Canada
Startup Visa Program
To be eligible for this visa, your Canadian company must have the support of a designated organization.
Support can assume the following forms:
- Agreement with an authorized venture capital firm to invest a minimum of CAD200,000 in your business, or
- Agreement with an authorized Angel Investor to invest a minimum of CAD75,000 in your business, or
- Your business has been accepted in an authorized business incubator.
The designated organization that supports your business will provide you a Letter of Support, which has to be attached to your permanent residency application.
Up to five people may apply for a startup visa as owners of a single business. However, you must hold at least 10% of the qualifying business and the designated organization and the applicants must jointly hold more than 50 per cent of the voting rights in the business.
To keep your permanent residency status, you must physically be in Canada at least 730 days (2 years) in a five-year period. Failure of your business will not affect your permanent resident status.
After 5 years holding the permanent residency status, you will be eligible to apply for citizenship, provided that you have lived 1,095 days in Canada within the five years, and 183 days during each of three calendar years that are fully or partially within the six years right before the date you apply.
To apply for citizenship, you must also have met your personal income tax filing obligations in three tax years that are fully or partially within the five years right before the date you apply. And you must take a language (French or English) test and pass an exam regarding Canadian values, history, symbols, institutions, rights, responsibilities and privileges of citizenship.
Requirements
In addition to the above requirements, you must prove that you have enough money to support yourself and your dependents. For a single applicant, the amount required is CAD12,300, for a 2-member family CAD15,312, 3-memberCAD 18,825, 4-member CAD22,856, 5-member CAD25,923, 6-member CAD29,236 and for a 7-member family CAD32,550. For each additional dependent, you will be required to have CAD 3,314.
If you are not an English or French native speaker, you must take a language test from an approved agency and include the results with your application.
You must be in good health and do not have any contagious disease. You must have a clean criminal background.
Restricted Nationalities
No nationality is officially restricted
dual citizenship
Dual citizenship is recognized in Canada. You are not required to renounce your previous nationality to become a citizen of Canada.
Documents Required
- Certified copy of passport
- Evidence of language skills
- Letter of support of designated entity
- Original or Certified copy of Birth Certificate (if applicable)
- Original or Certified copy of Marriage Certificate (if applicable)
- Certified copy of ID Card
- Evidence of Residential Address
- Affidavit of support for Dependents
- Original Police Clearance Certificate
- Two passport-size photos
- Bank Statement
- Original Bank Reference Letter (Not older than 6 month)
- Proof of net wealth
- Statement of Source of Funds
- Medical Certificate
- dual citizenship Yes
- Family members included Yes
- land ownership Yes
- Physical residence required Yes
- Personal visit required Yes
- Language skills required Yes
- Interview required No
- Investment Single -
- Investment Family 4 -
- Minimum annual income C$12,300
- Time to citizenship 60
- Time to permanent residency
- Visa-free countries 189
- Financing available No
Benefits
citizenship benefits
permanent residency benefits
Country details
About 36 million people live in Canada. English and French are its official languages. Its capital is Ottawa, but its most populated cities are Toronto and Montreal, with approximately 2.5 million and 1.5 million people each, respectively. Its official currency is the Canadian Dollar (CAD).
Visa Free Travel
Taxes
There are several factors that determine an individual’s tax residency in Canada such as having a permanent domicile in the country or having business or social ties to the country. In any case, an individual who spends 183 days or more per year in the country may be considered a tax resident.
Tax residents are subject to federal income tax and provincial/territorial income taxes on their worldwide income. Non-residents are taxed on their income and capital gains derived from Canada.
Federal Income tax is progressive ranging from 15% to 33%.
Each territory or province levies its own income tax. Both taxes combined create effective tax rates ranging from 48% in Saskatchewan and Yukon, to 54% in Nova Scotia.
Fifty per cent of capital gains are included in taxable income and taxed at applicable tax rates. Non-eligible and eligible dividends from Canadian corporations are grossed up by 17% and 38%, respectively. Eligible dividends are those from Canadian public corporations or those from entities that are not controlled private corporations. Interest and rental income are treated as ordinary income.
Municipalities levy property taxes and land transfer taxes. There is no inheritance tax, however; an individual who dies is deemed to have disposed of any capital property immediately before death. This can result in any accrued capital gains being subject to income tax, and all provinces and territories impose probate fees or administrative charges for probating a will. There is no tax on net wealth in Canada.
The federal goods and services tax (GST) applies on most goods and services and is levied at a rate of 5%.
British Columbia, Manitoba, and Saskatchewan each levy retail sales tax at 7%, 8%, and 5%, respectively.
New Brunswick, Newfoundland and Labrador, Nova Scotia , Ontario, Prince Edward Island have a fully harmonized sales tax that includes the GST. The tax rate is 15%, except in Ontario where it is 13%.
Quebec’s sales tax is 9.975%, resulting in an effective tax rate of 14.975%.
Neither Alberta, Northwest Territories, Nunavut and Yukon levy a retail sales tax. However, the GST is applicable in those jurisdictions.
Regarding corporate taxation, resident entities are subject to federal and provincial taxes on their worldwide income. The federal tax standard rate is 15%, whereas provincial tax rates range from 11% to 15%. To know more about Canadian corporate taxation, legal framework and tax treaties visit incorporations.io/canada.
This should not be construed as tax advice. We have access to a global network of qualified attorneys and accountants who can give you the proper advice for your particular circumstances. Contact us for further information.
- Property tax Yes
- Transfer tax Yes
- Inheritance tax Yes
- Net worth tax No
- CFC law Yes
- Tax residency days 183
- Personal income tax rate 54%
- Capital Gains tax rate 27%
- Investment income tax rate 54%
- Territorial taxation No