Regulations Amending the Immigration and Refugee Protection Regulations (Start-up Business Class): SOR/2018-72
Canada Gazette, Part II, Volume 152, Number 9
Registration
April 11, 2018
IMMIGRATION AND REFUGEE PROTECTION ACT
P.C. 2018-427 April 10, 2018
Whereas, pursuant to subsection 5(2)footnotea of the Immigration and Refugee Protection Act footnoteb, the Minister of Citizenship and Immigration has caused a copy of the proposed Regulations Amending the Immigration and Refugee Protection Regulations (Start-up Business Class), substantially in the annexed form, to be laid before each House of Parliament;
Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Citizenship and Immigration, pursuant to subsections 5(1) and 14(2)footnotec, section 32footnoted and subsection 89(1) of the Immigration and Refugee Protection Act footnoteb, makes the annexed Regulations Amending the Immigration and Refugee Protection Regulations (Start-up Business Class).
Regulations Amending the Immigration and Refugee Protection Regulations (Start-up Business Class)
Amendments
1 Paragraph 70(2)(b) of the Immigration and Refugee Protection Regulations footnote1 is replaced by the following:
- (b) the economic class, consisting of the federal skilled worker class, the transitional federal skilled worker class, the Quebec skilled worker class, the provincial nominee class, the Canadian experience class, the federal skilled trades class, the Quebec investor class, the Quebec entrepreneur class, the start-up business class, the self-employed persons class and the Quebec self-employed persons class; and
2 Section 89 of the Regulations is replaced by the following:
General
Artificial transactions
89 For the purposes of this Division, an applicant in the self-employed persons class or an applicant in the start-up business class is not considered to have met the applicable requirements of this Division if the fulfillment of those requirements is based on one or more transactions that were entered into primarily for the purpose of acquiring a status or privilege under the Act rather than
- (a) in the case of an applicant in the self-employed class, for the purpose of self-employment; and
- (b) in the case of an applicant in the start-up business class, for the purpose of engaging in the business activity for which a commitment referred to in paragraph 98.01(2)(a) was intended.
Permanent resident status
89.1 A foreign national who is an accompanying family member of a person who makes an application as a member of the Quebec investor class, the Quebec entrepreneur class, the start-up business class, the self-employed persons class or the Quebec self-employed persons class shall become a permanent resident if, following an examination, it is established that
- (a) the person who made the application has become a permanent resident; and
- (b) the foreign national is not inadmissible.
3 The Regulations are amended by adding the following after section 98:
Start-up Business Class
Class
98.01 (1) For the purposes of subsection 12(2) of the Act, the start-up business class is prescribed as a class of persons who may become permanent residents on the basis of their ability to become economically established in Canada, who meet the requirements of subsection (2) and who intend to reside in a province other than Quebec.
Member of class
(2) A foreign national is a member of the start-up business class if
- (a) they have obtained a commitment that is made by one or more entities designated under subsection 98.03(1), that is less than six months old on the date on which their application for a permanent resident visa is made and that meets the requirements of section 98.04;
- (b) they have submitted the results of a language test that is approved under subsection 102.3(4), which results must be provided by an organization or institution that is designated under that subsection, be less than two years old on the date on which their application for a permanent resident visa is made and indicate that the foreign national has met at least benchmark level 5 in either official language for all four language skill areas, as set out in the Canadian Language Benchmarks or the Niveaux de compétence linguistique canadiens, as applicable;
- (c) they have, excluding any investment made by a designated entity into their business, transferable and available funds unencumbered by debts or other obligations of an amount that is equal to one half of the amount identified, in the most recent edition of the publication concerning low income cut-offs published annually by Statistics Canada under the Statistics Act, for urban areas of residence of 500,000 persons or more, as the minimum amount of before-tax annual income that is necessary to support a group of persons equal in number to the total number of the applicant and their family members; and
- (d) they have started a qualifying business within the meaning of section 98.06.
Size
(3) No more than five applicants are to be considered members of the start-up business class in respect of the same business.
Agreements with organizations
98.02 (1) The Minister may enter into an agreement with an organization to provide for any matter related to the start-up business class, including
- (a) the making of recommendations and the provision of advice to the Minister on the designation of an entity and on the revocation of those designations;
- (b) the establishment of criteria, standards of conduct and best practices for the making of commitments or the performance of other activities related to the start-up business class by an entity;
- (c) the making of recommendations and the provision of advice to the Minister on the operation of these Regulations with respect to the start-up business class;
- (d) the establishment of peer review panels referred to in section 98.09; and
- (e) the submission of reports to the Minister on the activities of designated entities.
