Entrepreneurs have transformed the modern economy by spawning innovative companies that operate around the globe. Importantly, many nations have instituted start-up visa programs to appeal to foreign founders with high-potential business ideas and encourage scalable business initiatives. This idea is quite recent, as the first official attempt was made in 2010, after which several nations implemented similar programs and changed their immigration policies in a bid to promote entrepreneurship.
The Origins: Chile’s Groundbreaking Model (2010)
Chile was the first country to have a formal start-up visa scheme through its Start-Up Chile initiative in 2010. Unlike conventional investor visas, which necessitated a certain amount of wealth, Start-Up Chile focused on early-stage entrepreneurs. The program granted chosen founders equity-free financing, an initial one-year visa, and access to incubators. The idea was to market Chile as a global start-up magnet, attracting founders from around the world.
This model proved successful, influencing other nations to copy the start-up visa concept to draw talent.
Canada’s Pioneering Role in Permanent Residency for Entrepreneurs (2013)
Canada was one of the first countries to implement a federal start-up visa program in 2013. Unlike Chile’s model, which primarily offered temporary residency and funding, Canada’s Start-Up Visa Program (SUV) provided a direct pathway to permanent residency. To qualify, entrepreneurs had to secure backing from a designated venture capital fund, angel investor group, or business incubator.
The SUV’s main aim was to address gaps left by previous entrepreneur immigration streams, which had high failure exploitation rates. For example, the now-terminated Immigrant Investor Program (IIP) was scrapped in 2014 because concerns were raised that a huge chunk of participants never set up or actively ran a business in Canada. There were reports from Immigration, Refugees, and Citizenship Canada (IRCC) stating that as soon as they had obtained permanent residency, many applicants under these programs simply abandoned their businesses or conducted passive investments instead of operating a startup.
To answer these issues, programs concerned with self-sufficient immigrants were established by employing strict endorsing requirements from specific organisations and other measures that heightened accountability and responsibility, minimised the risks of failure, and increased the business’s success.
Today, Canada’s Start-Up Visa remains one of the most attractive and successful entrepreneur immigration programs in the world, particularly for foreign founders looking to establish long-term roots in North America. Thanks to the SUV, Canada is the most attractive country for start-up founders in the OECD.
Global Expansion: The Start-Up Visa Goes Mainstream (2010s–2020s)
Following Chile and Canada’s success, other countries began implementing their own versions of start-up visas:
- Australia (2012): Introduced the Business Innovation and Investment Visa, targeting high-growth start-ups with significant funding or entrepreneurial track records. It offers temporary residency with a pathway to permanent residency for successful applicants.
- Ireland (2012): Introduced the Startup Entrepreneur Program (STEP), which provides temporary residency (2 years, renewable) for founders of innovative startups, with a pathway to permanent residency after meeting specific criteria.
- France (2017): The tech-specific French Tech Visa offers temporary residency (up to 4 years) for tech entrepreneurs, startup employees, and investors, with options to apply for permanent residency later.
- Singapore (2017): Enhanced from its former version in 2017, EntrePass is designed for foreign entrepreneurs with innovative business ideas. It offers temporary residency (1-2 years, renewable) with pathways to permanent residency for successful ventures.
- United Kingdom (2019): Replaced an older entrepreneur visa with the Start-Up Visa, requiring applicants to secure endorsement for innovative, viable, and scalable business ideas. It offers temporary residency (2 years) with no direct pathway to permanent residency.
- Portugal, Estonia, and Germany: These countries introduced entrepreneur-friendly pathways, offering temporary residency with potential pathways to permanent residency, leveraging the rise of remote work and digital entrepreneurship.
The U.S. and the Struggle to Implement a Start-Up Visa
Although the United States is a global innovation leader, it has lacked a specific start-up visa. Senator John Kerry initially introduced the Startup Visa Act in 2010 but it was never adopted by Congress. In 2016, the International Entrepreneur Rule (IER) was created during the Obama Administration, which permitted temporary stays for entrepreneurs. Though not a proper visa, this program faced blockages and limitations under the Trump administration and was only partially restored in 2021 by President Biden.
Like many other measures, the IER represents a somewhat short-term solution in that it does not directly enable one to acquire permanent residency. While some American entrepreneurs such as Elon Musk—himself a foreign entrepreneur—have expressed their support for bringing in skilled immigrants to boost innovation, to this day, comprehensive start-up visa legislation has not been enacted.
Due to the lack of an official start-up visa, entrepreneurs from around the world view Canada’s SUV program as a reliable, better option.
Why Canada’s Start-Up Visa is the Ideal Pathway for Entrepreneurs
As global policies evolve, Canada’s Start-Up Visa Program remains one of the most attractive options for foreign entrepreneurs seeking permanent residency, especially since the introduction of an open work permit of up to three years provides applicants with increased stability. Unlike many start-up visas that offer only temporary residence, Canada’s SUV provides a direct route to PR, making it a preferred destination for ambitious founders.
With the right support, founders can leverage Canada’s business-friendly environment to successfully build and scale their ventures. For entrepreneurs considering launching a business in Canada, StartupVisa.ca offers expert guidance on securing SUV approval and connecting applicants with designated investors and incubators.
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