Canada has taken steps to adapt the Express Entry system to favour international students, but they are by no means guaranteed to qualify for a coveted Invitation to Apply (ITA).
Despite specific points allocated for candidates with a Canadian education, recent minimum Comprehensive Ranking System (CRS) scores for all-program draws have been consistently above 500.
It means even international students who can access the extra points often do not qualify – even with the support of a job offer from a Canadian employer.
These candidates can either decide to sit in the Express Entry pool and hope the minimum CRS falls, or do something proactive to make the transition from temporary to permanent residence.
This is where the Start-Up Visa becomes an option.
An important element of the Start-Up Visa program is that it does not require previous management experience, making it suited to international students.
Almost every other federal and provincial-level entrepreneur program requires a minimum of one or two years of previous experience either owning a business or in top-level management. This includes the passive Quebec Immigrant Investor Program (QIIP).
Express Entry Pool: Easy To Get Into, Tough To Get An Invitation
International students are among thousands of immigrants stuck in the Express Entry pool, unsure when they will get an invitation.
Candidates must qualify for one of Canada’s skilled worker programs, including the Federal Skilled Worker Program and the Canadian Experience Class.
Lower Comprehensive Ranking System cutoff scores have only been recorded recently for low-volume draws aimed at specific occupations. For larger-volume, all-program draws, the cutoff scores have been above 500 on a consistent basis. It means that those with profiles score below 500 can no longer sit and wait for the cutoff to drop.
As international students often do not have the work experience needed for a high-scoring profile, if they do not have a job offer in hand or qualifications for one of the targeted occupations, they are unlikely to receive an invitation. Recent caps on Canada international students will reduce study permits by a third.
This makes the SUV an important option.
Canada Start-Up Visa Overview
The program aims to recruit innovative entrepreneurs to Canada and link them with the Canadian private sector businesses, (angel investor groups, venture capital funds or business incubators) and facilitate the establishment of their start-up business in Canada. A 2021 study explained why immigrants are more likely to become entrepreneurs.
The Start-Up Visa is growing in popularity. Canada is expected to welcome more than three times the number of immigrants through the Start-Up Visa (SUV) in 2024 compared to last year, according to recent data from Immigration, Refugees and Citizenship Canada (IRCC).
With the current rate of SUV immigration, the country could see 5,625 new permanent residents through the program by year-end. This represents a 285.3 per cent increase from the 1,460 who arrived under the program last year.
Applicants to Canada’s Start-Up Visa program must meet four basic eligibility requirements:
- Obtain a commitment from a designated entity in the form of a Commitment Certificate or Letter of Support;
- Have sufficient unencumbered, available and transferable settlement funds;
- Have completed at least one year of post-secondary education;
- Demonstrate sufficient proficiency in English or French through standardized testing (Canadian Language Benchmark level 5);
The required commitment from a designated entity must meet the following criteria:
- A designated angel investor group must confirm that it is investing at least $75,000 into the qualifying business, or two or more commitments from designated angel investor groups totaling $75,000; OR
- A designated venture capital fund must confirm that it is investing at least $200,000 into the qualifying business or two or more commitments from designated venture capital funds totaling $200,000; OR
- A designated business incubator must confirm that it is accepting the applicant into its business incubator Program.
Applicants who have secured a Commitment Certificate from a designated entity, and who wish to begin working in the business during the processing of their permanent residence application, may apply for a short term work permit.
To receive a work permit, an applicant must provide:
- A letter of support from the designated entity; and
- Proof they have sufficient funds to meet the low-income cut-off (LICO) for their family size, for one year.
To receive permanent residence, the following criteria must be met:
- Applicants must be actively involved in the management of the business within Canada;
- The operations of the business, or an essential part, must take place in Canada; and
- The business must be incorporated in Canada.
Why Consider The Start-Up Visa?
Considering the Start-Up Visa (SUV) offers significant advantages over the Express Entry program, especially for entrepreneurs. The SUV provides a pathway for those with innovative business ideas, facilitating the launch and growth of startups in Canada.
Unlike Express Entry, which primarily targets skilled workers, the SUV focuses on fostering entrepreneurship and innovation. This visa offers access to a supportive ecosystem, including business incubators, angel investors, and venture capitalists.
Entrepreneurs can benefit from Canada’s robust economy, diverse market, and strong protection of intellectual property. The SUV not only accelerates business growth but also contributes to Canada’s economic development and global competitiveness.
Comprehensive Guide to Applying for the Start-Up Visa
Months 1-5: Initial Approval and Evaluation
1. Formulate Business Idea
Develop and perfect your start-up business concept.
2. Assemble Your Team
Gather a team with the necessary skills and expertise.
3. Pitch to Designated Organizations
Present your business idea to a recognized incubator, venture capital firm, or angel investor group.
4. Undergo Assessment
Allow the designated organization to thoroughly evaluate your business idea and team.
Months 6-7: Securing the Support Letter
5. Compile Required Documents
Gather all necessary paperwork, such as business plans and financial records.
6. Receive Support Letter
Obtain the formal Letter of Support from the designated organization within 6-7 months.
Months 8-30: Applying for Permanent Residency and Work Permit
7. Permanent Residency Application
Submit your application for permanent residency in Canada with the Letter of Support.
