Canada's start-up visa program

The Start-Up Visa program offers permanent residency to immigrant entrepreneurs, helping them establish their businesses in Canada. This initiative is designed to encourage innovative entrepreneurs to develop their companies while connecting them with Canadian private sector organizations that can provide funding, guidance, and expertise.

Eligibility Criteria

The primary aim of this program is to attract creative foreign entrepreneurs who can create jobs and stimulate economic growth in Canada. To qualify for the Start-Up Visa, applicants must fulfill several criteria:

• Achieve minimum language proficiency in English or French (CLB 5 across all abilities).

• Demonstrate adequate financial resources to settle in Canada.

• Plan to reside in a province outside of Quebec.

• Successfully pass Canadian security and medical screenings.

• Provide proof that their business is supported by a designated organization.

• Meet the ownership criteria for their business.

Importantly, no more than five foreign nationals can apply for permanent residence through a single business venture within this program.

Investment Requirements

Immigration, Refugees and Citizenship Canada (IRCC) has appointed several venture capital funds, angel investor groups, and business incubators to participate in the Start-Up Visa program.

Successful applicants must secure a minimum investment for their Canadian start-up. If the funding is from a designated Canadian venture capital fund, it must be at least CAD $200,000. If it's from an angel investor group, the investment must be at least CAD $75,000.

While securing investment from a business incubator is not necessary, applicants must be accepted into a Canadian incubator program. Importantly, applicants do not need to invest personal funds, and if their start-up fails, they retain their permanent residency status.

Proof of Support

To confirm support from a venture capital fund, angel investor group, or business incubator, the respective organization must submit a Commitment Certificate directly to IRCC. This document outlines the agreement between the applicant and the investment organization, detailing the commitment terms.

Applicants will also receive a letter of support from the investment organization, which is required for their permanent residence application. If multiple applicants are involved in a single business venture, the investment organization’s commitment can be conditional on one or more "essential persons" obtaining their permanent residency. An essential person is specifically identified by the investment organization as crucial to the business; if their application is denied, all related applications tied to that Commitment Certificate may also be refused.

Support from Multiple Organizations

Applicants can receive backing from several designated organizations, known as syndication. In this case, all participating entities must be disclosed. The designated organizations will collectively provide IRCC with one Commitment Certificate, and the applicant(s) will receive a single Letter of Support.

If a designated venture capital firm invests in a business, the minimum total investment requirement is CAD $200,000, even if an angel group also invests. Conversely, if the business is backed by at least one designated angel group but no venture capital groups, the minimum total investment required drops to CAD $75,000.

Peer Review Process

To prevent fraud, a peer review process is integrated into the program. This process ensures that agreements between investment organizations and foreign entrepreneurs are legitimate. An immigration officer may request an independent assessment of the commitment by a peer review panel, which is established by an industry association relevant to the type of investment organization involved.

For instance, if the commitment is made by an angel investor group, the National Angel Capital Organization would oversee the peer review panel. If the investment organization is a venture capital fund, the Canada Venture Capital and Private Equity Association would take charge. While this review is not mandatory, it can be requested by an immigration officer if deemed helpful in their decision-making.

The peer review evaluates the due diligence performed by the designated organization, ensuring that:

• The business has been or will be incorporated in Canada.

• Business ownership is verified and meets program standards.

• The viability of the proposed business model has been assessed, including the management team and ownership of intellectual property.

• The business focuses on high-growth potential products or services.

• For incubator applicants, acceptance into an incubator program is validated.