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You can expect a request for an update on all your co-founders' personal and professional information and documents anywhere from 1-2 years from the date of your initial PR application. The business update and progress will be requested at the same time as the personal information and document update for all co-founders. As a good rule of thumb we suggest being ready from month 12 onwards for any requests and communication from IRCC on your applications, so in case the IRCC starts processing your file between 12 to 18 months after your PR application, your group will be ready. Anything you do after they request information from you will not be as significant as the work and progress you have completed during this waiting period.
At INGWE we are EXPERTS in the Canada Startup Visa. We will guide and support you throughout the endorsement letter or Letter of Support process and the entire immigration process including work visas and permanent residencies. Get a FREE email assessment, click here.
The fees you paid to your designated organization or the onboarding or cohort program you have or are attending at your designated organization have zero or very little value in terms of your Startup business progress to prove your genuine intention to IRCC. Keep in mind that continuous communication, engagement, and support from your designated organization are very important and not to be underestimated, but don’t depend on it in terms of having any value for your business advancements. Having a fancy business plan and lawyer is nice, but that will not have a significant impact on IRCC’s decision.
As per the IRPR Startup Visa business class, these are some key criteria you need to consider when preparing and pursuing any business activities:
Qualifying business
98.06 (1) For the purposes of paragraph 98.01(2)(d), a qualifying business with respect to an applicant is one
(a) in which the applicant provides active and ongoing management from within Canada;
(b) for which an essential part of its operations is conducted in Canada;
(c) that is incorporated in Canada; and
(d) that has an ownership structure that complies with the percentages established under subsection (3).
Here are the key points that need to be addressed in your business progress report to the IRCC under the Startup Visa Business Program.
The basic information they will ask 99% of all groups is to send them your Canadian business registration and updated business plan. Your business registration in Canada should have all co-founders as a minimum of 10% shareholders with voting rights and a combination of more than 50% controlling stake in the business between all co-founders. Keep in mind that if you have the same business overseas, then a similar structure should exist in terms of the controlling shares and rights of the co-founders who are immigrating and are included in the Startup Visa immigration application.
For the business plan update, IRCC expects you to update all market research and data that was submitted in your original application from 1-2 years ago. The most recent market data needs to be included in the updated business plan, with a cover letter that indicates key info that has been updated in the business plan and a summary of key changes in your industry and target market outlined since the original application was submitted – and now considered ‘stale’.
At INGWE we are EXPERTS in the Canada Startup Visa. We will guide and support you throughout the endorsement letter or Letter of Support process and the entire immigration process including work visas and permanent residencies. Get a FREE email assessment, click here.
You need to provide an outline and supporting documents of all investments made by the co-founders into the business. External investors where you have raised money can also be included but you do need to have SAFE agreements or similar documentation to prove the relationship between the external investors and the Startup business. Investments should be monetary, whether in your home country, with overseas contractors, or inside Canada. Obviously, investments inside Canada have much more significance, but any investment is better than none. You do need to provide proof of payments & investments for all your claims and where that money came from, dates, amounts, etc.
Investments can include the following:
* Product development costs.
* Hiring staff whether part-time or full-time.
* Rental of office or warehouse space.
* Marketing and advertising expenses.
* Event participating or hosting expenses.
* Investments or acquisitions in other business or joint ventures.
* Laboratory or equipment costs to perform testing.
* External contract parties providing specific services to your startup related to market development, research, building, financial or HR services, and so forth.
At INGWE we are EXPERTS in the Canada Startup Visa. We will guide and support you throughout the endorsement letter or Letter of Support process and the entire immigration process including work visas and permanent residencies. Get a FREE email assessment, click here.
A key component of the Startup visa program is to prove that you have a product or solution developed and ready to enter the market or commercialization stage. Just having a business plan or some ideas about what your product or solution is, would not be sufficient for IRCC.
Hardware
If you have a hardware product as your startup innovation, you will need photos of the hardware with your team or at an event, customer, or pilot site, designs and drawings, proof of development, and invoices/expenses that were incurred. Correspondence with the suppliers and vendors of all the parts, and proof of payment to purchase all the parts. Keep in mind that if you plan to manufacture hardware inside Canada, the necessary permits, licensing, and potential sites and partnerships to build or manufacture the product inside the country.
Software
If you have a software solution, then you will require screenshots of the wireframes or even better, screenshots of the entire application or platform on how it works and to prove that it is 100% functional.
