Moreover, the following requirement is a prerequisite for obtaining this visa – an official confirmation with a guarantee from one of the Canadian companies to support this startup or confirmation by the applicant of a certain amount of finance.
The Canadian Start-up Visa program is considered one of the most loyal to newcomers to the foreign market: up to five founders of one company can receive it. Each of them must have at least 10% of voting shares, and the owners, together with the funding organization, must have more than 50% of the votes.
According to an annual survey by the DOING JONES team, Canada has been in the top five countries in the world for many years with the most favorable business climate. There are many factors why:
The stable economy, low inflation rate, and a high level of infrastructure. Also, Low-interest rates on loans and a preferential taxation system have a beneficial effect on small businesses in Canada in general.
The main tax payment for individuals is income tax, which in Canada is called federal. As in other developed countries, income tax in Canada has a progressive scale of payment at the following rates in 2020:
- 15% – for the first $ 48,535;
- 20.5% – from $ 48,535 to $ 97,069;
- 26% – from $ 97,069 – $ 150,473;
- 29% – from $ 150 473 – $ 214 368;
- 33% – from $ 214,368
Canada has many provinces, the tax rules are different for each of them. In general, the tax system is quite loyal to foreign entrepreneurs.
Residence in Canada
The visa does not have a fixed term, so it provides the recipients with permanent residence. Within the Start-up Visa Program, 2,750 visas are allocated annually.
Conditions for obtaining a Canada startup visa
According to statistics, almost half of the start-up immigrants in Canada are located in the province of Ontario. British Columbia is second in startups, with Alberta in third. The rest of the entrepreneurs prefer to open their businesses in Newfoundland and Labrador, Nova Scotia, New Brunswick, and Manitoba.
The start-up program in Canada belongs to the category “Business Immigration”, it is designed for people with an innovative start-up idea in the field of various technologies.
To obtain a start-up visa in Canada, applicants must:
- Have a ready-made business or startup plan.
- Convince designated organizations and obtain approval.
How to get a Canadian startup visa?
The first step is to contact investors with a competent and detailed business plan. At this stage, the personal data of the authors of the project – and their number can be up to five people – does not matter. All attention is paid to the potential of the project.
If the project seems worthy of attention to the investor, he/she undertakes to sponsor it and in confirmation sends the entrepreneur a letter of support, with which he goes to the consulate, capturing the rest of the necessary documents. If the application is approved, the applicant receives an indefinite residence permit and the right to work.
The funds that are invested in the development of a startup in Canada are distributed by the author of the project at his discretion but subject to reporting. He/she does not have to invest his own money. If the business project fails, then its creator will retain his residence permit in Canada. When applying for a startup visa on Canada to the consulate, you must provide the following documents:
- a certificate confirming knowledge of English at an upper-intermediate level (fifth level in IELTS);
- a diploma of higher education or a certificate of completion of at least one year at a university;
- letter of support from a Canadian venture fund or business angel, confirming the readiness to provide support to a startup (the minimum amount is 200 thousand Canadian dollars for a venture fund and 75 thousand for a business angel);
- a bank statement confirming the availability of funds for the first months of life in Canada (from 12.6 thousand Canadian dollars per person, about 3000 are added for each family member);
- a document on the passage of medical commissions in a medical institution accredited by the Department of Immigration Canada;
- certificate of no criminal record and problems with the law.
With a Canadian startup visa, you can also transport family members to Canada: a husband or wife and children (family members are included in the visa application). If the main applicant receives an immigrant visa, then the accompanying visa is issued automatically. They are also vested with all the rights of permanent residents, including the right to study and work. The term for consideration of an application for a startup visa in Canada is no more than 6 months.
Canada is a great business solution for doing business there. Thanks to state policy, the state occupies a leading position in terms of business indicators. Anyone with an innovative business idea can get a Canadian startup visa. For this, you need to provide a business plan, collect the necessary documents, have enough money in the account, and apply.