What is Canada’s ‘Startup Visa Program’ and what are the requirements for it?
Pakistani entrepreneur Samina (pseudonym) recently took a unique path to Canadian immigration that does not apply a points system with conditions such as education, experience or a job offer.
For them, the Canadian startup visa was also attractive because there is no age limit.
However, you can only apply to the program if you have a technology-related business idea that you believe will be beneficial to the Canadian market.
She explains that ‘Express entry to Canada requires less money, while business visas require a lot of money. The start-up visa is something in between.
What is the Canadian Startup Visa Program?
Every year, thousands of people from India and Pakistan migrate to America, Canada and European countries for better opportunities and a brighter future.
Therefore, any changes in immigration and work visa laws or the introduction of any new programs are closely monitored in these countries.
As Canada has changed the work permit law this month. Canadian authorities extended work permits for 18 months due to increased demand in the labor market during the Covid era, which is being phased out from January next year.
Since then, Canada’s announced startup visa program has been hailed by some experts as a ‘golden opportunity’.
This program is mainly for talented foreigners who want to establish their own small business or startup in Canada.
Certain criteria have been set to assess the quality of a startup. They are that the startup should be innovative, create new jobs for local people and compete globally.
Who can apply for a Canadian Startup Visa?
To apply for a Canadian startup visa, a candidate must have a valid business. It is important that the candidate owns the shares of the business. Holds 10 percent or more of the company’s shares and has voting power (at shareholders’ meetings).
A maximum of five people can apply in this program. It is important that the startup is supported by a Canadian organization or ‘designated body’ and a letter of support is issued.
Your business must operate from Canada, have its main activities from Canada and be established in Canada.
In addition to mastering the English language, if you also know French, it can help your startup succeed in Canada. Canadian visa rules require you to be fluent in speaking, writing and understanding one of English or French.
The startup visa candidate also has to provide evidence to the Canadian government that they have the resources to support themselves and their dependents. Candidate cannot manage these money by borrowing money from anyone.
Immigration expert Julie Desai told media that a startup visa is quite different from a normal work permit visa. Its aim is only to attract businessmen and entrepreneurs to Canada.
The most important requirement is that the candidate’s business must be innovative enough to create new jobs in Canada. This visa is not for general business people. Such start-up plans are needed that can hit the whole world.
Under this program, the financial resources required by a family can be determined by the number of its members. If only one person wants to go to Canada under this program, he will need 13757 Canadian dollars. This amount can increase if other family members also want to go along. It will also be important to see if the Canadian authorities revise this amount every year.
Meanwhile the candidate needs a ‘Letter of Support’ for his start-up from a recognized business group in Canada. For this the candidate approaches these organizations and assures them that their startup idea deserves support.
Candidate has to contract with these institutions for letter of support. This letter is actually proof that a Canadian investor such as a venture capital fund, angel investor group or business incubator supports the candidate’s idea.
In addition, accredited organizations also issue Canadian Government ‘Certificates of Commitment’ to candidates. The government then verifies both the letters for the visa application.
The Canadian government may ask for more information about your startup to review the information.
The Canadian government may reject the application if the letter of support or other requirements are not met.
Immigration lawyer Prashant Ajmera says, “It’s very important that your startup plan has the support of Canadian organizations.” You should have a detailed business plan and you should have knowledge of the Canadian market.
Explaining the benefits of this type of visa, Ajmera said that many countries introduced start-up visas after Canada, but Canada is the only country where a candidate can become a permanent resident after obtaining a start-up visa without any conditions. While other countries only issue startup work permits.
Ajmera further said that Canada’s immigration department has a quota on how many people from which country can come to Canada every year. India and China have the largest number of citizens. It doesn’t matter about (the breakdown in) international relations.’
But how much does it cost and is it easy?
Samina (pseudonym), an entrepreneur from Pakistan, recently applied for herself and her family under the same startup visa program.
She says this requires that you have a company registered in your country, in her case Pakistan. After some changes in the company’s strategy, the process of registering it in Canada begins. A progress report is also required to be submitted every few months after the startup starts.
She explains that if you hire a consultant, there is a hefty price to pay. “Most of your money seems to be what your consultant charges you because he arranges the letter of support for you.”
She explains that the program’s incubators pledge funding to startups and teach them various courses to educate them about the Canadian market.
He said that the Canadian authorities monitor whether you are trying to make your startup a success.
She says that the good thing about this program is that there is no age limit, some of the startup founders are over 60 years old.
Samina said that if a person really has capital and has a good start-up idea, he can apply to the program.
He cautioned that if you hire a consultant for this program, he should be trustworthy because most people keep information about it secret and reveal it slowly. It is not so easy to just give money or just create a startup. There are several stages in this.
“It’s best to get in touch with a consultant who is familiar with Canadian organizations and can help you organize a letter of support for your startup,” she says.
Samina suggests that those working in new fields such as the technology industry in Pakistan should consider this program.