The Start-Up Visa program grants permanent
residence to immigrant entrepreneurs while
assisting them to become established in
Canada.
Eligibility Requirements
The purpose of this program is to recruit
innovative foreign national entrepreneurs
who will create new jobs and drive economic
growth.
In order to be eligible, applicants for a
Start-Up Visa must meet the following
requirements:
Meet minimum language requirements in
English or French (CLB 5 in all abilities);
Have sufficient funds to settle in Canada;
Plan to settle in a province other than the
Province of Quebec; Pass Canadian security
and medical clearances; Prove your business
is supported through a designated
organization; and Show your business meets
ownership requirements. No more than five
foreign nationals may apply for permanent
residence as part of the same business
venture under the Start-Up Visa Program.
Investment Details
Immigration, Refugees and Citizenship Canada
(IRCC) has designated a number of venture
capital funds, angel investor groups, and
business incubator organizations to
participate in the Start-Up Visa program.
Successful applicants are required to secure
a minimum investment for their Canadian
start-up. If coming from a designated
Canadian venture capital fund, the
investment must be at least $200,000. If
coming from an angel investor group, it
should be at least $75,000.
Applicants do not need to secure any
investment from a business incubator.
However, applicants must be accepted into a
Canadian business incubator program.
Applicants are not required to invest any of
their own money. If their Canadian start-up
is unsuccessful, individuals granted
permanent residence through this program
will retain their permanent resident status.
Evidence of Commitment
In order to demonstrate that the applicant
has obtained support from either a venture
capital fund, angel investor group, or
business incubator, the investor
organization must submit a completed
Commitment Certificate directly to IRCC.
This document includes information regarding
the agreement between the applicant and the
investment organization. Its purpose is to
summarize the relevant details of the
commitment between the investment
organization and the applicant.
In addition, the applicant will receive a
letter of support from the investment
organization, which the applicant will need
to submit with their application for
permanent residence. If there are two or
more applicants as part of the same business
venture, the commitment by the investment
organization can be conditional upon one or
more “essential persons” receiving their
permanent residence. An essential person is
someone who has been specifically identified
as essential to the business by the
investment organization. If for any reason
the application of an essential person is
refused, the applications of all others
included in the Commitment Certificate will
also be refused.
If there are two or more applicants as part
of the same business venture, the commitment
by the investment organization can be
conditional upon one or more “essential
person(s)” receiving their permanent
residence. An essential person is someone
who has been specifically identified as
essential to the business by the investment
organization. If for any reason the
application of an essential person is
refused, the applications of all others
included in the Commitment Certificate will
also be refused.
Support from Multiple Organizations
Applicants may receive support from multiple
designated organizations, known as
syndication. In this instance, all entities
involved must be identified. Together, the
designated organizations will provide IRCC
with a single Commitment Certificate and one
Letter of Support will be provided to the
applicant(s).
As soon as a designated venture capital firm
invests in a business, the minimum total
investment amount that must be invested in
that business is $200,000, even if a
designated angel group also invests in the
same business.
If the business receives support from at
least one designated angel group, but not
designated venture capital groups, then the
minimum total investment amount that must be
invested in that business is $75,000.
Peer Review Process
In order to protect this pilot program
against fraud, a peer review process has
been included. It is designed to make sure
that the deals made between the investment
organizations and foreign national
entrepreneurs are legitimate. An immigration
officer may ask for a commitment to be
independently assessed by a peer review
panel. These panels have been established by
an industry association that represents the
type of investment organization making the
commitment. For example, in the case of an
angel investor group, the National Angel
Capital Organization would be responsible
for establishing the peer review panel.
Alternatively, if the group making the
commitment is a venture capital fund,
Canada’s Venture Capital and Private Equity
Association would be responsible. While the
peer review can be requested if the
immigration officer believes that it would
assist them in making a decision, they can
also be initiated on a random basis. The
assessment made by the peer review panel is
not considered binding on the immigration
officer. It will only confirm that the
investment organization has carried out the
proper checks and investigations according
to industry standards. It will not provide
an opinion on the wisdom or feasibility of
the proposal in question.
The Peer review examines the level of due
diligence that was performed by the
designated organization and: ensures that
the company has been or will be incorporated
in Canada; ensures that business ownership
has been verified and satisfies program
requirements; ensures that the designated
organization has considered the viability of
the proposed business model, assessed the
business venture's management team and
verified the ownership of the intellectual
property; makes sure the focus of the
business is on a high-growth potential
product and/or service; and validates, for
business incubator applicants, acceptance
into an incubator program.
As this is a pilot program, it will only
process a maximum of 2,750 applications per
year. Moreover, the duration of the program
is limited to five years. If this pilot
program proves successful, the Canadian
Government may choose to establish the
Start-Up Visa Program permanently before the
end of the five-year period.
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