Canadian startup visa – RainCity Immigration Ltd

Canada Startup Visa

An opportunity for innovators and entrepreneurs

The Canada Startup Visa is for entrepreneurs looking to turn their innovative ideas into reality in Canada. After receiving a letter of support from authorized organizations, these entrepreneurs apply for immigration to Canada for themselves and all their family members. These innovative individuals collaborate with Canada’s private sector to create globally-scaled businesses.

With the Canada Startup Visa, the country aims to attract entrepreneurs who have the potential to launch innovative companies and can create jobs. The Canada Startup Visa has been established to foster a competitive environment for attracting startups, and Canada has a clear vision for the future of this visa.

How does immigration to Canada work through a startup?

The vision behind the Canada Startup Visa is to create a platform similar to Silicon Valley in the U.S., where the world’s best come to Canada.

An innovative idea is a necessary but not sufficient condition

Did you manage to get a support letter?

Now, you need to convince Canada's immigration department that you intend to launch a startup. In the end, residency in Canada will be granted to you and your family through the startup visa.

Do you have an amazing and creative idea?

Does your idea have the potential to grow in a short time? Well, now it’s time to get approval from one of the Canadian government-approved organizations and persuade them to invest in your idea.

Requirements for applicants of the Canada Startup Visa

Second condition:

Obtain a support letter

:Minimum investment

The ties to your home country are what are referred to as “ties.” For example, if we say your ties to Iran are weak, it means that after leaving the country, you don’t have a strong connection to return to Iran.

Now that you’re familiar with “ties” in the context of a visa for Canada, let’s get acquainted with the next concept: Balance of Ties.

Whenever the term balance of ties comes up, think of a scale. On one side of the scale are your connections to your home (let’s say Iran), and on the other side, your connections to Canada are weighed. Which side is heavier? That answers the question of ties.

First condition:

Score at least 5 on the IELTS

:Required IELTS score

Now that you’re familiar with “ties” in the context of a visa for Canada, let’s get acquainted with the next concept: Balance of Ties.

Fourth condition:

Must not have a criminal record or medical issues

Third condition:

Have at least one year of university education

Fifth condition:

You should have the ability to financially support yourself and your family for 6 months

Note:

Up to 5 people can apply as business owners through this route

With the startup visa, you should not intend to settle in Quebec

Data shows:

Most applicants have been between the ages of 30 and 49

80% of applicants have a university degree (Bachelor's or higher)

The main countries of applicants include India, China, Vietnam, and Iran

?What are the conditions for registering a company in the startup program

The business must be established and operational in Canada

The applicant must hold at least 10% of the voting rights in the company

No one else can hold 50% or more of the voting rights in this company

Read more: Registering a company in Canada

Get to know the six steps of Canada's startup visa

We’ll take you step by step through the process of obtaining a startup visa for Canada.

Step one:

Prepare your idea or business. But not just any project; it’s essential to present an innovative idea based on technology and on a global scale. Write a business plan and find the right organization to support you. For inspiration, you can take a look at successful startups in Canada.

Step two:

Let’s stay optimistic. Your presentation has gone well, and you’ve passed the first stage, which is quite a challenge on its own. Now, after agreeing with the supporting organization, you’ll receive a support letter. The supporting organization will send a letter of commitment to the Canadian immigration office at the same time it sends you the support letter.

Step three:

Now you have the support letter. It’s time to deal with the Canadian immigration office. Prepare your documents and submit your application for residency and work visa (for essential individuals).

Step four:

You’ll need to wait to receive the response for your work visa application. You may wonder how many months? The answer is between six to ten months. Don’t forget your permanent residency application is also in progress. So, you’re still under the watchful eye of the immigration office.

Step five:

The immigration office will review your project and announce the results of its examination.

Step six:

Congratulations, it’s time to obtain your permanent residency in Canada. From this point on, you have no responsibility towards the project.

What are the conditions for supporting organizations?

What do venture capital, angel investors, and incubators mean?

Venture Capitals

They have a big appetite. They’re usually on the lookout for bigger ideas that have already gone through the early growth stages. So, if you’re reaching out to them, don’t just shoot them an email about an idea you’ve had in your head for years. Ventures typically ask for your sales record right from the start. Our experience shows that venture capitalists are looking for ideas that can generate a few million dollars and currently have sales in the hundreds of thousands.

Angel Investors

Angel investors are personal investors or medium-sized companies that tend to be more open to taking on projects compared to ventures. Usually, angels offer funds in exchange for a percentage of the company’s shares, which gives businesses the fresh capital they need to move forward.

Incubators

These are growth centers. An accelerator or incubator doesn’t give money to startups but actually collects fees instead. The role of incubators is to prepare startups for launching their businesses. They provide information on how to start and grow a business and also teach ways to raise funding. Another key role of incubators is mentoring, where they oversee or guide the initial growth of the companies.

