Navigating Canada Startup Visa - Your Step-by-step Guide

The Startup Visa Program is your gateway to chase the Canadian dream for budding entrepreneurs, especially for those over 34 years old with an average English language. However, the Startup Visa pathway needs a detailed business model to thrive and pass the immigration requirements to ensure a seamless visa application process.

The Start-up Visa program has seen evolving dynamics in recent times. With this in mind, how can immigration consultants fine-tune their client identification process to maximize the chances of visa approval? That’s what this article will delve into.

What is the Canada Startup Visa Program?

Starting as an experimental program in 2013, the Visa Program has helped several foreign entrepreneurs to shift their base of operations to Canada, and the number of immigrants keeps expanding every year.

In 2017, the program was deemed a permanent alternative for foreign business owners keen on moving to Canada.

As the Canadian economy keeps growing (due to government and private support), the Start-up Visa Program is one of the many migration programs established to let gifted and talented individuals call Canada their new home.

The Start-up Visa Program is ideal for business founders with an existing business plan. To qualify for the Start-up Visa Program, candidates are required to set up their businesses and get investment commitments from a designated authority (in this case, the Canadian business investor or hatchery).

The Evolution of Canada’s Startup Visa

The Start-Up Visa (SUV) entrepreneur immigration program expanded its popularity last year, setting a new record after finally exceeding pre-pandemic levels.

Thus, the IRCC has allocated substantial planned admissions for permanent residence to Start-Up Visa applicants.

Here is an account of the startup visa program expansion over the years as recorded by the IRCC.

Year	Startup Visa Immigration Quota
2015	55 New Permanent Residents
2016	110 New Permanent Residents(23% Rise)
2018	240 New Permanent Residents
2019	515 New Permanent Residents
2020	260 New Permanent Residents(Due to the Pandemic)
2021	385 New Permnant Residents
2022	575 New Permanent Residents
2023	1,460 New Permanent Residents(154% Increase)
2024	5,000 Expected PR
2025-26	6,000 Expected PR

Ideal Destinations for Canada Startup Visa (SUV):

Ontario
British Columbia
Alberta
Manitoba
Nova Scotia

What are the requirements for a start-up visa in Canada?

Essential Client Profile for the Startup Visa Eligibility

Financial Health: The capacity to cover living costs in Canada both for themselves and their families, alongside incubator charges and the initial investment linked to the start-up, is non-negotiable.

Industry Familiarity: Clients must possess expertise that pairs well with the niche of their proposed start-up. To draw a parallel, a start-up in the health sector would gain considerably from a CFO seasoned in healthcare fiscal dynamics.

Language Proficiency: Every client should showcase a comprehensive grasp of English, reflected in a score of 5 across every segment of the IELTS examination.

Qualities that Add a Spark

Education: While not mandatory, having some form of higher education can be a big plus. A background in education can help provide a solid foundation for making informed business decisions.

Business Savvy: A history dotted with entrepreneurial experience or past business pursuits can magnify the appeal of a client’s profile.

Team Synergy: The importance of ensuring a cohesive team cannot be emphasized enough. When team members have existing connections—either as family, friends, or colleagues—it strengthens their application and chances of success. Their shared journey leans heavily on mutual trust and commitment.

Critical Guidelines Ensuring Startup Visa Success for the Business

A Valid Business for the Startup Visa

To be viewed as a qualified business, the candidates should have set up companies where the immigrating candidates own no less than 10 percent of the voting rights connected to the business’s share.

The program allows up to five applicants to apply together as co-proprietors. The candidates and their assigned organization should collectively hold more than 50 percent of their business’s total voting rights.

Candidates are responsible for making sure that the business is incorporated within the borders while being inclusive of all the essential processes in Canada through the active management of foreign entrepreneurs to get permanent residence via the Start-up Visa Program.

Investment Commitment from a Designated Organization

Unfamiliar business owners and entrepreneurs must ensure that their businesses have assured backing via a Designated Organization in Canada before applying to the Start-up Visa Program.

There are three different classes of Designated Organizations:

Designated Angel Investors
Designated Venture Investors
Designated Business incubator

A designated organization’s investment committee is conveyed to the respective authorities via a Letter of Support, which must be made a part of the candidate’s official application. The validity of the Letters of Support lasts for six months from their issue date.

Provide proof of funds to the IRCC

All interested candidates for the Start-up Visa Program are required to reveal their financial status and prove that they have enough cash reserves to support themselves.

We’ll list down the steps and requirements for the Start-up visa Program:

The Startup visa is a Permanent Residence granted to entrepreneurs who start a business venture in Canada.

To be eligible for this visa, your Canadian company must have the support of a Designated Organization.

Up to five people may apply for a start-up visa as owners of a single business. However, each applicant must be in good health and not have any contagious disease.

You must have a clean criminal background.

To keep your permanent residency status, you must physically be in Canada for at least 730 days (2 years) in five years. Failure of your business will not affect your permanent resident status.