Requirements
(2) In order to exercise the functions referred to in paragraphs (1)(a), (b), (d) and (e), the organization must have expertise in relation to the type of entity in question, namely,
- (a) business incubators;
- (b) angel investor groups; or
- (c) venture capital funds.
Conditions
(3) An organization may exercise the functions referred to in subsection (1) only when the following conditions apply:
- (a) the organization is in compliance with the agreement and the agreement remains in force;
- (b) subject to subsections 98.12(2) and 98.13(4), the organization complies with requirements imposed under subsection 98.12(1) and paragraphs 98.13(2)(b), (c), and (f) and requests made under subsection 98.13(3);
- (c) the organization is in compliance with these Regulations; and
- (d) the organization has expertise in relation to at least one of the entity types referred to in paragraphs (2)(a) to (c).
Designation
98.03 (1) The Minister must designate the entities referred to in subsection 98.01(2) according to the following categories:
- (a) business incubators;
- (b) angel investor groups; and
- (c) venture capital funds.
Requirements
(2) The Minister may only designate an entity if
- (a) it is recognized for its expertise in assessing the potential for and assisting in the success of start-up business opportunities in Canada; and
- (b) it has the ability to assess the potential for and assist in the success of start-up business opportunities in Canada.
Conditions
(3) A designated entity must respect the following conditions:
- (a) it must continue to meet the requirements of subsection (2);
- (b) it must enter only into commitments that respect these Regulations;
- (c) it must provide the Minister upon request with information on its activities related to the start-up business class, including information on foreign nationals with whom it has made commitments and the businesses referred to in those commitments;
- (d) it must, subject to subsections 98.12(2) and 98.13(4), comply with requirements imposed under subsection 98.12(1) and paragraphs 98.13(2)(b), (c) and (f) and requests made under subsection 98.13(3);
- (e) it must comply with the terms of its commitments and with these Regulations; and
- (f) it must comply with any federal or provincial law or regulation relevant to the service it provides.
Suspension
(4) If there is reason to suspect that an entity does not meet the conditions or has submitted false, misleading or inaccurate information to the Minister, the Minister may
- (a) suspend the entity’s ability to make commitments; and
- (b) refuse to consider applications associated with commitments made by that entity.
Duration
(5) An action taken under subsection (4) comes into force on the day on which the Minister issues a notice of the action to the entity and remains in effect until the earlier of the day on which the situation is resolved and the day that is nine months after the day on which the notice is issued.
Revocation
(6) If there are reasonable grounds to believe that an entity does not meet the conditions set out in subsection (3) or has submitted false, misleading or inaccurate information to the Minister, the Minister may revoke the entity’s designation.
Public notice
(7) The Minister must publish on the Department’s website a list of all entities that are designated and those that are suspended under subsection (4).
Form of commitment
98.04 (1) A commitment must be in a written or electronic form that is acceptable to the Minister and must be provided by a person who has the authority to bind the designated entity.
No fee for commitment
(2) A commitment does not respect these Regulations if the entity that made it charges a fee to review and assess the business proposal or to assess the business.
Multiple applicants
(3) If there is more than one applicant in respect of a commitment, the commitment must
- (a) include information on each applicant; and
- (b) identify those applicants that the entity making the commitment considers essential to the business.
Conditional commitment
(4) If there is more than one applicant in respect of a commitment, the commitment may be conditional on the issuance of a permanent resident visa to one or more of those applicants.
Minimum investment
98.05 (1) The Minister must establish the minimum total amount that the designated entities involved in the commitment must invest by buying shares or other forms of equity in the applicant’s business.
Types of entities
(2) The Minister may establish different minimum investment amounts based on whether the commitment was made by a business incubator, an angel investor group or a venture capital fund and, for commitments involving more than one type of entity, may specify different minimum investment amounts for commitments involving different combinations of entity types.