Success Rate of Applications Based on Organization Type

Incubators: 79% success

Angel Investors: 18% success

Venture Capitalists: 3% success

The chart showing the distribution of success rates based on the type of organization indicates that incubators and angel investors have the highest success rates.

Cost of the Startup Visa in Canada

We’ll take you step by step through the process of obtaining a startup visa for Canada.

Costs Incurred by Investment Companies

Angel investors and ventures typically invest in businesses by injecting money, so applicants working with these groups are not required to pay these companies any fees. However, incubators, which are growth centers, charge a fee for hosting business training and mentorship programs, and these fees can vary from one center to another. Generally, these amounts will be between fifty to one hundred thousand dollars for each group.

Fees for Processing Applications at the Canadian Immigration Office

The fee for permanent residency application in the startup program per primary applicant
Permanent residency	$2,385
Permanent residency for spouse	$1,525
Permanent residency for each child	$260

The fee for a work visa application in the startup program per primary applicant
Work permit for each individual	$155
Work permit for a group of three or more	$465
Open work permit	$100
Visitor visa for children	$100

Required financial capacity for the Canadian startup visa

You need to have enough capital for the first year of living in Canada to cover your initial expenses and those of your family. Keep in mind that this amount is not related to investments in Canada, and you do not personally need to invest in this type of visa. Typically, officers expect you to have 50% of your living expenses covered for yourself and your family. This amount is determined based on the LICO table, which is announced annually by Canadian immigration. Here’s a summary of what you’ll need.

Minimum required financial capacity

Number of family members	Required financial capacity (Canadian dollars)
1	14,690
2	18,288
3	22,483
4	27,297
5	30,690
6	34,917
7	38,875
For each additional person	3,958

You can provide this amount through either local or foreign bank accounts.

Important definitions in the startup immigration program

Support letter in the startup program

When investor organizations decide to support an idea, they express this decision in a letter addressed to the project owners and executors.

More information

The first step in the Canada Startup Program is to apply for a letter of support from a designated investor organization. In this letter, one of the organizations approved by Canada will express their support for you and their interest in backing your idea or project. The support letter will be sent directly to you as the project leader.

At the same time, a letter will also be issued by these supporting organizations to the Canadian immigration office.

The support letter must be submitted with the work visa and permanent residency application to the immigration office.

Commitment certificate in the startup program

The company that gave you the support letter also sends a letter to the immigration office informing them of the group members and the planned project.

So, the certificate includes information regarding the agreement between the applicant and the investor organization.

Key and non-key members in the startup

Key members are those without whom the formation and development of the startup would be impossible. Visa regulations differ for key and non-key project members.

More information

Key members, or Essential Applicants, are individuals who are indispensable to the startup project. For example, if your idea is for a mobile application, the person who is the software developer or the idea’s developer will definitely be one of the necessary team members, and developing the idea without them would be impossible. If, for any reason, the application of key members is rejected, the application of the other people mentioned in the commitment will also be rejected.

Non-essential members are those who, if absent, could still allow the project to be executed. In the previous example, the marketing manager of that project is likely one of the non-essential team members. If they are not part of the group, it may not severely hinder the development of the idea.

If any one of the key members is rejected for any reason, all members will be rejected, and the application will be closed. Even if one of the dependents of the key members is rejected, for instance, a child or spouse of one of the essential members, the whole group’s application will be rejected as well.

The work permit for the Canada Startup Visa

The work permit for the Canada Startup Visa allows you to work as an entrepreneur in developing your business. According to Canadian law, starting from October 3, 2024, this work permit will be valid for three years and will allow you to work in Canada for any employer while your permanent residency application is under review. Most permanent residency applications are processed within a year.

Conditions for Obtaining a Work Permit for the Canada Startup Visa

To qualify for this work permit, you must:

– Intent to obtain permanent residency through the Canada Startup Visa.

– Be a key member of the entrepreneurial team.

– Plan to live in a province or territory of Canada, other than Quebec.

– Prove that your business will bring significant economic benefits to Canada.

– Receive a commitment letter and a support letter from designated organizations.

– Have enough funds to support your living expenses and those of your family for 52 weeks.

– Have sufficient capital to start your business.

Obtaining a Visa for Family Members

All family members of the applicant can apply for an accompanying visa. This rule includes a spouse and children under 22 years old.

Accompanying Visa During Work Permit

If you are applying for a work permit, you can bring your spouse and children under 22 with you when immigrating to Canada.

If the applicant is on the list of key business members, they can apply for a work visa.

Spouse: The applicant’s spouse can simultaneously apply for an Open Work Permit.

Children: Children can study in Canadian schools, but they will need a study permit for Canadian universities and a work permit to work in Canada

Accompanying Visas for Permanent Residency in Canada

Naturally, when applying for permanent residency in Canada, the spouse and children will accompany the applicant. All family members of the applicant, including the spouse and children under 22, can apply for permanent residency in Canada simultaneously.

With limited capacity and high demand, what are my chances?

Yes, that’s correct; the capacity for the Canada Startup Visa is limited.

