How to Start a Business in Canada
Three of the most important questions to consider before starting a business as a newcomer to Canada are:
- Are you legally allowed to own and operate a business in Canada?
- Is your business activity regulated, and does it require a license or certification?
- What is the status of your skills and qualifications in Canada and the province in which you wish to locate your business?
Steps for Opening a Business
Develop a Business Idea
Starting a business requires a solid idea and understanding of your audience. Determine if your product fits the market. Whether innovative or based on existing models, your concept must be well-developed for success.
For immigration, relevant experience is essential. You need to show experience in a similar industry and managerial skills to establish a business in Canada. The Immigration Officer must believe you can execute your plan. Include proof of your education and business experience to demonstrate your skills and knowledge for success in Canada.
Seek Mentorship and Networking
Seeking advice from experienced professionals, colleagues, and mentors is vital when starting a business in Canada, especially as a foreigner unfamiliar with the market. Industries may differ significantly from your home country, so learning from other entrepreneurs enhances your understanding of Canadian business. Building a network will support you and your business for years! Feedback from trusted mentors or new business contacts is always valuable.
Create a Business Plan
To start a business in Canada, you need a solid business plan. No business should start without one. Your plan is important for your work permit application, so make sure it is clear, well-researched, and suitable for the Canadian market. Include details about your business model, value proposition, competitive edge, risks, long-term goals, execution plan, staffing, key partners, how you'll make money, market research, marketing approach, and profit and loss analysis.
Financial Investment
Determining your Canadian business's financial investment depends on its type and plan. Once you know the amount, you can plan funding. Entrepreneurs may use personal savings or seek loans from venture capital, banks, or government grants. Foreign entrepreneurs must show sufficient funds to execute their business plan and prove their investment benefits Canada. Securing financing and establishing a business structure is also necessary.
Register & Incorporate Your Business
Registering and incorporating your Canadian company is essential for future growth. Choose the right business structure (partnership, sole proprietorship, or corporation) wisely. Many Canadian immigration programs require foreign entrepreneurs to incorporate their businesses here. We advise seeking professional guidance to navigate Canadian incorporation laws and regulations.
Obtain Permits and Licenses
Obtaining the necessary permits and licenses is crucial for a successful business in Canada, and it largely depends on the industry in which the business operates. For example, there are differences in obtaining permits for operating a corner store compared to building a chemical factory. Of course, operating a business without the necessary permits can lead to considerable fines or even the closure of your business.
Open a Bank Account & Apply for a Business Credit Card
When managing a new business’s finances, it is essential to maintain a separate bank account from your personal account. Setting up a separate banking arrangement for your business will enable you to keep track of your expenses more efficiently, establish a credit history for your business, and access your business’s financial data to make informed decisions. You should research what types of business accounts various Canadian banks offer and which suits your business better.
Launch Your Business
If you’ve followed the steps to open a business, you can launch your venture in Canada. However, even after setting up your business, be aware of immigration requirements.
For your immigration application, you must demonstrate commitment to executing your business plan. Once your plan is ready, take action before applying. Examples of commitment include federal or provincial incorporation, registering a sales tax account, ordering equipment, renting space, or hiring staff.
Analyze & Reflect
To run a successful business in Canada, it is essential to continuously evaluate and reflect on your operations, achievements, and failures to identify areas for improvement and stay ahead of the competition. The market will not adapt to you. In reality, it is the other way around, and your business will have to adjust to the ever-changing market conditions. Any successful entrepreneur has a passion for learning and problem-solving. So, don’t forget to reflect on how your business is operating.
Absence of Criminality & Clean Travel History
Lastly, you must have no history of criminality or prior incidents of breaching the immigration laws of Canada or any other country. A criminal record from any country will likely reduce your chances of success in an immigration application. Canadian authorities may not allow you to immigrate to Canada, depending on the seriousness of your criminal record. The absence of criminal history is imperative if you wish to succeed in any available options for startup immigration to Canada.
Moving to Canada as an Entrepreneur
Canada offers the Start-Up Visa program for those looking to immigrate to Canada as an entrepreneur.
Start-Up Visa (SUV)
Canada’s Start-up Visa Program targets immigrant entrepreneurs with the skills and potential to build businesses in Canada that:
- Are innovative
- Can create jobs for Canadians
- Can compete on a global scale
Who Can Apply
You can apply for the Start-up Visa Program as an individual or as part of a group of up to 5 owners. Either way, you need to meet certain requirements:
- Have a qualifying business
- Get a letter of support from a designated organization
- Meet the language requirements
- Bring enough money to live in Canada
How to Apply
As of October 14, 2022, it is now mandatory to apply online. If you can’t apply online and require accommodations, including for a disability, you can ask for the application in another format.
You must include all the forms, supporting documents, signatures (if required), language test results and proof of payment of the processing fees. If any are missing, your application will be incomplete. In these cases, it will be returned to you without processing.
You must fill out these digital forms online. You’ll fill out these digital forms online (for yourself and any family members 18 or older)
- Generic Application Form for Canada
- Schedule A – Background/Declaration
- Additional Family Information
- Supplementary Information - Your travels
You must also fill out these PDF forms:
- Schedule 13 – Business Immigration Programs – Start-Up Business
- Statutory Declaration of Common-law Union (if this applies)
- Separation Declaration for Minors Travelling to Canada (if this applies)
Photo Specifications
You need one photo for each person on your application.
Follow the instructions in the online application to scan and upload both sides of your photo.
Pay Your Application Fees
In most cases, your fees will include:
- Processing fees for you and anyone you include on your application
- The Right of Permanent Residence Fee (RPRF)
- Biometrics
- Third-party fees
Submit Your Online Application
After You Apply
- After you apply, there will be verification that you have:
- Filled out your application forms correctly and signed them
- Paid your processing fees
- Included all required documents
- You will get your fingerprints and photo taken.
- You and any family members 18 years of age and older must provide police certificates to the visa office if asked to do so.
- You must have an immigration medical exam before you come to Canada. Your family members must also have one, even if they aren’t coming with you.
