Canada was recently ranked as the number one country globally for quality of life by News & World Report 2020. It has a stable political system, a reliable banking system (it is said to be first in the world), and a clean environment.
Photo by Andreea Avramescu
It has good health care and an excellent public education system. Also, Toronto, Canada’s largest city, has established itself as one of the top-five largest markets for high-tech talent in North America.
Canada is a good country and has plans to increase the number of immigrants it accepts each year, including entrepreneurs.
How Can An Entrepreneur Immigrate To Canada?
Canada strives to develop international business partnerships and welcomes business professionals who want to settle here and start a successful business.
It opens up new opportunities for Canadians, creating new businesses and jobs and establishing new export-import links internationally.
The globalization of the world economy requires creating and strengthening international trade links to keep up with global economic trends. With its favorable legislation and clear and simple tax system, Canada attracts business people from all over the globe to settle and invest in the Canadian economy.
The Government recognized the need to create businesses and develop new economic ties. As a result, the Business Immigration Program received special attention and support from the IRCC to facilitate this process.
Business Immigration Program
There is both a federal immigration program and a provincial program (link to the business section of the OINP), depending on where the interested party plans to settle and work.
Immigrant Investor Program
The Investor Immigrant program aims to attract experienced business investors to establish themselves in Canada and create long-term opportunities for job creation and business development. To qualify for the program, potential candidates should:
- Have the necessary business experience
- Show a net worth of CAD 1,600,000 legally obtained.
- Invest CAD 800,000
The full amount will be returned to you without interest in full within five years. The ICRC will use these funds for five years to develop the local economy and create jobs at both the provincial and federal levels.
Start-Up Visa Program
Start-up companies have been an essential part of the Canadian economy for more than a decade. Whether they develop into a multi-national corporation or continue to operate as a local medium-sized business, they play an essential role in Canada’s overall economic growth, helping to turn innovative ideas and new technologies into profitable businesses and creating jobs for new talent.
The program is open to immigrant entrepreneurs who can demonstrate the potential to create a business based on an innovative and creative idea or use cutting-edge technology in Canada.
To apply for a start-up visa, a business must meet the following requirements:
- Yout business should be based on an innovative idea or technology
- Confirmed the intention of the investment in the amount of 75 000 Canadian dollars from a third party.
- A confirmed investment intent of at least CAD 200,000 from a venture capital fund
- Confirmed acceptance by a designated business incubator
The Head Start Program
It is lovely because it entails no minimum investment on the part of the immigrant. There is no net cost of living requirements. The new immigrant can choose to live anywhere in Canada and only needs to easily score five or more points in IELTS English or speak French.
The program requires the applicant to have approximately $ 10,000 (CAD $ 13,000) plus less than $ 2,500 (CAD $ 3,000) per family member. Moreover, after three years of being a permanent resident, you can apply for Canadian citizenship and a Canadian passport.
How Does The Program Work?
In terms of how the program works, a prospective immigrant entrepreneur must develop a viable business project that meets a government-approved commissioner’s due diligence requirements. There are three options:
- You should be accepted into a business incubator program that assists you to create a business plan for the project. It appears to be the most popular option, and it usually assumes that the entrepreneur pays the incubator, say, about $ 70,000 (CAD 100,000) to bring the incubator on board. He expects to spend some time in Canada working with the incubator team to improve the plan. The development of the plan itself takes from four to six months.
- Enlist the support of a government-appointed group of angel investors who will invest less than $ 60,000 (CAD 75,000) in your project, or
- Enlist the support of a government-appointed group of venture capital funds that will invest just over $ 150,000 (CAD 200,000) in your project.
In any case, you, as an entrepreneur, must ultimately own at least 10 percent of the voting shares of the Canadian company that will be registered for the project, and should actively participate in the management of the new enterprise in Canada. No one else can own 50 percent or more of the company’s voting shares.
If these requirements are met, you should receive a letter of support or a certificate of commitment from your sponsor group, which will open the Canadian doors to your immigration.
It will take you about 18 months to process your application for permanent resident status along with a letter of support or a certificate of commitment. However, once you receive a Letter of Support or a Certificate of Commitment, you are eligible to immediately apply for a short-term work permit to come to Canada to work on your project with your company.
Your spouse can also get an open work permit, and your children can attend school for free. You also get free medical care about three months after you enter the country.
Self-Employed Persons Program
The self-employed sector is a rapidly growing segment of the Canadian labor market. It is becoming increasingly popular because it offers a degree of flexibility and contractual opportunities with numerous business partners and employers, allowing self-employed workers to control their income and working hours.
CSIR recognizes the importance of the self-employed workforce to the Canadian labor market. To qualify as self-employed, the candidate will need to demonstrate the relevant skills and provide for themselves and their dependents with their income. Here are a few examples of various professions:
- Graphic designer
- Information technology specialist.
StartupBlink, a Swiss website that provides data on the best places on the planet to start a new business, has ranked Toronto’s start-up ecosystem 11th in the world. Other Canadian cities made the top 100 of the list: Vancouver ranked 19th, Montreal ranked 34th, and Victoria ranked 95th.
As a country, Canada ranked third, behind the United States and the United Kingdom, respectively. Also, there are 3.5 million entrepreneurs in Canada.
However, there is a trend recently for entrepreneurs to choose Canada over the US and the UK. Startupers and business owners from the US cross the border and open offices in Canada or move there themselves. Entrepreneurs from across the ocean immigrate to Canada from UK because they see opportunities in the everchanging and prospering Canada.
“As an entrepreneur, it is essential to be surrounded by the opportunities that tend to exist in the start-up center,” the report says. “Knowing which cities in your country or region offer such opportunities allows you to know where to find them. Hopefully, some entrepreneurs will see the lack of a start-up ecosystem in their city as an opportunity to ignite it, rather than move to a larger center.”
There are several reasons why Canada is a suitable place to build your business:
It Has A Strong Economic Growth
Forbes magazine considers Canada the best country in the G-20 to do business. It has the strongest fiscal position in the Group of 7 and one of the best fiscal prospects in the Group of 20.
Low Taxes And Low Business Costs
Canada offers a low-cost and low-tax environment for your business to thrive. The general tax rate on new business investment in Canada is significantly lower than in other G7 countries.
According to the KPMG rating, Canada is the most tax-competitive country among the Group of Seven countries.
Excellence In Research And Innovation
Canada offers an enabling environment for research and innovation, including the world’s leading research and development (R & D) infrastructure, attracting scientific talent, and stimulating innovation.
Combined federal and provincial loans can return up to 30% of their research and development investment in Canada to foreign investors on average.
Excellent Quality Of Life
The superb quality of life in Canada is the perfect backdrop for the success of individuals, families, and companies operating around the world.
According to the World Bank, Canadians had almost the highest standard of living in the G20. Canada is home to a very educated, flexible, and multicultural workforce.
The Favored Knowledge-Based Fields Of Economic Immigrant Entrepreneurs
- The field of architecture and engineering and technical services
- Computer system design
- Management and scientific consulting
- Knowledge-intensive production
- Data processing
- Consulting services
To Sum Up
Overall, statistics show that Canada has a thriving entrepreneurial spirit among immigrants. Regardless of economic class, immigrants are attracted to starting their businesses or self-employment at a higher rate than those born in Canada.
Starting a business is a key driver of economic growth. The data presented in various reports can be added to the growing evidence that immigrants play a crucial role in the host economy’s prosperity.
Therefore, if you are wondering whether it is worth immigrating to Canada to build your new business there, do not hesitate anymore. Let your adventure begin!