Canada Startup Visa – a top choice for Entrepreneurs and Senior Executives
Popular for its high quality of life, happiness index rating, world class healthcare systems, and ease of doing business, Canada made the Federal Start-up Visa Program permanent in 2018 with the intent to attract global startups. Since its launch, the Start-up Visa Program has witnessed many of the global startups launching their business in Canada.
Distinctively, the startup program allows the holder of ten percent stake in an innovative startup to directly apply for the Canadian Permanent Residency without going through the hurdle of point based system and without any age restrictions. The founding team, often includes the main founder with the idea along with investors cum co-founders who bring value addition through their management experience.
The key requirements of the program include, obtaining a Letter of Support from a Government Designated Organization. Whilst, the approval of the Permanent Residency is done by the Immigration Department of Canada, the Canadian Government relies heavily on the Letter of Support. These Designed Organizations, to a great extent, work as an approver of the fact that the innovative startup has potential to grow globally and therefore would benefit the Canadian economy.
The key applicant for startup program are the innovative companies looking to launch their business in the global markets with North American Brand name. This comes as an outcome of the Canadian Government’s continuous effort to create a world class startup ecosystem.
Remarkably, between 2012 and 2017, Toronto created, the highest number of tech positions in North America, which was even more than the numbers created by the Silicon Valley.
The support provided by the Canadian government includes interest free loan, interest waivers, R&D grants, tax credits and continuous handholding through the government designated incubators. Furthermore, the Canadian Residency comes with various benefits like substantial savings on the college fee for children. A comparison of fee in various courses at the University of Toronto shows a difference of more than CAD 50,000 per annum between the fee charged to students with Canadian Permanent Residency vis-à-vis fee charges to international students.
Additionally, on obtaining the Canadian Citizenship, the applicants are eligible to work and live in the USA through various treaties with Canada viz. TN Visa, E1 Visa and E2 visa.
“With the numerous benefits provided by the Canadian Startup Visa, we are continuously helping Indian startups in launching their business operations in Canada under the Startup Visa program. This assistance very often includes finding right co-founders and investors from management/Tech background, assistance with the Letter of Support and representation through the Startup Visa process.” Says Divesh Sharma of Arcum Global.
Why there is Surge in demand for Canada Startup Visa?
- Permanent Residency to startup Shareholders with 10% shareholding along with their family members
- Substantial savings on tuition fee of children as Canadian Permanent residents are charged at domestic fee slab.
- North American Brand name for easy access to USA and global markets
- Permanent Residency is not conditional on business contingencies
- Access to funding from North American Investors
- Access to loans at cheaper interest rate to finance the global operations
- Rapidly growing startup ecosystem in North America
- Residency options in the USA through various treaties
About the contributor:
Divesh Sharma is the Founder & Director of Arcum Global, and has been practicing in foreign exchange laws, immigration laws and corporate laws since more than 8 years. He holds a bachelor’s degree in commerce from Delhi College of Arts & Commerce, University of Delhi as well as a Bachelor’s Degree in Law. He is also a qualified CS and holds an Associate membership of the Institute of Company Secretaries of India (ICSI).
Prior to founding Arcum Global, Divesh has gained hands on experience in corporate laws and foreign exchange control laws, while working with various renowned consulting firms like Grant Thornton.
Divesh has helped many of leading global companies in cross border setups, and regularly assists startups in fund raising and High Net Worth families in their residency planning.