Canada Startup Visa: All You Need to Know

Canada’s growing economy and optimistic business outlook make it attractive for startups and innovative companies. New businesses are encouraged to embrace digital solutions to stay competitive. The recent Product of the Year Canada winners showcase successful product innovation in areas like food, health supplements, and home care, demonstrating the value of catering to evolving consumer trends.

Canada Startup Visa Program

Canada’s Startup Visa Program helps foreign entrepreneurs with promising business ideas immigrate. Launched in a digital format in October 2022, the program grants permanent residency to entrepreneurs who secure backing from approved Canadian investors or business incubators. This program encourages new businesses and innovative products in Canada, boosting the country’s economy.

Must Read: What is a Startup Visa?

Why Choose Canada

Canada Strong Economy

In 2024, Canada’s economy will remain resilient. Despite high inflation and interest rates, it grew by an estimated 1.1% in 2023. Strong population growth supports this performance. About 430,000 jobs were created between January and November 2023. However, growth is expected to be slightly lower in 2024.

Canada Startup Ecosystem

Canada’s startup ecosystem in 2024 offers a supportive environment for entrepreneurs. A network of organizations connects startups with resources and investors. With around 21 unicorn startups, Canada demonstrates its innovation potential.

Canada Startup Support and Facility

Canada offers strong backing for startups. Government programs help you find the right help, and financial aid comes in various forms, from loans to investments. Incubators across the country provide facilities and connect you with others in the startup world. Recent efforts focus on connecting entrepreneurs nationwide and empowering women-led businesses for international trade.

Canada’s Quality of Life

Canada consistently ranks high in global quality of life reports. This is likely due to factors like lower crime rates, a universal healthcare system (with some possible fees), and a well-regarded education system. Canadians also enjoy a high average disposable income compared to other developed countries and a life expectancy of around 82 years. These factors and a strong sense of safety and social connection contribute to Canada’s reputation for high life satisfaction.

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Canada Startup Visa Eligibility

Who can apply for a Canada Startup Visa

• Innovative: Your business idea should be unique and have the potential to solve a problem or address a new market need.
• Scalable: Your business should have the potential to grow and expand beyond the initial stage.
• International potential: Your business should have the potential to reach customers and markets outside of Canada.
• Job creation: Your business should plan to create jobs in Canada.

Canada Startup Visa Process

The Canada Startup Visa streamlines immigration for promising entrepreneurs. To qualify, you’ll need a validated innovative business idea and a letter of support from a designated organization like a venture capital firm or incubator. This ensures your venture aligns with Canada’s economic goals.

You’ll also need to demonstrate language proficiency and sufficient settlement funds.

The application process involves three phases: securing support, submitting your application, and establishing your business in Canada.

Canada Startup Visa Requirements & Documents

Requirements

• Settlement Funds: Demonstrate sufficient financial resources to support yourself and your dependents upon arrival.
• Qualifying Business: Own at least 10% of voting rights, with you and the designated organization controlling over 50%. Operate and manage the business from within Canada.
• Designated Organization Support: Secure a letter of support and commitment certificate from a venture capital firm, angel investor group, or incubator.
• Language Proficiency: Pass English or French test at Canadian Language Benchmark 5 level.

Note: Proof of Funds for Canada Work Permit

• Meet Minimum Income Requirement: Demonstrate sufficient funds to support yourself and dependents for one year (52 weeks).
• Accessible & Transferable Funds: Money must be readily available and easily transferred to Canada.
• Debt-Free Funds: Funds must not be tied to debts or other obligations.
• Acceptable Proof:
  • Cash
  • Investments (stocks, bonds, debentures, treasury bills)
  • Guaranteed Payments (banker’s drafts, cheques, traveler’s cheques, money orders)

Minimum income needed based on your family size

Documents

• Generic Application Form (IMM 0008)
• Schedule A (IMM 5669)
• Additional Family Information (IMM 5406)
• Supplementary Information – Travels (IMM 5562)
• Schedule 13 – Business Immigration Programs (IMM 0008 Schedule 13) (if applicable)
• Proof of Language Test Results
• Proof of Settlement Funds
• Letter of Support and Commitment Certificate from Designated Organization
• Business Plan
• Educational Credentials
• Work Experience Documents (if applicable)
• Proof of Business Ownership (if applicable)
• Medical Exam Results (if applicable)
• Police Certificates (if applicable)

Canada Step-by-step guide

Step 1. Prepare your application:

• Gather all required documents (refer to the “Documents” part).
• Ensure you meet eligibility requirements (qualifying business, designated organization support, language proficiency, settlement funds).

Step 2. Create an online account

• Sign up for the Permanent Residence Online Application Portal ([invalid URL removed]).

Step 3. Download and review the Instruction Guide (IMM 5759)

Step 4. Complete online forms:

• Please complete digital forms for yourself and any family members 18+ (IMM 0008, Schedule A—IMM 5669, Additional Family Information—IMM 5406, Supplementary Information—IMM 5562).