Factors
(3) The Minister must establish the minimum investment amount on the basis of the following factors:
- (a) the number or projected number of start-up business class applicants and designated entities;
- (b) the proportion per year of start-up business class applications approved, withdrawn or refused, as well as the grounds for refusal;
- (c) the amount of investment received per year by start-up business class applicants from designated entities as part of a commitment;
- (d) the number, type and industry sector of businesses started in Canada by approved start-up business class applicants per year and the average investment needs of start-up businesses of those types in those industry sectors;
- (e) the average amount of investment and number of investments made in start-up companies in Canada per year;
- (f) the level of investment usually required for a business started in Canada by a member of the start-up business class to be successful and for the member of the class to become economically established in Canada; and
- (g) industry standards and best practices, as determined in consultation with organizations referred to in section 98.02, designated entities or other relevant stakeholders.
Public notice
(4) The Minister must publish the amounts established under subsection (1) on the Department’s website.
Qualifying business
98.06 (1) For the purposes of paragraph 98.01(2)(d), a qualifying business with respect to an applicant is one
- (a) in which the applicant provides active and ongoing management from within Canada;
- (b) for which an essential part of its operations is conducted in Canada;
- (c) that is incorporated in Canada; and
- (d) that has an ownership structure that complies with the percentages established under subsection (3).
Exception — intention
(2) A business that fails to meet one or more of the requirements of paragraphs (1)(a) to (c) is nevertheless a qualifying business if the applicant intends to have it meet those requirements after they have been issued a permanent resident visa.
Ownership structure
(3) The Minister must establish
- (a) the minimum percentage of voting rights that are attached to all the outstanding shares of the corporation that must be held by the applicant; and
- (b) the maximum percentage of the total amount of the voting rights attached to all the outstanding shares of the corporation that may be held by persons or entities, other than qualified participants.
Qualified participant
(4) For the purpose of paragraph (3)(b), a qualified participant is
- (a) an applicant in respect of the business;
- (b) a foreign national who has been issued a permanent resident visa as a member of the start-up business class in respect of the business; or
- (c) a designated entity.
Factors
(5) The Minister must establish the percentages referred to in subsection (3) on the basis of the following factors:
- (a) the number or projected number of start-up business class applicants and designated entities;
- (b) the proportion per year of start-up business class applications approved, withdrawn or refused, as well as the grounds for refusal;
- (c) the average size of businesses for which commitments are made and the average percentage of voting rights held by applicants and designated entities;
- (d) the average size of start-up companies in Canada and the average percentage of voting rights held by the founders of those companies and other investors in those companies;
- (e) the number, type and industry sector of businesses successfully started in Canada by approved start-up business class applicants per year and the most common ownership structures for businesses of those types in those industry sectors;
- (f) the ownership share usually required for a business started in Canada by a member of the start-up business class to be successful and for the member of the class to become economically established in Canada; and
- (g) industry standards and best practices, as determined in consultation with organizations referred to in section 98.02, designated entities or other relevant stakeholders.
Public notice
(6) The Minister must publish the percentages established under subsection (3) on the Department’s website.
Documentation
98.07 (1) An applicant must provide documentation to establish that they are a member of the start-up business class, including
- (a) written or electronic evidence, provided by an entity that was designated on the day on which the application is made, that indicates that the entity made a commitment with the applicant;
- (b) the results of a language proficiency evaluation referred to in paragraph 98.01(2)(b); and
- (c) written or electronic evidence that they have the funds required under paragraph 98.01(2)(c).
Production of other documents
(2) In evaluating an application in the start-up business class, an officer may, in addition to these documents, require the production of documents that are in the possession or control of the applicant or of the entity making the commitment and that relate to the applicant, the commitment or the business.
Assessment of commitment
98.08 (1) If the officer is not satisfied that the entity assessed the applicant and the applicant’s business in a manner consistent with industry standards or is not satisfied that the terms of the commitment are consistent with industry standards, the officer may refuse to issue the permanent resident visa.
Multiple applicants
(2) If there is more than one applicant in respect of the same business and one of the applicants who was identified in the commitment as being essential to the business is refused a permanent resident visa for any reason or withdraws their application, the other applicants must be considered not to have met the requirements of subsection 98.01(2) and their permanent resident visa must also be refused.
Peer review
98.09 (1) An officer may request that a commitment, the applicants and designated entities party to the commitment and the qualifying business to which the commitment relates be independently assessed by a peer review panel established under an agreement referred to in section 98.02 by an organization that has expertise with respect to the type of entity making the commitment.
Grounds for request
(2) The request may be made if the officer is of the opinion that an independent assessment would assist in the application process. The request may also be made on a random basis.
