In the past few years, Canada has aligned with numerous countries around the world and offers foreign investors who want to relocate here the possibility of doing that by starting a business. This option is available under the Start-Up Visa Scheme which implies, as its name says, to create a company in Canada.
If you are a foreign investor and want to open a startup in Canada, this program can be your chance to become a business owner in this country. Our company formation agents in Canada can help foreign citizens who want to have their own businesses here with the registration procedure of a Canadian startup.
Steps for opening a startup in Canada
The creation of a startup company in Canada implies the same steps as for any other business and these are:
- choosing a location for the incorporation of the company (federal or provincial registration);
- applying for a business number and reserving a trading name for the company;
- preparing the incorporation documents and filing them with the appropriate authorities;
- applying for a tax number, for Goods and Services Tax (GST) registration and for the necessary business licenses.
When opening a Canadian startup, there are a few additional things to consider, especially when moving to this country based on the designated program which allows for the creation of such a business.
The provisions of the Start-Up Visa Scheme in Canada
The first and most important advantage of this program is the possibility of obtaining a work permit in Canada based on the creation of a startup company. For this to happen, the following requirements must be met:
- the applicant must have a qualifying business;
- he or she must obtain the support of a designated institution under the form of a Commitment Certificate and Letter of Support;
- the applicant must have sufficient funds for the business and for self-support;
- English or French language proficiency must also be demonstrated through specific tests.
It is important to note that in order to qualify for the program, the company must be already incorporated in Canada at the time the support of the designated institution is made and the requirements for obtaining it include for the applicant to own at least 10% of the voting shares in the Canadian startup and, if other shareholders participate in the venture, the voting rights of each of them must be below 50% of the total shares.
Our company registration consultants in Canada can provide more information on the qualification requirements for opening a startup. We can also help you in starting a business in Canada under the provisions of the Company Law.
Commitment requisites when opening a startup in Canada
When opening a startup in Canada, the business owner must also consider the commitment of the designated company. The support can have one of the following forms:
- of a group of designated angel investors who must confirm the investment of a minimum of 75,000 CAD into the business;
- two or more commitments from angel investors amounting the 75,000 CAD is also allowed;
- of a venture capital fund which must confirm the investment of at least 200,000 CAD into the business (more commitments are also allowed);
- of a business incubator which must confirm through a support letter the acceptance of the business into its program.
It is also possible for the Canadian startup owner to obtain permanent residence provided that the following requirements are met:
- he or she is an active participant in the management of the company;
- the entire operations of the company or a significant part of them are completed in Canada;
- the company is incorporated in Canada.
Our company formation advisors can assist foreign investors with information about the conditions of the visa scheme, as well as with the creation of a startup in Canada.
Fund requirements for relocating to Canada under the Start-Up Visa
Foreign citizens seeking to open a startup in Canada and move here must meet the following funding requirements, according to the immigration authorities:
- a minimum of 12,960 CAD for a single-family member;
- at least 16,135 CAD for two family members;
- 19,836 CAD for three family members moving to Canada under the Start-Up Visa Scheme;
- at least 24,083 CAD for four family members.
There is no maximum number of members who can immigrate to Canada under this program, however, the local authorities provide for a minimum of 34,299 CAD when moving here with seven family members.
If you want to open a startup in Canada under this program, do not hesitate to contact us. You can also rely on our local representatives for starting a company in Canada under different conditions.