South Africans are enjoying a level of success that is nothing short of
remarkable in gaining permanent residency in Canada under the Start-Up Visa
program.
An amazing 90 per cent of South African applicants to Canada’s Start-Up Visa program are accepted, far in excess
of the average overall acceptance rate of 38 per cent, according to Statistics
Canada.
That success rate puts South Africa at the top of the list of countries
whose applicants are accepted under this program.
Canada remains deeply committed to its relationships with African
countries, both for humanitarian and economic reasons.
Prime Minister Justin Trudeau toured the continent last year. During
that trip, Trudeau strengthened Canada’s partnerships with countries across
Africa and committed to creating economic growth, increasing trade and
investment, promoting democracy, advancing gender equality, and fighting
climate change.
Canada Wants To Foster Strong Ties With African Countries
“Canada and African countries will continue to work together to find
solutions to the global challenges of today and prepare for the ones of
tomorrow,” said the prime minister in May.
“We cannot defeat COVID-19 unless all countries have the resources to
respond to, and recover from, this crisis. The Government of Canada will keep
working with international partners to support an equitable access to COVID-19
tests, treatments, and vaccines, and a strong global economic recovery that
benefits everyone, including by recognizing the specific needs of African
countries.”
The positive working relationship between Canada and South Africa was
further exemplified earlier this year when Mitacs, the Canadian non-profit
designed to promote research and training programs, struck a formal partnership
with South Africa’s National Research Foundation.
With that partnership, the NRF effectively launched its Industry
Partnership Strategy which aims to develop highly-qualified personnel through
collaborative training opportunities with industry, joint research, and
collaborative networks with other countries.
The program is the first of its kind in South Africa with a combined
investment of $1.26 million over three years.
Mitacs and South Africa’s National Research Foundation Ink Deal
“I am delighted to launch this first agreement between Mitacs and the
National Research Foundation,” said Dr. John Hepburn, Mitacs CEO and scientific
director, in mid-May.
“We are proud to support the innovation ecosystem by offering a
significant opportunity to PhD students and postdoctoral fellows for global
mobility between Canada and South Africa,” he said. “The connections
established through this partnership will advance outcomes for both countries,
while providing new opportunities for researchers.”
That innovative thinking and entrepreneurial bent is one of the reasons
why South African entrepreneurs who apply to Canada’s Start-Up Visa program do
so well.
Under the Start-Up Visa program, immigrants can get permanent residency
in Canada, provided their business idea is approved.
Angel Investors, Venture Capital Funds and Business Incubators Help
Entrepreneurs
The program requires that these budding entrepreneurs gain the support
of one of three types of private-sector investors: angel investors, venture
capital funds, or business incubators. A designated venture capital fund must
confirm that it is investing at least $200,000 into the qualifying business.
Candidates can also qualify with two or more commitments from designated
venture capital funds totalling $200,000.
A designated angel investor group must invest at least $75,000 into the
qualifying business – or candidates can qualify with two or more investments
from angel investor groups totalling $75,000.
A designated business incubator must accept the applicant into its
business incubator program. It is up to the immigrant investor to develop a
viable business plan that will meet the due diligence requirements of these
government-approved designated entities.
That’s usually done with the help of business consultants in Canada’s
start-up ecosystem with oversight from experienced corporate business
immigration lawyers who can ensure a start-up’s business concept meets all
industry-required terms and conditions.
Candidates applying under the Start-Up Visa program can initially come
to Canada on a work permit supported by their designated Canadian investor
before their application for permanent residence is finalized.
Ottawa Does Not Provide Financial Assistance to Start-Up Visa Applicants
The basic government-imposed candidate eligibility requirements for the
Start-Up Visa program are:
- a qualifying business;
- a commitment certificate and letter of support
from a designated entity;
- sufficient unencumbered, available and
transferable settlement funds to meet settlement funding, and;
- proficiency in English or French at the
minimum Canadian Language Benchmark level 5. However, it frequently
occurs that higher levels of English are needed to meet due diligence
requirements imposed by designated entities
Ottawa does not give financial support to new Start-Up Visa immigrants.
When candidates apply, they need to show evidence they have the finances to
support themselves and their dependents in Canada. This money cannot be
borrowed.
Additionally, it often occurs that candidates will need to show
additional, sufficient funding to meet start-up costs of their business project,
as a condition of investment by a designated entity (VC or Angel).
This is an area where experienced legal consulting will prove
invaluable. The amount of settlement funding needed depends on the size of the
candidate’s family.
Certainly, the Start-Up Visa program is growing in popularity. In 2019,
the total number of new permanent resident approved admissions reached 510,
more than double the 250 welcomed in 2018. The figures had been increasing
steadily over the last five years until the pandemic slowed immigration to
Canada to a trickle.
International Students Can Get Fast Permanent Residency Through Start-Up
Visa
The Start-Up Visa program also represents an important option for
international students, many of whom do not qualify for permanent residence
through the skilled worker immigration streams. While Ottawa has taken steps to
gear up the Express Entry system to favour international students, they are by
no means guaranteed to qualify for a coveted Invitation to Apply under the
Comprehensive Ranking System (CRS).
The minimum score needed to qualify has often been over 470, leaving
many students unable to qualify even with the support of a job offer from a
Canadian employer. These candidates can either sit in the Express Entry pool
and hope the minimum score under the CRS falls or they can make the transition
from temporary to permanent residence. This is where the Start-Up Visa program
becomes an option.
Unlike almost every other federal and provincial-level entrepreneur
program which requires a minimum of one or two years of previous experience
either owning a business or in top-level management, the Start-Up Visa program
does not require previous management experience.
The support of a government-designated entity is enough. And that
support can be either financial or in the form of accepting the candidate into
a business incubator program. Immigrants who avail themselves of the Start-Up
Visa program consistently report that it is quick, both for the initial work
permit and permit residence application.
Start-Up Visa Application Process Usually Under Six Months
With a viable start-up business project, an immigrant entrepreneur can
expect it to take about four to six months to secure a commitment certificate
or letter of support from a designated entity. Once that letter of support is
received, the application for permanent residence can be submitted.
It will then take approximately 18-months to finalize the application
through to the issuance of a permanent residence visa. For the candidate
to qualify for permanent residence:
- The intended business must be incorporated and
carrying on business in Canada;
- The candidate must own at least 10 per cent of
the voting rights in the corporation, and;
- No other person can hold 50 per cent or more
of the voting rights in the corporation.
As many as five candidates can have their permanent residence
application supported by the same business investment. But that can come
with a risk. Certain candidates may be designated as essential to the business.
If any of the essential candidates withdraw their applications or are refused,
all other candidates under the same business investment will see their
applications terminated.
Surveys suggest Start-Up Visa candidates usually go on to succeed in
Canada, in terms of growing their business, attracting further investment,
networking or selling their business for a profit.
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