Canadian Government Increases Startup Visa Settlement Funds for 2022

Immigrant entrepreneurs hoping to become permanent residents of Canada through the Startup Visa program will be required to prove they have more settlement funds than required last year.

On its website, Immigration, Refugees and Citizenship Canada (IRCC) notes that the government does not support new immigrants with Start-Up Visas financially. “When you apply, you must prove that you can support yourself and your dependents once you arrive in Canada. You can’t borrow money from anyone else.”

Compared to 2021, the funds required for a single applicant have increased by $97, from $13,213 to $13,310 this year.

Small increases have also been applied to each number of family members. The changes are outlined below:

The funds must be readily available both when a candidate applies and when a permanent residence visa is issued. Applicants under the Start-Up Visa program are required to establish settlement funds to cover the cost of living for their families, even if they are not accompanying the applicant to Canada.

Official letters from banks or other financial institutions act as proof of funds.

According to Immigration, Refugees and Citizenship Canada, the letter must:

• be printed on the financial institution’s letterhead;
• include their contact information (address, telephone number and email address);
• include your name;
• list outstanding debts such as credit card debts and loans, and;
• include, for each current bank and investment account:
  • account numbers;
  • the date each account was opened;
  • the current balance of each account, and;
  • the average balance for the past six months.

How to apply for Start- Up visa to gain PR in Canada?

Immigrants who apply under the Start-Up Visa can get Canadian permanent residence if they qualify as immigrant entrepreneurs.

Three types of private-sector investors are considered: angel investors, venture capital funds, and business incubators.

• At least $200,000 must be invested into a qualifying business by a designated venture capital fund. An applicant may also qualify with two or more commitments from designated venture capital funds totaling $200,000.
• A designated angel investor group must invest at least $75,000 into the qualifying business. Applicants can also qualify with two or more angel investment groups totaling $75,000 each.
• A designated business incubator must accept the applicant into its business incubator program. Investors are responsible for developing business plans that meet the due diligence requirements of these government-approved designated entities.

The development and investing of a business usually takes place with the help of business consultants in Canada’s start-up ecosystem with the oversight of experienced corporate business immigration lawyers who can make sure the start-up’s business concept complies with all industry requirements.

Under the Start-Up Visa program, applicants can apply for a work permit through their designated Canadian investor before applying for permanent residence.

Candidates must meet the following requirements in order to be eligible for the Start-Up Visa program:

• a qualifying business;
• a commitment certificate and letter of support from a designated entity;
• sufficient unencumbered, available and transferable settlement funds to meet settlement funding, and;
• proficiency in English or French at the minimum Canadian Language Benchmark level 5. To meet due diligence requirements, higher levels of English are frequently needed.

Start-Up Visa program does not require prior management experience, unlike almost every other entrepreneur program at the federal and provincial levels that requires one or two years of previous experience either owning a business or managing top-level operations.

The support of a government-designated entity is enough. Support can be financial or it can involve the candidate’s acceptance into an incubator program.

In general, immigrants who take advantage of the Start-Up Visa program say both the work permit and residence permit application process are quick.

To qualify for permanent residence, the candidate must:

• Ensure that the company is incorporated and is carrying on business in Canada;
• At least ten percent of the corporation’s voting rights must belong to the candidate, and;
• No other person can hold 50 per cent or more of the voting rights in the corporation.

Up to five candidates can be supported by the same business investment. However, there is a risk involved. Certain candidates may be designated as essential to the business. The applications of all other candidates under the same business investment will be terminated if any of the essential candidates withdraw their applications or are refused.

Surveys indicate that most Start-Up Visa applicants succeed in Canada in terms of growing their business, attracting more investment, networking or selling their business for a profit.