What Is A Canada Startup Visa Cost For Real & Concept Startups?
How much does a Canada Startup Visa Cost? The answer to this question is complex and vague. In this article, we will discuss the fees of the Canada Startup Visa program, including hidden fees and the fees charged to designated agencies, business consultants, and legal services.
What is a Startup Visa for Canada?
Through the Startup Visa Canada program, entrepreneurs worldwide can develop high-potential, creative enterprises in Canada that can compete globally and generate employment opportunities for Canadians. To be eligible, candidates must meet the language criteria, bring enough money to settle in Canada, pitch their qualified business to a designated organization, such as venture capital, angel investor group, or incubator group, and receive a letter of support from them.
The Applicants also could work in Canada if they had already applied for permanent residence through the Startup Visa Program. In that case, they must show that their business will provide a significant economic benefit to Canada and bring enough money to settle both for their families and their businesses.
After being granted permanent status, successful candidates and their families can continue operating their startup businesses and living and working in Canada. The goal of this program is to draw in and keep bright businesspeople who can boost the Canadian economy and create jobs.
How much money to invest in Startup visa Canada to get PR?
Under the Startup Visa Canada program, there is no minimum investment required to be eligible for permanent residency. To take part in the program, you must, however, obtain funding from a designated Canadian organization (Venture capital fund or angel investor group) or training support (business incubator). These groups oversee evaluating your business plan and choosing which investments to make.
A minimum investment is often required. However, the precise Canada Startup Visa Cost may differ based on the company and the type of startup visa business you want to establish.
Type of Startup Visa in Canada
The Startup Visa Canada program is open to various innovative businesses, provided they meet the program’s requirements. There are two types of Canadian startup visa groups: real startup and conceptual startup. But what is the difference between the two?
A real startup and a conceptual startup in Canada differ in their stages of development and operational status:
1-Canada Real Startup Visa
Real startups have something actual to sell and were initially created to have a successful product or service to make money and expand the business. Their primary goal is not to immigrate to Canada. They all have ready-made products or services, most have early customers, and some even have revenue and profit. In some cases, they may have none. Still, they have external investors (both private and public) who are sold on their business concept and have invested in the startup to succeed and grow, believing that which have the potential to become a unique business in the startup world. The most successful startup visa groups have real founders who are fully committed to the startup and will do most of the work. Here is the highlight of a real startup:
- Established: A real startup has already been founded and operates.
- Product/Service: It typically offers an actual product or service to customers.
- Team: A real startup often has a team of founders and employees working on the business.
- Market Validation: It may have validated its business idea or concept in the market.
- Revenue Generation: A real startup may have generated some revenue.
2-Canada Conceptual Startup Visa
Concept startups are created for immigration purposes. No one is interested in continuing these types of startups after obtaining permanent residence in Canada (Completing the immigration process), and making revenue or expanding their startup business is not on their agenda. They will do anything to succeed in their immigration journey to Canada.
These startups try to develop a product or service, and sometimes, some successful concept startups invest money to get involved in marketing, media coverage, product or service development, research, etc. Sometimes, it appears that they have clients or business partners. Here is the highlight of Conceptual startup:
- Idea Stage: A conceptual startup is in the early idea or planning stage.
- Not Yet Established: It has yet to be officially founded or registered as a business.
- Product/Service Development: It is in the process of developing its product or service.
- Limited or No Team: A conceptual startup typically needs an entire team or may have only one or a few founders.
- No Revenue: It has yet to generate any revenue.
In most cases, investors who want to choose a passive PR pathway to immigrate to Canada join a group of concept startups on a Canadian startup visa, and their capital is used to invest in the development of a product or service and to cover some of the costs of the designated organizations of the startup project. After the IRCC approves the permanent residence, the group members don’t continue with the startup.
Both real and conceptual startups can benefit from the Startup Visa Canada program. Still, the IRCC requirements, application processes, and Canada Startup Visa Cost differ based on the stage of development and the support they have in place.
What is the Canada Startup Visa Cost?
The Canada Startup Visa Program is designed to attract entrepreneurs with innovative business ideas to Canada. The program does not have a set cost for real or conceptual startups, but there are certain fees and financial requirements associated with the program that applicants must meet.
Here, we explain the Canada Startup Visa Cost, but not all startup groups bear these costs. Still, we describe them for all groups depending on the type of applicant profile, nationality, and type of startup.
