Entrepreneurs in the US are moving to Canada and successfully starting immigrant businesses, drawn by the favourable terms of the Start-Up Visa program.
Studies have shown that the introduction of the SUV in 2013 significantly increased the likelihood of US-based entrepreneurs starting new businesses in Canada.
A 2023 University of Pennsylvania report said the SUV has boosted the chances of a US-based immigrant starting a business in Canada by 69 per cent. A 2018 study by Sari and William Kerr found that immigrant entrepreneurship is on the rise.
Meanwhile, Peter Vandor, a senior researcher and lecturer at the Vienna University of Economics and Business, has established views on why immigrants are most likely to become entrepreneurs.
The SUV offers a pathway for an entrepreneur to come to Canada with the support of Canadian investment, establish their business and become a permanent resident. The program is increasing in popularity after switching from pilot to permanent in 2018, fast becoming an established pathway to a new life in Canada that also boosts the Canadian economy.
What Is The Canada Start-Up Visa?
The SUV grants Canada permanent residency without visa conditions.
It is North America’s quickest pathway for business immigrants. The program allows foreign entrepreneurs with an endorsed business idea, validated by a designated entity (venture capital fund, angel investor or business incubators), to obtain a Commitment Certificate and Letter of Support (LOS).
Applicants and their dependents can apply for Canadian permanent residency with the LOS, language proficiency proof and adequate funds.
The start-up can belong to diverse industries, such as Technology, Healthcare, Manufacturing, Agriculture and Consumer Products. There is no restriction on the type of business.
An experienced advisory team collaborates with designated entities, offering guidance and mentorship throughout the due diligence process.
To be eligible for the SUV, candidates must
- have a business idea,
- obtain a Commitment Certificate and Letter of Support from a designated entity,
- possess sufficient unencumbered, available, and transferable settlement funds,
- business ownership: hold at least 10 per cent of the voting shares in the business and at least 50 per cent of the voting shares together with the designated organization, and
- demonstrate proficiency in English or French at a minimum Canadian Language Benchmark level of 5.
The key benefits of the SUV are condition-free permanent residence of Canada, which can lead to citizenship, and fast processing: applicants can be in Canada on an early entry work permit within six months.
Starting a Business: US versus Canada
A key factor is the comparison of the environment for new businesses between the two countries. Canada offers a more stable and welcoming climate for new immigrant businesses and expanding labour demand for immigrant workers. Its economy is robust, and the regulatory framework is often seen as more predictable and transparent than that of the US.
The Canadian market itself presents numerous advantages. Canada boasts a high standard of living, a well-educated workforce, and strong infrastructure. Additionally, its proximity to the US allows businesses to easily access the vast North American market while benefiting from Canada’s more favourable conditions. The Canadian market is also characterized by its diversity and inclusivity, which are attractive to entrepreneurs.
Supportive government policies and incentives, such as the SUV further enhance Canada’s appeal. The Canadian government also provides various grants, tax incentives, and funding opportunities aimed at fostering innovation and supporting new ventures.
Canada’s combination of a favourable business environment, a supportive market, expanding labour demand for immigrant workers and proactive government policies makes it an increasingly attractive destination for US immigrant entrepreneurs seeking stability and growth opportunities.
How to Apply for Start-Up Visa from USA
A Typical US to Canada SUV Success Story
Rajesh Luhar, the CEO of iRIDE, has an impressive background in finance, holding an MBA from the University of California, Riverside, and having worked in senior roles at Fortune 500 companies in the US Originally from Tanzania, Luhar’s family moved to India and later to California. Recently, Luhar and his family became Canadian permanent residents and settled in Vancouver, British Columbia.
Luhar’s journey to Canada began when he and his wife decided to explore new opportunities for starting a business. Initially considering Europe, their interest in an e-bike start-up led them to Vancouver, a city they loved and found to be close to California.
The SUV perfectly aligned with Luhar’s vision. Despite the delays caused by COVID-19, the process was seamless and efficient once it started.
Luhar’s start-up, iRIDE, focuses on two e-bike markets: an entry-level mass market and the B2B delivery market. With the rise of services like Uber Eats and DoorDash, iRIDE aims to reduce urban congestion and promote environmental sustainability through e-bikes.
Support from Keiretsu Forum, a designated entity, played a crucial role in iRIDE’s success. Keiretsu Forum’s thorough vetting process and transparency were instrumental in refining Luhar’s business model.
Luhar’s diverse management team, with backgrounds in finance, logistics, marketing, B2C, and manufacturing, complements each other well. Their collaborative spirit and mutual respect have been key to their progress.
Luhar advises aspiring entrepreneurs to start early, conduct thorough research, and visit Canada to understand its business climate and culture. His journey through the SUV highlights the importance of preparation, resilience, and leveraging supportive networks.
Step-By-Step Guide for the Start-Up Visa Application Process
Month 1-5: Start-Up Approval and Due Diligence Process
1. Develop Start-Up Concept
Create and refine your start-up business idea.
2. Build the Start-Up Team
Assemble a team with the necessary expertise and complementary skills.
3. Present to Designated Organization
Present the start-up concept with support to a designated organization (e.g., Incubator, VC, Angels).
4. Undergo Due Diligence
The designated organization conducts a thorough evaluation of the start-up concept and team.
Month 6-7: Final Letter of Support
5. Prepare Supporting Documents
Ensure all necessary documentation, including business plans and financial statements, are in order.
6. Obtain Final Letter of Support
The designated organization issues the Final Letter of Support within 6-7 months, formalizing their commitment to the start-up.
Month 8-30: Processing Application for Permanent Residence and Early Entry Work Permit
7. Submit Application for Permanent Residence
With the Letter of Support in hand, submit the application for Canadian Permanent Residence.