Independent assessment
(3) The peer review panel’s assessment must be independent and take industry standards into account.
Assessment not binding
(4) An officer who requests an independent assessment is not bound by it.
Substituted evaluation
98.10 (1) An officer may substitute their evaluation of the applicant’s ability to become economically established in Canada for the requirements set out in subsection 98.01(2), if meeting or failing to meet those requirements is not a sufficient indicator of whether the applicant will become economically established in Canada.
Exception
(2) However, a substitute evaluation must not be conducted for an applicant who did not have a commitment from a designated entity on the day on which they made their application.
Concurrence
(3) A substitute evaluation made under subsection (1) requires the written concurrence of a second officer.
Inspections — organization
98.11 (1) An officer may inspect any organization that has entered into an agreement referred to in subsection 98.02(1) in any of the following circumstances:
- (a) the officer has a reason to suspect that the organization is not complying or has not complied with any of the conditions set out in subsection 98.02(3);
- (b) the organization has not complied with those conditions in the past;
- (c) the organization is chosen as part of a random verification of compliance with those conditions; and
- (d) as part of routine monitoring activities, the organization is monitored to ensure that it respects those conditions.
Inspections — designated entity
(2) An officer may inspect an entity designated under subsection 98.03(1) in any of the following circumstances:
- (a) the officer has a reason to suspect that the entity is not complying or has not complied with any of the conditions set out in subsection 98.03(3);
- (b) the entity has not complied with those conditions in the past;
- (c) the entity is chosen as part of a random verification of compliance with those conditions; and
- (d) as part of routine monitoring activities, the entity is monitored to ensure that it respects those conditions.
Other inspection
(3) In addition, the powers set out in sections 98.12 and 98.13 may be exercised with respect to
- (a) a designated entity, if an officer is inspecting an organization in accordance with subsection (1) and an inspection of the designated entity is necessary to verify that the organization is in compliance with the conditions set out in subsection 98.02(3); or
- (b) an organization that has entered into an agreement referred to in subsection 98.02(1), if an officer is inspecting a designated entity in accordance with subsection (2) and an inspection of the organization is necessary to verify that the designated entity is in compliance with the conditions set out in subsection 98.03(3).
Inspections — business
(4) The powers set out in sections 98.12 and 98.13 may be exercised with respect to a business that is the subject of a commitment by a designated entity with respect to the start-up business class if an officer is inspecting that designated entity in accordance with subsection (2) and an inspection of the business is necessary to verify that the designated entity is in compliance with the conditions set out in subsection 98.03(3).
Inspections — third party
(5) The powers set out in section 98.12 may be exercised with respect to a third party if an officer is inspecting an organization in accordance with subsection (1) or a designated entity in accordance with subsection (2) and an inspection of the third party is necessary to verify that that organization or that designated entity is in compliance with the conditions set out in subsection 98.02(3) or 98.03(3), as the case may be.
Answering questions and providing documents
98.12 (1) When conducting an inspection in accordance with section 98.11, an officer may, for the purpose of verifying that the organization or designated entity is in compliance with the relevant conditions,
- (a) require the organization, the designated entity, a business that is the subject of a commitment or a third party to provide the officer with any relevant document; and
- (b) require any employee or representative of the organization, designated entity, or a business that is the subject of a commitment or a third party to report at any specified time and place to answer questions and provide relevant documents.
Justification
(2) A failure to comply with an obligation under paragraph (1)(a) or (b) is justified if the person, organization, entity or business made all reasonable efforts to comply with the obligation or if the failure results from anything done or omitted to be done by them in good faith.
Entry to verify compliance
98.13 (1) Subject to subsection (7), when conducting an inspection in accordance with section 98.11, an officer may, for the purpose of verifying that the organization or designated entity is in compliance with the relevant conditions, enter and inspect any premises or place in which business is conducted by the organization, the designated entity or a business that is the subject of a commitment.
Powers in place or on premises
(2) When on the premises or in the place the officer may
- (a) ask any relevant questions of an employee or representative of the organization, designated entity or business that is the subject of a commitment;
- (b) require from the organization, the designated entity or the business that is the subject of a commitment any relevant documents found in the premises or the place for examination;
- (c) use copying equipment, or require that the organization, the designated entity or the business that is the subject of a commitment provide copies of those documents to be examined away from the premises or the place or, if it is not possible to make copies in the premises or the place, remove the relevant documents to make copies;
- (d) take photographs and make video or audio recordings;
- (e) examine anything in the premises or the place;
- (f) require the organization, the designated entity or the business that is the subject of a commitment to use any computer or other electronic device in the premises or the place to allow the officer to examine any relevant document contained in or available to it; and
- (g) be accompanied or assisted in the premises or the place by any person required by the officer.