Innovation & IP
Of course, as you may all know by now, under the SUV program your business needs to be scalable, have benefits for Canada, and be innovative. To prove the latter point in terms of innovation you will need to justify and explain this innovation and how it is unique and unrivaled or non-existent in the market, and potentially patent filings or IP which you already hold in Canada or overseas or are under process. This is a key factor some IRCC officers pick on if your startup does not seem innovative enough – especially with general online platforms and software and SaaS business models.
Early customers or pilot projects
Having paying customers is the golden benchmark in the Startup Visa world. However, having early onboarding customers who don’t pay is still better than having none. Pilot projects with specific partners or potential new customers are also extremely critical if you don’t already have real customers. Most Startups under this program do not have real proof of ongoing pilot projects that have been implemented. If you can complete this stage, it would be of serious significance for your Startup Visa business progress report.
Even identifying and being in negotiations with potential new partners or customers through LOI’s, correspondences, or meetings could also be helpful for your progress report.
You need to outline key milestones and accomplishments of your Startup business and group. Did you sign your first customer? Were you featured in an event, publication, or specific industry channel? Did you make your first investment in Canada? Did you sign your first distribution or partnership? Were you able to raise external financing for your Startup business besides the existing co-founders, which most Startups do not have? Remember to provide supporting documentation for anything you claim, otherwise, it will not be taken seriously and will be considered just ‘talk’.
Remember that we’re always posting about these key details for IRCC’s new programs and other immigration programs for professionals and entrepreneurs– and if that’s what you are interested in, you can subscribe to our YouTube channel for more deep dive videos.
If you have started your operations in Canada or planning to, a Canadian staff hire would be quite a significant milestone for your startup. Proving the hire with advertisements, or HR recruitment activities and invoices would be important, and pay stubs and payroll company statements with CRA PD7A statements would also be significant. Obviously, the hire should be relevant to your business, and just hiring an admin or assistant at minimum wage may not really be helpful or considered significant under this program. Keep in mind that you will need a product or solution ready for commercialization if you plan to hire business development, marketing, or operations staff, or you can hire developers or designers if you plan to build your product inside Canada.
At INGWE we are EXPERTS in the Canada Startup Visa. We will guide and support you throughout the endorsement letter or Letter of Support process and the entire immigration process including work visas and permanent residencies. Get a FREE email assessment, click here.
Most Startup Visa businesses focus on the marketing side, which is fine but not as significant as the other points we covered today in this article. Marketing and public relations are good, but just having a static website, a brochure, a sample video, and some social media posts whether paid or organic is not really considered progress. Anyone with or without a business can make these marketing assets and activities – so it is not something that would be of serious significance – but only supplementary information for your report.
Business development progress would be of higher value, and being featured in a publication or industry event would also be considered of higher value, whether paid or not – as we call it ‘pay to play’.
If you’re interested in applying for the Canada Startup Visa, at INGWE we will guide and support you throughout the endorsement letter or Letter of Support process and the entire immigration process, including work visas and Canada PR. Get a FREE email assessment, click here.
A key part of your business progress report is to identify who in the group is involved in which parts of the business, and what progress those departments have made to prove that the co-founders have been active. If you have a co-founder who may not fit the Startup perfectly, you need to pre-emptively write support and explanation letters from the CEO on how that person’s expertise and role have been paramount in achieving certain milestones and progress for the business. Remember that even if the business is making progress, each co-founder needs to prove their proactive role in the Startup business.
A main refusal reason used by the IRCC officers when scrutinizing your Startup Visa progress report can be IRPR 89(b) titled ‘Artificial transactions’ which means you have entered into this Startup Visa program and the activities you have presented are mainly for the purpose of gaining Canadian Permanent Residency status. You need to prove that your Startup business intentions are more significant than just your immigration intentions and that the activities and investments you have entered into are genuine and meet all the qualifying factors under this program. They will scrutinize your business to make sure the main operations are being moved to Canada, you plan to manage and operate the business from inside Canada, and that the business has the potential to financially support the Startup Visa co-founders and is not just some general fluff printed on a business plan.
This was a high-level overview of the expectations and tips to prepare your business progress report for the IRCC under the Startup Visa Business Program. Keep in mind to update IRCC at least every 6 months on your business progress, even before they ask.
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