Does the startup visa require incorporating in Canada

[GodsGiftToCanada]

Here is a question I emailed yesterday to a guy a LaunchpadPEI, a startup incubator among CIC's designated organizations, that doesn't provide any money (I don't need any), and takes no equity. If you say Yes, please provide a reference in terms of a CIC web page stating so, or a Canadian law web site stating so. I already found a few non official web pages stating so. So, proving me with such a link to a non official web page brings me exactly 0 bits of new information. I am looking for official information.

Short version of the question: Does the startup visa require incorporating in Canada ?

Long version of the question (actual email I sent):

Subject of the email:
Startup Visa Program - Do you, or does Canada, require the business to be incorporated in Canada ?

Body of the email:
I am considering applying, in about three years (once I have a working product and a few sales), for the startup visa program using Launchpad PEI as the business incubator. The business I have in mind in a SaaS business.

I know that the law can change in the next three years. But, as of now, does Launchpad PEI, or does Canada, require the business to be incorporated in Canada to be eligible for such a visa, either before the PR is granted, or after (such as by requiring a commitment to incorporate in Canada upon the granting of the PR) ?

My current thinking is to develop the product without any business structure then, once I am ready to make my first sale, form a single member LLC in Belize to hold the intellectual property. I was wondering whether or not I can then join your SUV program and run the business from Prince Edward Island without forming a Canadian corporation. Or whether I would still have to form a Canadian corporation for the operation of the business in order to be eligible for your SUV program.

 

[Bs65]

For such a crtical question/answer maybe contact a qualified immigration lawyer for a formal answer rather than a public forum where professional experience is limited or is in fact non existant and likely to be misleading for anything complex.

 

[Beltex]

Here is a question I emailed yesterday to a guy a LaunchpadPEI, a startup incubator among CIC's designated organizations, that doesn't provide any money (I don't need any), and takes no equity. If you say Yes, please provide a reference in terms of a CIC web page stating so, or a Canadian law web site stating so. I already found a few non official web pages stating so. So, proving me with such a link to a non official web page brings me exactly 0 bits of new information. I am looking for official information.

Short version of the question: Does the startup visa require incorporating in Canada ?

Long version of the question (actual email I sent):

Subject of the email:
Startup Visa Program - Do you, or does Canada, require the business to be incorporated in Canada ?

Body of the email:
I am considering applying, in about three years (once I have a working product and a few sales), for the startup visa program using Launchpad PEI as the business incubator. The business I have in mind in a SaaS business.

I know that the law can change in the next three years. But, as of now, does Launchpad PEI, or does Canada, require the business to be incorporated in Canada to be eligible for such a visa, either before the PR is granted, or after (such as by requiring a commitment to incorporate in Canada upon the granting of the PR) ?

My current thinking is to develop the product without any business structure then, once I am ready to make my first sale, form a single member LLC in Belize to hold the intellectual property. I was wondering whether or not I can then join your SUV program and run the business from Prince Edward Island without forming a Canadian corporation. Or whether I would still have to form a Canadian corporation for the operation of the business in order to be eligible for your SUV program.

I'd be gobsmacked if they didn't require the business to be Registered in and pay it's taxes in Canada.

 

[Matt99]

On cic.gc.ca site is written that you have to prove at least 10 percent of the ownership in the company. How can you prove it if your company still doesn't exist?
So I think you should incorporate outside and the move to Canada.
This is what cic site say.
Anyway there should be a call center to help customer of cic
1-888-242-2100

 

[Chaklader]

No, you can form a company by yourself and can have 100% ownership over that

 

[Mauchan]

No, incorporation is not required before issuance of start-up visa. However, the key clause is 'conditional incorporation' - which means you have to incorporate in Canada as soon as you receive your PR and land in Canada.

Please refer to point#7, section 2 of Ministerial instruction (MI) for the SUV program for the exact wording.

 

[GodsGiftToCanada]

Thanks Mauchan for your reply. http://gazette.gc.ca/rp-pr/p1/2013/2013-03-30/html/notice-avis-eng.html does indeed say:

"(2) A business that is not incorporated at the time the commitment is made is still considered to be a qualifying business if its incorporation is conditional on the issuance of a permanent resident visa to one or more of the applicants in respect of that business.".
While the above statement doesn't specifically require an incorporation in Canada, the context (as in the preceding section 1 of point 7) does imply that the incorporation has to be done in Canada.

Since the above was written over 5 years ago, when the SUV program was a pilot only program, and since it became permanent two months ago, with potentially some modifications, and since you replied a month before the program was made permanent, do you know whether or not the permanent version of the SUV program still requires an incorporation in Canada ? Alternatively, do you have a link to the permanent version, where I can look up the answer myself ? My Google search only yielded the above 5+ year old version.

 

[Mauchan]

do you know whether or not the permanent version of the SUV program still requires an incorporation in Canada ? Alternatively, do you have a link to the permanent version, where I can look up the answer myself ?

Can say with 100% certainty that a conditional incorporation upon issuance of PR is still a qualifying business. The MI7(2) still applies so incorporation is NOT required before applying for the Start-up visa.

Most of the rules from the pilot program have carried forward to the permanent program without changes. However, this April 2018 link outlines the major updates made to the permanent program, especially when defining a 'qualifying business.'

https://www.canada.ca/en/immigration-refugees-citizenship/corporate/publications-manuals/operational-bulletins-manuals/updates/2018-startup-perm.html

 

[GodsGiftToCanada]

Thanks Mauchan for the updated information. I don't want to incorporate in Canada, neither before, nor after a PR issuance. So, I guess Canada will have to wait for its gift from God until an alternative route to PR opens up for me.

 

[priyankbhojak88]

Hello House,

I have a very simple question If you guys can provide an answer as an expert.

My company has selected in Innovation PEI and Opening branch in PEI. I am working in my home branch for the last 7 years. If my employer from Canada wants me to join PEI branch so am I eligible to apply under intra company transfer startup programme?

I really need to know whether I should apply under intra company transfer startup or PEI PNP.

Hope someone will help me and provide information.

Regards.