Canada wants 2023 to be the year of entrepreneurship
This has become a new challenge for the Canadian government. 2023 is expected to be a new benchmark, after a drastic drop in applications for the Business Startup Visa Program (BSVP), due to the COVID pandemic.
More flexibility to attract more foreign talent
Launched in 2013, the BSVP initially aimed at responding to the running economic and international context. It was designed to be more flexible than the Entrepreneurial Immigration Program introduced in 1978, which required a minimum of two years of business experience and a startup capital of $300,000. With its new BSVP, the Canadian government aims to welcome 6,000 "businesspeople" (the name chosen by the department), including the self-employed and entrepreneurs, where self-employed entrepreneurs are defined as self-employed individuals who rarely hire staff other than members of their own families, while basic entrepreneurs would hire outside of the family, or even run one or more businesses.
Originally planned as a 5-year pilot program, Canada's BSVP had a slow start. The pilot ended in 2016, and on November 10, 2016, the Research and Evaluation Branch completed its evaluation for the period from April 2013 to April 2016. Ultimately, BSVP received 113 applications. 47 of these, or 80% of the applications, were validated, and 20% were rejected. The remainder were pending a decision. Although the goal of 6,000 validated applications was never met, the Canadian government praised the success of a "low-cost" and "innovative" program, which was also supported by Canadian entrepreneurs. Incorporated into the Immigration and Refugee Protection Regulations (a necessary condition for the BSVP to become permanent), the Business Startup Visa Program finally came into effect in April 2018.
Canada is targeting 6,000 new immigrant entrepreneurs by 2025
In 2018, 757 immigrants settled in Canada via the Business Startup Visa Program. The country's executive expected about 700 new immigrant entrepreneurs in 2019, 2020 and 2021. But in 2019, only 515 immigrated to Canada under the BSVP and a mere 260 in 2020. The pandemic and its aftermath that implied border closures caused the number of immigrant entrepreneurs to drop by almost 50%. However, thanks to efficient health measures and the timely reopening of the borders, the number rose to 385 in 2021, with a nearly 50% increase. Canada is now looking forward to building on this new momentum.
The Canadian government has not given up on the ambition of the 2012 Economic Plan. In its 2023-2025 Multi-Year Immigration Levels Plan, it estimates the number of business immigrants moving to Canada via the BSVP and the Self-Employed Immigration Program to be 3,500 this year, 5,000 in 2024, and 6,000 in 2025. It's worth noting that this is part of Canada's new immigration strategy to welcome 460,000 new permanent residents this year, 485,000 in 2024 and 500,000 in 2025.
What are the benefits of starting a business in Canada?
When it comes to immigration opportunities, Canada needs no introduction. It is an open-minded land of immigration, with a wide range of high-quality university programs and career prospects. It's also a great place for doing business. In fact, an increasing number of foreign talents are taking advantage of Canada's dynamic economy to create their own startups.
But why should you start a business in Canada? The primary advantage lies in the legal and administrative aspects. Through its numerous programs, the government facilitates and promotes the creation of businesses while easing the settlement of immigrants on its territory. Moreover, settling in Canada also means getting the most out of its good country ranking. As a matter of fact, Canada is the 8th largest country in the world, with a GDP estimated at 2221.22 billion dollars in 2022. To the IMF, Canada is a "resilient economy" despite Covid and the energy crisis.
Canada has an attractive tax system with many benefits for businesses, including a very low corporate tax rate, no income tax for non-resident corporations, tax deductions, investment tax credits, etc. The government has also developed special programs, such as the Scientific Research and Experimental Development (SR&ED), Tax Incentive Program and the Small Business Financing Program, to help entrepreneurs create their own startups.
Starting a business in Canada also means enjoying a stable political system and a solid and diversified economy. The country is renowned in 5 key sectors, namely agriculture and agri-food (about 6.8% of GDP), technology (ICT - information and communication technologies, e-commerce, etc.), energy (Canada is the 5th largest producer of natural gas), construction, manufacturing industry that represent more than 10% of GDP.
Another advantage, and not the least, is that the Business Startup Visa Program (BSVP) paves up the way to permanent residence.
How to create your startup in Canada?
Once you have started considering an entrepreneurship adventure in Canada, make sure to look into the procedures beforehand. To qualify for the BSVP, one must have an eligible business, be supported by a dedicated organization through a sponsorship letter, and meet the language requirements with a good command of English or French, or both. You will also have to present proof of revenue to come and live in Canada. Income of at least $13,310 is required for a single person, $16,570 for a couple, and $20,371 for a family of three people (more details in the useful links at the end of this article). Besides, the country specifies that it does not provide any financial assistance to settle in the territory. The only assistance provided (tax credit, etc.) is for businesses that are already established.
The Canadian government believes that the startup visa is another way to showcase foreign talent, especially those who contribute to the dynamism of the Canadian economy, mainly in innovation and new technologies. Moreover, foreign talents contribute to the country's richness in terms of diversity, as Canada wants to make its mark on the international scene.
Useful links:
Scientific Research and Experimental Development (SR&ED) Tax Incentive Program
Small Business Financing Program
Government of Canada: Grants, Programs and Tips to Start Your Business
