2024 Start-Up Visa Canada Guide

How to Get Canada Startup Visa

Applying for a Canada Start-Up Visa involves a series of steps divided into three phases: 1) ensuring the viability of your business idea and your potential as an entrepreneur; 2) submitting an immigration application; and 3) actively working to build your start-up in Canada while your permanent residence application is processed. Once you confirm that you meet the basic eligibility criteria for the Start-Up Visa Program—which includes language proficiency and sufficient settlement funds—you can follow the steps outlined below to increase your chances of success in this program.

• Step 1: Business Concept Development: Developing your business concept is a foundational step in turning your innovative idea into a business model with global scalability potential. It’s crucial to start with a clear vision of your start-up project, an understanding of your competitors, a strategy to compete with established players, and a detailed operational plan, including what parts of the project will be carried out in Canada. Many entrepreneurs encounter challenges in creating a robust business concept capable of attracting support from designated organizations. Our business team can assist you in brainstorming ideas, researching your target market, evaluating the competition, and defining your unique value proposition. Our in-house team is equipped to help our clients craft comprehensive business plans, outlining vision, objectives, strategies, financial projections, and the anticipated contribution to the Canadian economy. Our clients have achieved a 100% success rate in securing support from designated organizations.
• Step 2: Select the Right Designated Organization: Choosing the right designated organization is a critical step in this process. As of 2024, there are 84 Designated Organizations—comprising angel investor groups, venture capital funds, and business incubators—authorized by the Canadian government to invest in or support potential start-ups for the Start-Up Visa Program. Each has distinct criteria and interests, so selecting one that aligns with your business idea involves researching their investment history, examining the types of start-ups they have previously supported, and assessing their mentoring capabilities. Moreover, most organizations charge administrative fees that range from $10,000 to $50,000. While some organizations do not charge fees, they may have limited intake capacities or be highly competitive. We have cultivated relationships with numerous designated organizations and can guide you in choosing the organization that best fits your project.
• Step 3: Obtain Support from the Designated Organization: Once you have selected several designated organizations, follow the instructions on their websites to apply for the Start-Up Visa (SUV) program. The process typically involves pitching your business concept to them with a compelling presentation and demonstrating the potential of your idea. If they are convinced of your start-up’s viability, they will issue a Letter of Support, a critical document for your SUV application. If you feel intimidated by this process and need support, our team can assist you throughout the application process and can accompany you during the pitch to provide support.
• Step 4: Prepare Your Documents: Gather all necessary documents, including the Letter of Support from a Designated Organization, proof of language proficiency at CLB 5, proof of settlement funds, business plan, and other required documents per the application guide.
• Step 5: Submit Your SUV Immigration Application: Complete the application forms for the Start-Up Visa Program and submit them along with the required documents and the application fee. Along with your personal documents, submit a Pitch Deck that clearly communicates your business vision, Articles of Incorporation to prove legal business formation, and a Capitalization Table detailing the start-up ownership structure. Include your start-up’s logo, comprehensive customer or supplier lists, documentation of any intellectual property, and financial statements for financial transparency. Also include forward-looking financial forecasts, which are essential for assessing the potential success of your enterprise. Before submission, review your application for completeness to prevent any unnecessary delays.
• Step 6: Start Your Business in Canada: After you’ve submitted your application for permanent residence, you can turn your attention to launching and nurturing your business in Canada according to your business plan and the commitments you’ve made to the Designated Organization. If you’re an essential member of your start-up and need to be in Canada sooner, you may apply for and obtain a work permit. This will allow you to move to Canada while the Canadian immigration authorities process your PR application.
• Step 7: Update IRCC about Your Progress with Business: While awaiting your permanent residence status, it is crucial to keep IRCC updated on the progress of your start-up project. Updating IRCC has become increasingly important, especially after a notable decline in approval rates in early 2023 (January to April 2023), which fell to 51% from the historical average of about 75% from 2016 to 2022. IRCC officers have been known to routinely refuse SUV applications if they are not satisfied with the business progress thus far. Many rejections occur because the applicant has made minimal progress, presented a poor business model, or appeared to lack serious intent. To mitigate IRCC’s concerns, it’s advisable to proactively provide updates on your business’s progress every 6 months. This regular reporting can demonstrate your commitment to the venture and may help alleviate any potential issues regarding the seriousness of your intentions or the quality of your business model.
• Step 8: Receive a Decision: After evaluating your application, IRCC will notify you of their decision. The communication will come via the contact details in your application, so it’s important to ensure they are current and accurate. If your application is successful, you will be granted PR status, a significant milestone on your entrepreneurial journey in Canada. Should the decision be negative, you will be given reasons and, if applicable, instructions on how to address any deficiencies or appeal the decision.

List of Designated Organizations

Depending on the type of designated organization you partner with, you will need to either complete a startup development program or receive funding from them in exchange for equity in your company to receive your letter of support. It is one of the most critical requirements of the SUV. You must obtain a Commitment Certificate and Letter of Support from one or more Venture Capital Funds, Angel Investor Groups, and/or Business Incubators. Here is a complete list of the designated organizations.

Advantages and Disadvantages of Start-Up Visa

It would be best to consider the benefits and drawbacks of this program before taking any further steps. It is crucial to fully understand what this program offers and whether it is right for you.

Advantages of the Program

Below are some of the pros of the SUV program:

• A direct pathway for permanent residence in Canada.
• Open to all nationalities.
• No limitations on business activities in Canada.
• No net worth requirement or verification.
• Allows for a partnership of 5 individuals in the same start-up (min. 10% of ownership for each partner is required); and
• Opportunity to relocate to Canada by obtaining a work permit while the permanent residence application is processed.

Disadvantages of the Program

Below are some of the cons of the SUV program:

• High competition to obtain support from designated organizations in Canada; thus, it can be challenging to get such support.
• Lengthy processing times (3+ years) to obtain permanent residence.
• High capital investments by the founding partners are often required to secure support from a designated organization.
• An extremely well-developed, viable and scalable business model is needed with a proven track of success and
• There is a moderate risk of refusals at the permanent residence stage and/or delays due to peer reviews.