CANADA INVESTMENT

CANADA INVESTMENT

Start-up Visa Program

The Start-Up Business Class was established for immigrant entrepreneurs with the skills and potential to build

businesses in Canada that:

 1.were innovative,

 2.could create jobs for Canadians, and

 3.could compete on a global scale.

The program offers a direct pathway to Permanent Residence for qualifying entrepreneurs who will receive funding, guidance and expertise in opening and operating their enterprise in Canada. If their Canadian start-up is unsuccessful, individuals granted permanent residence through this program will retain their permanent resident status.

Applicants are not required to invest any of their own money and rely on funds from designated organizations.

Designated organizations : 

Designated organisations are business groups that are approved by the government to invest in or support possible start-ups through the Start-up Visa Program. The designated organisations take the form of venture capital funds, angel investor groups and business incubators.

To apply for the Start-up Visa Program, the applicants business idea or venture must get the support of one or more of

the designated organizations listed here.

Venture capital funds - Applicants must get a designated venture capital fund to agree to invest a minimum of $200,000

OR

Angel investor groups - Applicants must get a designated angel investor group to agree to invest a minimum of $75,000

OR

Business incubators - Applicants must get accepted into a designated incubator’s program

Designated organizations choose which business proposals to review. Each designated organization has its own intake process for proposals and criteria used to assess them. For example, you may be asked to present your business concept in person or submit a detailed business plan.

If an organization decides to review a business idea, it’ll assess the potential of the proposal and whether or not it’ll succeed.

Eligibility requirements for the Start-up Visa Program - Business

Creation of a qualifying business where each applicant holds a minimum of 10% of the voting rights for outstanding shares (up to 5 people can apply as owners).

And

Applicants and the designated organization jointly hold more than 50% of the total voting rights attached to all shares of the corporation outstanding at the time.

When applicants receive permanent residence, they must:

• Provide active and ongoing management of the business from within Canada
• The business is incorporated in Canada
• An essential part of the operations of the business happens in Canada

Eligibility requirements for the Start-up Visa Program – Applicant

Have a qualifying business

Have a letter of support from a designated organisation (angel investors/ venture capital funds/business incubators).

• The process to pitch their idea is different for each organization. Each organization has its own requirements. For example, applicants may be asked to present their business concept in person or submit a detailed business plan.
• If an agreement is reached with a designated organisation, they provide the applicant a letter of support and also send the government a commitment certificate.
• The government will use the letter of support and the commitment certificate to asses you application.
• The government may ask for additional information to make the decision.

Minimum language requirement for the applicant: Canadian Language Benchmark (CLB) of 5.

Meet basic settlement funds criteria.

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CANADA INVESTMENT PROCESS

CANADA INVESTMENT PROCESS

STAGE 1 (Founder and Participants)

• Pair genuine founders with strategic “participants”
• Founder: comes up with the business idea, leads the group. Owns an innovative start-up. Puts in “sweat equity.”
• The founder will be pre-screened before matched with participants
• Participants: equity partners with relevant business experience in an active role and commits capital injection in exchange of minimum 10% equity ownership in the proposed start-up.
• Each start-up proposal can have up to 5 applicants
• We connect foreign founders with participants that make sense for the business
• The newly established group will independently create a business relationship

STAGE 1

STAGE 2 (Validation Stage)

• 2-3 month “validation,” led by a Canadian Start-up expert
• Validates that the foreign Start-up can succeed in Canadian start-up ecosystem
• Prepare the company for the Canadian market
• Prepare the group to pitch to investors

STAGE 2

STAGE 3 (Letter of Support from Designated Organization)

• The group will pitch their business to a designated organization
• If approved and an agreement is reached, the designated organization will give a Letter of Support to the Start-up group, and they can now apply for immigration and if need be, work permit.
• All the invested capital is held in escrow until immigration (or work permit) is granted to all applicants

STAGE 3

STAGE 4(Processing)

• After 12-16 months, the group receives immigration and can now come to Canada to start their business.
• Upon landing, the investment held in escrow is released to the company.

STAGE 4

STAGE 5 (The Application)

• Immigration officers look for the following:
• Applicants genuine intention to start a business in Canada.
• Not a “passive visa program”.
•         Strategic and genuine business relationship between partners.
•         Essential vs Non-essential.
• Admissibility (medical, criminal, etc.)

STAGE 5

STAGE 6 (Incubation stage)

• Once the Start-up is in Canada, it must go through a 12-month incubation stage.
• Help the company develop and scale in Canada.
• May provide support, coaching, office space, and network of potential partners and investors.

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