1-Pay-To-Play Fees
For Startup Visa concept startups, there is a fee to join a startup group. It is sometimes called “Pay-To-Play” fees.
When we talk about “pay to play” in the context of a startup, we usually mean a scenario in which people or businesses must spend money or pay a fee to access certain opportunities, services, or resources inside the startup ecosystem. The following contexts are where this word is frequently used:
- Venture Capital: Pay-to-play” is a situation in which current investors in a firm must contribute more money in later funding rounds to keep their ownership interest and voting rights. Occasionally, this strategy is employed to encourage current investors to keep funding the firm.
- Accelerators and Incubators: To gain access to their resources, networking opportunities, and mentorship, participating firms may be required to pay a fee or forfeit equity in specific accelerators and incubators. One could consider this a type of “pay to play.”
- Co-Working Spaces and Shared Services: Companies that provide shared workspaces or other services to startups may occasionally charge an entrance fee for their infrastructure, facilities, or business support services. To take advantage of these shared resources, startups could have to “pay to play” in certain areas.
- Networking and Events: To access industry insights and networking opportunities, some conferences, industry-specific get-togethers, and corporate networking events may charge admission fees or need tickets. In these circumstances, purchasing admission can be regarded as “paying to play.”
It’s critical that business owners and startups thoroughly consider the terms and conditions of any “pay to play” agreement. Even though some of these agreements can provide beneficial resources and opportunities, it’s essential to consider whether the Canada Startup Visa Cost outweighs the advantages and ensure the conditions are reasonable and transparent. Startups should also know of any possible duties or risks connected to these agreements, particularly concerning equity or investment needs.
If you don’t know the previous founders, such as family or friends, you can expect to pay between $75,000 and CAD 250,000. Depending on your nationality, region of residence and your background as an investor looking to join a group, this is what you can pay to join a ready and qualified startup visa group. They only do some things in advance but pay in stages. Real startup founders who have their startups don’t pay these fees.
2-Letter of Support Fees (LOS)
The next step is to pay the cost of getting a letter of support. To apply for a startup visa, you need a letter of support from a designated organization, such as venture capital funds, angel investor groups, or business incubators. These organizations have an essential role and unique requirements.
It would help if you convinced them that your business idea is worth the investment (financial or educational), which may include providing a detailed business plan. Once they approve your plan, they will give you a letter of support and a commitment certificate to IRCC, which are required to obtain permanent residence in Canada.
The minimum investment commitment of these organizations is 200,000 dollars for the venture capital, 75,000 dollars for the angel group, or without the need for investment commitment for the business incubator.
The Canada Startup Visa Cost of these designated organizations helping and evaluating the startup group to obtain a letter of support differs. There are 76 designated organizations listed on the official website of Immigration Canada, but you need to know which ones to work with and which ones to avoid.
No startup group can avoid the designated organization fees (Angel investor, business incubator or venture capital organization), i.e. the fees charged by them to Canadian startup visa groups. Whether you ask for a letter of support from any of them, in most cases, these organizations have a fee to cover their costs for implementing this startup program.
You can expect anywhere from $10,000 to $20,000 for real startups and $30,000 to $100,000 for concept startups as the fee the startup group must pay the designated organization. These costs are usually divided between the founders or shareholders of the group and only per person if you are the sole founder of the startup.
There are a small number of designated organizations that offer a fee-free letter of support for their accelerator program if you have sufficient business revenue (i.e., at least $100,000) and a robust and innovative business idea to become part of their portfolio. In exchange for your support, they will receive their share in your startup business, accept you into their accelerator program, and finally issue a letter of support.
In some circumstances, the “Pay-To-Play” to join a startup group covers the costs of a designated organization or business consultant to obtain a letter of support. Real startups sometimes pay these fees if their business concept needs to be more innovative. So, for their startup business to be successful, they need external help (business consultant) to get letters of support from designated organizations. In some cases, real startups pay business consultants to get them into a low-cost designated organization. It would be a win-win, even considering the salary. Business consultants, which can range from $15,000 to $35,000.
3- Canada startup visa cost of investing in a start-up business
The following cost will be investing in the startup business. It doesn’t matter if you are a real startup or a conceptual startup group; you must actively launch your successful startup visa business to be more confident in the immigration process to obtain Canadian permanent residence.