Step 5. Download and upload PDF forms:

• Include the Document Checklist (IMM 5760) to verify all documents are submitted.
• Upload Schedule 13 – Business Immigration Programs (IMM 0008 SCHEDULE 13) if applicable.
• Complete and upload additional PDF forms (e.g., Statutory Declaration of Common-law Union, Separation Declaration for Minors Travelling to Canada) if needed.

Step 6. Consider using an immigration representative (optional)

• They can advise and assist you for a fee but cannot create your account or electronically sign the application.
• Use a Representative form (IMM 5476) if appointing one.

Step 7. Pay application fees online

Including processing, Right of Permanent Residence Fee, biometrics, and potentially third-party fees.

Step 8. Submit your biometrics

Submit your biometrics (fingerprints and digital photo) after application submission. You’ll receive instructions and a confirmation letter with a location for providing biometrics.

Step 9. Submit your online application:

• Ensure all applications from business partners are submitted.
• Inform CIC using the web form if a team member withdraws their application.
• Review your application thoroughly before submitting:
  • Answer all questions.
  • Electronically sign with your full passport name.
  • Include the processing fee receipt.
  • Upload all supporting documents.

Step 10. Incomplete applications

Incomplete applications will be rejected and require resubmission.

Cost & Fees

Government Visa Application Cost

Government Fees:

• Your Application:
  • Including Right of Permanent Residence (RPRF): $2,385 CAD
  • Without RPRF: $1,810 CAD
• Spouse/Partner:
  • Including RPRF: $1,525 CAD
  • Without RPRF: $950 CAD
• Dependent Child: $260 CAD (per child)

Biometrics Fees:

• Per Person: $85 CAD
• Family Maximum: $170 CAD (applicable for families of 2+ applying together)

Average Program Fee

The average program fee for Canada’s incubators and accelerators can start from $30,000 CAD or more. Please check their Program fee on the LaunchRoad website for Canada’s programs.

Corporate TAX rate

• The basic rate of Part I tax is 38% of your taxable income, 28% after federal tax abatement.
• After the general tax reduction, the net tax rate is 15%.
• For Canadian-controlled private corporations claiming the small business deduction, the net tax rate is 9%.

Cost of Living in Canada

• Annual Average: Canadians face an average annual cost of living of around CAD $18,340.
• Monthly Breakdown (excluding rent): Estimates suggest the monthly cost of living in Canada is approximately CAD $1,132.

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Processing Time & Outcome

Third-Party Assessment Time

Third-party or Designated organizations approved to support start-ups via the Start-up Visa Program have unique proposal intake processes and assessment criteria. The review time varies by organization and application volume. If supportive of your idea, they’ll issue a Letter of Support.

Visa Processing Time

The current processing time for a Canada Startup Visa is listed on the official Canadian government website at 40 months.

What happens After Apply

Biometrics:

• Applicants aged 14-79 must submit fingerprints and photos (even if previously provided).
• Pay the biometrics fee with your application to avoid delays.
• Complete biometrics within 30 days of receiving the instruction letter.

Working in Canada While Your Application is Processed:

• Consider applying for a temporary work permit to start building your business in Canada.

Application Assessment:

• Immigration officials will verify completed applications, fees, and required documents.
• Incomplete applications will be returned without processing.

Processing Times:

• Estimated processing time: 38 months (including biometrics submission).
• Delays may occur due to:
  • Criminal or security concerns requiring additional checks.
  • Unclear family situations (divorce, adoption, child custody issues).
  • Visa office communication with other offices for data verification.
• Check application status after processing begins [link to application status check on Canada immigration website].

Medical Exams:

• You and your accompanying family members must undergo medical exams.
• Applications may be rejected due to health concerns posing a risk to public health or requiring excessive social services.
• You’ll receive instructions for medical exams after application submission.

Police Certificates:

• You and family members 18+ may be required to submit police certificates from countries of residence exceeding 6 months since age 18.
• Obtain police certificates early to avoid delays.

Application Decision:

• Decisions are based on eligibility criteria, financial support, medical exam results, and police certificates.
• Additional documents or interviews may be requested.
• You’ll be instructed to send your passport for permanent resident visa issuance upon approval.

Confirmation of Permanent Residence (COPR):

• Upon application approval, you’ll receive a permanent resident visa with your COPR and entry visa.
• Verify that the information on your COPR matches your passport. If there are any mistakes, contact immigration through your account.
• Bring your COPR and visa upon arrival in Canada. The COPR has an expiry date, so ensure you travel before it expires.

Canada Residency through Startup Visa

The Canada Startup Visa Program offers foreign entrepreneurs a pathway to establish permanent residence in Canada while working on their startup or business. It is an excellent option for startup founders and entrepreneurs with innovative businesses to benefit from the Canadian business climate.

To apply for Canadian citizenship, you must meet certain eligibility requirements, which include living in Canada as a permanent resident for at least 3 out of the last 5 years, among others. Once you have applied, the processing time for Canadian citizenship can vary. After your application is approved, you will need to take the citizenship test and attend the citizenship ceremony.

Role of Launchroad in The Seccess of Your Startup Visa

LaunchRoad is your go-to guide for starting a business abroad. We help you choose the right country, understand visa requirements, and get your startup off the ground. Our team of experts provides support, mentorship, and resources to help you succeed.

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