establishing and operating a qualified business venture. To be eligible, applicants must meet the following essential criteria:
1. Designated Organization Support:
Secure a formal Letter of Support or investment commitment from a designated Canadian organization. Acceptable entities include venture capital funds, angel investor groups, and business incubators.
2. Significant Ownership:
Demonstrate clear commitment to the venture by owning at least 10% of the startup’s shares. Combined with the designated organization’s holdings, total voting rights exceeding 50% are required.
3. Language Proficiency:
Achieve a minimum Canadian Language Benchmark (CLB) level 5 in English or French, as evidenced by approved language test results.
4. Financial Sufficiency:
- To obtain a work visa in Canada, the estimated cost of living for one year is approximately $27,514 for one person.
- For permanent residence, the latest estimate is approximately $13,757 per person.
- For starting a business with a project, the costs can vary significantly depending on the nature and scale of the venture, including expenses related to business registration, operational costs, marketing, and potential investments. It’s advisable to consult with experts or conduct thorough research to determine the specific financial requirements for your business project in Canada.
Enhance Your Application Strength:
While fulfilling the core requirements is essential, additional factors can significantly strengthen your application:
- Innovative Business Concept: Present a novel and impactful business plan with high potential for sustained and scalable revenue growth, or well-documented market validation.
- Financial Resources: The minimum capital requirement varies depending on the type of support your business receives:
- If your business secures funding from a Canadian venture capital firm, you typically need to attract a minimum of CAD 200,000.
- For angel investors, the minimum capital requirement is usually CAD 75,000.
- If your business is accepted by a Canadian business incubator, you may not receive direct capital investment. Instead, founders are expected to have sufficient funds to launch their projects independently.
- Specialized Expertise: Showcase unique skills or extensive experience in your relevant field, demonstrating valuable expertise for your startup’s success.
- Advanced Language Skills: Demonstrate upper-intermediate proficiency in English and/or French to facilitate effective communication and seamless integration within the Canadian business landscape.
Personalized Guidance
Ready to Launch Your Canadian Dream?
Navigating the complexities of the SUV program can be challenging. Get a head start on your application with a free consultation from CanadaPass, a team of experienced immigration specialists dedicated to guiding entrepreneurs every step of the way.
Advantages and Considerations of Start-Up Visa
Before embarking on the Start-Up Visa (SUV) journey, it’s crucial to weigh its benefits against potential challenges. Here’s a concise overview to help you determine if this program aligns with your aspirations:
Feature | Advantage | Consideration |
|---|---|---|
Pathway to Permanent Residence | Direct path to Canadian citizenship | Lengthy processing times (3+ years)
|
Open to All Nationalities | No nationality restrictions | High competition for designated organization support
|
Business Freedom | Operate any legal business in Canada | Highly developed and scalable business model needed
|
No Net Worth Requirement | No mandatory net worth verification | High capital investment often requested by designated organizations
|
Team Collaboration | Up to 5 partners allowed (10% ownership minimum each) | Moderate risk of refusal at permanent residence stage and/or peer review delays
|
Work Permit Availability | Work permit while permanent residence application is processed | May require additional investment to secure work permit
|
Remember: This table provides a simplified overview. Thorough research and professional consultation are recommended before making any decisions.
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Securing a Letter of Support
To qualify for Canada’s Startup Visa Program, a key requirement is securing a Letter of Support from a Designated Organization. This letter signifies the organization’s confidence in your venture’s potential and its dedication to backing your success.
Here’s a streamlined overview of the process:
- Prepare your Business Proposal: Develop a compelling pitch deck or detailed business plan outlining your concept, market potential, and financial projections.
- Submit your Application: Reach out to Designated Organizations that align with your business sector and submit your application for review.
- Interview Stage: Be prepared to present your business idea and answer questions during an interview with the Designated Organization.
- Agreement and Fees: If successful, you’ll negotiate and sign an agreement with the organization, including any associated fees.
- Letter of Support: Upon agreement finalization, you’ll receive a formal letter expressing the organization’s support.
- Permanent Residency Application: Equipped with the Letter of Support, you can submit your application for permanent residency and work permit.
