Start-Up Visa (SUV) program

The Canadian government offers the Start-Up Visa (SUV) program for foreign entrepreneurs who wish to immigrate to Canada by investing in a Canadian start-up. The program allows the foreign entrepreneur and up to five other partners to apply for permanent residency in Canada.

To be eligible for the program, foreign nationals must obtain a Letter of Support or investment commitment from one of the designated organizations in Canada. Each foreign national must also own at least 10% of the shares in the start-up, and the foreign nationals and the designated organization must jointly have more than 50% of the total shares (voting rights) in the start-up venture.

Applicants must meet the minimum language skill level in either English or French at CLB level 5 and have sufficient funds to settle in Canada, which range between $12,960 to $34,299 depending on the size of the applicant's family.

To be successful in the program, entrepreneurs should also meet the following criteria:

• Own an innovative or successful business that is generating scalable and sustainable revenue or has strong market validation.

• Have access to capital to fund the start-up venture, usually around $200,000 per applicant.

• Have highly specialized knowledge or unique experience in their field or have solid managerial experience.

• Have an upper-intermediate level of English and/or French language skills.

The SUV program is an excellent opportunity for foreign entrepreneurs looking to establish their start-up in Canada and secure permanent residency. It is essential to meet all the eligibility requirements and additional criteria to ensure a successful application.

Advantages and Disadvantages of Start-Up Visa

When considering the Start-Up Visa program, it is essential to weigh its advantages and disadvantages before proceeding. Here are some of the pros and cons of the program:

Advantages of the Program:

1. Direct pathway to permanent residency in Canada.

2. Open to entrepreneurs of all nationalities.

3. No restrictions on the type of business activities in Canada.

4. No net worth requirements or verification.

5. Allows for a partnership of up to five individuals in the same start-up, with each partner owning at least 10% of the business.

6. Opportunity to relocate to Canada by obtaining a work permit while the permanent residency application is being processed.

Disadvantages of the Program:

1. High competition to obtain support from designated organizations in Canada, making it challenging to secure support.

2. Lengthy processing times, which can take three or more years to obtain permanent residency.

3. High capital investments by the founding partners may be required to secure support from a designated organization.

4. An extremely well-developed, viable, and scalable business model is needed, with a proven track record of success.

5. Moderate risk of refusals at the permanent residency stage and/or delays due to peer reviews.

It is essential to understand both the advantages and disadvantages of the Start-Up Visa program before deciding whether it is the right program for you. While the program offers a direct pathway to permanent residency in Canada, securing support from a designated organization can be challenging and requires a substantial investment of time and resources. Nevertheless, for entrepreneurs who meet the eligibility criteria and are willing to take the risks involved, the Start-Up Visa program can be an excellent opportunity to establish and grow a successful business in Canada.

How to Get a Letter of Support for Canada’s Startup Visa Program

Getting a letter of support from a Canadian Designated Organization can be challenging, as the start-up must show strong market validation or recurring scalable revenue. However, with the right support and guidance, it is possible to successfully obtain a letter of support. Here are the key steps to follow:

Step 1: Prepare your pitch deck or business plan, outlining your innovative business concept.

Step 2: Submit your application to a designated organization for review and evaluation.

Step 3: Participate in an interview with the designated organization to present and discuss your business concept.

Step 4: Sign an agreement with the designated organization outlining the terms and conditions of their support.

Step 5: Pay the fees required by the designated organization.

Step 6: Obtain a Letter of Support from the designated organization(s) confirming their support for your start-up.

Step 7: Submit your application for permanent residency and work permit.

It may be helpful to work with specialized business consultants to develop, test and validate your business concept before seeking endorsement from a designated organization. If you need assistance with any of the steps outlined above, reach out to us for guidance and support. We can connect you with the right resources and people to help you navigate your immigration journey.

List of Designated Organizations:

The Start-Up Visa program requires that applicants obtain a Commitment Certificate and Letter of Support from one or more designated organizations in Canada. Depending on the type of designated organization you partner with, you may need to complete a startup development program or receive funding from them in exchange for equity in your company.

To help you identify the designated organizations that are eligible to provide you with support, here is a comprehensive list.

Processing Time for Start-Up Visa Program:

The processing time for the Start-Up Visa Program can vary depending on the workload of the Immigration, Refugees and Citizenship Canada (IRCC). Typically, the waiting period for the final decision on an application can range between three and five years. However, it's important to note that this is a general guideline, and actual processing times can vary depending on individual circumstances and the complexity of the application. It's crucial to ensure that all application requirements are met, and all necessary documentation is submitted to avoid delays in processing. While the processing time for the Start-Up Visa Program may be lengthy, it is a direct pathway to permanent residency in Canada and an opportunity to establish and grow a successful business in the country .

Start-Up Visa Canada Costs: Full Review

The costs of the Start-Up Visa program in Canada range from CAD $165,730 to $300,000+, depending on various factors. It is important to note that the Start-Up Visa program is not suitable for entrepreneurs who do not have access to capital to invest in their business venture in Canada. Below is a sample cost breakdown to help understand the expenses involved in funding a Start-Up Visa program application. All fees below are approximate estimates in USD dollars, including the fees charged by service providers and various companies providing the SUV Program support:

Pitch Deck Preparation

• $3,000 – $5,000 (if you have your own start-up that is innovative, scalable, and generating $500K+ in revenues per year)

• $100,000+ if your start-up does not meet the above requirements (this fee usually includes market research and validating your assumptions in the Canadian market, plus generating initial traction with customers to achieve the market-product fit that Designated Organizations would require)

Fees Charged by Designated Organizations

• Incubators: $40,000+ per company.

• Angel Investors: $35,000+ per company.

• Venture Capital Funds: $50,000+ per company

Legal Costs

• Professional Fees (Immigration Consultant Fee): approx. $20,000+ per applicant

Government Fees

The SUV application fees are as follows:

• PR: Main Applicant – $1,540

• PR: Spouse – $1,040

• PR: Dependent Child – $150

Business Execution Costs

• These costs will depend on the nature of the business and industry. However, it is recommended to set aside at least $100,000+ per applicant to fund the operational costs of your start-up venture while waiting for your permanent residence.

It is essential to note that the costs above are just approximations and could vary based on individual circumstances. Before embarking on the Start-Up Visa program application process, it is vital to seek guidance from experts and conduct thorough research to fully understand the costs and requirements involved.

Red flags that may result in a peer review or even a refusal of the SUV application:

In some cases, Immigration Officers may initiate a peer review of an applicant's Start-Up Visa (SUV) application if they have doubts about the genuineness or feasibility of the proposed enterprise. A peer review panel will then verify if the designated entity has conducted proper checks and investigations according to industry standards.

There are several red flags that may result in a peer review or even a refusal of the SUV application, including:

• The investing entity has a disproportionately high or low percentage of shares or has little to no role in the legal control of the business.

• The applicant has little to no control or equity in the business.

• Most of the applicants are all related to each other or lack experience or education.

• There is no intellectual property brought to the project, and the business plan appears to be very generic.

• The designated organization has charged unusually high fees.

• The management team has limited to no startup experience.

• The applicants fail to provide evidence confirming their essential role in the company.

• The applicant fails to make significant progress on the start-up during the period when they were authorized to work in Canada.

To avoid any delay or rejection of your application, ensure that your due diligence process is well-documented, and there is significant evidence available to demonstrate the genuineness and viability of your undertaking. Follow our top tips to ensure the success of your application.