Start-Up Visa Canada (SUV) enables foreign entrepreneurs to acquire permanent residence in Canada through business immigration. Proprietors of innovative start-ups or established foreign companies might be able to make use of this program to permanently relocate to Canada as well as other founding partners (as much as 5 partners), so long as they meet other needs for that program.
If you’re a foreign entrepreneur who’s thinking about applying to begin with- Start-Up Visa program, this 2023 guide is perfect for you. Here you’ll find full details about Start-Up Visa Canada, including details not generally found elsewhere on the web. We’ve also incorporated some useful tips so that you can be effective within this Start-Up Visa Canada program. So, let’s start.
Start-Up Visa Canada: Eligibility Requirements 2023
Here is their email list of needs as set through the Canadian immigration government bodies for entrepreneurs who would like to make an application for PR in Canada underneath the Sports utility vehicle program:
- Foreign nationals must get a Letter of Support or investment commitment from one of the Designated Organizations in Canada;
- Each foreign national must own at least 10% of the shares in the startup. Foreign nationals and their Designated Organization must jointly have more than 50% of the total shares (voting rights) in the start-up venture;
- Each applicant must meet the minimum English or French language skill at CLB level 5; and
- Each applicant must have sufficient funds to settle in Canada (at a minimum, between $12,960 – $34,299, depending on the size of the applicant’s family).
Additionally towards the above, to become effective within this program, entrepreneurs should be ready to also satisfy the following fundamental criteria:
- Ownership of an innovative or successful business that is generating scalable and sustainable revenue or has strong market validation;
- Access to capital fund your start-up venture, usually around $200,000 at a minimum per applicant;
- Have highly specialized knowledge or unique experience in your field or have solid managerial experience; and
- Have an upper-intermediate level of English and/or French language skill(s).
Who Should NOT Apply for Canada’s Startup Visa
The Start-Up visa program isn’t the right program for foreign entrepreneurs who’ve limited capital to purchase their start-up venture in Canada. Among the key needs for that Start-Up Visa program Canada is to acquire a letter of support or investment commitment from among the Designated Organizations in Canada. The likelihood of getting support from the Designated Organization are negligible should you (or perhaps your company) don’t have sufficient capital to take a position to your venture.
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Although the SUV program is advertised as “no minimum investment is required”, in reality,
your venture ought to be well-capitalized to be able to receive support in the Designated Organizations. It’s naive to think that for those who have a good idea, VCs or Private Investors in Canada will fund your venture and provide the seed capital. Normally, this is and not the situation. VCs and Private Investors look for excellent companies with past traction and generating millions in revenue before they invest any funds.
Thus, if you are a entrepreneur having a great service or product and limited capital to develop your venture (under $200,000), the Start-Up Visa Canada program may not be the best path for you personally. Never be frustrated, we’ll discuss alternative pathways below.
Start-Up Visa vs Other Business Immigration Programs
There are numerous business immigration programs in Canada that entrepreneurs may use to transfer to Canada, additionally towards the Start-Up Visa program. Particularly, you are able to explore the C11 Entrepreneur Visa, Intra-Company Transfer Program, Self-Employed Category, or perhaps the LMIA Path (formerly Owner-Operator LMIA). See our table below to check these programs and comprehend the benefits and drawbacks of every program.
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| Criteria | Start-Up Visa | C11 Work Permit for Entrepreneur | Intra-Company Transfer Program | Self-Employed Category | LMIA Pathway |
|---|
|
Criteria
|
Start-Up Visa
|
C11 Work Permit for Entrepreneur
|
Intra-Company Transfer Program
|
Self-Employed Category
|
LMIA Pathway
|
|---|---|---|---|---|---|
| Business Idea/Concept | Innovative, highly scalable and high revenue generating business | Unique business that will create jobs stimulate economy or transfer knowledge or skills to Canadians | Entrepreneurs who have successful companies in home country can set-up similar operations in Canada | Self-employed business in certain creative professions related to art, culture & sport | Small or medium business in canada (can be convenience stores, cafes, restaurants, nail salons etc.) |
| Ownership Structure | At least 10% | At least 50% | Company in Canada must be owned by a foreign company or by the same group of individuals with similar voting rights | 100% | At least 50% |
| Minimum Investment | Between $10K-50K to pay to Designated Organizations (admin fees for the Letter of Support).
Investment in business: around $200,000 |
Depends on business, but entrepreneurs should have access to at least $100K+ | Depends on business, but entrepreneurs should have access to at least $100K+ | Applicants should have access to at least $50K+ | Cost of business purchase (usually $100K+) |
| Language Skills | CLB 5 | Not required for a work permit | Not required for a work permit | Not required, but strongly recommended CLB 5 | Not required for a work permit |
| Timeframes for Relocation (Work permit) | Country specific, usually 3-6 months | Country specific, usually 3-6 months | Country specific, usually 3-6 months | Timeframes for relocation (Work permit) | Stage 1: LMIA: 3+ months
Stage 2: Work permit: usually 3-6 months |
| Timeframe for Permanent Residence | Current processing time: 3+ years
Given the backlog and number of applications submitted: 5+ years |
Using Express Entry pathway after 1 year: 8 months -1 year (2+ years in total) | Using Express Entry pathway after 1 year: 8 months -1 year (2+ years in total) | 2- 4 years | Using Express Entry pathway: 8 months -1 year |
| Risk of Rejection | 25% (as per official statistics) | Depends on business. In our experience between 12%-20% | Depends on business. In our experience between 12%-20% | Varies greatly depending on the applicant | Depends on business. In our experience 5%-10% |
Advantages and Disadvantages of Start-Up Visa Canada
It might be better to think about the advantages and disadvantages of the program when considering further steps. It is vital to completely know very well what the program offers and whether this is actually the right program for you personally.
