Do you plan to raise a dynamic company that can compete on a global scale? Do you have an innovative business plan in mind and don’t know how to commence your operations in Canada? If your answer is “Yes” then you should keep scrolling down.
Over a period of 20 years, Canada has developed a successful ecosystem for start-ups. 99.8% of Canadian businesses are either small or medium-sized companies (SMEs) employing more than 8.4 million individuals, or 68.8 percent of the total private labor force in Canada.
Almost 25.0% of all SMEs in Canada are operated and managed by the immigrant population, and this rate has been rising over the past decade, especially in the case of immigrant-managed start-ups and women entrepreneurs.
Small businesses contribute almost 41.0% of Canada’s Gross Domestic Product (GDP), proving that it is not only the ideal but one of the most lucrative options for those who have been considering business immigration to Canada.
Canada’s Start-up Visa Program
Canada’s Start-Up Visa is quite distinguished in the world. It connects immigrant entrepreneurs with experienced private sector organizations that have proficiency in working with start-ups. This immigration program is aimed at generating new jobs as well as introducing fresh, innovative business ideas to Canada.
Unlike programs in other countries that provide “temporary” or “conditional” status, Canada encourages successful applicants to be able to immigrate to Canada as permanent residents with no conditions attached to the success of their business.
The Canadian Advantage
Canada is often a country of preference for business owners who want to expand into a foreign market. There are some solid advantages of doing business in Canada, namely the conducive trade agreements, the lower corporate tax rates, and the availability of skilled workers. Moreover, like US markets, Canada is a stable economy that was placed fourth in the 2021 Global Start-up Ecosystem Index Report, with large economies like China and the U.S as chief competitors.
The country offers a low-cost and low-tax environment so new businesses can thrive. Canada’s overall tax rate for new business investments is remarkably lower than that of other G-7 countries. On average, up to 30% of R&D investment can return to foreign investors as combined federal and provincial credits.
Canada is a great place to establish your business and your family. Canada’s matchless quality of life provides a great backdrop for the success of individuals, families, and globally engaged companies.
The Start-up Support
Start-up visa does not require previous management experience. Contrary to other provincial or federal programs that have a requirement for experienced entrepreneurs to apply, the SUV program doesn’t need previous management experience. All you need is a highly engaging and innovative business plan and support from a government-designated entity.
A group of five candidates can jointly invest in the same Start-up. Later their application for permanent residence can be supported by the same business investment. But in case even a single candidate falls short of meeting all the requirements or withdraws his application, all the other business partners’ applications too will be terminated.
It’s the quickest business process to getting permanent residency. Entrepreneur applicants can expect a waiting period of four to six months to secure a commitment certificate or letter of support from a designated entity. Once the letter of support is received, then the candidate can submit an application for permanent residence, which can take around 18 months to finalize.
Startup Visa applicants are not required to invest their own funds in a business venture, nor any need of minimum net worth prerequisite.
You can choose any province to set-up your business. Since Canada Startup Visa is a federal business immigration program, the applicant can choose any province to work and live in.
Success of the business is not linked to the PR status. If a business venture is not successful, the applicants can still retain their Canadian Permanent residency.
How Does It Work?
Before applying for the initial work permit, applicants will need to secure a commitment from a designated Canadian angel investor group or venture capital fund to invest in your business idea. You’ll need to:
- connect with the designated organization to check out how can it provide support
- convince the organization that you have a business idea that is worth supporting
- obtain a letter of support from the designated organization
Citizenship and Immigration Canada has joined hands with Canada’s Venture Capital and Private Equity Association, the National Angel Capital Organization, and the Canadian Acceleration and Business Incubation Association to classify the participating private sector organizations.
- A designated venture capital fund can make an investment of at least $200,000 into the qualifying business. Candidates can receive financial assistance from two or more designated venture capital funds adding up to $200,000.
- A designated angel investor group can invest at least $75,000 alone or in collaboration with other angel investor groups into the qualifying busines.
- The applicant to be accepted by a designated business incubator into its business incubator program. The immigrant investor needs to develop a potential business plan that will meet the due diligence requirements of these government-approved designated entities.
Along with fulfilling mandatory requirements such as passing standard health and security criteria, the applicants will need to demonstrate their ability to communicate in either English or French, that they have completed one year of study at a post-secondary institution, and that they have enough money to live on while establishing their business.
Talk To Our Immigration Consultant Today!
To start exploring avenues like Start-up Visa, you need expert guidance from professionals who can lead you through your start-up journey and then apply for your permanent residency. Since this program has a number of requirements, paperwork, and documentation needed, we always advise our clients to discuss, plan and execute in an organized way to avoid any delays or errors.
Let our expert Immigration Consultant take care of your application while you focus on building a new life in Canada! All you have to do is completely fill our online form and we’ll take care of the rest. It’s just that simple.
