Many aspiring foreign entrepreneurs looking to start a business in Canada mistakenly believe that securing support from a designated organization and applying through the Start-Up Visa (SUV) program is the only option. It is not true. The Start-Up Visa is just one of several business immigration programs available to foreign entrepreneurs who want to immigrate to Canada and start a new business there.
Canada has a range of immigration programs to help you start your business. These include temporary residence options like LMIA-based work permits, entrepreneur work permits, investor work permits, and intra-company transfers, all of which can lead to obtaining permanent resident status (PR) after one year of work experience. There are also permanent residence options such as Provincial Nominee Programs (PNPs) and the Start-Up Visa program. Choosing the best business immigration program for your start-up depends on various factors, including your business type, location, capital, and immigration goals.
This article aims to clarify the different immigration options that can help you establish your business in Canada without unnecessary complications. Read on to find the best Canadian immigration programs for your start-up.
Launching a Tech Company in Canada: Three Main Options
When starting a technology company in Canada, the following options describe the best immigration programs for foreign business owners and entrepreneurs.
LMIA-Exempt Work Permits (Leading to PR)
This option includes such immigration programs as the C11 Entrepreneur Work Permit, Intra-Company Transfer (ICT), and C10/C11 Significant Benefit Work Permit. These work permits allow you to work in Canada without needing a Labour Market Impact Assessment (LMIA) and can lead to permanent residency after one year of employment. This pathway is ideal for sophisticated entrepreneurs with high language proficiency, a clear business vision, and confidence in their ability to build a viable business in Canada.
Advantages of the LMIA-Exempt Work Permits:
- Quick processing times.
- No minimum capital requirement.
- Flexible business plans.
- No need for support from a designated organization.
Disadvantages of the LMIA-Exempt Work Permits:
- Transition to permanent residency may be challenging for those without a Bachelor's degree or strong language skills (CLB 8 level).
→ Read a Case Study here: A South African Startup Founder's Immigration Success Story.
Start-Up Visa: Getting PR in Canada With a Startup
The Start-Up Visa Program is designed for highly scalable innovation companies with a proven track record of success. To qualify, your start-up must pitch its idea and secure support, and sometimes investment, from a Designated Organization such as a venture capital fund, angel investor group, or business incubator in Canada. This program aims to attract high-quality, well-capitalized start-ups with the potential for significant growth. It is particularly suited for entrepreneurs with multiple co-founders looking to relocate permanently and substantially impact the Canadian economy.
Advantages of the Start-Up Visa Program:
- Up to five founding partners can come under this program with their families.
- The program directly leads to Canadian permanent residence.
- There is a possibility of essential founders obtaining open work permits while they wait for their permanent residence.
Disadvantages of the Start-Up Visa Program:
- As of April 2024, the program has undergone significant changes, including a capped intake, making it highly competitive and expensive.
- The program has been criticized for long processing times, often exceeding three years.
→ Read a Successful Case Study here: Welcoming New Talent: A Start-Up's Journey from Türkiye to Canada.
LMIA-based Work Permit (incl. Global Talent Stream)
This option is suitable if your company already has active customers in Canada and needs to bring in specialized talent quickly.
Advantages of the LMIA-based Work Permit:
- Speed: GTS LMIA is usually processed within 2 weeks and can be a good solution for start-ups that need to relocate specialized talent quickly or require solutions speedily. This option can also lead to permanent residency for a start-up owner in an expedited manner. Read Success Story here (to be published on September 3).
Disadvantages of the LMIA-based Work Permit:
- Only open to start-up companies that are already actively engaged in business in Canada.
- Requires the ability to pay foreign team members at or above the median market rate.
- Executing Labour Market Benefit Plans can be expensive (can cost over $100,000+)
Read a Successful Case Study here.
A Helpful Tip: If you intend to start a non-technology company in Canada, read our article on Options for Foreign Entrepreneurs Who Want to Start a Non-Technology Company in Canada.
How We Can Help
Choosing the right immigration pathway for your business in Canada depends on your unique circumstances, business idea, access to capital, location, and immigration goals. As a law firm specializing in business immigration, Sobirovs is here to assist you at every step. We can help with company registration, business planning, market research, selecting the right immigration strategy, and processing applications for you, your family, and key employees. We'll also ensure you stay compliant, connect you with the right people, and guide you through transitioning to permanent residency. We're committed to your success and will support you throughout your entire immigration journey.
We invite you to book your exclusive 1-hour Strategy Meeting with our senior lawyers today.
Bringing You, Your Talent & Your Business To Canada
Get started and make your first step towards Canada. Book your 1-hour strategy meeting with a licensed Canadian immigration lawyer.
Immigration to Canada can be very complicated for businesses, business owners, and foreign employees. Hiring business immigration lawyers with the skill, experience, and patience is often crucial to successfully navigating this complex process. The experienced professionals at Sobirovs Law Firm offer tailored legal services in all business and corporate immigration matters. Contact us for more information on how we can help you meet your immigration needs.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
