Immigrant entrepreneurs seeking permanent residency in Canada through the Start-Up Visa programme will be expected to show greater settlement funds than was required last year.
“The Government of Canada does not provide financial assistance to new Start-Up Visa immigrants,” Immigration, Refugees, and Citizenship Canada (IRCC) stated on its website. “When you apply, you’ll need to provide documentation that you have Settlement money to cover the cost of living for your family.”
Applicants under the Start-Up Visa programme are needed to provide settlement funds to cover the cost of living for their families. This is true even if the applicant’s family is not accompanying the candidate to Canada. Both when a candidate applies and when a permanent residence visa is awarded, the funds must be readily available.
Proof of funds is provided by official letters from banks or other financial entities. According to Immigration, Refugees and Citizenship Canada, the letter must:
- be printed on the financial institution’s letterhead;
- include their contact information (address, telephone number, and email address);
- include your name;
- list outstanding debts such as credit card debts and loans, and;
- include, for each current bank and investment account:
- account numbers;
- the date each account was opened;
- the current balance of each account, and;
- the average balance for the past six months
According to Immigration, Refugees, and Citizenship Canada, the letter must include the money you will need to maintain yourself and your dependents after you arrive in Canada. This money cannot be borrowed from another person.”
The funds necessary for a single application have grown by $97 with the last round of hikes, from $13,213 in 2021 to $13,310 this year. Each number of family members has received a similar minor boost. Immigrant entrepreneurs who qualify for the Start-Up Visa programme can get permanent residence in Canada. Angel investors, venture capital firms, and company incubators are the three types of private-sector investors discussed.
- A designated venture capital fund must confirm an investment of at least $200,000 in a qualifying startup. Candidates may also qualify if they have two or more pledges totaling $200,000 from specified venture capital funds.
- A designated angel investor group must make a $75,000 investment in the qualifying enterprise. Candidates may also qualify with two or more investments totaling $75,000 from angel investor groups.
- The candidate must be accepted into a designated business incubation programme. It is the immigrant investor’s responsibility to create a feasible business plan that meets the due diligence standards of these government-approved designated businesses.
- That investing and business development is typically done with the assistance of business consultants in Canada’s start-up ecosystem, under the supervision of experienced corporate business immigration lawyers who can ensure a start-business up’s concept meets all industry-required terms and conditions.
Before their application for permanent residence is finalised, candidates applying under the Start-Up Visa programme may enter Canada on a work permit backed by their designated Canadian investor.
The following are the primary government-imposed candidate eligibility conditions for the Start-Up Visa programme:
- a qualifying business;
- a commitment certificate and letter of support from a designated organisation;
- adequate unencumbered, available, and transferable settlement funds to meet settlement funding requirements; and
- competence in English or French at the Canadian Language Benchmark level 5 or higher. However, greater levels of English are frequently required to meet the due diligence standards imposed by designated entities.
Unlike practically every other federal and provincial-level entrepreneur programme, which requires a minimum of one or two years of prior experience either running a business or in top-level management, the Start-Up Visa programme does not. It is sufficient to have the backing of a government-designated entity. This assistance can be financial or in the form of acceptance into a business incubator programme.
Immigrants who use the Start-Up Visa programme routinely say that it is rapid, both for the initial work visa and for the permit to remain. In order for the candidate to be eligible for permanent residence:
- the prospective business must be incorporated and operating in Canada;
- the candidate must own at least 10% of the voting rights in the corporation; and
- no other individual can own 50% or more of the voting rights in the corporation.
The same corporate investment can support the permanent residence applications of up to five individuals. However, there is a danger involved. Certain candidates may be regarded as critical to the company’s success. If any of the important candidates withdraws or is denied, the applications of all other candidates under the same business investment would be cancelled.
Surveys indicate that Start-Up Visa aspirants typically prosper in Canada by expanding their business, getting further investment, networking, or selling their business for a profit.
Legal Disclaimer: This article is provided for information purposes only.