Canada Top Country for Immigrant Businesses – Financial Post

Posted on June 19, 2013 by CICS Immigration Team

Canada tops the list of countries to start a business according to a new article in the Financial Post (Martin Cajzer)

An article featured in last Friday’s Financial Post makes the case for Canada being one of the best countries in the world for immigrants to start a business.

Among the factors that make Canada such a welcoming place for immigrant entrepreneurs are its business friendly environment and immigration program, says author Chris Riddell:

The World Bank labelled Canada the best place in the G-7 to start a business, and thanks to an open immigration policy, a comparatively easy one to enter. Add a strong banking system, growing job market, and high standard of living, and it’s no wonder it tops immigrant entrepreneurs’ list.

For many, the government’s Start-Up Visa launched in April is making Canada an even more appealing place.

For business people considering Canada as a destination for immigration, there are three points to consider:

The per capita income of new immigrants is well below the Canadian average, with the gap growing since the early 1970s despite the average level of education of recent immigrants increasing in the intervening time. The longer an immigrant is in Canada, the closer their income tends to be to the Canadian average.

Immigrants and first-generation Canadians make up a sizeable percentage of Canada’s millionaires, at 48 percent.

The average income of immigrants who are admitted into Canada through the business class immigration programs is slightly below that of immigrants admitted through the Federal Skilled Worker Program (FSWP), despite the former group having had to meet stringent capital and business experience requirements.

Taken together, it suggests that:

1) immigrants who arrive through economic class non-business immigration programs, like the FSWP, are likely not at a significant disadvantage compared to their business class counterparts in their chance of creating a successful business, that

2) immigrants are likely more entrepreneurial than the general population, and that

3) many immigrant business people fail for the few that succeed.

Matt Man, a successful immigrant businessman profiled for Riddell’s article, advises immigrants who are starting their business to try to get as much face-time as possible to improve their chance of success:

“Face to face can always make up for some of what I lost due to my accent or the way I’m communicating.”

Immigration Canada Announces April 1 Launch of Start-Up Visa Program

Posted on March 28, 2013 by CICS Immigration Team

Foreign entrepreneurs who receive venture capital funding from a designated venture capital fund or angel investor group will qualify for the new Start-Up Visa Program (CICS News)

Citizenship and Immigration Canada (CIC) announced on Thursday that foreign entrepreneurs would be able to start applying for the newly created Start-Up Visa Program on April 1st of this year.

“Canada is open for business to the world’s start-up entrepreneurs,” said Citizenship and Immigration Minister Jason Kenney in announcing the launch date.

“Innovation and entrepreneurship are essential drivers of the Canadian economy. That is why we are actively recruiting foreign entrepreneurs – those who can build companies here in Canada that will create new jobs, spur economic growth and compete on a global scale – with our new start-up visa.”

To qualify for a Start-Up Visa, a potential immigrant must receive venture capital funding from a fund and angel investor group designated as a recognized venture capital investor by CIC, in partnership with Canada’s Venture Capital and Private Equity Association (CVCA) and the National Angel Capital Organization (NACO).

A full list of designated venture capital funds and angel investor groups can be seen on the CIC website.

International competition

The Canadian Start-Up Visa Program is the first permanent residency program of its kind in the world but will still have to contend with competition for global start-ups from other countries which offer temporary residency and other perks to attract foreign entrepreneurs.

Singapore for example offers the EntrePass (Entrepreneur Pass), which provides business visas to qualifying individuals seeking to start a business in the country, and a competitive business environment, with no capital gains tax, a low income tax, and no fiscal deficit.

While inviting foreign business people and entrepreneurs to Canada undoubtedly contributes to the Canadian economy, an analysis on the income trends of Canada’s economic class immigrants, conducted by CICS News in January, suggests that the full potential of the capital and talent invited to Canada might remain unrealized unless the country’s business environment becomes globally competitive in terms of expected after-tax returns on investment made in the country.

New Canadian Immigration Program For Entrepreneurs To Launch April 1

Posted on January 24, 2013 by CICS Immigration Team

Citizenship and Immigration Canada (CIC) would like to help Canada create an equivalent to Silicon Valley, pictured above, with a new Start-Up Visa for venture-backed entrepreneurs

Citizenship and Immigration Canada (CIC) announced today that the Start-Up Visa, which will grant permanent residence to entrepreneurs who receive funding from Canadian venture capital firms, will launch on April 1st.

“Our new Start-Up Visa will help make Canada the destination of choice for the world’s best and brightest to launch their companies. Recruiting dynamic entrepreneurs from around the world will help Canada remain competitive in the global economy,” said Citizenship and Immigration Minister Jason Kenney in promoting the new program.

The launch of the Start-Up Visa is part of a re-structuring of Canadian immigration rules to make them more flexible and focused on Canada’s economic needs.

Under the federal government’s new immigration framework, CIC can create immigration programs that are tailored to meet a particular economic need, and admit a limited number of permanent residents through them per year.

The Start-Up Visa, along with the Federal Skilled Trades Program which launched on January 4th, are the first of this new breed of the limited quota, tailor-made programs, and are designed to meet specific shortages in high-growth sectors in Canada’s economy.

Start-Up Designation

In order to qualify for a Start-Up Visa, an entrepreneur must receive funding from an angel investor group or venture capital fund.

CIC will delegate Canada’s Venture Capital & Private Equity Association (CVCA) and the National Angel Capital Organization (NACO) the authority to designate members of their associations to be eligible to participate in the program.

The Immigration Department is also working with the Canadian Association of Business Incubation in order to include business incubators in the list of eligible funding organizations.

Immigration Ministry Provides More Information on New “Start-up Visa”

Posted on September 12, 2012 by CICS Immigration Team

Immigration Minister Jason Kenney with venture capitalist Kevin O'Leary in a joint news conference in April in the first announcement about the new start-up visa

Citizenship and Immigration Canada (CIC) has released more information about the upcoming ‘start-up visa’, which is being designed for foreign tech entrepreneurs who want to a start a business in Canada.

“The start-up visa is an initiative that the government of Canada is exploring to assist in transforming our immigration system into a fast, fair and flexible system that will meet the needs of our economy and help grow our country,” said Immigration Minister Jason Kenney’s press secretary, Alexis Pavlich.

The new visa will be granted to individuals who receive funding from Canadian venture capital firms, who CIC assumes have a high potential to create successful Canadian companies that generate jobs and economic growth.

2,750 start-up visas will be set aside each year, up from 700 entrepreneur class visas granted in 2011. CIC suspended the entrepreneur program in July 2011, saying it was “overly burdensome and ineffective”, and needed to be revamped.