5 Things You Should Know About the Canadian Startup Visa Program

Canada wishes to promote innovation within its business sector and offer opportunities to creative inventors from around the world. The government of Canada realizes the importance of promoting entrepreneurship due to its positive impact on the economy. Among the various Canadian visa programs, the startup visa is exclusively for individuals with innovative business ideas. These applicants can be granted express entry into the country to establish their business and offered Canadian PR in the future as well. Here are some things to learn about this program that can help foreign business owners with their applications.

1. The Mechanism

The Canadian startup visa program helps inventive entrepreneurs receive funds from private investors within Canada to establish their ventures. These candidates initially migrate to Canada on a work visa and receive funding from their related investors. Once their business venture turns profitable, they can apply for permanent residence in Canada.

2. Types of Private Investors

There are three main types of private sector investors that may offer seed money to an international entrepreneur who wishes to operate in Canada. A business can receive funds from; “an angel investor, venture capital fund or a business incubator.”

3. Investment Requirements

Each type of investment source needs to offer a certain amount:

1. a) $75,000 must be invested into the business venture by one or more angel investors.
2. b) $200,000 has to be invested by single or multiple venture capital funds.
3. c) A formal acceptance from a Canadian business incubator program is needed.

4. Ownership Conditions

The applicant of the startup visa must meet the following ownership requirements as well:  

1. a) The business operation has to be based in Canada.
2. b) The applicant must hold 10% voting rights in the related business venture.
3. c) The applicant must not have a business partner who controls more than 49% of the organization’s voting rights.

5. Conditions for Qualification

The applicant of the startup visa program has to be an acting manager of the said venture. The business has to conduct its operations in and Canada as well.

Immigration to Canada in the business category can be a complicated and tiresome procedure, but with the help of Nanda and Associate Lawyers, you can speed up this process. The law firm has represented many innovative entrepreneurs before and offers services tailored to each businessman’s needs.

Disclaimer: This article is only intended for educational purposes and shouldn’t be used as a substitute for legal advice.