Canada Startup Visa (SUV)
Canada Startup Visa is a top immigration program for entrepreneurs looking to invest and build innovative businesses. This federal program leads directly to permanent residency for the applicant and their family from the outset. The most important requirements for a Canadian startup visa include the following:
- Having a new business plan
- Receiving a letter of support from a reputable organization in Canada
- Having the necessary financial means
- Providing a language certificate at least IELTS 5
It’s ideal for entrepreneurs who can present a solid business idea and secure a Letter of Support from a designated organization. With world-class infrastructure and strong support for startups, Canada is a leading destination for global investors. In this method, applicants can apply for a Canadian passport after 3 years of residency in Canada.
Startup Visa Canada fees:
- Main applicant: $2,385 CAD
- Spouse: $1,525 CAD
- Each child: $260 CAD
The Canada Startup Visa offers a path to permanent residency for innovative entrepreneurs. Applicants must submit a viable business plan to a designated organization (incubator, angel investor, or venture capital fund) to obtain a Letter of Support, which is required for residency applications.
As of April 2024, new rules limit each organization to supporting only 10 teams per year, increasing competition and costs. For more details and eligibility checks, contact Malekpour Migration Institute for a free consultation. Ask questions in the comments for quick responses.
What is the Canada Startup Visa?
The startup visa or innovation visa is one of the immigration programs aimed at attracting foreign entrepreneurs and investors that exist in various countries such as Canada, the UK, Finland, France, the Netherlands, Portugal, and … The Canada Startup Visa or Start-Up Visa Program is considered one of the best programs for immigrating to Canada.
The Canadian Startup Visa is designed for entrepreneurs with innovative business ideas. A team of 1 to 5 people can present a scalable, creative business plan that benefits the Canadian economy. If approved by a designated organization from Canadian Immigration Department, they receive a Letter of Support and can apply for permanent residency for themselves and their families.
This is one of the best immigration options for those looking to launch a startup and settle in Canada.
Advantages and Disadvantages of the Canada Startup Visa
Here we will examine the advantages and disadvantages of the Canada Startup Visa for immigrating to Canada:
| Advantages of Canada Startup Visa | Disadvantages of Canada Startup Visa |
|---|---|
| Direct permanent residency for the applicant and family | Lengthy application process |
| Support from designated organizations | Language proficiency requirement |
| No need for high-level language scores | |
| No investment required | |
| No need for prior business ownership or management experience | |
| Free education for children | |
| Full-time work permit for spouse | |
| Simultaneous family immigration & visa for children under 22 |
Immigration to Canada through Startup
Canada offers several business immigration programs for entrepreneurs and investors, such as the Startup Visa, owner-operator work permits and entrepreneurship in Canada. All allow applicants to gain residency by starting a business in Canada. Unlike other programs that offer temporary residency first, the Canada Startup Visa provides direct permanent residency for entrepreneurs and their families.
The Startup Visa in Canada is a federal program, and applicants can apply for all cities and provinces in Canada. To immigrate through the Canada startup program, applicants do not need to invest, possess high language qualifications, or have managerial experience. Even those who are employed can apply through this immigration program.
Conditions for the Canada Startup Visa
Applicants for Canadian residency through the startup visa program must meet certain conditions. These conditions for the Canada Startup Visa include:
- Having an innovative, new and expandable idea (of course, there is no need to worry for those who do not have an idea, because applicants can get help from business consultants for their business plan)
- Finding a designated organization and receiving a letter of support
- Providing the language certificate required for this program (i.e. IELTS level 5)
- Having at least a diploma degree
- Having the financial means required for the Canadian startup visa method
- No criminal record
- Medical certificate of good health
Steps to Obtain the Canada Startup Visa
Applicants for immigration to Canada through the Canada Startup Visa must first meet the necessary requirements for this program. Applicants can seek help from a professional immigration consultant to review their conditions and those of their family. The steps to obtain a Canada Startup Visa are as follows:
- Developing a business idea and plan
After receiving initial approval, the applicant, with the help of business consultants, designs their business plan. Reputable business consultants transfer all necessary points and training regarding the business plan to the startup team.
