Canadian Immigration News

Why Canada Is Attracting More International Entrepreneurs Than the US

1.5 minute read
"Canada is much better at attracting foreign entrepreneurs and investors compared to the United States because of the Start-Up Visa Program, according to Forbes magazine. Canada is one of the dozen countries that offer a start-up program for new entrepreneurs, others including the United Kingdom and Singapore."
Written by My Visa Source Team
Published on:  Dec 9, 2021
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Canada is much better at attracting foreign entrepreneurs and investors compared to the United States because of the Start-Up Visa Program, according to Forbes magazine. Canada is one of the dozen countries that offer a start-up program for new entrepreneurs, others including the United Kingdom and Singapore. 

One of its success stories includes the establishment of Edtech Unicorn ApplyBoard, founded by Martin, Massi, and Meti Basiri, immigrants from Iran who moved to Canada via the Start-Up Visa Program. The company currently employs more than 500 people. 

Canadian Immigration Minister, Marco Mendicino made it clear that Canada is looking to welcome more international entrepreneurs through the Start-Up Visa program. This is in clear contrast to the United State’s reluctance to new immigrants given its complex immigration rules.

What Is the Start-Up Visa Program?

The Start-Up Visa Program was launched in 2013 as a 5-year pilot program. It was later made permanent in 2018. Since its launch, more than 200 start-ups have been established in Canada, allowing the entrepreneurs to gain Canadian permanent residence in the process.

This program allows applicants to gain permanent residence by establishing a business in Canada. No minimum investment is required. Applicants must receive a letter of support from a designated Canadian financial institution.

There are 3 types of private-sector investors eligible for this program:

  • Angel Investors: Must invest at least $75,000 into the qualifying business
  • Venture Capital Funds: Must invest at least $200,000 into the qualifying business
  • Business Incubators: Must accept the qualifying business to its business incubator program

With the help of a business consultant, the applicant can develop a business plan that meets the requirements of the designated investors. A business consultant will ensure that the business plan meets the industry-required terms and conditions.

If successful, the applicant will be allowed to come to Canada on a temporary work permit to establish a business. Once their business meets all the requirements based on their Business Performance Agreement, they can obtain Canadian permanent residence.

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