Canada migration for entrepreneurs
Immigration to Canada has been skyrocketing over the past few years and the country has been introducing various visa types to attract skilled immigrants. There are various job categories (categorized as TEER 0, TEER 1, TEER 2, TEER 3, TEER 4 and TEER 5) in which immigrants are invited.
Now, it’s a great initiative by Canada, as the start-up visa has been introduced for entrepreneurs who plan to establish a business in Canada.
Canada Start-Up Visa
The new Start-Up Visa favors entrepreneurs starting their businesses in Canada. This is in alignment with the country’s plan to invite qualified entrepreneurs who stimulate the Canadian economy by creating employment opportunities for the residents of the country. Canada, in return, banks on the businesses of immigrants.
To start a business in Canada, entrepreneurs need to propose a business plan and demonstrate that their business is legit, will create new job opportunities for Canadians, and will be runnable on a global scale.
Eligibility requirements for Canada start-up visa
To apply for a start-up visa, the Canadian government has set up certain criteria to be met. They include,
To establish a business in Canada, it’s important to have sufficient funds and capitalization, and it is one of the crucial requirements. There are 3 types of investments to fund your business – Canadian Venture Capital Fund, the Angel Investor Group, and the Business Incubator.
There are some designated Venture Capitalists and Angel Investors from whom you can get help to fund your business in Canada.
To attain approval through Canadian VC funds and Angel Investor Groups, a definite amount must be secured from investors in total.
|Canadian Venture Capital Fund||$ 200,000|
|Angel Investor Group||$ 75,000|
But, if your business is accepted by an Incubator under the business incubator program, you have to spend 0 CAD as your investment. You heard it right. That’s the difference between getting support from an Incubator, a VC, or an Angel Investor
Let’s know about the particulars!
There are many Venture Capitalists, Angel investors, and Business Incubators in Canada to support your business proposal and materialize it rapidly. A few to know are listed below!
Canadian Venture Capital Funds
- 7 Gate Ventures
- BCF Ventures
- BDC Venture Capital
- Celtic House Venture Partners
- Extreme Venture Partners LLP
- Golden Venture Partners Fund, LP
- Impression Ventures
- Innovation Platform Capital International LP
- iNovia Capital Inc.
- Lumira Ventures
- Nova Scotia Innovation Corporation (o/a Innovacorp)
- Pangaea Ventures Ltd.
- PRIVEQ Capital Funds
- Real Ventures
- Relay Ventures
- ScaleUp Venture Partners, Inc.
- Top Renergy Inc.
- Vanedge Capital Limited Partnership
- Version One Ventures
- Westcap Management Ltd.
- Yaletown Venture Partners Inc.
- York Entrepreneurship Development Institute (YEDI) VC Fund
Angel Investor Groups
- Canadian International Angel Investors
- Ekagrata Inc.
- Golden Triangle Angel Network
- Keiretsu Forum Canada
- Oak Mason Investments Inc.
- Southeastern Ontario Angel Network
- TenX Angel Investors Inc.
- VANTEC Angel Network Inc.
- York Angel Investors Inc.
- Alacrity Foundation
- Alberta Agriculture and Forestry
- Agrivalue Processing Business Incubator
- Food Processing Development Centre
- Biomedical Commercialization Canada Inc. (operating as Manitoba Technology Accelerator)
- Creative Destruction Lab
- Empowered Startups Ltd.
- Extreme Innovations
- Genesis Centre
- Highline BETA Inc.
- Interactive Niagara Media Cluster o/a Innovate Niagara
- Invest Ottawa
- Knowledge Park o/a Planet Hatch
- LatAm Startups
- Launch Academy – Vancouver
- LaunchPad PEI Inc.
- Millworks Centre for Entrepreneurship
- NEXT Canada
- North Forge Technology Exchange
- Platform Calgary
- Real Investment Fund III L.P. o/a FounderFuel
- Ryerson Futures Inc.
- Spark Commercialization and Innovation Centre
- Spring Activator
- The DMZ at Ryerson University
- Toronto Business Development Centre (TBDC)
- TSRV Canada Inc. (operating as Techstars Canada)
- Waterloo Accelerator Centre
- York Entrepreneurship Development Institute
Evidence of Commitment
The investor organization must send a finished Commitment Certificate to IRCC to prove that the application has received funding from a venture capital fund, angel investor group, or business incubator. The agreement between the applicant and the investment organization is described in detail in this document. Its goal is to condense the essential information about the agreement between the applicant and the investment organization.
