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Canada Startup Visa Program – Get All Details Here

A Canada Start-Up Visa program is the gateway for immigrant entrepreneurs to establish a business in Canada. This program specially encourages foreign entrepreneurs to start a new business or start-up in Canada. The most attractive feature of this program is it offers permanent residency status to an entrepreneur whether the business is successful or unsuccessful.

The strategic location, skilled workforce, entrepreneur-friendly government, tax incentives, and natural resources of Canada, makes it an ideal location for startups or businesses.

Are you planning to start a business in Canada? Then this article will help you to know about the startup visa program, the qualifying factors, and the steps to start a business in Canada.

Canada Start-up Visa Program

Canada’s start-up visa program offers an opportunity for foreign entrepreneurs to establish a new business in Canada. Under this program, an investor will get permanent resident status and continue operating their startup.

The main goal of the Government of Canada to have such a program is to ensure the country’s economic growth and new job creation for Canadian residents.

Qualifying Factors for the Start-up Visa

An entrepreneur who wants to apply for the Canada start-up visa must meet the 4 eligibility criteria mentioned below:

  1. Have a qualifying business

The applicant for the Canada startup visa program must have to create a business in Canada. Each applicant must hold at least 10% of the voting rights associated with the business shares. A maximum of 5 applicants can apply together as owners, but they must possess at least 50% of voting rights.

If you want to get permanent residence through the startup program, then you need to ensure that the business becomes incorporated within Canada.

  1. Possess a valid letter from a designated organization

To qualify for a startup business, a foreign entrepreneur must hold a valid letter of support from a designated organization. This letter is proof that they will support the investor’s business idea.

There are mainly three types of designated organizations:

  • Angel investor group
  • Venture capital funds
  • Business incubators

Note: A valid letter from a designated organization is valid for six months from the issue date.

  1. Prove the minimum language requirements

A foreign investor must need to demonstrate proficiency in one of the official Canadian languages (English or French) for a startup visa program application. An applicant has to score a minimum of Canadian Language Benchmark (CLB) level 5 or Niveaux de Compétence Linguistique Canadiens (NCLC) 5 in speaking, listening, reading, and writing in English or French from an IRCC agency.

  1. Proof of funds

At the time of startup visa program application, an applicant must demonstrate sufficient funds to settle themselves and their family in Canada, as the Government of Canada does not offer any financial support to an investor.

Depending on family size required funds are listed below:

Number of                                                                                                             Funds required

family members                                                                                                 (in Canadian dollars)

1                                                                                                                                  $13,310

2                                                                                                                                  $16,570

3                                                                                                                                  $20,371

4                                                                                                                                  $24,733

5                                                                                                                                  $28,052

6                                                                                                                                  $31,638

7                                                                                                                                  $35,224

For each additional family member                                                                              $3,586


What are the steps to start a business in Canada?

Before starting a business in Canada, an entrepreneur needs to know how to start a business in Canada. Here we have listed the step-by-step process:

  1. Develop a business idea

This is the primary step to start any business anywhere. Based on gaps in the market, target audience, and competitor of your product, you need to develop a business plan and unique selling point.

  1. Register business name

Once you plan the business idea, the next step is naming it and registering it at a government agency. The name of the business should be unique. During registration, you need to provide the business name, about business, proper address, and type of business.

  1. Licenses and permits

According to your business type, you need to obtain some licenses and permits.

  1. Choose business structure

Choosing a business structure is the most important part of starting a business. A few different types of business structures are sole proprietorship, partnership, corporation, and cooperative. Before choosing a business idea, do research on it and choose the best that would suit your business needs.

  1. Register for Taxes

Registering for taxes is the most important part of starting a business. You need to obtain a business number from the Canada Revenue Agency (CRA), registering for Goods and Services Tax (GST) and Harmonized Sales Tax (HST).

  1. Setting up Finances

This step is the backbone of a business. When you complete the above steps, you have to open a business bank account, credit card for business expenses and set up an accounting system. For payrolls and other accounting solutions, you can consult a CPA.

  1. Hiring Employees

As per your business type, you have to hire employees.  Employees are responsible for your business growth.

Final Word

The start-up visa program is a great opportunity for a foreign entrepreneur to start a business in Canada. This program offers some benefits, such as permanent residency, faster processing time, and business incubation services.

For complete guidance on every step of the startup visa program application, we ensure you a successful visa approval process in Canada. Take the first step to fulfill your dream of setting up a business in Canada by contacting VisaSpot Immigration, for proper guidance on how to go about applying for the start-up visa program.

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