How Canada Startup Visa Program Works?

Navigate the Canada Startup Visa Program with Ease!

Welcome to this easy-to-follow guide on the Canada Startup Visa Program. This program is a part of Economic Class Immigration Canada.

1. Who should use this Guide?

Primarily, this guide is for anyone who wants to learn about immigration to Canada. This guide is here to make everything clearer and simpler for you. If you find the official rules and documents about the requirements to move to Canada confusing, this guide can be your helpful friend. It’s here to give you clear and easy help so you can understand how Canadian permanent residence works without any problem.

The Canada Startup Visa Program is designed for immigrant entrepreneurs who have the potential to build innovative businesses in Canada that can compete globally, create jobs for Canadians, and are innovative in nature. To apply, you must:

1. 1. Get Support from a Designated Organization: Pitch your startup idea to a designated organization (like venture capital funds, angel investor groups, or business incubators) and secure their support.
2. 
   
3. 2. Meet Language Requirements: Demonstrate proficiency in English or French at Canadian Language Benchmark (CLB) Level 5 or higher.
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5. 3. Financial Settlement: Have sufficient funds to settle in Canada. The amount varies depending on family size, ranging from CAD $12,960 to $34,299.

Advantages of the program include:

• Expedited application process.
• Potential for permanent residency and citizenship.
• Access to social benefits in Canada.
• No minimum investment or net worth required.
• Open to all nationalities.
• Option to apply with up to five co-owners.
• Work permit eligibility while PR application is processed.

Eligibility Criteria:

• Secure a letter of support from a designated organization.
• Own at least 10% of the voting rights in the startup.
• Possess sufficient financial means to settle in Canada.

The average processing time is 12 to 18 months, and the program offers a fast-tracked route to permanent residency in Canada for qualifying entrepreneurs​

2. Overview: A Quick Look

This is a quick summary of the Startup Visa program. For in-depth information, please refer to the table of contents above to locate specific topics.

Canada Startup Visa: Quick Reference

1. What Is It? 

• A visa for foreigners to start a business in Canada.

2. Who Can Apply? Eligibility Criteria:

• You need a new business idea,
• Canadian investor support,
• basic language skills,
• and sufficient funds.

3. Why It Exists? Purpose of This Program:

• To boost the Canadian economy and create jobs.

4. How to Apply? Application Process:

• Step 1: Have a Business Idea
• Step 2: Secure Canadian Investors
• Step 3: Prove Language and Financials
• Step 4: Submit Application
• Step 5: Await Decision

5. After Approval

• Move to Canada and start your business within a set time.

6. Conclusion

• The Canada Startup Visa is a win-win for both entrepreneurs and Canada, aiming to boost the economy and job market.

Follow the guidelines, meet the criteria, and you could be well on your way to becoming a part of Canada's growing economy.

3. What is this Program and its Purpose?

What's the Program About?

This program is designed for successful entrepreneurs. It aims to help them settle permanently in Canada by launching new businesses. These businesses must be innovative, create jobs for Canadians, and have the potential for global competitiveness.

Why Does This Program Exist?

• Objective: The foremost reason behind the Startup Visa Program is to stimulate the Canadian economy. The idea is that by bringing in people capable of starting businesses, new employment opportunities can be generated and existing businesses can expand.

• Method: This is achieved by inviting people like you, who have either the business experience or the financial resources needed to contribute positively to the economy. You could set up a new venture or invest in an existing one, either way creating new jobs and potentially even diversifying the kinds of businesses operating in Canada.

In short, the Canada Startup Visa Program serves multiple purposes. While the primary focus is on boosting economic activity and job creation, it also aims to make Canada's economic and social fabric richer and more diverse.

4. How does this Program Operate?

The Canada Startup Visa Program has two main goals.

First, it helps Canada by bringing in smart people who can start new companies, create jobs, and help the economy grow. Second, it offers a clear and organized way for these entrepreneurs to come to Canada and eventually become permanent residents.

If you're thinking about applying, here's what you need to know. You have to get a Letter of Support from a special Canadian business group that believes your business idea has potential. This is important because it shows that people in Canada think your business could succeed.

Next, you have to prove you can speak English or French well enough to run a business. You'll also need to show that you have enough money to take care of yourself and your business while you're getting started in Canada.