8. Work Permit Application (if needed)
Apply for a work permit simultaneously with your residency application, if required.
9. Work Permit Processing
Anticipate a processing time of around 6 months for the work permit.
10. Permanent Residency Processing
Expect the permanent residency application to take about 22 months to process.
Five Key Tips for a Successful Start-Up Visa Application
1. Innovative Business Concept
Ensure your start-up idea is both innovative and feasible. Conduct market research to validate its potential in the Canadian market.
2. Select the Right Support Organization
Choose a designated organization that aligns with your business goals. Research their specific criteria and processes to find the best fit.
3. Build a Competent Team
Form a team with a diverse skill set and relevant experience. Highlight each member’s strengths and how they complement the business plan.
4. Prepare Thorough Documentation
Gather all necessary documents, including a detailed business plan, financial statements, language proficiency proof, and settlement fund evidence. Organize them carefully.
5. Consult Professionals
Consider seeking advice from our immigration experts to navigate the complex application process, avoid common mistakes, and improve your chances of success. You can start here.
Transitioning from the Express Entry system to the Start-Up Visa (SUV) can bring several concerns and questions. Here’s a look at common FAQs and how to address them.
Why switch from Express Entry to SUV?
Many individuals switch because the SUV offers a pathway for entrepreneurs with innovative business ideas, unlike the Express Entry system, which is primarily for skilled workers. The SUV can be more advantageous for those aiming to establish a business in Canada. Canada’s Immigration Minister has also warned of potential further limits on international students.
What are the main challenges?
Challenges include understanding different eligibility requirements, preparing a viable business plan, and securing a Letter of Support from a designated organization. Overcoming these involves thorough research, leveraging business incubators or mentors for guidance, and ensuring all documentation meets the required standards.
Legal and logistical considerations
Legal considerations involve ensuring your business idea complies with Canadian regulations and obtaining the necessary permits. Logistically, you’ll need to manage the transition from potentially being an employee to running a business. This includes financial planning, understanding tax implications, and possibly relocating to a new city.
How to handle potential roadblocks
To handle potential roadblocks, consult with immigration professionals who can provide insights into the SUV program. Engage with Canadian business communities and networks to gain local insights and support. Ensure your business plan is robust and clearly demonstrates innovation and market potential.
Transitioning to the SUV program requires careful planning and adaptation, but with the right support and preparation, it can open new doors for entrepreneurial success in Canada.
More Frequently Asked Questions
How long can I stay in the Express Entry pool?
Your profile will remain active in the Express Entry pool of candidates for 12 months, after which – contingent on you not receiving an invitation to apply – it will automatically expire. You will be able to see this date in your account.
What are the new rules for international students in Canada in 2024?
Canada changed the rules for its international student program in 2024, setting an intake cap on study permit applications to stabilise new growth for a period of two years.
For 2024, the cap is expected to result in 360,000 study permit approvals, which is a 35% decrease from 2023.
IRCC is also set to allocate a portion of the cap to each province and territory, who will then be responsible for distributing the allocation among their own designated learning institutions (DLIs).
Furthermore, from September 1, 2024, international students who begin a study permit program that is part of a curriculum licensing arrangement will not be eligible for a postgraduation work permit (PGWP) on graduating.
On the other hand, graduates from master’s degree programs will soon be eligible for a 3-year work permit.
Open work permits will only be given to spouses of international students in master’s and doctoral programs, while spouses of students in other levels of study will no longer get them.
What happens if I withdraw my Express Entry profile?
If you withdraw your profile, a new one will need to be created if you want to enter the pool. According to IRCC, you will have to meet the Express Entry system requirements in place at that time.
Taking The Next Step
For international students feeling stuck in the Express Entry pool, Canada’s Start-Up Visa (SUV) offers a promising alternative. The SUV caters to entrepreneurs with innovative business ideas, making it an attractive option for those who struggle to meet the high Comprehensive Ranking System (CRS) scores required for Express Entry. With recent minimum CRS scores consistently above 500, even those with Canadian education and job offers often find themselves waiting indefinitely for an Invitation to Apply (ITA).
The Start-Up Visa program does not require previous management experience, setting it apart from other federal and provincial entrepreneur programs. This makes it accessible for international students eager to transition from temporary to permanent residency. The SUV connects applicants with designated entities, such as business incubators, angel investors, and venture capitalists, fostering an environment where innovative businesses can thrive.
However, transitioning to the SUV requires careful planning. Applicants must develop a robust business idea, assemble a competent team, and secure a Letter of Support from a designated organization. Legal and logistical considerations, such as complying with Canadian regulations and managing the shift from student to entrepreneur, are crucial.
Engaging with immigration professionals and leveraging Canadian business networks can help navigate potential challenges. With the right preparation and support, the SUV offers a viable pathway to permanent residency, opening doors to entrepreneurial success in Canada. For international students, the Start-Up Visa can be a strategic move, turning innovative ideas into a reality in a supportive and dynamic environment.
Extra Resources
Start-Up Visa home
Canada’s Immigration Pathway for Entrepreneurs
Eight Things to Know About Canada’s Start-Up Visa Program
