All about Canada Startup Visa

What is an Active Investor Program?

Active Investor Visas are visas that offer permanent residence permits within a few months to those who want to physically relocate to start and run a business. People with startup and entrepreneurial mindset falls under this category.

Active Investor Program is offered by many countries such as Canada, France, Germany, Portugal, UK, USA etc. Getting citizenship in one of these countries gives access to world-class health and education, and business opportunities as well. So today let’s discuss the Canada Startup Visa Program in detail.

Canada is the second largest country by area in the world. Despite Canada’s great size, it is one of the world’s most sparsely populated countries. Canadians are comparatively few in number. They have crafted what many observers consider to be a model multicultural society, welcoming immigrant populations from every other continent.

Thus, the Canada Startup Visa is a program designed to attract innovative entrepreneurs from around the world to come to Canada and start their own businesses. The program aims to support the development of innovative businesses that can create jobs and drive economic growth in Canada and can compete internationally. The program offers permanent residency in less than 2 years and citizenship in few as 5 years.

The Federal Startup Visa or the Canada Startup visa was established in the year 2013 for entrepreneurs who can get funding from Venture Capital Funds, Angel Investors or Business Incubators to start and operate their businesses in Canada.

Who can Apply?

To be eligible for the SUV program you must:

A) Have a qualifying business: A qualifying business is a business which is created by you and meets the following criteria such as

1. 5 people can be the owner of the business you have created
2. Each owner has 10% or more of the voting rights in the business
3. Investor Organization and the Applicant must hold more than 50% of the voting rights in the business so they can have control and take major decisions in the business

B) Get a Letter of Support (LOS) from the designated organization: Your business must get a letter of support from the designated organization. They are business groups that will support your business or startup ideas and invest in the business. Business Groups are Venture Capital Funds, Angel Investors and Business Incubators in Canada. So to get funding from these organizations you will have to:

1. Contact the designated organizations and find out how to get its support
2. Convince the organizations that your business is scalable and worth investing
3. And get a Letter of Support from the designated organization

These organizations have various processes to pitch your ideas to them. Each of them has its own requirements. Designated organizations are:

Venture Capital Funds: You must get funding from one of these groups of a minimum of CAD 200,000. Some of these groups are

• 7GateVentures
• BCF Ventures
• First Fund
• Real Ventures
• Intrinsic Venture Capital

Angel Investors Group: You must get one or more investors connected to these groups to get a funding of a minimum of CAD 75,000. Some of these groups are

• Canadian International Angel Investors
• Golden Triangle Angel Network
• York Angel Investors Inc.
• TenX Angel Investors Inc.
• Ekagrata Inc

Business Incubators: Your business idea must be accepted in any of these programs:

• Alacrity Foundation
• Creative Destruction Labs
• Invest Nova Scotia
• Invest Ottawa
• NEXT Canada

So you need to present and pitch your business idea and business plan to them. If they find it scalable and are willing to invest, they will give you a letter of support. This letter of support must be attached with the application form. This letter is proof that shows that the VC Funds, Angel Investors or Business Incubators are supporting your idea.

The investor organization will then send a commitment certificate directly to the IRCC. They will use both of your documents i.e. Letter of Support and Commitment Certificate to assess your Start-Up Visa Application.

C) Meet the Language Requirements: Canada uses English and French as their official language. The ability to communicate and work in English or French or both languages will help your business advance in Canada. You are required to take a language test from an approved agency and include test results with your application form. The minimum level of Canadian Language Benchmark 5 in either English or French must be met in speaking, writing, reading and listening.

D) Settlement Funds: The Canadian Government does not give financial assistance to the Start Up Visa applicants. You will have to prove that you have enough funds to support yourself and your family. The amount of money depends on the size of your family.

General Requirements for SUV:

1. Age of children must be 21 years or less
2. To be eligible for permanent residency in Canada the applicant must stay for at least 730 days
3. To be eligible for citizenship the applicant must remain in Canada for at least 1095 days over 5 year period, provided that first, they have become permanent residents
4. Parents and siblings under age 21 can be sponsored
5. A medical certificate confirming sound health and a police certificate to prove your clean records

Canada Startup Visa Program Benefits:

1. Path to Citizenship
2. No Investment or Donation is required
3. Enhanced Education Opportunities
4. Easier access to US for business and travel
5. Access to Canada’s excellent healthcare system
6. Permits dual citizenship
7. Visa-free travel to 180+ countries
8. Live, Work or Study anywhere in Canada

Canada Startup Visa Step by Step Process: It takes anywhere between 12–16 months to complete the process

Step 1: Assessment of eligibility based on Candidate’s background, business and employment history

Step 2: Creation of a Company and preparation of the business plan. Matching with Co-founder

Step 3: Virtual mentoring sessions are conducted among co-founders and Pitchbook is prepared

Step 4: Business pitch to Designated Organisation and receives a Letter of Support

Step 5: Prepare and collect all necessary documents and submit the application for Canada Permanent Residence

Step 6: Set up a business in Canada on PR or on Work Permit

Canada SUV Timeline:

• 1–2 Weeks: Apply as co-founder. Application screened and documents shared. Start with the Onboarding process.
• 5–6 weeks: Co-founder matching. A kick-off call is conducted to initiate Pre-Expansion Incubation.
• 3 Months: Virtual mentoring sessions are conducted among co-founders. Pitchbook prepared.
• 1 week: Business pitch to Designated Organization. Receive Letter of Support.
• 12 months: Post Landing Incubation. Set up business as a PR or on Work Permit.

Canada SUV Application Fees:

Application Fee: A processing fee of $1625 and right of permanent residence fee of $515

Include your Spouse/Partner Fee: A Processing fee of $850 and right of permanent residence fee of $515

Dependent Child Fee: $230 per child

Why Choose Canada?

1. Canada is ranked 1st in quality of life rankings
2. Canada is ranked 1st in work destinations
3. Canada is ranked 9th in the best country for ex-pats
4. Healthcare: Citizens and Permanent Residents are able to access the healthcare system. Healthcare in Canada is decentralised and publicly funded. 100% of Canadian Citizens and Permanent Residents have healthcare insurance.
5. Education: Canada earns an A grade for its high school completion rate and ranks 2nd out of 16 peer countries. Education in Canada is free and available to all people. Schooling is compulsory for all children aged 6–16.
6. Canada is one of the safest countries in the world.

Sumit Singh (sumit@sumit-singh.com) is an Associate Member of Investment Migration Council and Advisor with Arton Capital