After you've done these things, you can submit your application. If it gets approved, you'll get a visa that lets you come to Canada and start your business. Once you're here, you'll keep working with the Canadian business group that supported you. They will help you make sure your business plan works out.

So, to sum it up, this program helps Canada and helps you, the entrepreneur, at the same time. By understanding what you need to do and what Canada is looking for, you'll have a better chance of making your business dream come true in Canada.

5. Who's the Ideal Candidate?

The Canada Startup Visa is for people who want to start a business in Canada and have the skills or ideas to make it work. Here's who can get this visa:

1. Business Owners and Entrepreneurs: If you already run a business or have a strong plan for a new one, this visa could be for you.

2. Supported by a Canadian Organization: You'll need a Letter of Support from a recognized Canadian business group, like a venture capital fund, angel investor, or business incubator, to show they believe in your business idea.

3. Speak English or French: You should be able to talk, read, and write in either of Canada's two official languages to prove you can fit into Canadian society and the business community.

4. Financially Stable: You must show that you have enough money to start your business and support yourself and any family members who come with you to Canada.

5. Meet Health and Security Requirements: Basic health checks and security clearances are also needed.

6. A Team of Entrepreneurs: While it's possible to apply as an individual, teams of up to 5 people can also apply together if they share ownership of the business.

If you fit one or more of these profiles, the Canada Startup Visa could be a good path for you to move to Canada and start or expand your business.

6. Eligibility criteria: What are they?

Here are the specific details you'll need to focus on to check your eligibility:

Core Requirements for the Canada Startup Visa Program

• Language Skills: You must score at least a CLB/NCLC 5 in either French or English across all four skills: speaking, reading, listening, and writing.

• Business Experience: Once you receive permanent residence in Canada, you need to be actively and continuously managing the business you've created from within the country.

• Settlement Funds: You are required to have sufficient settlement funds to support yourself and any dependent family members for one year. The funds should meet the Low Income Cut-Off (LICO) criteria.

• Documents: You'll need a qualifying business and a letter of support from a designated organization. A qualifying business means one you have created, where you and each applicant (up to a maximum of 5) hold at least 10% of the voting rights. Additionally, all applicants and the designated organization must jointly hold more than 50% of the total voting rights.

• Designated Organization: This refers to approved business groups like Venture Capital Funds, Angel Investor Groups, and Business Incubators that can invest in or support startups.

• Financial Commitment: If your investment is from a designated Canadian venture fund, you must secure at least $200,000. If it's from a designated Canadian angel investor group, you must secure at least $75,000. If you're being supported by a business incubator, no financial investment is required, but you must be accepted into a Canadian business incubator program.

What You Need:

Language Proficiency

• You must achieve at least a CLB/NCLC 5 in either French or English across all four skills: speaking, reading, listening, and writing.

Business Involvement

• Once you get your permanent residence, would you be able to actively manage the business you've created in Canada from within the country.

Settlement Funds

• You and your dependent family members must have enough money to live on for 52 weeks. This amount should meet the Low Income Cut-Off (LICO) standards.

Required Documents

• You need a qualifying business and a letter of support from a designated organization. A qualifying business is one you've created, where you and up to four other applicants hold at least 10% of the voting rights each. Together with the designated organization, you must hold over 50% of the total voting rights.

Financial Commitment

• If you secure investment from a designated Canadian venture capital fund, you must have at least $200,000.

• If the investment is from a designated Canadian angel investor group, the minimum is $75,000.

• If a business incubator supports you, there's no need for a financial investment from them. However, you must be accepted into a Canadian business incubator program.

7. How do I Apply? Step-by-step Process!.

This guide provides a straightforward explanation of how to apply and what you'll need for the application.

Key Steps to Apply for the Canada Startup Visa

1. Create an Online Account: First, you need to set up an online account on the Permanent Residence Online Application Portal.

2. Follow Guidelines: The portal offers an Instruction Guide (IMM 5759) to help you complete your application accurately.

Step-By-Step Application Process for the Startup Visa

Step 1: Research and Preparation

• Before anything else, familiarize yourself with the eligibility criteria and requirements for the Startup Visa program.

Step 2: Find a Designated Organization

• Look for a designated organization in Canada that is willing to support your business idea. This could be a venture capital fund, an angel investor group, or a business incubator.

Step 3: Secure Letter of Support

• Obtain a Letter of Support from the designated organization. This is crucial for your application.