List of designated organizations – Start-up visa
| Category | Investment/Acceptance Requirement | Organizations |
|---|---|---|
| Venture capital funds | $200,000 minimum investment | 7 Gate Ventures, Alt Ventures, Amplitude Ventures Inc., York Entrepreneurship Development Institute (YEDI) VC Fund, Apex Innovative Investments Ventures, Arete Pacific Tech Ventures (VCC) Corp, BCF Ventures, BDC Venture Capital, Celtic House Venture Partners, Extreme Venture Partners LLP, First Fund, Golden Venture Partners Fund, LP, INP Capital, iNovia Capital Inc., Intrinsic Venture Capital, Lumira Ventures, Invest Nova Scotia, PRIVEQ Capital Funds, Real Ventures, Red Leaf Capital Corp, Relay Ventures, ScaleUp Venture Partners, Inc., Tangentia Ventures, Top Renergy Inc., Vanedge Capital Limited Partnership, Version One Ventures, WhiteHaven Venture, Westcap Management Ltd., Yaletown Venture Partners Inc. |
| Angel investor groups | $75,000 minimum investment | Canadian International Angel Investors, Ekagrata Inc., Golden Triangle Angel Network, Keiretsu Forum Canada, Oak Mason Investments Inc., TenX Angel Investors Inc., VANTEC Angel Network Inc., York Angel Investors Inc. |
| Business incubators | Acceptance required | Alacrity Foundation, Alberta Agriculture and Forestry, Agrivalue Processing Business Incubator, Food Processing Development Centre, Alberta IoT Association, Altitude Accelerator, Bhive, Biomedical Commercialization Canada Inc. (operating as Manitoba Technology Accelerator), Brilliant Catalyst, Creative Destruction Lab, DMZ Ventures, Empowered Startups Ltd., Extreme Innovations, Foresight Cleantech Accelerator Centre, Genesis Centre, Highline BETA Inc., Invest Nova Scotia, Innovate Calgary, Innovation Cluster - Peterborough and the Kawarthas, Innovation Factory, Interactive Niagara Media Cluster o/a Innovate Niagara, Intrinsic Innovations, Invest Ottawa, ISM Arts & Culture Ltd, Knowledge Park o/a Planet Hatch, Global Startups Accelerator, Launch Academy - Vancouver, LaunchPad PEI Inc., Millworks Centre for Entrepreneurship, NEXT Canada, Niagara Business & Innovation Fund, North Forge East Ltd., North Forge Technology Exchange, Pacific Technology Ventures, Platform Calgary, Pycap, Real Investment Fund III L.P. o/a FounderFuel, Red Leaf Capital Corp, Roseview Global Incubator, Spark Commercialization and Innovation Centre, Spring Activator, The DMZ at Ryerson University, Think8 Global Institute, TiE Toronto, Toronto Business Development Centre (TBDC), Treefrog, TSRV Canada Inc. (operating as Techstars Canada), University of Toronto Entrepreneurship Hatchery, ventureLAB Innovation Centre, VIATEC, Waterloo Accelerator Centre, York Entrepreneurship Development Institute, YSpace (York University) |
Start-up Visa Application Processing Timeline
Please be advised that processing timelines for Start-Up Visa (SUV) applications are subject to fluctuation due to the workload of Immigration, Refugees and Citizenship Canada (IRCC). As a general guideline, applicants should anticipate a decision on their application within 3 to 5 years.
Factors influencing processing timelines:
- Application volume: Increased application volumes can result in extended processing times.
- Application complexity: Applications with unique circumstances or complexities may require additional review and processing.
- Resource availability: Resource limitations within IRCC can impact processing speeds.
Staying informed:
- IRCC regularly updates estimated processing times on its official website.
- Creating an online account through MyCIC allows you to track the status of your application.
Start-up Visa Costs
The cost of applying for the Startup Visa program in Canada can vary depending on several factors.
The following cost breakdown provides an estimated overview of the financial resources you may need to secure to fund your Startup Visa program application.
Startup Visa Canada Minimum Investment Requirement:
Immigration, Refugees, and Citizenship Canada have outlined the processing fees for Canadian startup visa cases as follows:
Canadian Star–tup Visa application fee | The total processing fee for Canadian startup visa cases is $2,140, comprising a review fee of $1,625 and a $515 fee for the Right of Permanent Residence (RPRF) for permanent residency.Top of Form |
visa fee for a spouse or common-law partner | visa fee for a spouse or common-law partner is $1,365, which includes a $850 review fee and a $515 RPRF permanent residence fee. |
fee for each dependent child | 230 |
Biometric fee for each single person
| 85 |
Biometric fee for each family (two or more people)
| 170 |
Also, sufficient financial means requirements ensure that you can settle comfortably and focus on growing your start-up.
