Start-up Visa Program

Canada’s Start-up Visa for Innovative & Scalable Businesses

Entrepreneurs with an innovative business idea and ability to get a letter of support from a Canadian venture capital fund, angel investor group or business incubator can immigrate to Canada. The goal of Canada’s Start-up Visa Program is to build innovative businesses in Canada that can create jobs for Canadians and compete on a global scale. 

Start-up Visa Program (SUV) is intended to attract foreign entrepreneurs who wish to establish new, high-growth businesses in Canada that will support innovation and job creation.

SUV Program allows entrepreneurs or teams (up to 5) to immigrate to Canada to build an innovative business with the potential to create jobs and compete globally. It generally exists for innovative companies in any industry of operation. There is no minimum investment amount that the applicants themselves must make. The Canadian Start-up Visa designated organization must validate a business idea before participants can apply for a work permit and permanent residence. Getting a Letter of Support and Commitment Certificate from the designated organization is a pre-condition in the startup visa process, requires preparation, including a thorough business plan.

Start-up Visa Program Requirements

• A Designated Organization must support a start-up and provide a Letter of Support and Commitment Certificate. Venture capital funds, angel investor groups or business incubators are considered designated organizations under a start-up visa program. These organizations are business groups that have approval for investing in start-ups. If such an organization decides to support a start-up, it will give a Letter of Support. 
• A start-up business must meet ownership conditions. Up to 5 people can apply as owners of a single business for a Start-up Visa Program. They must meet certain criteria: 1) Each owner must hold a minimum of 10 percent of the voting rights in the business. 2) The designated organization and the applicants must together hold more than 50 percent of the voting rights in the business. Voting rights are attached to each share of a business that is outstanding at a given time.‍
• Start-up entrepreneurs must meet language level. The ability to communicate in any of both official languages in Canada is a must if you want to have a successful business. It is necessary to meet the minimum point of the Canadian Language Benchmark 5 in speaking, reading, listening and writing in either French or English.
• Start-up entrepreneurs must have enough money for basic needs. New start-up visa immigrants must demonstrate sufficient money to maintain life in Canada. The amount needed depends on the size of a family.

Start-up Visa Program Process

Start-up Visa Program is intended to attract foreign entrepreneurs who wish to establish new, high-growth businesses in Canada, that will support innovation and job creation. With that policy in mind, the Government of Canada created a three-stage process.

1. Apply to the designated organization.
   • Purpose: Attract foreign entrepreneurs who wish to establish new, high-growth businesses in Canada, that will support innovation and job creation.
   • Timeline: On average, 1 to 6 months.
   • Outcome: Letter of Support and Commitment Certificate from the designated organization.
2. Apply for Canadian Permanent Residence under Start-up Visa Business Class.
   • Purpose: Allow foreign entrepreneurs to immigrate to Canada permanently to establish an innovative business for which they received support from the designated organization.
   • IRCC processing time: 37 months.‍
   • Outcome: Canadian PR for the entrepreneurs and their accompanying spouses and children
3. Apply for a Work Permit for a Start-up Visa Entrepreneur.
   • Purpose: Allow foreign entrepreneurs with a Letter of Support from the designated organization to come to Canada before their application for permanent residence is finalized by the visa office.‍
   • IRCC processing time: 2 weeks under Global Skills Strategy.‍
   • Outcome: Early admission to start establishing a business or participate in the incubation program. For example, setting up a business, registering for all permits, getting approvals as required, etc.

SUV Program Designated Organizations

Venture Capital Funds

If a Venture Capital Fund supports a start-up, it must agree to invest a minimum of $200,000. List of Canadian designated Venture Capital Funds approved for the Start-up Visa Program:

• ‍7 Gate Ventures‍
• Arete Pacific Tech Ventures (VCC) Corp‍
• BCF Ventures‍
• BDC Venture Capital‍
• Celtic House Venture Partners
• Extreme Venture Partners LLP‍
• Golden Venture Partners Fund, LP‍
• iNovia Capital Inc.‍
• Intrinsic Venture Capital‍
• Lumira Capital‍
• Nova Scotia Innovation Corporation (o/a Innovacorp)‍
• PRIVEQ Capital Funds‍
• Real Ventures‍
• Relay Ventures‍
• ScaleUp Venture Partners, Inc.‍
• Top Renergy Inc.‍
• Vanedge Capital Limited Partnership‍
• Version One Ventures‍
• Westcap Management Ltd.‍
• Yaletown Venture Partners Inc.‍
• York Entrepreneurship Development Institute (YEDI) VC Fund

Angel Investor Groups

If an Angel Investor Group supports a start-up, it must agree to invest a minimum of $75,000.