Obligation
(3) An organization, entity, or a business that is the subject of a commitment, must, on request, provide an employee or representative to attend any inspection referred to in subsection (1), to give all reasonable assistance to the officer conducting that inspection and to provide that officer with any document or information that the officer requires.
Justification
(4) A failure to comply with an obligation under paragraph (2)(b), (c) or (f) or subsection (3) is justified if the organization, entity, or a business that is the subject of a commitment made all reasonable efforts to comply with the obligation or if the failure results from anything done or omitted to be done by them in good faith.
Entering private property
(5) An officer and any person accompanying the officer may enter on and pass through private property, other than a dwelling-house, to gain entry to the premises or the place. For greater certainty, they are not liable for doing so.
Person accompanying officer
(6) A person may, at an officer’s request, accompany the officer to assist them to access the premises or the place.
Dwelling-house
(7) In the case of a dwelling-house, an officer may enter it without the occupant’s consent only under the authority of a warrant issued under subsection (8).
Issuance of warrant
(8) On ex parte application, a justice of the peace may issue a warrant authorizing an officer who is named in it to enter a dwelling-house, subject to any conditions specified in the warrant, if the justice of the peace is satisfied by information on oath that
- (a) there are reasonable grounds to believe that the dwelling-house is a premises or place referred to in subsection (1);
- (b) entry into the dwelling-house is necessary to verify compliance with the conditions set out in subsection 98.02(3) or 98.03(3), as the case may be; and
- (c) entry was refused by the occupant or there are reasonable grounds to believe that entry will be refused or that consent to entry cannot be obtained from the occupant.
4 (1) Subsections 102.3(4) and (5) of the Regulations are replaced by the following:
Evaluation of language proficiency
(4) The Minister may designate, for any period he or she specifies, any organization or institution to be responsible for evaluating language proficiency and approve the language test to be used to evaluate that proficiency if the organization or institution
- (a) has expertise in evaluating language proficiency; and
- (b) has provided the Minister with an equivalency between its language test results and the benchmarks set out in the Canadian Language Benchmarks or the Niveaux de compétence linguistique canadiens, as the case may be.
Public notice
(5) The Minister must make available to the public the names of the designated organizations or institutions and the approved language tests.
(2) Subsections 102.3(7) and (8) of the Regulations are replaced by the following:
Revocation of designation
(7) The Minister may revoke a designation of an organization or institution or the approval of a language test if
- (a) the organization or institution no longer meets the criteria set out in subsection (4);
- (b) the organization or institution submitted false, misleading or inaccurate information or has contravened any provision of a federal or provincial law or regulation that is relevant to the service provided by the organization or institution; or
- (c) either the Government of Canada or the organization or institution has terminated the service agreement.
Conclusive evidence
(8) The results of an evaluation of language proficiency by a designated organization or institution using an approved language test are conclusive evidence of an applicant’s language proficiency for the purposes of subsection (1) and of paragraph 98.01(2)(b).
5 Section 107 of the Regulations is repealed.
6 Subsection 108(1) of the Regulations is replaced by the following:
Application for visa
108 (1) Subject to subsection (5), if a foreign national makes an application as a member of the Quebec investor class, the Quebec entrepreneur class, the start-up business class, the self-employed persons class or the Quebec self-employed persons class for a permanent resident visa, an officer may only issue the visa to the foreign national and their accompanying family members if they meet the requirements of subsection 70(1) and, if applicable,
- (a) in the case of a foreign national who has made an application under the self-employed persons class and their accompanying family members, who intend to reside in a place in Canada other than a province whose government has, under subsection 8(1) of the Act, entered into an agreement referred to in subsection 9(1) of the Act with the Minister under which the province has sole responsibility for selection, the foreign national is awarded the minimum number of points referred to in subsection (4); and
- (b) in the case of a foreign national and their accompanying family members, who intend to reside in a province whose government has, under subsection 8(1) of the Act, entered into an agreement referred to in subsection 9(1) of the Act with the Minister under which the province has sole responsibility for selection, the foreign national is named in a selection certificate issued by that province.