Real startups must pay out of their pocket unless they have a “bundle” of investors. Concept startups must pay from investors’ pockets. At the higher end of the range, if someone has paid $200,000 to $250,000, those costs usually include a co-founder’s investment in the business.
This is a significant Canada Startup Visa Cost that no one should underestimate, and always plan for it. The IRCC does not like startup groups that do nothing, do not have business activity, and are waiting to obtain their Canadian permanent residence. So, in that case, IRCC keeps them on the waiting list (it prolongs the process of reviewing their case) because, as we all know, IRCC does not grant permanent residence to 100% startup visa groups.
Canada’s startup visa approval rate is roughly 25%, and most groups choose based on the human capital factor – that is, how strong the founders’ profile is in terms of a university degree or professional work experience and entrepreneurship.
4-The IRCC Fees
Most of the time, your fees will include IRCC processing fees for you and everyone you list on your application, the Right of Permanent Residence Fee (RPRF), biometrics, and fees from third parties (such as those for translating your paperwork or paying for travel expenses if you need to take the biometrics test).
The processing fee of $1625 and the right of permanent residence fee of $515 must be paid by the principal applicant. The processing fee of $850 and the right of permanence residence fee of $515 must be paid by the spouse or partner of the principal applicant. The processing fee and the right of permanent residence fee for each dependent child is $230.
The biometric fee for a Canadian visa is $85 for the principal applicant or $170 for the whole family if they apply at the same time and place.
Canada Startup Visa FAQ
What is Canada start up visa success rate?
The overall startup visa Canada success rate is above 75 percent for the applicant proceeds by IRCC without considering the applicants who applied and waiting for their decision. Strong immigration applications supported by designated organizations such as venture capital have higher chances of success.
What is the Canada StartUp Visa processing time?
According to the CIC processing times online tool, the average Canada startup visa processing time for an SUV optional work permit is 12 months. The average processing time for the Permanent Residence Visa is 37 months.
What is the Canada Startup Visa Cost?
The Canada startup visa cost varies. You might expect anywhere from $10,000 to $20,000 for real startups and $30,000 to $100,000 for concept startups as the fee the startup group must pay the designated organization.
What are the advantages and disadvantages of Canada startup visa?
Canada’s Startup Visa offers many advantages, such as access to a successful economy, support from designated organizations, and permanent residency. However, disadvantages include severe eligibility criteria, competition for spots, and the demand for a viable business plan. The startup visa Canada success rate depends on navigating these factors effectively for entrepreneurial immigrants.
Conclusion
As an actual startup, your Canada Startup Visa Cost are still reasonable and competitive, especially if you are the sole founder of a startup and know which designated organization to apply to. As startup visa investors, you are expected to pay different fees depending on your nationality and the type of startup group you join.
The key to success is to join a startup group that will be successful and that qualified applicants adhere to Immigration Canada regulations and internal policies and practices that are not usually published.
Keep in mind that the application process for the Canada Startup Visa Program can be complex, and it’s recommended to seek legal advice or assistance from a regulated Canadian immigration consultant (RCIC) to ensure that you meet all the requirements and complete the application correctly.
How Can Arnika Visa Help With SUV Application?
Would you like to apply for a Canada Startup Visa? In that case, Arnika Visa Immigration Legal Services is a reliable center that will guide and support you throughout obtaining a letter of support and the entire process of immigrating to Canada, including getting the SUV optional work permit and permanent residence.
Our recommendations, advice, and help will support your visa application procedure. Our RCIC and his trained expert staff are skilled at helping customers with visa applications. We will carefully review, draft, and complete Your visa application paperwork. We provide you with the following:
- Detailed advice on improving your chances of getting a Canada visa.
- Ensure you provide the IRCC visa officer with financial information to reassure them that you have the resources necessary to go to Canada, including that of your designated organization.
- We will review your travel history and supporting documentation to decide how to present your visa application and what to emphasize when you submit it.
If you follow our guidelines, you will have a greater chance of getting your visa approved than if you applied for it independently. The first step in learning how the RCIC can assist you is to fill out the online assessment form, which asks for details about your career, education, and personal history.