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Advantages of the Program
Below are some of the pros of the SUV 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
Below are some of the cons of the SUV 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
- Moderate risk of refusals at the permanent residence stage and/or delays due to peer reviews.
How to Get a Letter of Support for Canada’s Startup Visa Program
Obtaining a letter of support from the Canadian Designated Organization is extremely hard since your start-up must reveal that it’s strong market validation or recurring scalable revenue. For those who have a cutting-edge idea, skill sets and capital to complete it, you might want to use specialized business consultants to build up, make sure validate idea first before you decide to seek an endorsement from the designated organization.
To acquire a letter of support for any from the Designated Organization, you are able to stick to the key steps below:
Step 1: Prepare your Pitch Deck (business concept) or a Business Plan.
Step 2: Submit your application to a designated organization for review and evaluation.
Step 3: Undergo an interview with a designated organization.
Step 4: Sign an agreement with the designated organization.
Step 5: Pay the fees for the designated organization.
Step 6: Obtain a Letter of Support from the designated organization(s).
Step 7: Submit your application for permanent residency and work permit.
If you need support with any of the steps above, please reach out to us for help and guidance. We might be able to connect you to the right people and resources who can help you in your immigration journey.
List of Designated Organizations
With respect to the kind of designated organization you work with, you will have to either develop a startup development program or receive funding from their store in return for equity inside your company to get your letter of support. It is among the most important needs from the Sports utility vehicle. You have to get yourself a Commitment Certificate and Letter of Support from a number of Investment Capital Funds, Angel Investor Groups, or/and Business Incubators. Here is a complete list of the designated organizations.
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Processing Time for Start-Up Visa Program
SUV processing Time can differ with respect to the workload from the IRCC. The overall guidelines condition the waiting period for that ultimate decision with an application could be between three years and five years.
Start-Up Visa Canada Costs: Full Review
The costs of the Start-Up Visa program in Canada range between CAD $165,730 to $300,000 , based on various factors. As pointed out above, the beginning-Up Visa program isn’t the right fit for entrepreneurs that do not need capital to purchase their business enterprise in Canada.
Please make reference to the sample cost structure below to know how much cash you should put aside to finance your Start-Up Visa program application. All charges here are approximate estimates in USD dollars, such as the charges which are billed by providers as well as other companies supplying the Sports utility vehicle Program support:
Pitch Deck Preparation
- $3,000 – $5,000 (if you have your own start-up that is innovative, scalable and generating $500K+ in revenues per year)
- $100,000+ if your start-up does not meet the requirements above (this fee usually includes market research and validating your assumptions in the Canadian market, plus generating initial traction with customers to achieve the market-product fit that Designated Organizations would require)
Fees Charged by Designated Organizations
- Incubators: $40,000+ per company. Learn more about business incubators.
- Angel Investors: $35,000+ per company.
- Venture Capital Funds: $50,000+ per company. Find out more about VC companies in our interview with Canserves.
Legal Costs
- Professional Fees (lawyers): approx. $20,000+ per applicant
Government Fees
The SUV application fees are as follows:
- PR: Main Applicant – $1,540
- PR: Spouse – $1,040
- PR: Dependent Child – $150
Business Execution Costs
- These costs will depend on the nature of the business and industry. However, be prepared to set aside at least $100,000+ per applicant to fund the operational costs of your start-up venture while waiting for your permanent residence.
Canada Start-Up Visa Success Rate
If your SUV application is in the right hands, all of the requirements are satisfied, and the necessary documentation is provided, you will be allowed to grow your business in Canada. IRCC states that the SUV program has a general success rate of above 75%.
The rate of approval varies depending on the type of designated organization:
- 78% – for startups that are supported by business incubators;
- 80% – for startups that are supported by angel investor networks;
- 43% – for startups that are supported by venture capital funds.
Delay and Rejection Reasons for Your Start-Up Visa Application
Sometimes, the Immigration Officer may initiate a peer review when the Officer doubts the genuineness or practicality from the enterprise. The peer review panel will verify when the designated entity has conducted the correct checks and investigations based on industry standards.
Below are some red flags that may result in peer review or even a refusal of the SUV application:
- the investing entity has a disproportionately high or low percentage of shares or has little to no role in the legal control of the business;
- the applicant has little to no control or equity in the business;
- most of the applicants are all related to each other or lack experience or education;
- there is no intellectual property brought to the project, and the business plan appears to be very “cookie-cutter”;
- the designated organization has charged unusually high fees;
- a management team has limited to no startup experience;
- the applicants fail to provide evidence confirming their essential role in the company; and
- the applicant fails to make significant progress on startup during the period when the applicant was lawfully authorized to work in Canada.
Generally, make certain that the research process is well-documented which there’s significant evidence open to demonstrate the genuineness and viability of the undertaking. Most significantly, make certain to follow along with our some tips to guarantee the success of the application.
Get Experienced Advice Before You Apply for Canada’s Start-Up Visa Program
Canserves team can help you bring your startup business to Canada with your family and business partners. You can focus on your startup idea, and we focus on your permanent residence in Canada.
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