From Startup Visa to Permanent Residency in Canada

Canada is a land of opportunity and has become a hub for entrepreneurs and business owners. The country offers a range of immigration routes for those who wish to establish a business in Canada, and the Start-Up Visa Canada is one of the most attractive options. This program allows foreign entrepreneurs to obtain permanent residence in Canada by starting and operating a successful start-up business.

While this program can be an excellent opportunity for entrepreneurs, it has challenges. Obtaining a Start-Up Visa can be complex, and entrepreneurs may encounter obstacles. However, with the proper preparation and perseverance, overcoming these challenges and achieving success in Canada’s dynamic and diverse business landscape is possible.

This guide will explore the journey from Startup Visa Canada to permanent residency. We’ll provide practical tips and advice to help you navigate the path to success and establish a thriving business in Canada. Let’s dive in!

Step 1: Check Eligibility

Basic Requirements

• Obtain a letter of support from a designated organization (venture capital fund, angel investor group, or business incubator).
• Meet the language proficiency requirements (CLB 5 in English or French).
• Have sufficient settlement funds to support yourself and your family in Canada.

Advanced Requirements

• Prove your business has a high potential for success in Canada.
• Show your business idea is innovative and can compete on a global scale.
• Demonstrate that your business can create jobs for Canadians.

Step 2: Idea and Team Formation

The entrepreneur conceives a unique and viable business idea in this initial stage. Ideally, this idea should fill a market gap or offer a novel solution to a problem. The entrepreneur then forms a team to bring this idea to life.

The team should be diverse and balanced, comprising individuals with various skills. For instance, having members with technical expertise (like software development or engineering) is crucial for product development. Similarly, members with business acumen are needed for strategic planning, marketing, and operations.

Each company can include up to 5 members. This includes the principal applicant, the main driver of the business idea and plays a key role in the application process for the Start-up Visa Program.

Step 3: Obtain a Letter of Support

Prospective entrepreneurs must obtain a support letter from a designated organization willing to support the startup financially. This involves pitching the business idea to several designated organizations. Any organization supporting the entrepreneur’s business venture will send Immigration, Refugees, and Citizenship Canada (IRCC) a certificate declaring its commitment.

Application to Designated Organization

Once the team is formed and the business idea is refined, the next step is to apply to a designated organization. These organizations are business groups approved by Immigration, Refugees and Citizenship Canada (IRCC) to invest in or support possible start-ups through the Start-up Visa Program.

Designated organizations fall into three categories:

Designated organizations are businesses approved by Immigration, Refugees and Citizenship Canada (IRCC) to invest in or support potential start-ups.

1. Venture Capital Funds: They must commit to investing at least $200,000 into the start-up.
2. Angel Investor Groups: They must invest at least $75,000 into the start-up.
3. Business Incubators: They must accept the start-up into their incubator program.

The application process to a designated organization can vary in length and requirements, depending on the organization itself. It typically involves pitching the business idea, showcasing a business plan, and demonstrating the team’s ability to execute it.

If the designated organization is convinced of the viability of the business idea and the team’s capability, they will support the application for the Start-up Visa Program by providing a Letter of Support. This letter is a crucial component for the next steps in the application process.

Step 4: Apply for the Startup Visa Application

With the letter of support in hand, you can now apply for the Startup Visa. This application will include:

• Your letter of support from the designated organization.
• Proof of language proficiency.
• Evidence of sufficient settlement funds.
• Detailed information about your business and personal background.

Step 5: Wait for PR Approval or Apply for a Work Permit

After submitting your application, you can either wait for your Permanent Residency (PR) approval or apply for a temporary work permit to start working in Canada while your PR application is processed. This step is critical to expedite your relocation and start business operations sooner.

Application for Work Permit

The work permit application process involves several steps:

1. Prepare the Necessary Documents: This includes the Letter of Support, proof of identity (such as a passport), proof of employment in Canada (such as a job offer), and other documents depending on the individual’s situation.
2. Submit the Application: The application can be submitted online or by mail. The team will need to pay the application fees at this stage.
3. Wait for Processing: The processing time can vary depending on several factors, including the volume of applications received by IRCC and the completeness of the application.
4. Receive the Work Permit: If the application is approved, the team will receive their work permits. This allows them to come to Canada and start building their business.

Application for Family Permits

Each entrepreneur can apply for their spouse’s work and children’s study permits at this stage. This allows the family members of the entrepreneurs to come to Canada.

1. Prepare the Necessary Documents: This includes proof of relationship to the entrepreneur (such as a marriage or birth certificate), proof of identity, and other documents depending on the individual’s situation.
2. Submit the Application: The application can be submitted online or by mail. At this stage, the entrepreneur must pay the application fees.
3. Wait for Processing: The processing time can vary. It’s important to note that the family members must be physically present in Canada when applying for permits.
4. Receive the Family Permits: If the application is approved, the spouse will receive a work permit, and the children will receive study permits. This allows them to work and study in Canada while the entrepreneur builds their business.

