Start-Up Visa (SUV) Business Plans

To be eligible for the Canada Start-up Visa Program, applicants must fulfill the following criteria:

1. Have a qualifying business: The business must meet specific conditions, including each applicant holding 10% or more of the voting rights at the time of receiving commitment from a designated organization, and applicants and the designated organization jointly holding more than 50% of the total voting rights.

2. Obtain a letter of support from a designated organization: Applicants need to contact a designated organization, convince them of the worthiness of their business idea, and secure a letter of support. The organization may have unique requirements for the application process.

3. Meet the language requirements: Applicants must demonstrate proficiency in English or French by taking a language test from an approved agency. Minimum Canadian Language Benchmark (CLB) 5 level must be achieved in speaking, reading, listening, and writing.

4. Show sufficient settlement funds: Applicants must provide proof of funds to support themselves and their dependents after arrival in Canada. The required amount depends on the family size.

In the context of the Canada Start-up Visa Program, a designated organization refers to specific business groups that have been approved to invest in or provide support to potential start-ups applying to the program. These organizations include:

1. Venture capital funds;

2. Angel investor groups;

3. Business incubators.

These designated organizations have the authority to select which business proposals they will review and have their own unique intake processes and assessment criteria. If a designated organization decides to support an applicant's business idea, they will issue a Letter of Support.

The three types of designated organizations differ in their roles, investment thresholds, and support mechanisms. Here are the key differences:

Venture capital funds:

• Investment Threshold: You need at least one venture capital fund to agree to invest a minimum of $200,000 in your start-up.

• Role: Venture capital funds are investment firms that provide capital to high-potential start-ups in exchange for equity.

• Support Mechanism: They offer financial resources, industry expertise, mentorship, and networking opportunities to help start-ups grow and succeed.

Angel investor groups:

• Investment Threshold: You must secure the commitment of one or more investors associated with angel investor groups to invest a minimum of $75,000 in your start-up.

• Role: Angel investor groups are networks or associations of individual angel investors who invest their own funds in promising start-ups.

• Support Mechanism: Angel investors bring not only financial capital but also industry knowledge, experience, and valuable connections to support start-ups.

Business incubators:

• Investment Threshold: None. To qualify, you must be accepted into one of the approved business incubator programs.

• Role: Business incubators are organizations or programs designed to support early-stage start-ups by providing resources, mentorship, infrastructure, and access to a supportive community.

• Support Mechanism: They offer a wide range of support services, including office space, business development guidance, mentorship, networking opportunities, and access to funding sources.

While all designated organizations aim to support start-ups, they differ in their funding amounts, investment structures, and additional support services they provide. Entrepreneurs can choose the type of organization that aligns with their specific needs and goals for their start-up venture.

While the process and requirements differ slightly between designated organization, the typical process for the Canada Start-up Visa Program can be outlined as follows:

1. Prepare your business concept: Develop a compelling Pitch Deck or a detailed Business Plan outlining your start-up idea.

2. Submit your application to designated organizations: Send your application, including your business concept, to one or more designated organizations for review and evaluation.

3. Attend an interview: If your application is shortlisted, you may be invited for an interview with the designated organization to further discuss and assess your business idea.

4. Sign an agreement: Upon approval, sign an agreement with the designated organization that has chosen to support your business concept.

5. Pay designated organization fees: Fulfill the financial obligations by paying the required fees to the designated organization.

6. Obtain a Letter of Support: Once you have secured the support of the designated organization, they will issue a Letter of Support to confirm their endorsement of your start-up venture.

7. Submit your application for permanent residency and work permit: Include the Letter of Support and other necessary documents when submitting your application for permanent residency and work permit to the relevant authorities.

Please note that the process for pitching your idea may vary among different designated organizations, and each organization has its own criteria and requirements. It is important to establish direct communication with the designated organization to understand their specific procedures and expectations.

Yes, it is possible to receive support from multiple designated venture capital funds or angel investor groups. This is known as syndication. In such cases, all investment organizations involved must be identified, and the minimum investment amounts still apply.

For example, if both a designated venture capital fund and a designated angel group invest in your business, the minimum total investment amount required is $200,000; however, if only a designated angel group invests in your business, the minimum total investment amount is $75,000.

Up to 5 entrepreneurs can apply together as owners of a single business under the Start-up Visa Program.

An essential person, under the Start-up Visa Program, refers to an individual who is deemed crucial to the proposed business by the designated organization. This person is identified as essential on the commitment certificate and letter of support provided by the organization.

It's important to note that if the application of an essential person is refused, all related applicants associated with the business will also be refused.

If your business fails, it does not affect your permanent resident status. The program is designed with the understanding that not every business will succeed, and the risk is shared between the public and private sectors.

The Start-up Visa Program itself does not provide a direct pathway to Canadian citizenship. However, once you have obtained permanent residency through the program, you may be eligible to apply for Canadian citizenship after meeting the residency requirements, which typically include physically residing in Canada for a specified period of time. Citizenship applications are processed separately and have their own eligibility criteria and requirements.

Yes, you can include your family members in your application under the Start-up Visa Program. This includes your spouse or common-law partner, as well as dependent children. If your application is approved, your family members will also be granted permanent residency status in Canada.

There is no specific quota or limit on the number of applicants accepted through the Start-up Visa Program. The program aims to attract innovative entrepreneurs and does not have a predetermined cap on the number of successful applicants. Each application is assessed based on its merits and eligibility criteria.

While previous business experience or education in the field of entrepreneurship can be advantageous, there is no specific requirement for having previous business experience or education to be eligible for the Start-up Visa Program. The program focuses on the viability and potential of your business idea, as well as your ability to secure support from a designated organization.