IMMIGRATING TO CANADA AS AN ENTREPRENEUR; OPPORTUNITIES AND CHALLENGES FOR STARTING A BUSINESS
Are you thinking of Immigrating to Canada as an entrepreneur? Then this blog post will provide you with all the necessary information you will need to know.
As a result of huge predictions/returns, many entrepreneurs, multimillion-dollar firms, and even early-stage startups would want to immigrate to Canada. And why Canada, you could ask?
Undoubtedly, Canada is a technologically advanced nation that ranks among the safest in the world and, most significantly, provides economic stability. One of the best places in the world to work and conduct business is Canada. They offer various exciting business opportunities, and the earnings are fantastic.
New businesses are promoted in Canada, and immigrants’ and women-owned firms are given particular encouragement.
Why should you consider migrating as an Entrepreneur to Canada? Canada is one nation that offers start-up programs for business owners and assists entrepreneurs who want to be residents. The Start-Up Visa program is one way that Canada hopes to welcome more foreign businesspeople, according to Marco Mendicino, Minister of Immigration.
In stark contrast, the United States has been reluctant to accept new immigrants due to its complicated immigration laws. Under its specialized Startup Visa Program, Canada has made significant progress in drawing top-tier business owners worldwide.
Canada offers advantages for immigrant entrepreneurs who want to migrate and expand their businesses internationally, in addition to a straightforward immigration procedure.
Unlike many nations with startup visa programs, Canada does not impose age restrictions or extra difficulties for entrepreneurs beyond 35. Canada’s GDP, now ranked ninth globally, is anticipated to expand by 1% and 1.3% in 2023 and 2024, respectively.
Businesses benefit from a robust and growing economy, particularly IT entrepreneurs aiming to establish new markets for their goods and services. Canada provides entrepreneurs with tools to minimize Company expenses through non-dilutive investment possibilities, including tax credits and immigration benefits.
For instance, companies in Canada are eligible for Scientific Research and Experimental Development (SR&ED) tax credits that can reduce their operating and research expenses by up to 65%. Canada received strong scores for its quality of life, agility, entrepreneurship, and openness to business, placing it first out of 78 nations in U.S. News and World Report’s 2021 Best Countries Report.
As a result, if you are considering starting a business in Canada, you have made a good decision. Before starting a business, a migrant must research which prospects are in great demand in the state.
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In more detail, let’s examine a few entrepreneur opportunities in great demand in Canada.
Immigrating to Canada as an entrepreneur, Canada requires workers with the necessary expertise to complete the various ongoing new development projects. The salary is competitive, and the more experience you have, the more you’ll get paid. In Canada, the construction sector employs more than 1.4 million people and has an annual economic output of $141 billion.
The following occupations in construction are in great demand right now: Electricians, plumbers, bricklayers, concrete mixers, roofers, and carpenters.
The agri-food and agriculture industries are Canada’s biggest and most successful industries. One of the top producers of agricultural and dairy products in Canada. Hence, to keep up with production, they need to hire more people in the industry and call for investors and startups with the necessary production and marketing expertise. By 2020, the Canadian agri-food and agricultural sector would employ nearly 2.1 million people. Approximately $139.3 billion, or 7.4 percent of Canada’s GDP, was generated during that time.
The following positions are in great demand: farmworkers, truck/trolley drivers, butchers, beekeepers, and winemakers. These entrepreneurs would work for an agricultural Company already established or established.
The Canadian hospitality sector suffered during the COVID-19 epidemic but quickly bounced back after the restrictions were lifted. Due to Canadians’ and foreigners’ love of exploring new hotels and restaurants, there will always be a demand for qualified workers in the hospitality sector. Professional chefs, cooks, bakers, etc., are some examples of the entrepreneurs needed.
4. Retail and wholesale
Provinces like Alberta, Saskatchewan, and British Columbia are important places to consider if you’re considering retail and wholesale. Retail accounts for $102.82 billion, and wholesale accounts for $106.88 billion of Canada’s GDP, respectively. The most in-demand positions in the retail and wholesale industries are bookkeeper/cashier, visual merchandiser, and cleaning and maintenance.
Other abilities required include graphic design, artistry, fashion styling, and, most significantly, craftsmanship.
There are several alternatives for entrepreneurs to migrate, i.e., the migrating options, and the first one we will mention in this article is the programs for entrepreneur work permits.
If you are a foreign entrepreneur who wants to migrate to Canada and start a business there, you could be able to enter the country under the Entrepreneur Work Permit program, also known as C11.
Entrepreneurs who intend to move to Canada temporarily to start a business rather than permanently are eligible for this type of immigration. The EW permit program is primarily intended for those who want to start enterprises in distant locations and provide specific services or goods that are likely advantageous to Canadians.
