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Starting a Start-up in Canada

Canada is becoming a global leader in high-tech innovation and entrepreneurship. Report after report has ranked Toronto, Waterloo, and Vancouver among the world’s most up-and-coming tech hubs. Canada and its leading cities have seen a substantial rise in their venture capital investments. Overall, Canada ranks fifth among countries in the number of venture capital deals and sixth in venture capital investment, trailing only the United States, India, China, Britain, and Germany.

A dozen or so of Canada’s cities make the list of the world’s 300-plus startup hubs. The largest three – Toronto, Montreal, and Vancouver – rank among the world’s 62 leading global startup hubs. In light of this, the Canadian government has a Start-up Visa Program which is aimed at providing an initiative to entrepreneurs and innovators to choose Canada as their home.

Based on growth, performance, funding, and exit values, Canada is ranked the 25th best startup ecosystem in the world. In fact, outside of Silicon Valley, Waterloo has the highest startup density of any area in the world. And with a combination of economic freedom, low startup costs, government funding, accessible business tools, and plenty of talent, Canada is one of the best places to launch your new venture.

Here are some of the conditions that allow these businesses to grow and achieve success:

 

 

 

 

Canada’s Startup Visa program is designed to attract dynamic entrepreneurs around the world, get them into Canada, and give them the support they need (including funding) to build businesses that can compete on a global scale and provide jobs for Canadians.

Entrepreneurs who qualify for the Startup Visa program will be fast-tracked; the goal is to clear successful applicants for entry into Canada within weeks. And the Canadian Entrepreneur Visa grants permanent resident status which can then lead to citizenship.

Step 1: Convincing one of the designated Canadian venture capital fund, angel investor group or business incubator that your business idea is worth investing in:

It’s a good idea to spend some time researching the different groups on the list as different venture capital funds, business incubators and angel investor groups have different objectives and often prefer to invest in specific types of businesses. If the investor, business incubator or angel investor group decides to support your business idea, they will provide you with a letter of support and send a completed Commitment Certificate directly to Immigration, Refugees and Citizenship Canada (IRCC). The Commitment Certificate provides the relevant details of the commitment between you and the investment organization. Once you have your letter of support, you will be ready to apply for a Startup Visa.

You must secure a minimum investment of $200,000 if the investment comes from a designated Canadian venture capital fund and/or a minimum investment of $75,000 if the investment comes from a designated Canadian angel investor group. If you are accepted into a Canadian business incubator program, you don’t need to secure an investment in your new business.

Step 2: Meet the language requirements:

You must be able to communicate and work in English, French or both. Note that you must provide Immigration, Refugees and Citizenship Canada proof of your language proficiency. This means that you must take a language test from an agency approved by Immigration Refugees and Citizenship Canada (IRCC) and meet the minimum level of the Canadian Language Benchmark.

Step 3: Prove that your business meets the ownership requirements:

While up to five people can be the owners of a single business when you apply for a Canadian entrepreneur visa:

Step 4: Have sufficient settlement funds:

This means that you have to be able to prove that you have enough money to support yourself and your family after you come to Canada, as the Canadian government does not provide any financial support to Start-up Visa immigrants. The amount of money you have to have set aside to support your family depends on the size of your family.

Be aware that when you come to Canada you must tell a Canadian official when you arrive if you are carrying more than CAN $10,000. If you are and you don’t tell an official, you can be fined and your funds seized.

The Canadian government understands the risks of starting a new business, thus, if the business fails, the permanent resident status would not be revoked. To learn about the process of applying for this visa, please visit the CIC website or contact us for a FREE consultation.