Canadian Startup Visa
The Canadian Startup visa was launched in 2013. The Canadian Startup Visa is an innovative program which aims to provide entrepreneurs with all of the tools necessary in order to build new ventures which are scale-able and which will sell massively on an international scale.
Initially, applicants had to secure funding from designated Venture Capital firms (£95,000) or Angel Investors (£36,000). This however, proved difficult for the majority of candidates. For this reason, the business incubator option was added in late 2014.
Applicants can now secure a Canadian Startup visa by demonstrating that they have been accepted into a business incubator program and received a Letter of Commitment. Designated business incubators are like elite business schools that entrepreneurs want to attend.
Since their introduction in late 2014 the number of applicants to the Startup visa program has risen and we are starting to see the huge potential of the Startup visa program.
UK Tier 1 Entrepreneur
You can apply if you have access to £50,000 in investment funds from one or more of the following:
- a UK entrepreneurial seed funding competition endorsed by UK Trade and Investment (UKTI)
- a UK government department making funds available for the purpose of setting up or expanding a UK business
- If you're from outside the UK you can also apply if your funds are from a venture capital firm registered with the Financial Conduct Authority (FCA).
A prospective entrepreneur visa is available for those who need to come to the UK to secure funding from a venture capitalist firm, a UK seed funding competition or from a UK government department.
You can also apply if you've already invested £50,000 in a UK business. You must have invested the funds less than 12 months before you apply.
The funding rules are different if you're inside the UK as a student or worker and attempting to switch into the Tier 1 Entrepreneur category.
Again, similar to the Canadian startup visa, many applicants have been unable to secure funding through these three specific routes and have had to instead rely on their personal funds.
Personal Investment AmountThe Canadian Startup Visa
Business incubators are for profit and all entrepreneurs have to pay fees for programs and services. Business incubators are like elite business schools for entrepreneurs. They deliver deliver curriculum and mentorship to accentuate your strengths and overcome challenges. They connect startup ventures with international customers and networks to accelerate growth.
Entrepreneurs are guided through an intensive business incubator syllabus by an experienced team of mentors who all have practical experience of establishing companies across North America and internationally.
At the conclusion of the 12 or 24 month incubation program, the international entrepreneurs business venture will be launched in Canada. Ongoing mentorship is provided to ensure that the business grows across North America.
Business incubators are for-profit and all entrepreneurs have to pay fees for programs and services. In general fees, start at £125,000.
UK Tier 1 Entrepreneur
This route allows an entrepreneur to come to the UK to invest in or set up a business with a minimum investment of £200,000 of his or her own money.
The £200,000 investment must not include the value of any residential accommodation, property development or property management and must not be in the form of a director's loan, unless it is unsecured and in favor of the business.
Genuine EntrepreneursCanadian Startup Visa
In addition to meeting the requirements for attributes, language proficiency and funds, business incubators will only provide Letters of Support to people who possess entrepreneurial characteristics. This can include:
- Applicants with entrepreneurial experience and scalable business ideas,
- Existing businesses looking to relocate or open a branch in North America,
- Individuals who do not have a product or idea but who have an specific interest and entrepreneurial mindset. In this case you will be linked with an existing venture which falls within your area of interest.
The Canadian Startup visa is not a route into Canada for those who do not fulfill one of these requirements or people looking for a passive investment.
UK Tier 1 Entrepreneur
In addition to meeting the requirements for attributes, language proficiency and funds, an applicant must satisfy an immigration officer that they:
- Genuinely intend and are able to establish, take over or become a director of a UK business in the next 6 months,
- Genuinely intend to invest £200,000 in the relevant business or businesses,
- Genuinely have the £200,000 available to them to invest, and
- Do not intend to take employment in the UK.
An applicant must impress the decision maker regarding the source of funds, that they are genuinely available and that their business is viable. An applicant must submit an impressive business plan and be prepared to talk at length at a telephone or face to face interview at a British Embassy. It is worth noting that 70% of UK Tier 1 applications are now refused under the "genuine business" provisions.
Since 2008, 13,746 individuals have been granted Tier 1 (Entrepreneur) or Tier 1 (Graduate Entrepreneur) visas, but according to the Migration Advisory Committee (MAC) report, only 1,580 active companies have been set up by those granted visas.
The MAC found that the route for "graduate entrepreneurs" — those just out of university who want to set up a business — works well. "By contrast, the Tier 1 (Entrepreneur) route has a long tail of low-quality projects which contribute little or nothing to UK plc", said Prof Metcalf.
"There is considerable scope to reform the Tier 1 (Entrepreneur) route," he said, arguing that government should be more selective about which entrepreneurs to admit under the scheme.
Entrepreneur Teams/Co-ApplicantsCanadian Startup Visa
No more than five foreign nationals may apply for permanent residence as part of the same business venture under the Start-Up Visa Program. Each of the five foreign nationals must be essential to the business plan.
Each applicant can bring their spouse and children can accompany them to Canada as permanent residents.
UK Tier 1 Entrepreneur
An entrepreneur team of two applicants can apply together relying on the same funds and business activity.
English AbilityThe Canadian Startup visa and UK Tier 1 Entrepreneur program both require that applicants have English proficiency to IELTS General Band 5.0.
Settlement Funds
Canadian Startup Visa
A single applicant with no accompanying family members must have £5,750 of personal bank savings to support themselves in Canada after being granted a startup visa. If you are married with children, you must have an additional £1,500 for each accompanying dependent.