Canada has restricted the number of applications that each investor company can accept per year to 10 from 2024 to 2026. However, considering the number of supporting companies, around 3,000 people can still apply through this route.

After the federal investment immigration programs were closed and the Quebec investment program was restricted, many applicants, immigration firms, and lawyers saw this program as a good alternative. However, we shouldn’t forget that the capacity of Canada’s startup program is limited.

How long does it take to process the Canadian startup visa?

Currently, the average response time for the Canadian embassy regarding the startup visa is 40 months. If you intend to enter Canada sooner, you can apply for a work visa to start your business. You can obtain the work visa in a shorter time frame.

Do I need to launch a startup after immigrating?

A very important point before applying for residence is that the applicant must intend to implement their idea, and after obtaining the work visa, the startup must definitely be launched. As long as you are in Canada with a work visa, the progress of the startup will be monitored by the immigration office, and if they perceive that the startup was only set up to gain permanent residency, the issue of permanent residency could be at risk.

Do I have to invest my own money for the Canadian startup visa?

No, you don’t need to invest your own money. The minimum investment required refers to the funding provided by the subgroups of the specified organizations.

Applicants whose requests have been approved must consider the minimum investment for their Canadian business. If your funding comes from venture capital firms, this amount must be at least $200,000. If it’s supported by angel investor groups, it must be at least $75,000.

Applicants are not required to secure funding from incubators or startup centers. However, they must be accepted into their programs.

What is the process for applying for the Canadian startup visa?

Initially, you need to present your business idea to one of the specified organizations and convince them to support your startup. Once one of these organizations decides to support your business, they will send a letter of commitment to the Canadian immigration office and a support letter to you.

The process of introducing your idea varies for each of the specified organizations. For more information, you should get in touch with the relevant organization. If you qualify, you can submit your documents and application.

How can I get a letter of support from the designated organizations?

Generally, your business idea should be worth supporting by the organization.

The application process differs for each organization. Some organizations will require your business plan upfront. For more information, you should be in contact with the relevant organization.

What are designated Canadian venture capital funds?

There is no obligation. Sometimes in the teams formed, each group member has a specific expertise, and everyone is pushing forward a single idea.

What are designated Canadian angel investor groups?

Similarly, angel investor groups are approved entities that allow the applicant to share their idea with them, and if it’s accepted, they can then apply for residency through the startup visa. For a complete list of groups, please contact us.

Is it possible to get support from two backers?

Yes. But you need to receive the total minimum investment amount related to the group that has the larger amount as capital, and one of them must have the key role. For example, if two approved angel investors are interested in your idea and plan to invest, they must collectively invest $75,000. For instance, if one angel company and one venture company intend to invest in your idea, the total investment must be at least $200,000.

Receiving support from several investor organizations

Applicants can receive support from multiple specified organizations, which is called a syndicate. In this case, all supporting organizations will issue one commitment certificate and one support letter for the applicants.

As soon as a venture capital investor invests in a business, the minimum total investment for that business will be $200,000, even if an angel investor group also invests in the same business.

If the business is supported by one of the angel investor groups but does not receive support from venture capital firms, the minimum total amount that must be invested in that business will be $75,000.

Can I enter the Canadian startup program with any business?

No. Your business must be among those whose product has high growth potential or is classified as high-growth.

How can I make sure that the investment firms are legitimate, and should they give me a letter?

The list of companies is announced on the Canadian immigration website. If investment firms agree with your idea, they will send a letter to you and a letter to the immigration office, and then you can start your application for permanent residency in Canada through the startup program.

How many applicants can immigrate to Canada through a single business plan?

A maximum of 5 applicants. Of course, the startup idea needs to require the designated individuals. Each of these individuals will be carefully reviewed by the immigration office and must meet at least the mentioned criteria above. Additionally, each of these individuals must hold at least 10% of the company’s voting rights.

Important note: If any of the applicants in this program are rejected by the officer, all other individuals will also be rejected.

Is a medical examination required for the Canadian startup visa?

Yes. Medical examinations for you and your family members are mandatory.

Who reviews my Canadian startup visa application?

First, the designated organization you choose will evaluate the efficiency of your business.

Next, after you’ve received the necessary support from the organization, Immigration Canada will review your application.

Finally, your application may also be assessed by an independent person.

Is there a form that can be filled out to receive a letter of support from an organization?

No, to receive a support letter, you need to convince the designated organizations that your business idea is worth supporting. For this, you should communicate with the relevant organization and gather more information.

Can all members of an entrepreneurial team immigrate to Canada together with the startup visa?

Yes, up to 5 people can apply as owners of a business through this route.

If I immigrate to Canada through the startup visa and then my business fails, what happens?

If your business fails, there will be no change in your permanent residency status. The Canadian government understands that not every business succeeds, and this program is designed to share the risks and responsibilities between the public and private sectors.

Does my business idea need to align with my educational background and work experience?

There is no obligation. Sometimes, in the teams that are formed, each member has a specific expertise, and all individuals pursue a single idea together.

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