Immigration to Canada through Startup

Immigrating to Canada through Startups: Opportunities and Conditions

Immigrating to Canada through startups is an exciting path for entrepreneurs seeking to establish innovative, growth-oriented companies that create jobs. The Canada Startup Visa is designed to attract startups and compete with other countries in this field. In this article, we explore the conditions and advantages of immigrating to Canada through startups.

Canada Startup Visa

The Canada Startup Visa, established to attract entrepreneurs with the potential to launch innovative companies and create jobs, is implemented by government-approved organizations. Through this program, immigrants can migrate to Canada to start their own startups.

Vision of the Canada Startup Visa

The primary goal of the Canada Startup Visa is to create a platform similar to Silicon Valley in the United States, attracting top entrepreneurs worldwide to Canada. By establishing this platform, the program aims to make Canada a prominent destination for entrepreneurs and startups.

Conditions for Canada Startup Visa Applicants

To be eligible for the Canada Startup Visa program, you must meet the following conditions:

1. IELTS Score of 5: To participate in the program, you must have a minimum IELTS score of 5 in English proficiency.
2. Receive Support Letter: To initiate the immigration process, you must obtain a support letter from one of the government-approved organizations willing to collaborate on your project’s investment.
3. Minimum One Year of University Education: For immigration to Canada through startups, you need to have at least one year of university education.
4. Clean Background and Medical Fitness: To enter Canada, you must not have a criminal record or medical issues that would hinder your entry.
5. Financial Capability: To immigrate to Canada through the Startup Visa, you must have the financial means to support yourself and your family for six months.

Conditions for Registering a Company in the Startup Program

To register your company in the Canada Startup Visa program, you must adhere to the following conditions:

1. Establishment and Operations in Canada: The intended company must be established and operate in Canada.
2. Minimum 10% Voting Rights: You must hold a minimum of 10% of the voting rights in the company.
3. Limitation on Voting Rights: No other individual can have more than 50% of the voting rights in the company.
Steps for Immigration to Canada through Startup Visa

To immigrate to Canada through the Startup Visa, you need to follow the following steps:

1. Prepare Your Idea or Business:
– Begin by preparing your business idea and writing a business plan. Find a suitable supporting organization to back you.

2. Receive Support Letter:
– After reaching an agreement with the supporting organization, obtain a support letter. This letter, along with a commitment letter from the supporting organization, will be sent to the Canadian immigration authorities.

3. Submit Visa Application:
– After receiving the support letter, prepare the necessary documents and submit your Startup Visa and work visa application to the Canadian immigration office.

4. Visa Application Review:
– Typically, the visa application response takes a few months. It’s important to note that your permanent residence file is also being processed during this time, and you are under the supervision of the immigration authorities.

5. Project Evaluation:
– In some cases, the immigration authorities may decide to evaluate your project. At this stage, one of the approved organizations gathers information related to your project and presents the results of the evaluation to the immigration authorities.

6. Receive Permanent Residence:
– After completing the above steps and having your file confirmed, you can receive your permanent residence. At this stage, you are no longer responsible for the project.

Supporting Organizations in the Canada Startup Visa Program

In the Canada Startup Visa program, there are important supporting organizations that can assist you in the immigration and startup launching process. The most important supporting organizations in this program include:

– Venture Capitals (VCs): These organizations are interested in larger projects that have already undergone initial growth. They are particularly interested in projects with the potential to generate millions of dollars.

– Angel Investors: These are individual or medium-sized company investors who accept projects under conditions that contribute to their growth. They offer substantial amounts in exchange for a percentage of the company’s shares.

– Incubators: These centers do not provide funds to startups but offer information and resources needed for starting and growing a business. They typically provide guidance in startup growth and offer training on capital-raising strategies. Additionally, mentoring and supervision are emphasized in incubators.

Work Permit for Canada Startup Visa

The work permit or startup visa work permit in Canada allows you to operate your business as an entrepreneur in the country. This new work permit, introduced in 2023, is valid for three years and allows you to work in Canada until your permanent residence application is under review. Permanent residence applications are usually processed within a year.

During the permanent residence application, your spouse and dependent children can simultaneously apply for accompanying visas. If granted, this allows them to join you in Canada.

Peer Review Process for Supporting Organizations

The immigration authorities in Canada conduct a peer review process to control the quality of work by supporting organizations. This involves organizations such as NACO and CVCA that oversee the work of angel investors and venture capitalists, respectively.

The peer review process aims to:
– Assess the quality of the business plan and support letter between the investor and entrepreneur.
– Ensure the startup is registered in Canada.
– Review the compliance with the share structure.
– Ensure the startup focuses on ideas with rapid growth potential.
– Confirm participation in incubator programs, especially for incubator support letters.
– Protect intellectual property ownership of the business.

Accompanying Visa for Permanent Residence in Canada

During the application for permanent residence in Canada, your spouse and dependent children can simultaneously apply for accompanying visas. This allows them to apply for permanent residence at the same time.

Important Note:
It’s crucial to emphasize that immigrating to Canada for startup purposes requires the actual launch of a startup. If you’ve obtained a work visa, the startup must be operational. The Canadian immigration authorities review the progress of your startup during your stay with a work visa, and if the startup is only launched for the purpose of obtaining permanent residence, it may pose a risk to your permanent residence status.

Lastly, when applying for a Startup Visa work permit, it is recommended to proceed carefully and seek advice from specialized immigration lawyers. Keep in mind that the capacity for the Canada Startup Visa program is limited, so choosing a suitable and market-demanding idea is essential.