Unfortunately, my startup visa optional work permit application was rejected on December 26. Now, I am looking for the right solution, and on Google, I came across Arnika Visa’s website and an article about seven fantastic options to appeal a Canadian Visa refusal. Thank you, Mr. Eslami, who wrote a complete article. Now, as one of the solutions, I am looking to take my refused visa application to the federal court for judicial review with the help of a Canadian lawyer. I contacted many Canadian law firms to see if my case is worth taking to court and defending and the associated cost. Interestingly, without verifying the submitted case, most Canadian immigration lawyers say they will take it to court and get the settlement notice from IRCC quickly. I will get a visa after that. Mr. Eslami’s opinion is important to me, whether this claim is valid and how to evaluate such a claim. I appreciate any help you can provide.
The first step is to make a detailed assessment of the reasons for Canada startup visa refusal. Reviewing the case by an RCIC or Canadian lawyer to make sure that you submitted a solid visa application to determine whether your refusal was unfair or unreasonable. Unfortunately, many Canadian lawyers claim they can settle the case in federal court, but it is untrue. The only measure you can take is to check the previous cases of lawyers in the federal court by searching the names of lawyers on the Canlii website. First, check the lawyers you want to hire, and if they have had similar successful cases, you can trust and delegate your case to them; otherwise, look for a Canadian lawyer with knowledge in the field of rejected Canada startup visas. Reza Eslami
Link to Canlii’s website article
https://arnikavisa.com/canlii-canada-successful-immigration-court-cases/
Hi, I wanted to learn more about how to address the concerns and re-apply for the SUV optional WP that was just refused today. I have a letter of support from an incubator. All documents were in line with the WP, yet they refused my application because of the Purpose of the visit and financial ties to the country. I have had three prior refusals for a Visit Visa to Canada. However, I have often visited the US, UK, and EU for holidays and business. What do you suggest I do now? Thanks
To address the SUV work permit refusal, carefully review the refusal letter, clarify and detail your travel’s purpose, bolster financial ties evidence, and emphasize the new supportive additional documents and information. Highlight positive travel history. We suggest that you seek an Expert RCIC guidance who specializes in Canada Startup visa refusal cases. If you have any more questions, feel free to contact Arnika Visa. Thanks
Hello, there are many advertisements on social media from immigration companies that claim that by giving $75K to $100K and being a member of Canada start-up visa groups, we can easily get permanent residence in Canada. Is that true? Grateful
Hello, thank you for your comments. Be cautious of claims promising easy PR through financial contributions. The Canada Start-up Visa Program requires a genuine business commitment, not just a monetary investment. I recommend verifying the legitimacy of such offers and consulting with a licensed immigration professional (RCIC) for accurate guidance.
I got an email from Immigration Canada concerning my SUV application that I gave out misinformation about a compensated representative that I did not indicate in my application. I cannot travel to Canada with my current Canada startup visa work permit, which was revoked. Please advise me on what I can do.
Seek clarification from IRCC (Immigration Canada) on the reasons for revocation. Collect all relevant documents. Consider legal representation for guidance. Addressing this promptly and accurately is crucial.
I went through an immigration consultant and applied for a startup visa, which was to be an LMIA exemption, informed by my agent. I applied in 2020 since the WP was delayed. My consultant informed me to apply for a business visitor visa with the support of my Canadian business partner, which was again rejected. The reason for refusal was to apply for ESDC. Last week, I again applied for a Canadian visit visa, which was rejected on February 15, 2024, because my current employment situation does not show that I am financially established in my country of residence, and my visit to Canada is not consistent with a temporary stay given details in the application. I appreciate your support and guidance on the case. Thanks
To address visa rejections, assess previous refusals, ensure accurate financial documentation, solid business plans and partnerships, seek legal advice and strategize reapplication with patience and persistence. Understand reasons for refusals, gather strong financial evidence, refine business plans, consult immigration lawyers, and approach reapplication with resilience and clarity.
I am new to business immigration in Canada. I have checked several options for the PR immigration path to Canada: Provincial nomination, business investor, etc. One of my immigration consultants advised me to take the Canada Startup Visa path with a guarantee of PR in Canada for the upcoming year. I researched the program and understood that the IRCC may only accept the application if the startup business is inspiring. Also, the startup owner has to make some progress with the company. I am conservative, but I would like to know the pros and cons of a Startup Visa and whether an SUV is indeed a guarantee for PR in Canada, according to some immigration consultants. I appreciate your sharing your thoughts and any progress on SUVs. Thanks
The Startup Visa Program offers a promising path to Canadian PR, but success hinges on a genuinely innovative business idea and demonstrated scalability and progress. Pros include PR potential and entrepreneurial opportunities. However, the cons involve the risk of business failure and strict eligibility criteria. There is no guarantee on any Canadian immigration program, which is against the law.
