Immigrant entrepreneurs hoping to gain permanent residency in Canada through the Start-Up Visa (SUV) program need to get both commitment certificates and letters of support from business groups approved to invest or support their start-ups.
Certificates of commitment and letters of support are similar since both are provided by designated organizations which invest or support start-ups but these are different documents and it’s important to understand exactly what each one of them is.
A certificate of commitment is what is sent to an applicant by a designated private sector business to confirm their agreement under the SUV.
A letter of support is the document given to the applicant by a designated angel investor group or venture capital fund as proof they will support the immigrant entrepreneur’s business idea.
When a designated organization, which must be an approved angel investor, business incubator or venture capital funs , decides to support a particular applicant’s business venture under the SUV, it must send a certificate of commitment directly to Immigration, Refugee and Citizenship Canada (IRCC).
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That certificate of commitment must contain information about:
- the designated entity itself;
- the applicant;
- the entrepreneurial team applying under the Start-Up Visa program;
- the type of business and what it will do;
- its business structure;
- background information, and;
- work permits for the essential applicant or applicants.
Commitment certificates are valid for six months. During that time, the applicant has to apply for permanent residence and, when applicable, a work permit.
The letter or letters of support provided by the designated organization, though, are provided to the applicant or applicants themselves. There can be up to five applicants for each application under the SUV and a letter of support must be provided to each one of them.
These letters of support are to contain information about the designated organization, the commitment certificate, the applicant and the team heading up the proposed business venture. That letter of support is the entrepreneur’s proof that the designated organization will support his or her business idea.
These letters of support are then included by the fledgling entrepreneur in his or her application for permanent residence under the SUV.
Canada Does Not Provide Financial Support To SUV Applicants
The basic candidate eligibility requirements for the SUV program are:
- a qualifying business;
- a commitment certificate and letter of support from a designated entity;
- sufficient unencumbered, available and transferable settlement funds, and;
- proficiency in English or French at the minimum Canadian Language Benchmark level 5.
Ottawa does not give financial support to new SUV immigrants.
When candidates apply, they need to give a proof they have the money to support themselves and their dependents in Canada. This money cannot be borrowed.
The amount needed depends on the size of the candidate’s family.
With a viable start-up business project, an immigrant entrepreneur can expect it to take about four to six months to secure a commitment certificate or letter of support from a designated entity. Once that letter of support is received, the application for permanent residence can be submitted. It will then take approximately 18-months to finalize the application through to the issuance of a permanent residence visa.
For the candidate to qualify for permanent residence:
- the intended business must be incorporated and carrying on business in Canada;
- the candidate must own at least 10 per cent of the voting rights in the corporation, and;
- no other person can hold 50 per cent or more of the voting rights in the corporation.
As many as five candidates can have their permanent residence application supported by the same business investment.