- Finding a designated organization and receiving a letter of support
The business plan is submitted to the designated organizations to receive a support letter. These organizations issue the final confirmation or support letter after reviewing and interviewing the startup team.
- Steps to apply for Canadian permanent residency
Upon receiving this support letter, the applicant registers their file for permanent residency in Canada, and submits the required documents such as proof of financial capacity, criminal record check certificate, medical health certificate, language proficiency proof, and other necessary documents. Some applicants can apply for a temporary work permit after this step and enter Canada more quickly. After reviewing the applicant’s request and receiving visa approval, the applicant can enter this country.
Required Documents for Obtaining the Canada Startup Visa
To obtain the Canada startup visa, the applicant must provide the necessary documents. The required documents for the Canada Startup Visa include:
- Identity documents of all members of the startup team and their companions
- Educational documents and work records of all members of the startup team
- Business plan
- Letter of support or LOS
- IELTS 5 language certificate of all members of the startup team
- Certificate of required financial means, all members of the startup team
- Completed visa application forms
- Certificate of no criminal record
- Medical health certificate
You can refer to the Canadian Immigration Office website for up-to-date and precise information regarding documents and conditions for the Canada startup visa, or you can contact the consultants at Malekpour Migration Institute.
Financial Capacity Required for the Canada Startup Visa
The financial capacity required for the Canada startup visa includes the capacity necessary to establish the business and the financial means to cover living expenses for oneself and the dependents. Generally, the required financial capacity for establishing a business is around CAD 60,000, and the financial capacity required to cover living expenses varies depending on the number of family members.
However, immigration lawyers recommend proving a higher financial capacity for the Canada Startup to have a positive impact on your immigration case. The approximate amounts of the required financial capacity for the Canada startup visa are provided in the table below:
| Family Size | Required Settlement Funds (CAD) |
|---|---|
| Single applicant | $14,690 |
| Family of 2 | $18,288 |
| Family of 3 | $22,483 |
| Family of 4 | $27,297 |
| Family of 5 | $30,690 |
| Family of 6 | $34,917 |
| Family of 7 | $38,875 |
| For each additional member over 7 | $3,958 |
Cost of the Canada Startup Visa
One of the important issues for applicants is the cost of the Canada Startup Visa. The costs for the startup visa include translation fees for documents, costs of designing a business plan and obtaining a support letter, government application fees, fingerprinting fees, immigration lawyer fees, and …
The costs of immigration to Canada vary based on the applicant’s circumstances and their family’s conditions, the type of the startup plan, and the method of application. In the table below, you can see startup costs in Canada and fingerprinting fees for the Canada startup visa.
| Item | Cost (CAD) |
|---|---|
| Government fee for main applicant | $2,385 |
| Government fee for spouse or partner | $1,525 |
| Fee per dependent child | $260 |
| Biometric fee for main applicant | $85 |
| Biometric fee for family (2 or more people) | $170 |
Canadian Organizations Supporting Startups
As we mentioned, one of the most important steps in obtaining a Canadian startup visa is obtaining a letter of support from designated organizations. These organizations are divided into three categories, some of which are listed below:
- Business Incubators
| Innovation Cluster – Peterborough and the Kawarthas | Red Leaf Capital Corp | Innovation Factory | Roseview Global Incubator | Interactive Niagara Media Cluster o/a Innovate Niagara |
| Spark Commercialization and Innovation Centre | Intrinsic Innovations | Spring Activator | Invest Nova Scotia | The DMZ |
| ISM Arts & Culture Ltd | Think8 Global Institute | Knowledge Park o/a Planet Hatch | TiE Toronto | Global Startups Accelerator |
| Toronto Business Development Centre (TBDC) | Launch Academy – Vancouver | Treefrog | LaunchPad PEI Inc. | TSRV Canada Inc. (Techstars Canada) |
| Millworks Centre for Entrepreneurship | University of Toronto Entrepreneurship Hatchery | NEXT Canada | ventureLAB Innovation Centre | Niagara Business & Innovation Fund |