SUV: PR & Citizenship on the Horizon

After 2 years of holding the permanent residency status, you will be eligible to apply for citizenship, if you have lived 1,095 days in Canada within the five years, and 183 days during each of three calendar years that are fully or partially within the six years right before the date you apply.

To apply for citizenship, you must also have met your personal income tax filing obligations in three tax years that are fully or partially within the five years right before the date you apply. You must take a language (French or English) test and pass an exam regarding Canadian values, history, symbols, institutions, rights, responsibilities, and privileges of citizenship.

In addition to the above requirements, you must present proof of fund that you have enough money to support yourself and your dependents.

Here is a table to demonstrate the proof of funds for each dependent.

Single Applicant	CAD$25,338
2-member family	CAD$31,544
3-member	CAD$38,780
4-member	CAD$47,084
5-member	CAD$53,402
6-member	CAD$60,228
7-member	CAD$67,055
Each Member Above 7	CAD$6,827

All the above amounts are variable and subject to government changes.

If you are not an English or French native speaker, you must take a language test from an approved agency and include the results with your application.

Additionally, please find below the following steps considering that the timelines mentioned here may vary due to holidays, other unforeseen circumstances, and any delay on the part of the applicant or applicant’s co-founders.

What is the Process to Obtain a Startup Visa in Canada?

At Woodhaven Immigration Firm, we help you immigrate to Canada, and set up, and scale your businesses in Canada with the help of the Government of Canada’s Start-up Visa Program.

The Start-up Visa Program also lets budding and talented immigrant entrepreneurs and their families apply for permanent residence status. While waiting for their permanent residence, these immigrant business owners are eligible for a short probationary work grant, permitting them to head out to Canada to start working on their businesses.

That’s why Woodhaven Immigration has cut your migration route short with a step-by-step SUV process mini guide as demonstrated below.

Step 1:

Consultation with our team

The Startup Visa Program is best executed in teams. The goal of this client assessment interview is to explore if the Applicant is a good fit for the Start-Up Visa Program.

Step 2:
Receive Program Acceptance Letter

If the applicant is accepted in the Startup Visa Program, then the applicant is issued a Program Acceptance Letter from the designated organization and a request to complete formalities 2 weeks before the cohort start date if applicable.

Step 3:

Complete Applicant Start Package

Woodhaven Immigration team and the applicant work with the investment advisor to complete your applicant Start Package and submit it to the designated organization two weeks before the cohort starts to secure a spot. Key documents required are a Resume, Proof of funds, Identity Documents, and a formal picture.

Step 4:

Cohort Start – Weekly Webinars & Meetings

Client Preparation Stage

Applicants attend the Entrepreneurship Development Program – a series of 1-hour/week webinars to refine and perfect their personal pitch, learn about team building, learn more about the start-up ecosystem in Canada, and work towards getting the English Language Certificate required for immigration.

Step 5:

Legal Documentation, Accounting &Intellectual Property meetings

Based on client availability and meeting schedules; some clients finish it in parallel with Step 4 while some take longer.

Working with multiple Start-up advisors and partners, the applicant’s venture meets with specialists to understand and complete corporate legal, accounting, and I.P. requirements to apply under the program.

Step 6:

Investor Readiness

[Start of 21-week process > Week 01 – 08 of 21]

The venture’s business planning, documentation, product, start-up pitch, English language certificate, and other documents of founders are reviewed by expert mentors from the Canada Startup Visa ecosystem and the application is recommended for investor/incubator support to achieve a Letter of Support.

Step 7:

Interviews for Letter of Support

[Week 09-10 of 21]

Applicants go through extensive preparation with designated investors and are invited to interviews over Zoom or similar by a Government of Canada-authorized representative to review their application and hear their pitch.

Step 8:

Pitch Presentation Event

[Week 11-12 of 21]

Applicants are invited a second time to present a longer pitch and demonstrate their ideas. This is a recorded event, and a copy of this recording is available to the Canadian immigration department.

Step 9:

In-Principal Approval and request to proceed to Due Diligence

[Week 12-20 of 21]

Following the two interviews, approved applicants will receive a request to enter the due diligence step.

Step 10:

Processing

[Week 21 of 21]

This is a complex process encompassing a review of Market dynamics, Technology roadmap, Team strengths, Investor documentation, and more. The entire case is reviewed from multiple angles and a Due Diligence report is provided for the file upon which the Letter of Support is issued, and a copy of the letter is submitted to the Government of Canada’s immigration department.

Step 11:

Immigration Filing

[Variable based on the client’s unique situation]

The Letter of Support is attached with the Permanent Residency application and optionally if the client wishes then a Work Permit application. The client must collect many documents required for the Permanent Resident application.

Step 12:

Phase 2 – Startup Growth

After immigration filing, clients can optionally choose to work with the designated Investor to provide as much growth to their start-up as possible.

Please note that a “Letter of Support” under the Business Start-Up Program, is a written commitment by a designated organization to an applicant confirming the organization’s support of the applicant’s business idea; the letter must be included with the application for permanent residence.