I have a job and live in the US now, but if I go with the startup visa option as an essential person, do I have to relocate to Canada entirely? Can I travel to Canada once a month (but still live in the US) and work on the business until the PR approval, as it is less costly for me?
To qualify under Canada’s Startup Visa Program, you must actively contribute to Canada’s business. While there’s no strict relocation requirement, periodic visits may not suffice. Consult an immigration consultant (RCIC) for personalized advice, ensuring compliance while managing your current commitments in the US.
I applied for my Work Permit under the Startup Visa Program. I got a rejection that “you have not obtained a commitment made by one or more designated entities.” The same was submitted to IRCC directly from the Angel Investor to IRCC in May 2023, and the acknowledgment from IRCC is also available. I have sent a reconsideration request, and the tracking sheet says we have received your inquiry; what does that mean on the portal? It shows the last updated 15th of October; I understand the officer decides to accept or reject. Is there any timeline? Thanks
The “received your inquiry” status indicates IRCC has acknowledged your reconsideration request. There’s no fixed timeline for processing reconsideration. Monitor the portal for updates. For timelines or concerns, consult an immigration professional. Officer decisions vary; stay patient through the process.
What are your thoughts on the chances of getting Visa approval for a startup visa if one student visa is rejected from Canada in 2022 with 216(b)? Thanks
The previous rejection of a student visa doesn’t necessarily impact the startup visa application as it is a PR application. However, it’s crucial to address any concerns raised in the previous application to strengthen the new one. Consulting with an immigration consultant (RCIC) can provide tailored advice based on your specific circumstances to enhance your chances of getting a Canada startup visa approval after rejection.
Hello, my IT Business is in the POC Stage. Can I get a Letter of Support from a designated organization for a startup visa? Or is it easy if the business is in the Market Stage, which one is less costly? Please suggest. I appreciate any help you can provide.
Letter of support feasible at POC stage; market stage preferable. Consult designated organizations for guidance on eligibility. Clarify startup visa requirements. Each case varies; seek expert advice for tailored assistance. Wishing you success in your entrepreneurial endeavors.
Hi, I have recently submitted my PR application under the SUV program. Does IRCC operationalize the 3-year open work permit for startup visa applicants announced last year? Is there any update on its cost? Thanks
As of now, the IRCC website hasn’t been updated to include the 3-year Open Work Permit for Startup Visa applicants. Stay tuned for IRCC updates on its implementation.
Hello, my sister’s SUV work permit application was refused. We are waiting for the GCMS notes. Do we need to submit the job offer on the employer portal again for reapplication? If we are not required to submit it again, can we use the same job offer number, which starts with an “A”? Thanks
No, you don’t need to resubmit the job offer on the employer portal for reapplication. You can use the same job offer number (“A”) if it remains valid, but ensure any necessary updates are reflected in the reapplication.
Hi, we’re reviewing the work permit application under the StartUp Visa Program. However, the requested documents could be more relevant. For example, “Proof of Business Establishment in Canada” we cannot submit this since the business has not yet been established in Canada. Also, relevant documents such as a Letter of Support or Proof of Funds are not explicitly requested. There is no place to upload “other documents.” how can I deal with it? Or am I on the wrong path? Thank you
You’re on the right path. Consult a regulated Canadian immigration consultant (RCIC) to clarify the documentation requirements. Explain your situation regarding the business establishment and inquire about submitting additional relevant documents like a Letter of Support or Proof of Funds.
Hi, I am in Canada through the Canada SUV program with my family and will extend my work permit and my family’s work and study permit. Regarding the question below, what is the correct answer? Yes or No?
“Does one of the following apply to you?
Are you a spouse, common-law partner or dependent child of a person who holds a work permit or is applying for a work permit (Yes No)? Please guide me. Many thanks
Yes, if you are extending your work permit and your family’s permits, including study permits for your family, the correct answer is “Yes.”
Do I need to be actively involved in the Start-Up business plan, presentation, etc? I am asking this because I have a job (sailing onboard ship) and must be out of home for two months (I am on rotation for 60 days on/off).
In the context of a Canada startup visa, your active involvement in the business plan and presentation is crucial for its success and visa approval. Refusal factors include insufficient commitment and contribution to the startup’s development. Plan your involvement during off-rotation periods or explore remote collaboration options.