Step 4: Create an Online Account

• Go to the Permanent Residence Online Application Portal and create an account.

Step 5: Language Proficiency

• Take a language test to prove your proficiency in English or French. Make sure you meet the CLB/NCLC 5 requirement in all four competencies: speaking, reading, listening, and writing.

Step 6: Financial Requirements

• Show proof of sufficient funds to support yourself and your dependents for at least 52 weeks.

Step 7: Fill Out the Application

• Using the Instruction Guide (IMM 5759), fill out all the necessary forms and compile all required documents, including the Letter of Support and language test results.

Step 8: Submit Application

• Upload all the forms and documents, then submit your application via the online portal.

Step 9: Await Decision

• Wait for the review process. You may be contacted for further documentation or an interview.

Step 10: Visa Approval

• If approved, you will receive your Startup Visa, allowing you to move to Canada and commence your business operations.

Step 11: Move to Canada

• Upon receiving your visa, you can now move to Canada. Coordinate with the designated organization and begin implementing your business plan.

By following these steps, you'll navigate through the Canada Startup Visa application process more smoothly. Each step is designed to ensure that you meet the qualifications and are well-prepared to start your business in Canada. However, this a general overview of the whole process. For most precise, accurate and UpToDate information always refer to relevant government resources.

8. What are the required documents?

Specific Documents Required for Canada Startup Visa Application

1. Letter of Support from a Designated Organization

• This letter is critical to your application and essentially states that a Canadian entity approved by the government is willing to invest in or support your startup.

2. Language Proficiency Test Results

• Results from an approved English or French language test, demonstrating that you meet the CLB/NCLC 5 level in all four competencies: speaking, reading, listening, and writing.

3. Proof of Settlement Funds

• Financial documents that show you have enough money to support yourself and any dependent family members after you arrive in Canada. The amount should meet the Low Income Cut-Off (LICO).

4. Ownership and Business Documents

• Business licenses or incorporation certificates.

• A business plan detailing the venture and how it meets the program requirements.

• Proof that you hold at least 10% of the voting rights in the business and that you and the designated organization jointly hold more than 50% of the total voting rights.

5. Identity and Civil Status Documents

• Passport or travel document.

• Birth certificate.

• Marriage or divorce certificates, if applicable.

• Any dependent children's identification, if applicable.

6. Financial Commitment Proof

• Documentation showing the investment you've secured from your designated organization.

• At least $200,000 if the investment is from a designated Canadian venture capital fund.

• At least $75,000 if the investment is from a designated Canadian angel investor group.

7. Acceptance into Business Incubator Program

• If supported by a business incubator, proof of acceptance into an approved Canadian business incubator program is needed.

8. Application Forms

• Completed application forms, typically available from the Canadian immigration website, which will include your personal details, business details, and other information as required.

9. Additional Requirements

• You might be asked for additional documents like police clearance certificates, medical examination reports, or other country-specific documents.
  

Make sure to gather all these documents carefully, as incomplete or incorrect documentation can result in application delays or rejections. Always check the latest requirements on the official Canadian immigration website, as they may change over time.

9. How is the Application processed?

Understanding the Canada Startup Visa Application Process

If you're thinking about moving to Canada to start a new business, the Canada Startup Visa program is designed for you. Here's how the Canadian government processes each application step by step:

1. First Look at Your Application

• What Happens: As soon as you submit your application online, someone reviews it to make sure it's complete and has all the documents you need to include.

2. Checking Your Support Letter

• What Happens: The government double-checks the Letter of Support you got from a recognized Canadian organization. They want to make sure this group is approved to support businesses like yours.

3. Confirming Language and Money Requirements

• What Happens: Officials look at your language test scores and your financial records. They want to see that you can speak either English or French well enough and that you have enough money to live on.

4. Reviewing Your Business Idea

• What Happens: Next, they look at your business plan and the paperwork that shows you own part of the business. They want to make sure your business is likely to succeed and that you own enough of it.

5. Checking Your Background

• What Happens: They will also look into your history, and that includes anyone coming with you. They want to make sure you don't have a criminal record and are in good health.

6. Making the Decision

• What Happens: After looking at all this information, they decide whether to approve your application or not.

7. Getting Your Visa

• What Happens: If you get approved, they'll give you the Startup Visa. This lets you move to Canada and start setting up your business.