Suppose you are thinking about applying for a C11 work visa. In that case, you must persuade the immigration official that: you own your Company or have a majority stake in it in Canada (at least 50%), your business plan is realistic and can be executed, you have the necessary expertise and capacity to operate your business in Canada, you have taken significant measures to carry out your business plan, and your business will “significantly benefit Canada.”
While thinking about the C11 work permit, these processes should be followed:
Establish or purchase a business in Canada.
Create a business strategy. Implement a section of the business plan
Get a C-11 work permit.
Get C11 approval. Run your enterprise for 12 months.
Apply for permanent residence.
The intra-company transfer (ICT) work permit is another migration option for entrepreneurs. You can obtain an ICT work permit and permanent residency through the ICT route (PR). The spouse and children of the primary applicant will typically be granted open work and study permits, respectively. Entrepreneurs with profitable companies in their nations can apply for the ICT WP to expand to Canada.
To get a work visa under the ICT program, entrepreneurs must also fulfill several other criteria, such as the following:
The home firm must have been in existence for at least 12 months (but ideally for at least three years) to sustain overseas activities in Canada, the domestic business must be financially stable, the home Company must be related to the Company in Canada as a parent, subsidiary, or affiliate Company, Canadian operations must be a viable business and create jobs for Canadians, and the applicant seeking an ICT WP must have worked for or been actively involved with the home Company for at least 12 months in the three years before the immigration application, there must be a solid business plan that proves Canadian operations will be a successful Company that can make enough money to pay its bills and its employees.
So Entrepreneurs must provide answers to the following question;
Will Canadians be able to find jobs as a result of this expansion? Will the business grow to need an Executive or manager in Canada?
The ICT program has several benefits. It enables you to live and operate a business in Canada, bring your family along, provide free public school education for kids, have no minimum investment requirements, have no physical presence requirements, transfer key employees from your current employer, move quickly, and have the option of remaining permanently.
The actions that must be taken are as follows:
Declare your firm a parent, subsidiary, or affiliate of your primary business in Canada
Write a business plan explaining your intended line of work, market research, and strategies for operating a successful firm in Canada. By industry norms, include your employment strategy and cash flow estimates for at least two to three years.
Gather all the necessary paperwork (bank statements, incorporation documents, proof of investment funds, etc.) and prepare your work permit application. Step 4 is to submit your application and wait for a response.
The widely known start-up visa is the last item on our list. This exclusive program allows innovative and forward-thinking start-up owners permanent residency in Canada. Suppose they match the other criteria for the program. In that case, creative start-ups or established international business owners may be eligible to permanently use this program to migrate to Canada with additional founding partners.
What conditions must be met?
A letter of support or investment promise from one of Canada’s approved organizations is required for foreign nationals. Each foreign national is required to hold at least 10% of the startup’s stock.
Each applicant must possess English or French language proficiency at CLB level 5 and have enough money to settle in Canada ($12,960–$34,299, depending on the applicant’s family size). Foreign nationals and their designated organization must jointly own more than 50% of the start-up venture’s total shares (voting rights).
In addition to the aforementioned, entrepreneurs should be ready to fulfill the following prerequisites to be successful in this program:
Ownership of an innovative or successful business that is generating scalable and sustainable revenue or has strong market validation; Access to capital to fund your start-up venture, usually around $200,000 at a minimum per applicant; have highly specialized knowledge or unique experience in your field, or have solid managerial experience, and Have upper-intermediate-level English and French language skills
What are the challenges faced by migrating entrepreneurs or businesses?
Entrepreneurs are regularly faced with challenges in setting up their businesses. Some entrepreneurs need business culture knowledge and a social and professional network. Also, financing or capital assets are challenges faced by immigrants. The report states that while support services for starting a business in Canada are available, services catering to the specific needs of immigrants are few.
Concerning financing, the eligibility requirements for bank loans and other small business financing are challenging to meet and tend to exclude newcomers with little experience in Canada softly.
The incubation programs in Canada provide start-ups with coaching and other services but typically prioritize business owners with abundant resources and excellent development potential. As bank loans in Canada need a two-year credit history and are challenging to get for recently arrived immigrants, the Canada Small Business Financing Program is frequently the only viable choice for bank loans for high-risk start-up businesses.
Inclusively, unfamiliarity with Canadian customs and procedures can make it hard for immigrant entrepreneurs to write their business plans and build the necessary networks for their services and programs, limiting their access to designated organizations that provide targeted support to immigrant entrepreneurs.
Conclusion(Immigrating to Canada as an entrepreneur)
In conclusion, Immigrating to Canada as an entrepreneur is possible due to the start-up programs business owners receive from the Canadian programs. However, pre-requisite guidelines must be strictly followed, especially for entrepreneurs migrating to other options.
Your business must be financially strong and capable of adding to Canada’s economy. The challenges are numerous, as there’s only a goal with a setback. However, be assured that working or expanding your business in Canada is one of the best decisions you could ever make.