The Canadian Start-Up Visa Beckons Ambitious Immigrants from the US!

The Start-Up Visa Adventure Awaits!

Recent research reveals that Canada’s Start-Up Visa policy is motivating immigrants in the United States to move to Canada.

This research is in line with the implementation of Canadaโ€™s program to entice H-1B visa holders in the US to come to Canada, which attracted so many applications it reached the 10,000 limit in less than 48 hours.

A new study by Saerom Lee and Britta Glennon from the Wharton School at the University of Pennsylvania investigated whether immigration policies that provide visas to skilled entrepreneurs influence the founding location choice of immigrant entrepreneurs.

The study found that the introduction of Canadaโ€™s Start-up Visa Program in 2013 increased the likelihood that US-based immigrants have a start-up in Canada by 69%.

The study used a dataset of 1.2 million US-based individuals who โ€œfounded a company either in the US or Canada between 2006 and 2021.โ€

The research also found that immigrants to the US from Asian countries were the most likely to start a business in Canada. โ€œOur study also finds that, compared to immigrants of other ethnic groups, Asian immigrants were more responsive to this policy change,โ€ write the authors. โ€œFurthermore, our results suggest this responsiveness varies by the presence of Asian immigrants in their prior location. That is, the larger the Asian immigrant enclaves in the origin location, the less likely that U.S.-based Asian immigrants in this location move to Canada to start a business.โ€

They conclude by discussing how not only does immigration policy impact the founding location decisions of immigrant entrepreneurs but that this decision also involves weighing factors like social ties and the presence of co-ethnic communities in both origin and destination locations.

WHO WOULD BE ELIGIBLE FOR THE START-UP VISA.

This program aims to bring in entrepreneurs from other countries who will create new jobs and boost Canada’s economy.

  • Language Proficiency.
  • Sufficient Funds.
  • Settle in a province other than Quebec.
  • Pass Canadian security & Medical Clearance.
  • Support from a designated organization.
  • Business meets ownership requirements.

Canada’s Immigration, Refugees and Citizenship Canada (IRCC) has approved certain venture capital funds, angel investor groups, and business incubators for the Start-Up Visa program.

To qualify, successful applicants need to secure a minimum investment for their start-up. If it’s from a designated Canadian venture capital fund, the investment should be at least $200,000. If it’s from an angel investor group, it should be at least $75,000.

Importantly, applicants don’t have to invest their own money. Even if their Canadian start-up doesn’t succeed, those granted permanent residence through this program keep their permanent resident status.

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