7 The portion of paragraph 295(1)(b) of the Regulations before subparagraph (i) is replaced by the following:
- (b) if the application is made by a person as a member of the Quebec investor class, the Quebec entrepreneur class, the start-up business class, the self-employed persons class or the Quebec self-employed persons class
Coming into Force
8 These Regulations come into force on April 1, 2018, but if they are registered after that day, they come into force on the day on which they are registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
Issues
Canada has demonstrated that it would benefit from a permanent immigration program to attract innovative foreign entrepreneurs. There is increasing competition around the world for top entrepreneurial talent and the Start-up Business Class (known as Start-Up Visa), which was launched in April 2013, helps to maintain Canada’s competitive advantage by ensuring that foreign entrepreneurs have a direct pathway to acquiring permanent residence and launching their start-ups in Canada. More broadly, the program supports the Government of Canada’s priorities for fostering innovation, attracting investment and supporting economic growth.
However, Start-Up Visa is a pilot program and its pilot phase expires on March 31, 2018. The pilot was created through Ministerial Instructions and under the Immigration and Refugee Protection Act, these pilot programs are limited to a five-year duration and cannot be extended. In order to make Start-Up Visa a permanent program, it must be incorporated into the Immigration and Refugee Protection Regulations.
Background
The Government of Canada administers a number of immigration programs that contribute to Canada’s economic and labour market needs, including business immigration programs. Over time, these business immigration programs became outdated and no longer aligned with the current economy. As a result, the Government of Canada has been testing new approaches to attract business immigrants to Canada who can better support the country’s current economic needs.
As part of a shift toward lower-volume programs aimed at attracting innovative business people, Start-Up Visa was launched through Ministerial Instructions in April 2013 as a five-year pilot program that provides permanent residence to innovative entrepreneurs with the potential to build high-growth start-ups in Canada that can compete on a global scale.
Start-Up Visa leverages partnerships with venture capital funds, business incubators and angel investor groups (collectively known as “designated entities”
), as well as their industry associations, to identify promising entrepreneurs. Foreign entrepreneurs wishing to apply to the program must first secure support for their business from one of these designated entities. They must also, among other requirements, have a certain level of official language proficiency, business ownership shares and personal funds. Together, these criteria are tailored to entrepreneurs with potential for long-term success.
A 2016 program evaluation found that Start-Up Visa has been successful in attracting innovative entrepreneurs to Canada. As of January 1, 2018, 170 entrepreneurs have been approved for permanent residence through the program. Together, these entrepreneurs have launched over 100 companies in Canada.
Objectives
The objective of the regulations is to advance the Government of Canada’s commitments to attracting innovation, investment and global skills by making Start-Up Visa a permanent program.
Description
The regulations create Start-Up Visa as a new permanent resident program for business immigrants under the economic class and cover a number of elements:
(1) Requirements for entrepreneurs applying to immigrate through the program
- These include criteria for language proficiency, business ownership, settlement funds and support from a designated entity. These requirements are the same as those in place under the pilot program.
- Under the permanent program, the regulations now make explicit that entrepreneurs must also provide active and ongoing management of their business from within Canada and that an essential part of their business’s operations must be conducted in Canada.
(2) Role of designated entities participating in the program
- The regulations set out designated entities’ responsibilities in issuing commitments of support for applicants.
- Under the permanent program, the regulations now make explicit that designated entities must provide the Minister, upon request, with information on their activities related to the program and that they may not charge applicants a fee to review and assess their business proposal.
(3) Authorities of the Minister of Immigration, Refugees and Citizenship
- These authorities include the ability to designate entities, revoke designation from entities and temporarily suspend entities from participating in the program.
- The Minister may also enter into agreements with organizations to provide recommendations on designation and de-designation as well as to conduct peer reviews of individual cases.
- New provisions under the permanent program include the authority to conduct inspections of these organizations, as well as designated entities, in order to ensure that they are complying with program requirements.
- In addition, the Minister may establish minimum thresholds for an investment made by a designated entity and the ownership share structure of the applicants’ business outside of regulations. These thresholds are established based on factors listed in the regulations and are made available to the public on the Department’s website.
(4) Procedures for application processing
- These procedures include the authority for visa officers to request documentation from applicants and designated entities as well as request peer reviews to assist in processing cases. These are authorities that visa officers also have under the pilot program.