| VIATEC | North Forge Technology Exchange | Waterloo Accelerator Centre | Pacific Technology Ventures | York Entrepreneurship Development Institute |
| Platform Calgary | YSpace (York University) | Alacrity Foundation | Altitude Accelerator | Bhive |
| Alberta Agriculture and Forestry | Biomedical Commercialization Canada Inc. (Manitoba Technology Accelerator) | Alberta IoT Association | DMZ Ventures | Brilliant Catalyst |
| Empowered Startups Ltd. | Extreme Innovations | Foresight Cleantech Accelerator Centre | Genesis | Innovate Calgary |
| Global Startups Accelerator | Highline BETA Inc. | Innovate Eastman |
- Angel Investor Groups
| Canadian International Angel Investors | Ekagrata Inc |
| Golden Triangle Angel Network | Keiretsu Forum Canada |
| VANTEC Angel Network Inc | York Angel Investors Inc |
- Venture Capital Funds
| 7 Gate Ventures | Red Leaf Capital Corp | Alt Ventures | Relay Ventures |
| Amplitude Ventures Inc. | Tangentia Ventures | York Entrepreneurship Development Institute (YEDI) VC Fund | Top Renergy Inc. |
| Apex Innovative Investments Ventures | Vanedge Capital Limited Partnership | Arete Pacific Tech Ventures (VCC) Corp | Version One Ventures |
| BCF Ventures | WhiteHaven Venture | BDC Venture Capital | Westcap Management Ltd. |
| Extreme Venture Partners LLP | Yaletown Venture Partners Inc. | Golden Venture Partners Fund, LP | Invest Nova Scotia |
| INP Capital | PRIVEQ Capital Funds | iNovia Capital Inc. | Real Ventures |
| Intrinsic Venture Capital | Lumira Ventures |
What is a Support Letter in a Startup?
In response to the question of what a support letter or Letter of Support is, it should be stated that one of the most important documents for the Canada Startup Visa application is the support letter. The support letter is issued by designated organizations specified by the Immigration Department.
In the Canada startup visa support letter, all details of the business plan, the details of support from the designated organizations, and the commitments of the parties intending to support startups are presented.
Sample Business Plan for Canada Startup
Applicants for the Canada Startup Visa must first define their business plan. This business plan must be innovative, scalable in Canada, and profitable within the country. A suitable business plan for the Canada Startup Visa must have the following components:
- Executive Summary
- Company Description
- Market Analysis
- Product or Service Line
- Marketing and Sales Strategy
- Operational Plan
- Management Team and Organizational Structure
- Financial Plan
- Risks and Challenges
- Appendices
Here is a sample business plan for Canada startup:
- Executive Summary
- Business Name: GreenTech Innovations
- Mission and Vision: Develop sustainable technologies to reduce environmental impact
- Key Goals: Achieve global market reach within the next five years, reduce household energy costs by 30%
- Product or Service Description: Produce smart energy management devices for green homes
Duration to Obtain the Canada Startup Visa
The Canadian Startup Visa process involves two main steps, making it longer than other immigration methods. As of April 2024, processing times vary:
- Standard Process:
Preparing a business plan and obtaining a letter of support takes 3 to 6 months.
Applying for permanent residency then takes 24 to 39 months. - Priority Process:
Letter of support is issued within 1 to 3 months, and permanent residency takes 9 to 12 months.
Understanding these timelines helps applicants plan their immigration journey to Canada effectively.
Restrictions and New Rules for the Canada Startup Visa
The Canada Startup Visa program saw changes in April 2024, with the Canadian immigration department introducing key restrictions. Each designated organization can now issue support letters to only 10 startup teams annually, increasing the visa cost.
However, this change enables better focus and oversight on startups. Additionally, new regulations allow applicants to expedite the process to permanent residency by obtaining support letters from prioritized organizations, cutting processing time by up to 50-67%.
Successful Startups in Canada
In this section of the article on the Canada startup visa, we will examine the list of successful startups in Canada in recent years;
- Wealthsimple
This company provides digital investment services and financial planning to applicants. The company has raised approximately CAD 1.1 billion.
- Shopify
This e-commerce platform provides comprehensive tools for launching and managing online stores.