A letter of support from the investment organization will also be provided to the applicant, who must include it with their application for permanent residence. The investment organization may condition its commitment if there are two or more applicants who are a member of the same business venture on one or more “essential persons” obtaining permanent residence. A person who has been officially designated by the investment organization as being necessary to the firm is known as an essential person. All other applicants included in the Commitment Certificate will likewise have their applications denied if the application of an essential individual is denied for any reason.
The foremost requirement to live in Canada is to be able to speak English or French. Setting up a business in Canada demands the business owner to be able to communicate and work in English, French, or both. So, appearing for a language test from an approved language testing authority and meeting the minimum Canadian language benchmark of CLB 5 in English or French in all the modules such as Listening, Speaking, Reading, and Writing.
Support & Syndication
Syndication, or sponsorship from numerous approved organizations, is a possibility for applicants. All parties involved in this process must be identified. One Commitment Certificate will be presented to IRCC by all the specified organizations, and one Letter of Support will be given to the applicant(s).
Even if a certified angel group also invests in the same business, as soon as a designated venture capital firm invests, a minimum total investment amount of $200,000 must be made in that business.
A minimum of $75,000 must be invested in the company overall if it obtains backing from at least one authorized angel group but not from any approved venture capital groups.
A peer review procedure has been added to defend this program against fraud. Its goal is to ensure the legitimacy of the agreements established between foreign entrepreneurs and investment organizations. An immigration officer could request that a commitment be subjected to a peer review panel’s independent evaluation. An industry group that represents the kind of investing organization making the commitment formed these panels. For instance, the National Angel Capital Organization would be in charge of setting up the peer review panel in the case of an angel investor organization.
Alternatively, Canada’s Venture Capital and Private Equity Association would be in charge if the organization making the promise was a venture capital fund. Peer reviews may be requested, but they may also be started at random if the immigration officer feels that they would be helpful in their conclusion. The peer review panel’s judgment is not regarded as legally binding on the immigration officer. Only the completion of the necessary tests and investigations in accordance with industry standards will be confirmed by it. It won’t express a view on the viability or wisdom of the given plan.
The designated organization’s level of diligence is examined by the peer review and is ensured that
- The business has been or will be incorporated in Canada.
- The business ownership has been confirmed and complies with program requirements.
- The designated organization has evaluated the viability of the proposed business model, evaluated the management team of the business venture, and verified the ownership of the intellectual property.
- The business’s focus is on a high-growth potential product and/or service.
- and finally validates, for example, that the product or service has the potential to grow rapidly, through the business incubator program for incubator applicants.
Getting a PR in Canada based on a start-up visa requires you to have sufficient funds to look after yourself and your family after migrating. These funds are called settlement funds and the amount you should possess depends on the size of your family.
|Number of Family Members||Required Funds in CAD|
|For each additional member of the family||3,492 CAD|
However, the tabulated funds are the minimum required, but it is recommended that you load your account with as many funds as possible when you move to Canada.
You will need all the money you can collect to support your family while building your new business because startups and new enterprises take time to become profitable.
Security and Medical Clearances
A medical test and security clearance must be completed by you and your family members to discover whether you:
- provide a danger to national security,
- possess a serious health issue that would strain Canada’s healthcare system.
How to apply for PR through a start-up visa?
After meeting all the above requirements, you can apply for PR, and the processing time might range from 12 to 18 months. Let me classify the phases!
Business Draft (2 months)
Make an immaculate business plan that consists of the problem statement, requirement analysis, working principle, and all other aspects that best convey the purpose of starting it and, more importantly, the employment prospects that’d be offered to Canadian citizens.
Your business plan must be finished at this point and presented to an approved investment organization. As was already said, this organization may be a designated venture capital fund, a business incubator, or one of the designated angel investor organizations.
The chosen entity or entities must have given their approval to your proposed business start-up plan and sent the IRCC a Commitment Certificate along with a letter of support for you.
In this last stage, along with your investment letter and other required documents, you apply for permanent residency.
After reviewing the application, the state department decides whether to approve or deny your request.
How does CanApprove help you?
CanApprove is an immigration and overseas education service-providing firm that has been acting for 25 years now, since 1998. Headquartered in Canada, we have been carrying out the best resettlement services for immigration aspirants.
We can provide you with all the required support to start your business successfully in Canada and get your PR visa. Our internationally standardized immigration counselors will offer the most sought-after insights that will impel you to rapidly start your business in Canada. Fill out the form that’s to your right, or click the chat head in the bottom right corner.
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