- Under the permanent program, the regulations clarify that visa officers have the authority to substitute their evaluation of the applicant’s ability to become economically established in Canada [notwithstanding the criteria mentioned in 1) above] provided that the applicant had a commitment from a designated entity on the date their application was submitted.
“One-for-One”
Rule
The “One-for-One”
Rule does not apply to these regulations, as there is no change in administrative costs to business.
Small business lens
The small business lens does not apply to these regulations, as the regulations are not expected to increase compliance or administrative costs for small businesses.
Consultation
As a pilot, Start-Up Visa was created to fill a gap identified by the Canadian private sector to attract high-calibre entrepreneurs. The program was created through close consultation with stakeholders and they have been involved in the policy design since its inception. Throughout the pilot phase, Immigration, Refugees and Citizenship Canada has regularly sought advice from industry associations and designated entities on program requirements. The private sector is very supportive of Start-Up Visa and has expressed a strong desire for it to become a permanent program. In February 2017, provinces and territories were also consulted on Start-Up Visa and did not raise objections to implementing it as a permanent program at the end of its pilot phase.
On November 25, 2017, a Notice of Intent was published in the Canada Gazette, Part I to seek comments on the Department’s plans for these regulations during a 30-day comment period. No comments were received.
Rationale
Implementing the regulations will ensure that Canada remains a welcoming destination for innovative foreign entrepreneurs. The positive outcomes achieved during Start-Up Visa’s pilot phase, the recommendations from the 2016 program evaluation, and the strong support for the program from the Canadian private sector all point to the need for Start-Up Visa to be launched as a permanent program. The costs of the program are minimal compared to the overall benefits for Canada and Start-Up Visa complements the existing suite of economic immigration programs. Regulations are the only option for implementing Start-Up Visa as a permanent program once its pilot phase ends.
Gender-Based Analysis Plus
A Gender-Based Analysis Plus assessment was conducted in the development of the regulations. All applicants under Start-Up Visa are assessed according to a defined set of selection criteria, irrespective of gender, age, religion, ethnicity, sexual orientation or other diversity factors. The pool of applicants during the program’s pilot phase has been extremely diverse. Based on applications received between 2013 and 2016:
- Ethnic Diversity: Principal applicants originated from 31 source countries (representing 33 mother tongues).
- Age: Principal applicants ranged in age from 20 to 67, with 30 the median age.
- Sex: Women represented approximately 28% of principal applicants. This ratio is slightly higher than that of the broader start-up industry. (According to data from Innovation, Science and Economic Development Canada, 15% of small and medium-sized businesses in Canada were majority-owned by women in 2011, with a further 18% equally co-owned by men and women.)
Once the regulations are implemented, the Department will continue to monitor the proportion of women and diversity of applicants under Start-Up Visa and assess any processes or criteria that may present barriers to their participation.
Implementation, enforcement and service standards
The Minister of Immigration, Refugees and Citizenship is responsible for the administration of Start-Up Visa but the program is implemented in close partnership with the private sector. The Minister enters into agreements with industry associations representing business incubators, angel investor groups and venture capital funds in order to support the program. These industry associations provide the Minister with recommendations for designating entities under the program (as well as de-designating entities if they are not operating in accordance with program requirements). Designated entities then assess foreign entrepreneurs’ business proposals to identify innovative ventures. When designated entities identify promising entrepreneurs that they choose to support, they submit a commitment certificate to visa officers at Immigration, Refugees and Citizenship Canada. The entrepreneurs then submit a permanent resident application, which visa officers process.
The regulations come into force on April 1, 2018 (or the day on which they are registered if registered after that date). Prior to the launch of the permanent program, Immigration, Refugees and Citizenship Canada will coordinate with its private-sector partners to ensure a smooth implementation for Start-Up Visa. Communication activities will also take place to inform the public of the program launch and provide foreign entrepreneurs with application forms and instructions. After program launch, the Department will monitor application processing times as part of its commitment to client service. It will also monitor compliance from private-sector partners to ensure that all of their activities under Start-Up Visa align with program requirements and uphold a high standard of program integrity. In cases of non-compliance, the Minister may de-designate and/or terminate agreements with these organizations.
Contact
Director
Economic Immigration Policy and Programs
Immigration Branch
Immigration, Refugees and Citizenship Canada
- Telephone:
- 613-437-6181
- Email:
- IRCC.Selection-Sélection.IRCC@cic.gc.ca