Summary of questions on immigration to Canada for entrepreneurs
Start-up Visa (SUV) is a Canadian immigration investment program for startup entrepreneurs. This is one of the most popular immigration programs in Canada with the fast application processing time is only 12-16 months. Therefore, the SUV settlement program is becoming the preferred choice of the majority of foreign investors.
The SUV Canada Immigration Program is also the only Federal immigration program currently allowing applicants and their families to receive permanent residency (PR) upon arrival in Canada.
Here are 7 common questions that SUV program investors often ask:
What is Canada’s Startup Visa Program?
The SUV Startup Program was announced and confirmed as an official and permanent migration program in 2018, aimed at attracting foreign entrepreneurs with groundbreaking business ideas to immigrate to Canada. The program has attracted a lot of attention from talented entrepreneurs thanks to its clear advantages, transparent process in a short time.
The SUV program allows a group of up to 5 applicants to jointly develop an idea and establish a business in Canada. Three forms of participation in the SUV program include:
- Angel investor
- Venture capital fund
- Business Incubator
What is the difference between Venture Capital Fund, Angel Investor and Business Incubator?
In order to receive support from Venture Capital or Angel Investor group, you need to call for a large investment from them. And in order to receive support from the Business Incubator, the investor must accept to participate in the designated Canadian business. This is a highly competitive program, with a limited number of support letters.
Specifically, the difference between the 3 types of participation is as follows:
– Venture capital fund: investors need to call for a minimum capital of 200,000 CAD
– Angel investors: investors need to call for a minimum capital of 75,000 CAD
– Business incubator: there is no minimum level to call for investment in the project
Do investors need to invest assets in the project if participating in the SUV program?
This will depend on the investor’s choice of the organization that will support the start-up. If an investor chooses a Venture Fund or an Angel Investor, the investor will not need to invest personal money in the project. Money invested in the project will probably come from Venture Capital Fund or Angel Investor.
For investors who choose the Business Incubator Fund to support, investors still need to invest in the project.
Conditions to participate in the Canadian investment immigration program?
- Have a business project that is eligible to participate in the program
- Received a letter of sponsorship from a designated Canadian organization
- Have a certificate of English or French club from 5 or more
- Minimum 3 years of experience in investment or business management
- Meet the health and judicial record requirements to immigrate to Canada
What is the minimum capital contribution? How is the capital contribution progress?
The SUV program does not have a minimum capital contribution requirement. However, the share ratio of each Investor needs to be at least 10% in the business. Therefore, depending on each business plan, Portico & Bridge will assist the Investor in developing a suitable financial plan. In addition, if investors are supported by Angel Investor or Venture Capital Fund, the business will receive an additional 75,000 CAD or 200,000 CAD to operate the first time.
How do I get a letter of support from a designated organization?
After the business idea is established and finalized, the immigrant investor and other members of the Start-up team (maximum 5 people) must contact the Investment Fund on the list designated by the Government. Investors can be individuals or groups, then they have to participate in presenting ideas and calling for capital from investors.
If the investor reaches an agreement with a Designated Investment Fund, the fund will send the investor a letter of support. This is proof that the Investment Fund is supporting this business idea.
Portico & Bridge together with experienced attorneys will ensure that the investor’s startup business plans meet the required terms and conditions of the SUV.
If an investor participates in immigration through the Canadian immigration program as an entrepreneur and has a risk of business failure, what will happen?
If the investor’s business is not successful, the investor’s residency status will not be affected. The government also realizes that not all businesses are successful. Therefore, this program is designed to share business risks with investors.
Besides, the government wants to create conditions for international investors and their families to have the opportunity to live and enjoy the best benefits for Canadian citizens.
For advice on learning more about the Canadian immigration program or information about other immigration opportunities, please contact us at Portico & Bridge. We are always happy to assist you. Call us now at 0909.898.758
At PORTICO & BRIDGE, “Your Children We Care”.