8. Working with Your Support Group

• What Happens: Once you're in Canada, you'll need to keep working with the organization that gave you the Letter of Support. They'll help you get your business off the ground.

9. Applying for Permanent Residency

• What Happens: If everything goes well and your business is up and running, you can then apply to live in Canada permanently.

Remember, the time it takes to process each Canada Visa application can vary. If the government needs more details or paperwork from you, it could take longer. So, always keep an eye on the official Canadian immigration website for the latest updates.

10. What are the time and cost involved?

How Long Does It Take and How Much Does It Cost for the Startup Visa

How Long Does it Take?

1. First Look at Your Application: Usually, it takes a couple of weeks for them to look at your Canada Startup Visa papers for the first time.

2. Extra Papers and Interviews: If they need more info from you or want to talk to you in person, add another couple of weeks to the timeline.

3. Final Answer: Most of the time, you'll know if you got the Canada Startup Visa or not within 12 to 16 months. But remember, each case is different.

4. Getting Your Business Started: After you get the thumbs up, you'll spend more time getting your business off the ground in Canada.

What's the Price Tag?

1. Main Fee: It costs CAD 1,575 to apply for this visa. If your family is coming with you, there will be some extra costs for them too.

2. Fingerprints and Photos: That’s another CAD 85 for what's called 'biometrics'.

3. Language Test: You need to prove you can speak English or French well enough. That test costs around CAD 200-300.

4. Translating Documents: If your papers are in a different language, you’ll need to pay to get them translated to English or French.

5. Health Check: A medical test might be needed, and prices for that can vary.

6. Talking to Experts: If you need advice from legal or immigration pros, you'll have to pay them for their time.

7. Investment Money: You need to secure either CAD 200,000 from a special investment fund or CAD 75,000 from certain investor groups. This isn't a fee, but it's money you need lined up.

8. Living Expenses: You also need to show you have enough money to live on while in Canada. The amount depends on what’s considered the minimum income or 'LICO'.

Make sure to check Canada's official immigration site now and then, as the time and costs for the Canada Startup Visa might change.

11. What to do (or avoid) in my application?

Specific Do's and Don'ts for Canada Startup Visa Application

Things to Do:

• Get a Support Letter: Make sure a certified Canadian group gives you a letter saying they believe in your business idea.

• Prove You Can Speak English or French: Take a language test to show you can read, write, speak, and understand English or French well enough.

• Make a Solid Business Plan: Write down your business idea in detail, how you'll make it work, and how you'll make money.

• Show You Control the Business: Make sure you own enough of the business to have a say in big decisions.

• Get the Right Amount of Money: If a special investment group is backing you, make sure you have at least the minimum amount of money they require.

• Fill Out All Forms: Don't leave any questions blank on the application forms. Missing information can slow down or stop your application.

• Keep Track: After you submit your forms for the Canada Startup Visa, keep checking to see if you got approved or if they need more info from you.

Things to Avoid:

• No Basic Ideas: Your business idea should be new and exciting, not something everyone is already doing.

• Don't Forget Incubator Rules: If a business "nursery" or incubator is supporting you, make sure you're officially part of their program.

• Don't Be Slow: If the Canadian government asks you for more info, send it quickly.

• Double-Check Everything: Make sure you send all the papers they ask for, and that there are no mistakes on them.

• Only Use Approved Money: Make sure any money you're using for the business comes from groups that Canada says are okay.

• Keep Info Up-to-Date: The rules can change, so always check the latest info on the Canadian government's website.

• Don't Miss Deadlines: If they give you a date to send more info or go for an interview, mark it on your calendar and make sure you do it.

By following these straightforward tips, you can boost your chances of getting the Canada Startup Visa. Always check the Canadian government's official website to make sure you have the most current information.

12. Key Insights for Your Application

If you're looking to get your Startup Visa approved, here are some key tips to keep in mind:

1. Strong Business Plan: Make sure your business plan is detailed and well-researched. It should clearly show how your startup will contribute to the Canadian economy and create jobs.

2. Secure Reliable Endorsement: Work hard to secure your Letter of Support from a reputable designated organization. This is a crucial part of the application, and a strong endorsement can make a big difference.

3. Proof of Funds: Be prepared to show solid financial documents that prove you can support yourself and any family members who might come with you to Canada.

