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Canada

Startup Visa Program

The Startup visa is a permanent residence permit granted to entrepreneurs who start a business venture in Canada.
To be eligible for this visa, your Canadian company must have the support of a designated organization. Support may be in the next forms:
- Agreement with an authorized Venture capital firm to invest a minimum of CAD 200,000 in your business, or
- Agreement with an authorized Angel Investor to invest a minimum of CAD 75,000 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 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 CAD 12,300, for a 2-member family CAD 15,312, 3-member CAD 18,825, 4-member CAD 22,856, 5-member CAD 25,923, 6-member CAD 29,236 and for a 7-member family CAD 32,550. For each additional dependent, you will be required to have CAD 3,314.

If you are not English or French native, 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 171
  • Financing available No

Fees

processing fees main applicant C$1,050
certificate issuance fee C$490 (PR Fee) C$50 (PR Card)
total fees main applicant C$1,590
processing fees spouse C$550
certificate issuance fee C$490 (PR Fee) C$50 (PR Card)
total fees spouse C$1,090
processing fees dependents -18 $150
certificate issuance fee C$490 (PR Fee) C$50 (PR Card)
total fees dependent -18 C$200
processing fees dependents 18-25 -
certificate issuance fee C$490 (PR Fee) C$50 (PR Card)
total fees dependent 18-25 -
due diligence fees dependents +65 -
processing fees dependents +65 -
certificate issuance fee C$490 (PR Fee) C$50 (PR Card)
total fees dependent +65 -

Country details

Canada
CAD
1
Ottawa
North America
English French
33679000
Canada is a sovereign country of North America, whose form of government is the federal parliamentary monarchy. Its territory is organized in ten provinces and three territories. It shares borders with the United States to the south, and to the northwest with its federal state Alaska. It is the second largest country in the world after Russia. 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 2 and a half and 1 and a half million, respectively. Its official currency is the Canadian Dollar (CAD).

Visa Free Travel

With your new passport from Canada you'll be able to access 171 countries visa free
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Taxes

There are several facts 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 makes 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 which 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 include the GST. The tax rate is 15%, except in Ontario that is 13%.

Quebec’ 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. 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. Flag Theory | Passports.IO has 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

Procedures

Flag Theory | Passports.IO and our qualified attorney in Canada, will handle all paperwork, and guide you through each step of the process to ensure that it is as fast, efficient and pain free as possible.

First, our lawyers will conduct a due diligence check on you to ensure that you are eligible and meet the criteria to apply for the program and your application will be approved.

We will incorporate your Canadian company if required and open a bank account. We work primarily with banks that allow for remotely opened accounts to ensure that you are ready to apply for the visa as soon as possible.

We will introduce you to designated organizations, in order to get a support/funding agreement from them and provide you with the required support letter.

We will send you the application forms and provide assistance to complete the questionnaires, translate and authenticate documents. You must do a medical examination (we may recommend clinics in your jurisdiction) and provide the medical assessment.

You will have to submit the application with its supported documents to the embassy or consulate closer to your location (preferably in your country of residence or nationality).

After submitting the application, paying the corresponding fees, the CIC will review your application. If it is approved, you may go to Canada to get your residency card and start your business. The processing time depends on the chosen Visa office, but usually takes about 1-3 months.

For further information on the Canadian Startup visa and detailed procedures, contact us for a free private consultation.

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