2017-03-01 00:00:00 Business Planning English Want to immigrate to Canada and start a business? The startup visa may be your ticket in. Check out the requirements for this visa. https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/06/Woman-Weighing-Option-Startup-Visa.jpg https://quickbooks.intuit.com/ca/resources/business-planning/what-is-canadian-startup-visa/ What is the Canadian Startup Visa?

What is the Canadian Startup Visa?

2 min read

If you’ve got a business idea and want to launch it in Canada, you may want to check out the country’s startup visa. This immigration visa is for non-Canadian citizens who want to move to Canada to begin a startup. To be eligible, you must have a great new business idea and the following four requirements in place.

Letter of Support

First, Canada Immigration and Citizenship needs to ensure your project has support in Canada. For proof, you need a letter of support from an approved venture capital fund, an angel investor group, or a business incubator. If your support comes from a venture capital firm, the organization also needs to invest at least $200,000 in your company. Similarly, if you work with an angel investor group, you need at least $75,000 in startup financing from that group. Business incubators such as Communitech don’t give out startup financing. Once you get to Canada, these organizations provide business development support, access to clients, and help with obtaining funding from other sources. The process of obtaining support varies depending on the organization. In most cases, you should expect to submit proposals and business plans. Some investors or business incubators may request a telephone interview or an in-person strategy meeting before issuing your letter of support.

Ownership Criteria

If you have partners, up to five of you can apply for a startup visa based on a single business. Each applicant must own at least 10% of the company, and together, you must own the majority, over 50%, of the voting rights in the company.

Language Requirements

So that you can navigate the business world in Canada, you must prove you are proficient in French, English, or both. CIC has a list of approved tests including the Canadian English Language Proficiency Index Program, the International English Language Testing System, and the Test d’évaluation de français. Most tests contain sections on reading, writing, speaking, and listening comprehension, and the results are only valid for two years.

Financial Criteria

You also need ample financial resources so you don’t have to rely on Canadian social programs when you arrive in the country. The Canadian government updates the financial requirements annually, but as of 2017, you must have at least $12,300 if you are an individual. The figure increases by roughly $3,000 for every person in your family, up to $32,550 for a family of seven. If you meet all of the above criteria, CIC will review your application for a startup visa. The agency may also check into things such as your criminal background or potential health issues. In some cases, CIC may request a peer review of your letter of support. If you cannot get approved for a startup visa and want to work in Canada, consider checking out the express entry program. This program helps skilled professionals obtain work visas, and it can work as a launching point for migrating and starting your own business. If you’re not a resident, starting a business in Canada is a possibility if you meet the requirements determined by the government for a startup visa.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles

Entrepreneur Extraordinaire: Dr. Sean Wise Helps Expand Startup Communities

One of the leading figures for entrepreneurs and owners of startup small…

Read more

Success for Startup Canada Day on the Hill

The 2016 Startup Day on the Hill attracted a record number of…

Read more

Is Your Business Startup Idea a Good One?

Launching a startup business brings responsibilities beyond the usual demands of managing…

Read more