A start-up business must be a new business intended to be operated in Canada and must meet the criteria to be a qualifying business. Section 2(2)( a) of the MIs requires that the new start-up business must have received a commitment from:
- A designated angel investor group confirming that it is investing at least $75,000 in a qualifying business or two or more designated angel investor groups confirming that they are together investing a total of at least $75,000 in such a business; or
- A designated venture capital fund confirming that it is investing at least $200,000 in a qualifying business or two or more designated venture capital funds confirming that they are together investing a total of at least $200,000 in such a business.
Example: Donald has a commitment from a designated angel investor, which represents an investment of $98,000. Donald’s investor tells him that once he is granted Canadian permanent residence and has arrived in Canada, the investor will register and incorporate the business. This start-up business would be acceptable under the program if all other criteria are met.
A “commitment” is an agreement between the applicant and the investing entity to establish and incorporate a qualifying business in Canada. The investing entity must be one which appears in the list of designated private sector businesses referred to in Section 4 of the MIS. Proof and details of this agreement will be submitted in the form of the term sheet and summarized for CIC processing in the Commitment Certificate.
The investing entity may not identify more than 5 persons in a commitment.
An investing entity is an organization that has been designated by the Minister of CIC to participate in the Start-Up Business Pilot.
A Commitment Certificate is a document which records important information regarding the agreement between the applicant and the investing entity and will be sent directly from the designated entity to CIC. The purpose of the Commitment Certificate is to summarize pertinent details of the commitment between the investing entity and the applicant for the purposes of the application for permanent residence. It is designed to facilitate the identification of specific requirements to qualify as a member of the Start-Up Business Class.