UK Tier 1 Entrepreneur
If you are outside the UK seeking entry clearance you must have at least £3,310 of personal savings which you must have held for a consecutive 90 day period before the date of your application. You must have £1,890 for each dependent if you're applying from outside the UK or have been in the UK for less than 12 months. If you've been in the UK for more than 12 months, you must have £630for each dependent. You must have proof you have the money, and that it's been in your bank account or your dependents bank account for at least 90 days before you or they apply.
Status GrantedCanadian Startup Visa
Successful applicants to the Canadian startup visa program are granted permanent residence straight off the bat. In addition, a Letter of Commitment from a business incubator enables an Applicant to apply for and receive a work permit in one week while their substantive permanent residence application is being processed by Citizenship & Immigration Canada.
The initial work permit enables an Applicant to enter Canada, attend workshops at the incubator and incorporate their company under Canadian Federal law.
UK Tier 1 Entrepreneur
Initial applicants for a UK Tier 1 Entrepreneur visa will be granted temporary residence for 3 years and 4 months. Applicants cannot have recourse to public funds, must register with the police and cannot take up any employment other than working for the business the applicant has established, joined or taken over.
Applicants will be granted a two-year extension to their visa where they can prove that they have fulfilled certain conditions (see below)
ConditionsCanadian Startup Visa
Successful applicants to the Startup Visa program will be granted Canadian permanent residence in 6 months or less. Canadian permanent residence is unconditional. In general, in order to maintain permanent residence a person needs to reside inside Canada for 2 years in a 5 period. After 4 years of physical residence inside Canada in any 6-year period a person is eligible to apply for Canadian citizenship. UK Tier 1 Entrepreneur The initial Entrepreneur visa lasts for a total of 3 years and 4 months. This can be extended for a further period of two years if you have met certain conditions in relation to investment, job creation and business generation. After 5 years residence in the UK on a Tier 1 visa you may apply for permanent residence. You can extend your visa for a further 2 years by meeting the following criteria:
1) Investment in UK business
You have invested no less that £200,000 cash directly in one or more UK businesses.
2) Become a director or Self-Employed in a UK Business
You have become a director or self-employed in a UK business no more than 6 months after being given a Tier 1 Entrepreneur Visa and entering the UK. This can be either:
- Registered as Self-Employed; or
- Registered a new business in which you are a director; or
- Registered as a director in an existing business.
3) Engaged in Business activity
You can prove that you are engaged in business activity at the time of your extension application and that you are still registered as self-employed or as a Director in a UK business.
4) Created new Jobs
The new business as created 2 full time jobs for people settled in the UK for a total of 1 year each.
When applying for Indefinite Leave to Remain at the end of the 2-year extension, an Entrepreneur must how that these two full-time jobs have been maintained. If not, two new full-time jobs for British citizens or permanent residents must have been created and existed for at least 12 months.
5) English Language
You can speak English to the required standard.
6) Maintenance
You have enough money to support yourself while in the UK.
UK Fast Track route to Permanent Residency.
Under the UK Tier 1 Entrepreneur Visa, it is possible to achieve Permanent Residency after 3 years, using the fast track option. Fast track permanent residency can be achieved if the applicants business has either created 10-full time jobs in the UK which have existed for at least one year each, or the company turnover exceeds £5 Million over the 3 year period.
Curtailment
The UK Tier 1 Entrepreneur visa can be curtailed if the migrant has not registered themselves as self-employed within 6 months of entering the UK.
Government FeesCanadian Startup Visa
- Work Permit: £75
- Permanent Residence: £750
UK Tier 1 Entrepreneur
- Entry Clearance from outside the UK: £944
- Extension: £649
- Indefinite Leave to Remain: £1,500
Canadian Startup Visa
- Canadian Work Permit: 5 business days.
- Canadian Permanent Residence: 6 months
UK Tier 1 Entrepreneur
- Initial Entry Clearance application from outside the UK: Processing times vary by visa office
- Two-Year Extension: 1 to 3 months
- Indefinite Leave to Remain: 1 to 3 months
It is clear from the foregoing that each category has its merits and drawbacks. After an initial slow start in 2013 and 2014, the Canadian startup visa is now beginning to gain momentum through the introduction of designated business incubators.
The requirement to receive a Letter of Support from a Business Incubator ensures that the quality and integrity of the program remains intact and genuine entrepreneurs receive all of the assistance and guidance required to establish their business in North America.
Applicants can apply for Canadian permanent residence once they have receive a Letter of Support from a Business Incubator. This removes the uncertainty surrounding the whole immigration process and the the entrepreneur can then concentrate on establishing their business under the expert guidance of their mentors at the business incubator. Indeed, an entrepreneur is able to receive a work permit within a week of receiving a letter of support from a business incubator to enable them to get the ball rolling while their permanent residence application is in process.
The other key element is that prior to being eligible to apply for a visa, a business incubator or VC will assess your profile and decide whether to issue a Letter of Support. Having experienced business mentors look over your ideas, commit to your product and then mentor you for two years after your arrival in Canada will give you a much better chance of launching a successful business in Canada.It also takes away the task of assessing your business offering from Citizenship & Immigration Canada as they are immigration officers after all and not serial entrepreneurs.
The UK Tier 1 Entrepreneur has had some significant success stories yet doubts remain about the effectiveness of the program. The Migration Advisory Committee noted that only 12% of applicants granted a visa actually went on to establish a viable business within the initial 3 year and 4 month visa.
This may be due to the lack of a structured syllabus, support and mentorship that the Canadian business incubators provide. In effect many candidates who don't have the support of a VC or Seed Fund are left to their own devices after arriving in the UK and are unable to comply with the conditions of their visa. With rule changes never too far away, an applicant will struggle to establish their business while having the stress of an uncertain immigration future looming over them for several years before they are able to secure permanent residence.
Source : articlesbase.com
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