Start-up Visa

As mentioned previously, there are a number of different business immigration paths to Canada.  The federal start-up visa program is one of these options and it is designed for innovative  business people (individually or as a group of up to five) who wish to settle anywhere in Canada  except Quebec. The application process involves linguistic criteria, and proof of support from a  designated entity in Canada as well. This article will briefly touch upon some of these eligibility  requirements and provide an overview of the process. 

This program was initially introduced as a replacement to the Federal Entrepreneur Program in  2013. The purpose has been to assist foreign entrepreneurs come to Canada and eventually gain  permanent residence. There have been some changes to it in 2024, which were primarily aimed  at reducing backlogs. For instance, the number of permanent residence applications linked to this  stream now has a limit, and each designated entity in Canada cannot submit more than 10  applications per year. These limitations will be in place until the end of 2026, but the program  remains open and is among the few business immigration options at the federal level.  

Applicants who are considering this path do not need to have an established business. If you have  an innovative business idea which has the potential to employ people in Canada, you can pitch  your idea to a designated organization in Canada (such as venture capital funds, angel investor  groups or business incubators). Depending on the type of organization, this entity should commit investing anywhere between $75,000 and $200,000 to your business. These organizations may  ask you to submit a business plan, or even attend an interview. If successful, the entity will send  a Commitment Certificate directly to the IRCC and a Letter of Support to the applicant in order to  proceed with the application. However, this support does not mean that the organization will be  providing all the funds, the applicant will still need a to possess enough money to set up the business and settle in Canada. 

In order to be eligible, the applicant should hold a minimum of 10% voting rights, and the  applicant along with the designated organization should hold more than 50% of the total voting  rights. For example, if the start-up has 100 shares, the applicant should own at least 10 of those  personally. In addition, the total number of shares owned by the applicant and the designated  organization in Canada together must not be less than 50 shares. 

Applicants with existing businesses may also be eligible for the program, however they should  meet the ownership requirements and still get commitment from a designated organization. At  the time of application, the business should be incorporated and operated in Canada as well.  Nonetheless, IRCC still considers qualifying businesses whose incorporation is conditional upon  the permanent residency of the applicant.  

In addition to the requirements above, the applicants should also be able to take the Canadian  Language Benchmark (CLB) 5 in listening, reading, writing and speaking (either in English or  French). In order to meet this requirement, you can take any of the approved tests such as CELPIP  or IELTS (General Training) and compare your score to the chart on Government of Canada’s  website to see the CLB equivalency.  

As mentioned above, although this is a business immigration path, the government will not  support you financially even if your proposal is accepted by an organization. Therefore, you’ll also  need to prove that you have enough financial resources to support yourself (and your  dependents) when settling in Canada. Although the amounts may vary every year, the minimum  amount required for a family of three is $22,483 as of December 2024. It is also important to be  able to demonstrate that the funds were not borrowed and are accessible to the applicant at the  time of the application. 

In this regard, start-up visa has certain advantages and disadvantages depending on the needs  and expectations of the applicant. Compared to some of the provincial alternatives like the  Quebec Immigrant Investor Program, it requires relatively fewer financial resources at the time  of the application. In case the applicant is not a businessowner, it’s also possible to apply  individually or with fellow entrepreneurs and pitch to a Canadian designated organization.  However, the newly introduced application cap per organization means that the entities in  Canada may be more selective and prioritize quality over quantity as well. If you have any  questions about the start-up visa or other immigration paths to Canada, feel free to contact us  at mail@atasoylaw.ca.

Disclaimer:

The information provided in this blog post is for general informational purposes only and does not constitute legal advice. Reading this post does not create a solicitor-client relationship. Refugee and immigration law is complex and fact-specific; outcomes can vary depending on individual circumstances. For legal assistance regarding business immigration programs, please contact our office directly.