Since Canada does not financially support immigrants under the Start-Up Visa (SUV) program, applicants under that immigration program need to have a minimum amount of settlement funds and monies to fund their business.

This money cannot be borrowed.

Under the SUV, entrepreneurs who want to benefit by starting businesses in Canada can get their Canadian permanent residence and can benefit from the help of three types of private-sector investors: angel investorsventure capital funds, and business incubators.

Working With An Immigration Lawyer Can Help SUV Applicants Determine Financial Needs

A designated angel investor group must invest at least $75,000 into the qualifying business. Candidates can also qualify with two or more investments from angel investor groups totaling $75,000.

A designated venture capital fund must confirm that it is investing at least $200,000 into the qualifying business. Candidates can also qualify with two or more commitments from designated venture capital funds totaling $200,000.

And a designated business incubator must accept the applicant into its business incubator program.

It is up to the immigrant investor to develop a viable business plan that will meet the due diligence requirements of these government-approved designated entities.

Receiving support from an angel Investor will typically require more funding than what would satisfy a Canadian investor. Conversely, receiving support from an incubator requires less funding. However, there is a trade-off in choosing one or the other.

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Working with an immigration lawyer, experienced in the Canadian start-up ecosystem, will ensure applicants under the SUV can best address this important matter.

The SUV requires applicants to have enough settlement funds based on their family size.

Number of family members Funds required
1 $13,757
2 $17,127
3 $21,055
4 $25,564
5 $28,994
6 $32,700
7 $36,407
Each additional family member $3,706

Income Taxes And Deductions Can Cut Take-Home Pay By About 35%

Beyond the funds needed to finance the business and settlement funding, even those earning relatively good salaries can expect to pay up to half of their take-home pay in household expenses, including the costs of their:

  • home;
  • heating and other utilities;
  • food;
  • clothing;
  • health insurance, and;
  • transportation.

A report by and Urbanation pegged the average rent in Canada at $2,178 in October 2023, although that varies greatly from one city to another and there is also a tendency for urban areas to come with higher rents.

While the average person in Canada spends $161 per month on clothes, women spend nearly 76 per cent more than men on clothing in a year. The average family of four spends about $1,800 on clothing annually.

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A family of four typically spends about $1,360 monthly on groceries in Canada.

Provincial and territorial health programs often do not cover the costs of healthcare for newcomers for the first three months they are in Canada.

Once the basics are covered, it’s always a good idea to budget some money for occasional, unplanned expenses, including prescription medicine not covered by health insurance, school supplies, and long-distance calls to friends and family back home.

Expect pay cheque deductions to reduce the gross salary by 25 to 35 per cent due to:

  • income taxes;
  • Canada Pension Plan or Quebec Pension Plan;
  • Employment Insurance;
  • union dues (for unionized workers), and;
  • payments to a retirement or pension plan.

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