India’s tech ecosystem is thriving with companies that could benefit from access to Canadian and American markets through Canada’s Start-Up Visa (SUV)program, reveals a report in India Briefing.
“As of May 2023, the Indian startup landscape boasts a staggering count of over 99,000 startups officially recognized by the government, with nearly half of them headquartered in Tier 2 and Tier 3 cities,” notes the report. “These startups are spread across 669 districts, spanning 36 states and union territories.”
The Asian country has 108 unicorns, privately-held companies worth at least $1 billion, collectively valued at U.S.-$340.80 billion as of March 31 this year.
“Among this unicorn cohort, 44 achieved this status in 2021, amassing a cumulative valuation of U.S.-$93.00 billion, while 21 new unicorns emerged in 2022, commanding a total valuation of U.S.-$26.99 billion.”
Venture capital growth has been astounding in India in recent years, rising from what was then an unprecedented high in venture capital into India of $10 billion in 2019 to a peak of U.S.-$21.7 billion in the first half of last year alone.
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In the first half of 2023, that softened considerably, to $U.S.-$17.6 billion in venture capital into India but still remains historically high.
Indian start-up investor Prayank Swaroop has noted one of the driving forces for India’s booming start-up sector is the number of seasoned veterans from existing tech companies that are branching out and starting their own companies.
These budding entrepreneurs can benefit greatly by starting businesses in Canada through the SUV which grants Canadian permanent residence to qualified immigrant entrepreneurs.
Under the SUV, three types of private-sector investors are considered: angel investors, venture capital funds, and business incubators.
A designated angel investor group must invest at least $75,000 into the qualifying business. Candidates can also qualify with two or more investments from angel investor groups totalling $75,000.
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A designated venture capital fund must confirm that it is investing at least $200,000 into the qualifying business. Candidates can also qualify with two or more commitments from designated venture capital funds totalling $200,000.
A designated business incubator must accept the applicant into its business incubator program.
It is up to the immigrant investor to develop a viable business plan that will meet the due diligence requirements of these government-approved designated entities.
That’s usually done with the help of business consultants in Canada’s start-up ecosystem and experienced corporate business immigration lawyers who can ensure a start-up’s business plan meets all industry-required terms and conditions.
Candidates to the SUV program can initially come to Canada on a work permit supported by their designated Canadian investor before qualifying for permanent residence once their business is up and running.
SUV Applicants Must Have A Qualifying Business
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.
| Number of family members | Funds required |
| 1 | $13,757 |
| 2 | $17,127 |
| 3 | $21,055 |
| 4 | $25,564 |
| 5 | $28,994 |
| 6 | $32,700 |
| 7 | $36,407 |
| Each additional family member | $3,706 |
Ottawa does not give financial support to new SUV immigrants.
When candidates apply, they need to give 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.
The SUV also represents an important option for international students, many of whom do not qualify for permanent residence through the skilled worker immigration streams.
While Ottawa has taken steps to gear up the Express Entry system to favour international students, they are by no means guaranteed to qualify for a coveted Invitation to Apply under the Comprehensive Ranking System (CRS).
The minimum score needed to qualify has often been over 495, leaving many students unable to qualify even with the support of a job offer from a Canadian employer.
These candidates can either sit in the Express Entry pool and hope the minimum score under the CRS falls or they can make the transition from temporary to permanent residence.
This is where the SUV program becomes an option.
Unlike almost every other federal and provincial-level entrepreneur program which requires a minimum of one or two years of previous experience either owning a business or in top-level management, the SUV does not require previous management experience.
The support of a government-designated entity is enough. That support can be either financial or in the form of accepting the candidate into a business incubator program.
Immigrants who avail themselves of the SUV program consistently report that it is quick, both for the initial work permit and permit residence application.
SUV-Eligible Business Must Owned At Least In Part By Applicant
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.
But that can come with a risk. Certain candidates may be designated as essential to the business. If any of the essential candidates withdraw their applications or are refused, all other candidates under the same business investment will see their applications terminated.
Surveys suggest SUV candidates usually go on to succeed in Canada, in terms of growing their business, attracting further investment, networking, or selling their business for a profit.
Through its Toronto based facilities, Immigration.ca works extensively with industry-acclaimed designated entities in the Canadian start-up ecosystem. The firm provides a range of hands-on business advisory services to help intending entrepreneur immigrants and their start-up business concept meet all industry requirements.
To find out if you qualify for the SUV program, click here.
