Canada Start Up Visa
In recent years, Canada has become one of the most attractive markets and incubators for start-ups. The entrepreneurial ecosystem is booming in major cities in Canada, thanks to government incentives, a growing tech talent pool and access to venture capital.
A key advantage is that it’s faster to get permanent residency in Canada than most other immigration investment programs available in the market. Once obtained, Canadian residency can also be kept, regardless of the success or failure of the business.
The Start-up Visa Program aims to attract foreign entrepreneurs and give them permanent residency in Canada in 12 to 18 months if they are willing to start a business that qualifies with the following major criteria: being an innovative business, creating jobs for Canadians and competing on an international level.
Canada Crypto Environment
Canada is home to many blockchain startups, bitcoin mining farms and in terms of regulatory clarity tends to have faster approvals of crypto-related ETFs. Cryptocurrency is taxed in Canada as either capital gains or as income tax, depending on whether your activity with cryptocurrency is considered to be as a business or not. 100% of business income is taxable, whereas only 50% of capital gains are taxable. If you’re unsure whether you are operating on a personal or a business level, consult with a tax professional.
2 years in 5 years
Download our free factsheet with more detailed information about this program.
Who Can Qualify?
Under the Canada Startup Visa, you are required to launch an innovative startup. With the help of Global RCG, you will be offered a simplified path for approval. This path requires an investment of CAD 70,000 investment for 10% shares in your own Start-Up Company, and CAD 75,000 Investment for other Start-Up Companies to diversify risk.
As an entrepreneur, you will be provided with an innovative project that will qualify you for the program where you will receive 10 weeks of Training, 8 months business development support (lawyers, workspaces, accountant, mentor, software) file preparation, introduction to bankers, investors, matching with other promising entrepreneurs, as well as an 8-month incubation program to grow your business. Additionally, you will get 10 years of membership in Angel Investor Network and other services offered by Angel Fund (CIAI) & Venture Development Institute (VDI).
Start Up Visa
To qualify under this stream, the requirements are:
- Be matched with a promising project and invest C$70,000 in your start-up for a 10% equity stake.
- Obtain C$75,000 in financing in your start-up from an angel investor fund to co-invest in your company and grow your business,
- invest another C$75,000 in other start-ups to mitigate risk.
There are also the following fees associated with the application:
- $205,000 CAD that includes eight weeks of training and eight months business development support (lawyers, workspaces, accountants, mentors and software).
The Canadian Start-up Visa Program offers entrepreneurs and their families a chance to obtain permanent residency. It’s the fastest path towards permanent residence in Canada. Once approved by the immigration authorities, the applicants can come to Canada and receive permanent resident status, which can then lead to citizenship after three years. Canada is a top-ranked country for quality of life, a free education system, excellent universities, and a national healthcare system. The Canada Startup Visa applicant cannot relocate to the Province of Quebec.
The principal applicant can include his or her spouse and unmarried children under the age of 22.
- The main applicant needs to have completed a minimum of one year of study at a postsecondary institution, which can be proved through transcripts, a letter of good standing, diplomas, degrees or certificates.
- Furthermore, there must be sufficient funds to support the entire family according to IRCC. Also needed is proof of meeting the minimum language requirement in English, French or both.
All family members need to have the following:
- Security clearance to determine they are not a security threat to Canada
- A medical examination to determine they do not have severe health conditions that would put a burden on the Canadian healthcare system
Canada Startup Visa Application Process
The Canada Startup Visa application process takes 6 to 12 months to complete.
- Verify eligibility
- Start client onboarding process with Global RCG.
- Global RCG helps you gather the required documents.
- Signing of agreement with Canadian partner
Conference call with designated organization (D.O.):
- Development of business concept
- Pairing with two other applicants
- Agreement with D.O.
Training to obtain certificate from
As a Start-Up Program Visa applicant, you will receive a multi-exit visa allowing you to travel in and out of Canada. Once you become a Canadian citizen, you can live and work freely in the country as long as you desire. The Canada passport provides visa-free access to more than 185 countries, including Europe’s Schengen Area, Singapore, Hong Kong, the United States and Brazil.
Access to the US
The Canadian tax system can vary from one province to another. Provinces like Alberta and British Colombia, where Vancouver is located, have lower tax rates than Ontario and Quebec. Capital gains realized in Canada are taxed at half the regular income tax rate, whereas dividends are taxed at a rate between 10%- 15%. Canada has a tax treaty with the US which can reduce double taxation on Americans residing in Canada. Foreign income in Canada is taxed at a regular income tax rate and can expose Americans to further taxation.
Nevertheless, Canadian permanent residents are not obliged to become a tax resident in Canada as they only need to maintain a 2 years physical presence out of 5 to maintain their status. If you are planning to become a tax resident in Canada, you should consult a professional tax planner beforehand.