- Ritual
This startup allows users to pre-order food from restaurants and cafes, simplifying the food pickup process, and has raised a total of CAD 134.8 million.
- League
This platform allows employees to manage their health and wellness programs. It has raised about CAD 171 million so far.
Dependent Visa for Startup in Canada and Family Immigration
As mentioned, the Canada startup visa is a permanent residency program, and the applicant can apply for permanent residency in Canada for themselves and their companions from the beginning. Married individuals can obtain their visa simultaneously through startup immigration. The spouse and children under the age of 22 are included in the applicant’s file. The spouse of the applicant can receive a work permit to work full-time in Canada, and the applicant’s children can benefit from free education in Canada.
Obtaining Permanent Residence through the Canada Startup Visa
Individuals intending to immigrate through the Canada Startup Visa can directly apply for permanent residency in Canada. After receiving the support letter or LOS, to apply for permanent residency, the applicant must prepare all their documents and those of their companions and submit them along with their business documents. After the documents are reviewed by the immigration office, the applicant and their companions receive the Canada startup visa, and after living in Canada for 3 years, they can apply for a Canadian passport.
Reasons for Rejection of the Canada Startup Visa
The Canada startup visa is one of the country’s permanent residency programs, and if the applicant’s documents are presented correctly, the chance of success is very high. Some of the main reasons for rejection of the Canada startup visa include the following;
- Defects in the applicant’s or his/her companions’ documents
- Failure to provide the required language certificate
- Having a criminal record
- Failure to provide the required financial means letters
- Failure to commit to establishing a business in Canada
Frequently Asked Questions about the Canada Startup Visa
- How long does it take to obtain the Canada Startup Visa?
Considering recent changes, the Canada Startup Visa application process takes 2 to 3 years without priority and 1 to 2 years with priority.
- What are the steps for the Canada Startup Visa?
Applicants for the Canada startup visa must go through several steps. The steps for the Canada startup visa are described as follows:
- Who is not suitable for the Canada Startup Visa?
Individuals with less than a high school diploma, those unable to provide language credentials, individuals lacking the necessary financial capacity for this program, and those with a criminal record, etc.
- What is the success rate of the Canada Startup Visa?
If the applicant’s conditions are appropriate, it is considered one of the less risky immigration programs.
- Is a support letter required for the Canada Startup Program?
Yes! One of the most important documents required for the visa application is the support letter.
- How many teams can utilize one startup program to immigrate to Canada?
Startup teams can range from 1 to 5 people.
- If the applicant’s conditions are suitable, it is considered one of the less risky immigration programs.
If the applicant’s conditions are suitable, it is considered one of the less risky immigration programs.
- Is it possible for the family members of the applicant for the startup visa to immigrate?
Yes! The family visa application is simultaneous, and the spouse and children under 22 years of age are included in the applicant’s case.
- Do applicants need to establish a startup after immigration?
Those who receive permanent residency are not obligated to do so, although our recommendation is that given the support received from Canadian organizations, applicants establish their startups in Canada.
- What will happen to the applicant’s residency status in Canada if the startup does not materialize or fails?
Once an applicant enters Canada with permanent residency, the outcome of the startup will not affect their residency status.
- What are the differences between the organizations approved by immigration officials?
Angel and venture organizations provide financial support to startups.
- What conditions must an applicant meet to obtain a startup visa in Canada?
To apply for the Canada startup visa, an applicant must have an innovative business plan, an IELTS score of 5, and also provide the necessary financial capacity.
Conclusion:
The Canada Startup Visa is one of the best ways to immigrate to Canada. The Canadian startup immigration method directly leads to obtaining permanent residency in this country. Having a strong business plan, necessary financial capacity, obtaining a support letter from an organization in Canada, having at least an IELTS score of 5, etc., are among the conditions for the Canada Startup Visa. The cost of the Canada startup visa is CAD 2,385 for the primary applicant, CAD 1,525 for the spouse, and CAD 260 for each dependent child.
You can contact the consultants at Malekpour Migration Institute for precise information regarding the Canada Startup Visa and reviewing your conditions.