The family members funds required depend on the number of family members who are moving to Canada, increasing with each additional family number. If you move by yourself, you’ll need to demonstrate you have at least CAD$13,757 in your bank account.
The family members’ fund required an increase to CAD$17,127 for two people, CAD$21,055 for three, and so on.
The eligibility requirements for immigrants seeking permanent resident status through a start-up venture include establishing a qualifying start-up business and obtaining support from one of the designated organizations recognized by the Canadian government.
Applicants must develop a business plan and then secure backing from either angel investor groups (requiring a minimum investment of CAD 75,000) or a venture capital fund (requiring a minimum investment of CAD 200,000). Alternatively, applicants may participate in a Canadian business incubator program to demonstrate that their start-up is an innovative venture poised to contribute to the country’s economic growth.”
Additional Resources:
Start-up Visa Approval Statistics
The Canada Start-Up Visa (SUV) program offers immigrant entrepreneurs the opportunity to establish and grow innovative businesses in Canada.
Overall Success Rate:
According to Immigration, Refugees and Citizenship Canada (IRCC), the SUV program boasts a general approval rate exceeding 75%. However, this rate can vary depending on the type of designated organization supporting the applicant’s business venture.
Success Rates by Supporting Organization:
- Business Incubators: 78% approval rate
- Angel Investor Networks: 80% approval rate
- Venture Capital Funds: 43% approval rate
Potential Scrutiny and Application Considerations
Peer Review Process
During Start-Up Visa (SUV) application adjudication, Immigration, Refugees and Citizenship Canada (IRCC) may initiate a peer review if the proposed business venture raises concerns regarding its genuineness or feasibility. This independent assessment by a designated entity verifies whether due diligence procedures have been conducted according to established industry standards.
Potential Factors for Review or Rejection
- Share Distribution and Control:
- Disproportionately high or low shareholding by the investing entity, potentially indicating limited influence over business decisions.
- Applicant lacking significant equity or control in the venture, raising concerns about commitment and strategic direction.
- Applicant Profile:
- The applicant group is primarily composed of close relatives, prompting questions about independent expertise and potential conflicts of interest.
- Applicants lacking relevant experience or education for the proposed business diminish confidence in their ability to successfully execute the plan.
- Business Proposal:
- Absence of demonstrable intellectual property or a generic business plan, suggesting limited innovation or competitive advantage.
- Designated Entity Fees: Unusually high fees charged by the designated entity, potentially implying improper motives or lack of transparency.
- Management Team Competency: The management team lacks relevant start-up experience, casting doubt on the venture’s leadership expertise and operational execution capabilities.
- Evidence of Applicant Contribution: Inability to provide documentation demonstrating the applicant’s essential role within the company, raising concerns about their value proposition and commitment.
- Progress during Authorization Period: Insufficient progress on the start-up during the applicant’s authorized work period in Canada, potentially indicating difficulties with execution or resource utilization.
FAQ – Start-Up Visa Program
Yes, your spouse or common-law partner and dependent children under 22 can apply for open work or study permits while you establish your business.
You can still maintain your permanent residency status as long as you meet certain conditions, such as continuing to reside in Canada and actively contributing to the economy. However, you may need to adjust your business activities or seek alternative employment.
- Concerns about the genuineness or feasibility of the business plan.
- Lack of experience or qualifications of the applicant or management team.
- Insufficient funding or financial projections.
- Doubts about the designated entity’s due diligence or role in the business.
- Failure to meet the language proficiency requirements.
No, there’s no minimum investment requirement, but the designated entity’s investment needs to be significant enough to support your business’s success and convince the immigration authorities of its viability.
- Designated entity support: You need a letter of support from a designated organization, such as a venture capital firm, angel investor group, or business incubator, confirming their investment in your start-up.
- Language proficiency: Meet the minimum English or French language requirements (CLB 5 or higher).
- Settlement funds: Demonstrate sufficient funds to support yourself and any dependents while establishing your business in Canada.
- Business plan: Submit a comprehensive business plan outlining your start-up’s concept, market potential, and financial projections.