Even though it can include a group of 5 files, each file shall be calculated separately therefore, Legal, and professional fees per file excluding government fees includes the main applicant of each including his/her spouse and kids in a condition that any child above the age of 22 years old shall be treated in a separate file with a different immigration path.

If you still require further clarifications, please contact us at the link below.

Which types of businesses are ineligible?

The following types of businesses are not ideal for the SUV:

an immigration-linked investment scheme pursuant to Provincial Immigration Programs Regulation section 6(e) and the Immigration and Refugee Protection Regulations (IRPR) section 87(5)(b) and as defined in IRPR 87(9)

any business where the terms of investment include a redemption option pursuant to IRPR 87(6)(d)

any business that may be a passive investment pursuant to IRPR 87(6)(c)
bed and breakfasts, hobby farms and home-based businesses

payday loan, cheque cashing, money changing and cash machine businesses

Pawnbrokers

tanning salons

DVD rental stores

coin-operated laundries

automated car wash operations

scrap metal recycling

businesses selling used goods (excluding businesses that provide value-added services such as repairs, refurbishing or recycling

real estate development/brokerage, insurance brokerage or business brokerage

businesses involved in producing, distributing or selling explicit products or services

any other type of business that by association would tend to bring the BC PNP or the Government of British Columbia into disrepute

What Types Of Businesses Are Ideal Under The Start-Up Visa Program In Canada?

The SUV Program is designed for entrepreneurs who have an innovative business idea that can create jobs in Canada and compete globally. To be eligible, the entrepreneur must have the support of a designated organization, which can be a:

Business Incubator
Angel Investor Group
Venture Capital Fund

Each designated organization has its criteria for assessing whether the business proposal has potential and is likely to succeed in Canada.

Generally speaking, the business proposals should demonstrate that there is a demand for the proposed product or service in the Canadian market. It could be products or services that do not currently exist in the market or an improvement that seeks to bridge the market gap.

Digital Health Solutions

The healthcare industry is a vital sector in Canada, and it continues to experience growth and innovation. With an aging population and increasing demand for healthcare services, the industry presents numerous opportunities for startups to develop innovative solutions.

One area where startups are finding opportunities in the healthcare industry is in the development of digital health solutions. According to Statista, the revenue in the digital health market is projected to reach US$2.81 billion in 2023, and it is expected to continue growing at an annual rate of 8.95% in the coming years.

Other areas where startups are finding opportunities in the healthcare industry include medical devices, telemedicine, and artificial intelligence. The growth of these industries is driven by factors such as changing consumer preferences, regulatory changes, and advancements in technology.

The healthcare industry in Canada presents numerous opportunities for startups to develop and grow their businesses, especially in the area of digital health solutions.

E-Commerce Solutions

E-commerce is a rapidly growing industry in Canada, with the pandemic accelerating the shift towards online shopping. According to Statistics Canada, e-commerce remains an important platform for business operations in Canada, even though there is no more pandemic-related lockdowns and restrictions.

From February 2020 to July 2022, retail e-commerce sales increased by 67.9%, and the share of e-commerce sales as a proportion of total retail sales increased markedly from 2019 to 2022. This trend is expected to continue in 2023 and beyond, with more consumers preferring the convenience and safety of online shopping.

E-commerce is thriving in Canada, with projections indicating continued growth in the coming years. With a large and digitally savvy consumer base, Canada is an ideal location for e-commerce startups looking to establish and expand their businesses.

Fintech Solutions

Canada has a supportive ecosystem and regulatory environment that presents opportunities for startups in the fintech industry. Canada’s fintech industry encompasses a range of sub-sectors, including payment processing, lending, and wealth management.

The country’s regulatory framework also supports innovation, with initiatives, such as the Sandbox Pilot Program allowing fintech startups to test their products in a controlled environment.

In addition, Canada’s highly skilled workforce and strong banking system provide a foundation for fintech startups to thrive. Canada is home to several successful fintech startups, such as Wealthsimple and Borrowell, which have achieved significant growth and attracted substantial investment.

Innovative Businesses

While you can opt for a traditional kind of business, adding a twist is advisable. For instance, if you’re opening a restaurant, something special like automation, fine dining, oriental specialty, or any twist to qualify your business.

In 2017, the program was deemed a permanent alternative for foreign business owners keen on moving to Canada.

Final Verdict

Don’t let your innovative ideas go to waste, venture into the largest and most accessible market in the world to ensure business success through the easiest immigration pathway to Canada, the Startup Visa (SUV).

Woodhaven Immigration Services Inc. is a licensed Immigration Law Practitioner under the umbrella of Immigration, Refugees and Citizenship Canada “IRCC” and reports to the regulatory body College of Immigration and Citizenship Consultants “CICC” following the rules and regulations including the code of ethics to process any client’s application, in which a copy of the retainer agreement as well our trust bank accounts are both monitored by the government constantly.

by Woodhaven

Navigating Canada Startup Visa – Your Step-by-step Guide