About the Start-Up Visa Program
The ministry considers the program unique, with no analogues in the world, the goal of which is to attract the most talented and inventive individuals capable of turning their ideas into reality, creating new jobs and securing Canada a place among the most innovative countries. As noted by the Minister of Citizenship and Immigration of Canada, the goal of this program is to attract "new Bill Gates" to the country.
Details of this program are promised to be published just before it comes into effect, that is, before April 1, 2013. I will only talk about the known general provisions.
Before applying, an entrepreneur must secure the support of one of three investment associations designated for this purpose by the Ministry of Citizenship and Immigration of Canada. These are Canada’s Venture Capital & Private Equity Association (CVCA), National Angel Capital Organization (NACO), and Canadian Association of Business Incubation. Each of these organizations must create an initiative group to evaluate the proposed project for innovativeness, feasibility, profitability, etc. Project financing will be provided by Canadian investors from among the members of the association.
After the project is approved and an investor is chosen, the entrepreneur can apply for immigration. At the same time, he must demonstrate a sufficient level of proficiency in English or French, and have a certain level of education. A more detailed description of the requirements will appear closer to the opening of the program.
For now, this immigration program is a pilot project, with a duration of 5 years. If it proves successful, it will be incorporated into the official immigration law IRPA. It is planned to accept 2750 applications annually, with an estimated processing time of no more than 12 months.
Background of Start-Up Visa and its Prospects
The Minister of Citizenship and Immigration of Canada announced the development of the program about a year ago. Then it was first stated that Canada needs young bright individuals with innovative ideas – "new Bill Gates" – who should ensure the emergence of companies in Canada capable of being leaders in the global market. The ministry calls the program extremely important and considers its development a great achievement. This is evidenced by the quota allocated for it – 2750 applications per year. I recall that, for example, the Investor program in 2011 had a quota of only 700 applications, and the Federal Skilled Trades Program had 3000 applications. That is, we are talking about a massive attraction of talents from around the world.
Obviously, innovative ideas are a niche product, and not all of them become commercially successful. More precisely, only a small percentage of such ideas bring success. Therefore, it is difficult to count on a massive influx of bright individuals with ideas that will turn into successful commercial enterprises. Investors who risk their money must be careful in choosing startups, and moreover, it is not yet clear whether they will actively participate in this program.
It is also obvious that the author of an innovation, who also has a good education and a sufficient level of English proficiency, would be a worthy acquisition for Canada, regardless of whether the successful implementation of his project is possible or not. The main thing is that he has creative thinking. However, the lack of interested investors from among only those companies allowed to participate in the selection process may become an obstacle on his immigration path. At least, if external financing is not allowed (and currently it looks that way), then there is a high probability of screening out talented people with extraordinary ideas. It is worth saying that investors usually focus more on proposals that are understandable and have already been implemented in one form or another.
Undoubtedly, the emergence of such a program is a positive step. At the same time, there are many doubts that it will bring real benefit. However, it is too early to say anything now, as much depends on how this program will work in practice. But if the condition for obtaining approval of the presented innovation is the availability of Canadian investors ready to invest their funds in its implementation, then the quota of 2750 applications per year, in my opinion, seems too high.
Entrepreneur Program
In connection with the announcement of the introduction of Start-Up Visa, the ministry commented on the business-class Entrepreneur program, which stopped accepting applications as of July 1, 2011. It is noted that the Start-Up Visa program is an evolution of the Entrepreneur program, which currently appears archaic and does not meet the requirements of the present moment. Judging by the tone of the announcement, they do not plan to resume accepting applications for it in the near future and probably will not open it at all.
I note this with great regret, as I am convinced that it was the most useful program both for the country and for businessmen who would like to do business in Canada. Undoubtedly, the current requirements of the program did not meet the realities of today, but it only required modernization. In particular, it was worth formalizing the requirements for the amount of investment in the business, increasing the number of Canadian residents to be employed, outlining the types of activities that would count, making it mandatory to have and execute a business plan, etc.
In the near future, we can confidently speak only about the resumption of applications for the Investor program. However, what the selection conditions will be is not yet known. One can only assume that the requirements for available funds and the amount of mandatory investments will be significantly increased.