Step 6: Arrival and Business Establishment

Most entrepreneurs are overjoyed when they receive their Startup Visa. After all, this visa allows them to come to Canada and set up their Startup business. However, this presents many challenges, such as:

Pre-arrival Planning and Preparation

Some people believe that they can settle in Canada easily the moment they exit the airport, but the truth is that they will run into many difficulties if they haven’t begun planning beforehand. This includes:

• Finding a Place to Live: The average immigrant takes 1 to 3 months to find a place to live in Canada. This means entrepreneurs who haven’t prepared beforehand will be forced to spend money on hotels or pricey AirBnB until they find a more permanent type of accommodation. For this reason, starting the home or apartment rental hunting process early and having it finalized before arriving in Canada is vital.
• Opening a Bank Account: Entrepreneurs will need a business bank account for their Startup Business. This setup process doesn’t take long, but it is important to research different banks and their business account options. This will help you find a suitable option for your Startup.
• Accessing Healthcare: Depending on which Canadian province you are settling in, you may be able to avail of public healthcare services as soon as you receive permanent residence. However, some provinces require new permanent residents to wait three months before they are allowed to use such healthcare services. New immigrant entrepreneurs must rely on private healthcare services until then, so looking up private healthcare service providers before entering Canada is best.

The Experience of Arriving in Canada and Settling In

Entrepreneurs who arrive in Canada may face a range of challenges, including culture shock, language barriers, and difficulties with networking. Culture shock can be particularly challenging for entrepreneurs who may be unfamiliar with Canadian business customs and practices. Language barriers can also be a significant obstacle, particularly for those who speak English as a second language. Additionally, entrepreneurs may struggle to find networking opportunities and make connections in their new community, which can make it difficult to establish a successful business.

Finding Resources and Support

Finding resources and support to help one settle in Canada can be tricky initially. However, it is possible to gradually build a network of professionals and people who can provide valuable resources in times of need. For example, Canada Startup Visa entrepreneurs can sign up for mentorship programs, attend networking events, and work in co-working spaces to build their support network.

Step 7: Building a Successful Startup in Canada

Setting up a successful startup business is perhaps the most challenging task for Startup Visa Canada entrepreneurs once they settle in Canada. Such professionals must rely on their experience and expertise to overcome challenges related to the following:

Challenges Faced by Startup Visa Entrepreneurs

• Dealing With Competition: Every Startup faces competition from other companies. This includes other startups and well-established companies with a significant market share. Experienced entrepreneurs will have scoped out the competition and chosen niche markets before moving to Canada, so they will unlikely be surprised in this area. Many Startup founders also scope out the competition to determine where to set up their business. So, if there are many competitors in a particular industry in a major city, the entrepreneur may choose to set up their business in a smaller city elsewhere with fewer competitors.
• Hiring and Retaining Employees: Hiring and retaining employees also presents many challenges. Startups are often strapped for cash and can’t afford to pay their workers high salaries until company revenue has increased. Startups that underpay their employees risk losing them, so entrepreneurs need to fulfill the company’s starting needs according to their available compensation and resources. Some entrepreneurs also use strategies such as giving employees shares in the company to compensate for their low salaries. It is also possible to use government financing programs to fund part of a startup’s operations in Canada.
• Adapting to Canadian Regulations and Business Practices: Depending on the industry in which the startup is based, the entrepreneur must follow many Canadian regulations and business practices. Failure to adhere to these laws and regulations can result in the business being fined or shut down, so entrepreneurs need to familiarize themselves with them beforehand.

In most cases, it is best to consult with an experienced professional who understands Canadian business laws and regulations and can offer guidance on these matters while the business is still being set up.

Step 8: Create Jobs, Become Profitable, and Notify IRCC with Milestones Achieved

As your business grows, focus on creating jobs for Canadians and achieving profitability. Regularly notify Immigration, Refugees and Citizenship Canada (IRCC) about significant milestones your business achieves, demonstrating your commitment to contributing to the Canadian economy.

Step 9: Obtain PR and Keep Helping Canada with Your Startup

Finally, once your PR is approved, you and your family can settle permanently in Canada. Continue to grow your business, create more jobs, and contribute to the Canadian economy. Your success as a startup will be beneficial not only for you but also for the broader Canadian community.

Navigating the journey from the Start-Up Visa program to Permanent Residency in Canada can be challenging, but with the right mindset, preparation, and support, entrepreneurs can overcome any obstacles they may encounter along the way. If you are an entrepreneur interested in pursuing the Start-Up Visa program, we encourage you to take the first step by taking a business immigration assessment or booking a strategy meeting with ELAAR Immigration.

Our team of experienced immigration consultants can help you understand your options, develop a strong business plan, and guide you through the application process. Contact us today to learn more!