8. Submit Application for Work Permit (if applicable)
If needed, submit the application for a Work Permit concurrently with the Permanent Residence application.
9. Work Permit Processing Time
The work permit application processing time is approximately 6 months from the date of submission.
10. Permanent Residence Processing Time
The Permanent Residence application processing time is approximately 22 months from the date of submission.
Five Tips for Applying for the Canada Start-Up Visa
1. Develop a Strong Business Concept
Ensure your start-up idea is innovative and viable. Conduct thorough market research to validate your concept and demonstrate its potential for success in the Canadian market. A well-prepared business plan can make a significant difference.
2. Choose the Right Designated Organization
Carefully select a designated organization (Incubator, VC, or Angel investor) that aligns with your business goals. Each organization has its criteria and processes, so research and choose one that offers the best fit for your start-up’s needs.
3. Assemble a Diverse and Skilled Team
Your team should possess a diverse set of skills and experience relevant to your start-up. Highlight the strengths and complementary skills of each team member in your application to showcase your collective ability to execute the business plan successfully.
4. Prepare Comprehensive Documentation
Gather all necessary documents, including a detailed business plan, financial statements, proof of language proficiency, and evidence of sufficient settlement funds. Organize these documents meticulously to ensure a smooth application process.
Seek Professional Guidance
Consider consulting with immigration professionals. Our expertise can help you navigate the complex requirements, avoid common pitfalls, and increase your chances of a successful application. Let’s begin.
Resources and Support for SUV Candidates
Relocating to Canada doesn’t have to be a solitary journey. Our experienced team is here to provide the support you need to ensure your application is completed accurately. No matter which immigration path you choose, our guidance will assist you every step of the way.
SUV Challenges and How To Overcome Them
Applying for the SUV can be challenging, but understanding these challenges and how to overcome them can significantly improve your chances of success and business ownership in Canada.
Firstly, the lengthy processing time for obtaining permanent residence can be daunting. To mitigate this, ensure that your application is complete and error-free to avoid delays. Also, consider applying for a work permit concurrently, allowing you to start your business in Canada while awaiting permanent residence.
High competition for support from designated organizations is another challenge. To stand out, thoroughly research potential organizations and tailor your pitch to align with their investment interests and criteria. Building relationships and networking within the entrepreneurial community can also help secure the necessary support.
Having a well-developed, viable, and scalable business model is crucial. Conduct thorough market research, develop a robust business plan, and demonstrate a clear path to scalability. Showing a proven track record through previous successes or pilot projects can also enhance your credibility.
Securing high capital investments, especially in competitive fields, is often necessary. To overcome this, explore various funding sources, including angel investors, venture capital, and government grants. Present a compelling case for your start-up’s potential to attract investment.
Finally, the risk of refusal at the permanent residence stage exists. To minimize this risk, ensure your application is thorough and aligns with all immigration requirements. Our professional advice can strengthen your application and address any potential weaknesses.
By proactively addressing these challenges, you can navigate the Start-Up Visa process more effectively and increase your chances of success.
Take The Next Step
The Start-Up Visa program has become a highly attractive option for US immigrant entrepreneurs seeking new opportunities in Canada. With its favourable terms, the SUV has significantly increased the chances of US-based entrepreneurs establishing successful businesses in Canada.
Studies, such as the 2023 University of Pennsylvania report, indicate a 69% boost in the likelihood of US-based immigrants starting businesses in Canada since the SUV’s introduction in 2013.
Offering a streamlined path to permanent residency, the SUV supports entrepreneurs with innovative business ideas validated by designated entities, fostering a robust environment for new ventures.
The program’s popularity continues to grow, providing a stable and supportive ecosystem that enhances the Canadian economy amid expanding labour demand for immigrant workers, while offering entrepreneurs a promising new beginning.
Canada Start-Up Visa FAQ
Can I get a Start-Up Visa without investment in Canada?
While the Start-Up Visa Program does not require you to invest your own money into a qualifying business, it requires you to secure a financial commitment from a designated organization such as a venture capital fund, angel investor group, or business incubator.
Moreover, high capital investments by the founding partners may be required for the designated organizations to extend their support and guarantee a higher rate of success for the business.
What is the success rate of the Start-Up Visa in Canada?
IRCC data from January 2023 and November 2023 suggests that the Start-Up Visa has had an approval rate of 77.2 per cent. Over this period, the Immigration Department processed 3,334 applications for permanent residency, approving 2,577 of them.
While exact percentages can vary year by year, the Canadian government has structured the program to attract high-potential entrepreneurs, leading to a positive trend in approval rates.
Can entrepreneurs get PR in Canada?
Yes, they can! Canada has many pathways for immigrant entrepreneurs to obtain permanent residency, including the Start-Up Visa, the Self-Employed Program, Provincial Nominee Programs (PNPs), and Labour Market Impact Assessments (LMIAs) for business owners.
Can an immigrant start a business in Canada?
Yes, an immigrant is more than welcome to start a business in Canada. Canada encourages entrepreneurship and offers various pathways for immigrants to establish and run businesses. Here are the main options:
Start-Up Visa Program: This program is specifically designed for immigrant entrepreneurs with innovative business ideas. To qualify, you need to secure a commitment from a designated Canadian venture capital fund, angel investor group, or business incubator.
Provincial Nominee Programs (PNPs): Several provinces in Canada have their own immigration programs that encourage business investment and entrepreneurship. These programs may have specific requirements regarding business experience, investment amount, and the creation of jobs for Canadians.
Self-Employed Program: This program is for immigrants who have relevant experience in cultural activities or athletics and can make a significant contribution to Canadian culture or sports.
Work Permits and Entrepreneur Work Permits: Depending on the nature of the business and other factors, immigrants may be able to start and run a business in Canada under various work permits.
