If you aspire to move to Canada as a businessperson with no capital. Then, you can fulfill your dream by going through startup visa of Canada. The Canadian government gives permanent residence to talented entrepreneurs. You can include your family members and four business partners in your residency (PR) application.
However, you must have a practical business plan, which can create employment opportunities in Canada. But the good thing is that you don’t have to worry about capital or investment. Because there is a list of designated organizations & investors that invest in innovative business ideas. Let’s dig out the steps & process of the program.
What is the Canada startup visa’s process?
The start-up program gives entrepreneurs an option to migrate to Canada to establish a new business with the support of potential investors. The program’s process is super straightforward if you understand and follow the requirements.
Candidate & Investors
For example, the first requirement you need to fulfill is to have a qualifying business. This means that a maximum of five business partners is eligible to apply for this program.
In that case, they have to have ten percent voting rights each on a business plan they are preparing for the startup visa program. Unlike if you are an individual entrepreneur. Then don’t stick with the qualifying business definition.
Now, the next step is to get a letter of support from the designated institutions. The immigration department has divided the designated institutions into three categories. So, those are;
- Venture Capital Funds (21 companies)
- Angel Investor Group (09 Companies)
- Business Incubators (33 companies)
These organizations have a group of investors or companies who invest in innovative business ideas. In return, those investors take some amount of ‘’shares’’ from your business profit. Hence, Venture capital is a group of 21 investment companies. To learn the taking part companies’ name & investment threshold, see image 01.
Similarly, Angel investors comprise 9 companies. To know how much maximum investment, you can get to see image 02. Angel investors are most likely medium & smaller companies investing in new businesses.
And they own a major portion of the proposed business. Which means most of the business profit goes to them. By the same token, the Business Incubators group is working with 33 companies. Unlike two other groups, the incubator approves small-scale business.
So, there is no investment threshold set for this group. They’re going to provide office location, staff, and all you need to run a new business. As a result, they’re going to own a lot of shares in your company.
Investment & share for startup program
Henceforth, the amount of investment depends upon your business idea. In short, you are going to get an investment to run a business in Canada. So obviously you will share your profit with the investor.
Letter of support from designated investor groups.
Hence, all you have to do is that you have to convince them to invest in your business plan. Because to apply for the startup program, your business idea or venture must get the support of one or more. You need to take part in the management of the proposed business.
Unlike, you cannot just have an idea to get support for a Canadian permanent residency. It doesn’t work that way. Besides, when you’ll get your permanent residency then you have to be an integral part of the business.
Effective Business Plan
Submit a comprehensive business plan to Canadian investors. Otherwise, a simple and ordinary business idea will not work. So, come up with an innovative and integrated business plan. Your business plan must create employment opportunities in Canada. Also, it could compete on a global scale.
Temporary work permit option under the startup visa program
In case, you want to go to Canada for setting up your new business while your PR application is under process. Then, you also have an option to apply for a temporary work permit, which usually issues for two years.
The temporary work permit enables the candidates to go to Canada to accomplish their pre-business arrangements. So, this how the startup visa of Canada works. Although, for completing the visa process, fulfill some other requirements as well.
Language Requirements for Canada startup visa
The language requirement for this program is really low. All you need is CLB 5, which is too easy. The Canadian government requires that if you want to run a business in Canada. Then, be able to communicate in English. It doesn’t mean that you need to be proficient in English all you need is an average proficiency.
Proof of funds for Startup visa of Canada
Once you get a letter of support from one of the designated organizations. Then you will launch your permanent residency application. And that is a paper based application but later you can link it to your online account. In this view, you need to show the proof of funds as well.
Because you would need to establish. That you can bear your all expenses until you generate the income from your new business in Canada. For more details, see the program’s website. Prepare all supporting documents and need to pay the application fee as well. Finally, you need to mail your application package along with all supporting documents to Canadian immigration.
Processing time for Startup Visa
So, it depends on your efforts how long you convince an investor and get a letter of support. Usually, under the startup program, the Canadian permanent residency application process takes 12 to 16 months. Meanwhile, you can apply for a work permit visa to move to Canada for setting up your new company or a business.
What type of business I can do in Canada?
There is no limit or restriction on doing a legitimate business in Canada. However, as a foreigner, you are looking for an investment for your startup. Therefore, do extensive research on the Canadian market and global trends. Particularly before pitching a business plan in front of a designated organization.
You should go through their websites to scope out their business and investment strategies. Even, you’re your proposed business plan is for large, medium, or smaller-scale businesses either.