What is a Canadian Start-Up Support Letter and How to Get It?
A Canadian startup support letter is a document issued to an applicant by one of the designated Canadian investment organizations that have decided to support an innovative business. The applicant must attach a support letter to their application for permanent residence under the Canadian startup visa program.
Foreigners who meet the necessary conditions can establish a business in Canada. Obtaining a Canadian startup visa makes the process easier for foreigners who want to establish a company in Canada.
Where to Get a Canada Start Up Letter?
A Canadian start-up letter can be obtained from an angel investor group, venture capital fund or business incubator.
Places where you can get a Canadian startup support letter are listed below.
- Business Development Centre : It is necessary to be accepted into one of the business development programs of organizations located in Canada.
- Venture Capital Groups : In order to receive a letter of support and be accepted into the Canadian start-up visa program, venture capital groups must make an investment of at least 200,000 USD.
- Angel investor group : In order to be accepted into Canada’s start-up visa program and receive a letter of support from angel investors, angel investor groups must make an investment of at least 75,000 USD.
How to Get a Support Letter for Canada Start Up Program?
A letter of support for a Canadian startup program can be obtained after convincing the investor organizations in Canada that you have a business idea that is suitable for support. Each organization determines its own conditions. While some organizations request that the business idea be presented in person, some organizations request that a detailed business plan be sent.
The organization in Canada sends a letter of support if it reaches an agreement with the person who sent the business idea. For the Canada start-up visa application, the received letter of support must be included in the application documents. In Canada, a maximum of five entrepreneurs can apply under a single agreement. The organization supporting the business idea must send a separate letter of support for each entrepreneur.
The organization located in Canada must also send the commitment document for the entrepreneur it supports to IRCC. During the application, IRCC reviews the Canadian startup support letter and commitment document.
What is the Difference Between a Canadian Commitment Letter and a Letter of Support?
Foreign entrepreneurs who want to start a business in Canada must obtain a commitment document from the institution they have an agreement with. The Canadian commitment document includes the amount of support, the applicant, the entrepreneur team members, business and business structure information, infrastructure information and work permit documents for applicants.
While the Canadian commitment document is prepared for a maximum of 5 entrepreneurs, the support letter is prepared separately for each entrepreneur.
What Information Should a Start Up Canada Support Letter Include?
The information that a Startup Canada support letter should contain is listed below.
- Validity period of the commitment document (6 months)
- Information about the applicant and team members
- Business information
- Information about the structure of the work
- Employment relationship between the applicant and the specific organization
- Work permit for the basic applicant (if applicable)
Can You Invest in Canada with a Canadian Start Up Support Letter?
It is possible to invest in Canada with a Canadian startup support letter.
Canada start-up support letter is given to entrepreneurs whose business ideas are supported by organizations. Foreign entrepreneurs who want to start a business in Canada must present their business ideas to relevant organizations in Canada and receive acceptance. Foreign entrepreneurs who receive a Canadian support letter and commitment document can apply for a Canadian investor immigrant visa.
