Entrepreneurs from Hong Kong are using the Start-Up Visa (SUV) program to gain their permanent residency here in record numbers since Canada opened its arms to them during China’s clampdown on pro-democracy supporters.
Immigration, Refugees and Citizenship Canada (IRCC) figures reveal this entrepreneurship program allowed 115 Hong Kong residents to become new permanent residents of Canada in the first nine months of 2023 alone, putting the country on track to see the arrival of 153 new such entrepreneurs by the end of this year.
That would be more than four times as many as the 35 new permanent residents to Canada from Hong Kong under the SUV last year, a growth of 337 per cent.
The SUV program had already grown from only five immigrant entrepreneurs from Hong Kong in 2017 to 30 in 2020 just as the COVID-19 pandemic was at its worst. The travel restrictions and public health issues during the pandemic put a damper on immigration and the SUV saw only 15 new arrivals in 2021, only to more than double in 2022.
When China clamped down on pro-democracy activists in the former British protectorate and forced Hong Kong residents with dual citizenships to renounce one of their nationalities under the Nationality Law of the People’s Republic of China, more Hong Kong residents began to turn to Canada as a safe haven.
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Canada responded with several measures to welcome them and make their desire to immigrate here a reality.
Then-Immigration Minister Sean Fraser created an open work permit program for Hong Kongers and then extended it for another two years in February 2023. The immigration minister also announced the program would be open for Hong Kongers who have completed their studies in the past 10 years.
Under the program, Hong Kongers previously had to have completed their studies within the past five years.
“Canada needs more people for economic reasons … and for demographic reasons,” said the immigration minister. “The reality is that we cannot meet the needs for the market with the existing labour force.”
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With the extension of the open work permit program, Canada both showed its support for the people of Hong Kong and helped itself to a skilled workforce.
“By extending and expanding Canada’s open work permits for Hong Kongers, we are giving Canadian employers more skilled workers to hire at a time when we need them most and providing valuable work experience, all while also showing our support for the people of Hong Kong,” said Fraser.
The extended deadline for eligible Hong Kong residents to apply for an open work permit is now Feb. 7, 2025, and that policy allows spouses or common-law partners and dependent children to also apply for a study permit or work permit.
Open Work Permits For Hong Kongers In Canada Is A Win-Win Situation
Dr. Anna Victoria Wong, executive director of Community Family Services of Ontario, called the extension of the program a win for Canadian employers looking for skilled workers.
“As a social service agency, we understand intimately the needs of incoming and growing populations,” said Wong. “As a publicly funded provider, we are mindful of the challenges in our local economic and employment sectors.
“We strive to capitalize on the efficient use of resources to align needs from both sides to create a win-win situation for newcomers and for Canada. This policy update serves just that and imports talents that are ready, willing, and able to contribute to the Canadian economy and are supportive of the core values within our charter.”
With those work permits, Hong Kongers can live and work in Canada, gaining experience in the country and coming up with ideas for viable businesses that will allow them to gain their permanent residency here.
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 totaling $75,000.
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 totaling $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.
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 Be 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.