4. Meet Language Requirements: Take the time to prepare for your English or French language test. Scoring higher than the minimum can strengthen your application.

5. Double-Check Ownership Criteria: Make sure you and your partners, if any, meet the ownership criteria before you apply. You should have the right voting rights in the startup, as outlined in the Canada Startup Visa requirements.

6. Gather All Required Documents: Double-check that you've included all the necessary documents, and ensure they're up-to-date and accurate. Missing or incorrect documents can delay your application or even lead to rejection.

7. Application Forms: Complete all sections of the application form and don't leave any blank spaces. Incomplete forms can lead to delays or rejections.

8. Stay Informed: Keep an eye on the official Startup Visa website for any updates or changes to the application process. Rules and requirements can change.

9. Track Your Application: Once you submit your application, monitor its status regularly. If additional documents or clarifications are needed, respond promptly to avoid delays.

10. Prepare for Interviews: Be ready to explain your business plan and your role in the startup convincingly during any interviews or interactions with immigration officials.

By following these tips, you'll be better prepared for the application process and increase your chances of successfully obtaining the Canada Startup Visa.

13. Case Study: A look at a fictional example

Scenario 1: Success Story – Emma’s Journey to a Canada Startup Visa

Step 1: Business Idea and Ownership

Emma, an entrepreneur from Australia, had an innovative tech startup idea. She formed a company with her business partner, and they each held 50% of the voting rights.

Step 2: Letter of Support

She pitched her idea to a designated venture capital fund in Canada. They were impressed and offered to invest, providing her with a Letter of Support.

Step 3: Language Proficiency and Funds

Emma took an English language test and scored well above the required minimum. She also had sufficient settlement funds saved up to support herself in Canada.

Step 4: Application and Documents

She gathered all her documents, completed her application form accurately and honestly, and paid the required fee.

Step 5: Submission and Decision

After submitting her application online, Emma waited patiently. After about 14 months, she received the great news - her application was approved!

Scenario 2: Failure Story – The Pitfalls of Misrepresentation

Step 1: Business Idea and Ownership

John, an aspiring entrepreneur from India, wanted to apply for a Canada Startup Visa. However, his business was still at the ideation stage and he had no ownership in any company.

Step 2: Fraudulent Letter of Support

Instead of going through the proper channels, John obtained a fraudulent Letter of Support through unscrupulous means.

Step 3: Language Proficiency and Funds

John had enough funds for settlement but his language proficiency was below the required level. He decided to provide fake test results to meet the requirement.

Step 4: Application and Documents

In his application, John provided inaccurate information and submitted the fraudulent Letter of Support and language test results.

Step 5: Submission and Decision

John's misrepresentation was caught during the processing of his application. His application was not only refused, but he was also banned from reapplying for five years due to his fraudulent activity.

These scenarios highlight the importance of honesty and completeness in your Startup Visa application process. Your route to a successful application lies in truthful and accurate representation of your eligibility, resources, and intentions.

14. Common Questions (FAQs)

15. Where to find resources?

For the most accurate and updated information on immigration, the Canada Startup Visa Program, and related topics, refer to the following official government websites: Startup Visa Program - Official IRCC Page

Kamal Akhtar (Immigration Lawyer)
Barrister, Solicitor & Notary Public
BCOM; MBA; LL.B; LL.M (York University, Toronto)

As the founder of this website and your guide through the complexities of Canadian immigration law, my academic credentials include a Bachelor of Law  (LL.B) and Master of Law (LL.M) from York University, Toronto, complemented by an Honours Diploma in Immigration Consulting. I am a lawyer licensed by the Law Society of Ontario (LSO). My affiliation with legal associations such as the Canadian Immigration Lawyers Association (CILA), the Canadian Association of Professional Immigration Consultants (CAPIC), the Canadian Bar Association (CBA), and the Ontario Bar Association (OBA) underscores my commitment to  immigration policies and practices. I share insights shaped by over 25 years of legal experience. Please note that information on this website does not constitute legal or professional advice.

Contact Us!

Written by Kamal Akhtar a Barrister & Solicitor, Law Society of Ontario. | B.COM; MBA; LL.B; LL.M | Honors Diploma in Immigration Consulting | Published on October 10, 2023 | Last Updated January 15, 2024

Akhtar & Associates Immigration Law Office
Email: info@kamallaw.ca | Phone: +1 (416) 317-7515

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