• ‍Canadian International Angel Investors‍
• Ekagrata Inc.‍
• Golden Triangle Angel Network‍
• Keiretsu Forum Canada‍
• Oak Mason Investments Inc.‍
• Southeastern Ontario Angel Network‍
• TenX Angel Investors Inc.‍
• VANTEC Angel Network Inc.‍
• York Angel Investors Inc.

Canada Startup Visa Business Incubators

If a Business Incubator supports a start-up, it must accept it to one of these programs:

• ‍Alacrity Foundation‍
• Alberta Agriculture and Forestry: Agrivalue Processing Business Incubator; Food Processing Development Centre‍
• Biomedical Commercialization Canada Inc. (operating as Manitoba Technology Accelerator)‍
• Creative Destruction Lab‍
• Empowered Startups Ltd.‍
• Extreme Innovations‍
• Genesis Centre‍
• Highline BETA Inc.‍
• Innovacorp‍
• Innovation Cluster - Peterborough and the Kawarthas‍
• Interactive Niagara Media Cluster o/a Innovate Niagara‍
• Invest Ottawa‍
• Knowledge Park o/a Planet Hatch‍
• LatAm Startups‍
• Launch Academy - Vancouver‍
• LaunchPad PEI Inc.‍
• Millworks Centre for Entrepreneurship‍
• NEXT Canada‍
• North Forge East Ltd.‍
• North Forge Technology Exchange‍
• Platform Calgary
• Pycap Inc (o/a Pycap Venture Partners)‍
• Real Investment Fund III L.P. o/a FounderFuel‍
• Ryerson Futures Inc.‍
• Spark Commercialization and Innovation Centre‍
• Spring Activator‍
• The DMZ at Ryerson University‍
• Toronto Business Development Centre (TBDC)‍
• TSRV Canada Inc. (operating as Techstars Canada)‍
• University of Toronto Entrepreneurship Hatchery‍
• VIATEC‍
• Waterloo Accelerator Centre‍
• York Entrepreneurship Development Institute

Commitment Certificate - Letter of Support for Canadian Start-up Visa Program

A Letter of Support is a document given to the applicant by one of the designated organizations that decided to support an innovative business. An applicant must include a Letter of Support with their application for permanent residence under the Start-up Visa Program.

A Letter of Support can be issued by an angel investor group, venture capital fund, or business incubator. This is one of the requirements. As up to five entrepreneurs can apply under the same commitment, the designated entity must provide a Letter of Support specific to each individual applying for permanent residence.

Letter of Support contains information about the designated entity, Commitment Certificate's validity period (6 months), applicant, and team members.

What is the Difference Between a Commitment Certificate and a Letter of Support?

The designated organization must complete only one Commitment Certificate for the entrepreneurial team (up to 5), and provide a Letter of Support to each member of the team.

Start-Up Business Class Commitment Certificate will contain information about:

• Designated Entity
• Applicant
• Members of the Entrepreneur Team
• Business
• Business Structure
• Background Information
• Work Permit for Essential Applicant(s)

The designated entity will only provide a Letter of Support to the applicant, while it will send a Commitment Certificate directly to IRCC [Immigration Refugees and Citizenship Canada]. Commitment Certificate is valid for 6 months, during which time an applicant must apply for permanent residence and work permit (where applicable).

Start-up Visa Benefits and Advantages over Some Other Canada Business Immigration Programs

• Direct path to Canada PR [Permanent Residency] for up to five applicants for one innovative business venture.
• Startup Visa applicant can work in Canada towards launching an innovative business while a permanent residence application is in process (Temporary Work Permit for Start-Up Visa Applicant)
• Access to support from reputable Canadian angel investors, venture capital funds, and business incubators (Canada Startup Visa Designated Organizations).
• Startup Visa applicants are not required to invest their own funds in a business venture, nor to meet any minimum net worth requirement.
• Canada Startup Visa is a federal business immigration program, and therefore, an applicant can select a location/province to work and live.
• Startup Visa applicant can bring a spouse and children to Canada.
• If a business venture is not successful at the end of the day, applicants can keep Canada PR.

Where is the "challenge" in the Start-up Visa process?

The key requirement is to receive support from one of Canada's Start-up Visa designated organizations. This process involves applying to the government-approved angel investors, venture capital funds, or business incubators.

Prospective business immigrants under Start-up Visa Business Class will have to pitch their innovative idea and prepare a business plan for consideration to the selected designated organizations. Each organization has its own requirements and may prioritize innovations in certain industry sectors. At Lerom Law, we have taken the time to compile a Business Idea for Startup Visa Questions designed to help entrepreneurs refine their business idea and answer the questions that may arise in the application process for a Letter of Support to the designated organizations.

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Call us at +1-416-915-0808 or email us at info@leromlaw.com for additional information you need to begin the process.