September 12th, 2023 at 07:17 am
Canada Startup Visa Letter of Support – Designated Organizations | Canada Immigration Tips
What is the significance of the Letter of Support? How much is it worth?
In any case, we’ll illustrate why you shouldn’t be chasing waterfalls by seeking for low-cost Letters of Support. That is the topic of today’s little article.
The Letter of Support is an important eligibility requirement for applying for direct Canadian permanent residency through the Startup Visa program.
In what circumstances is the SUV Letter of Support relevant, and when is it not?
The Letter of Support is an important part of your Canada Startup Visa PR application. Obtaining or paying for a Letter of Support does not ensure IRCC approval for your Permanent Residency. This is a proven fact. If the designated entity, such as an incubator, backs you up by giving a Letter of Support, it will have no influence on the IRCC SUV processing team’s ultimate judgment on whether you are approved or denied. As a result, we can confidently assert that the Letter of Support, in the absence of any financial commitment or assistance from the named organization, is only an eligibility condition, akin to an IELTS exam, a police clearance certificate, or a business plan.
What is the value of an IELTS or a police clearance certificate? This price may differ depending on where you live.
Will the IRCC automatically approve you for a Canadian PR under the Startup Visa program if you have an IELTS, a police clearance certificate, or a minimum settlement fund? The answer is ‘No’. As a result, we may infer that the Letter of Support will get you into the program but will not assist you effectively in exiting with a PR.
This is why you should not rely just on a letter of support. You should investigate the designated organization’s reputation in the immigration field, such as if they issue a large number of letters of support, what the IRCC thinks about the quality of their startups, and so on.
Who is the problem? The content of your Letter of Support is more significant than the Letter of Support itself. It’s like paying for a college education. You can get it from Trump University, but how much credibility and weight will that degree have in your professional life?
What is the most significant aspect of the SUV Letter of Support for your successful Canadian Startup Visa PR application?
A major component of the Letter of Support is a detailed description of your startup by the authorized institution, such as a VC, Angel Investor, or incubator, as well as the urgent demand for the co-founders to come to Canada with a work permit. Many elements of the Letter of Support are not available to you since they are part of the commitment certificate that is provided directly to IRCC by the selected organization. You will only view two pages of this complete document, where you can read about the explanation presented by the entity to IRCC for why you need to apply for your work permit.
It is critical for your application that the selected organization writes on the Letter of Support and commitment certificate. Many Startup Visa candidates ask their chosen organization to re-issue the Letter of Support or Commitment Certificate for IRCC. This request can result from either wanting to apply for a new work permit after the previous one has expired (maximum validity of 6 months), or from IRCC requesting a new valid commitment certificate to prove that the designated organization is supporting and endorsing this startup business.
In the latter two cases, the designated organization must provide a detailed and up-to-date explanation of the newly issued commitment certificate to explain any changes or updates on the startup. What you don’t want is for the designated organization to re-issue the same Letter of Support that was issued 1-2 years ago with no revisions or updates noted on it. If there are any discrepancies or missing updates, they will use it against your PR application by stating that the designated organization did not complete its due diligence properly – because the information they included on this new commitment certificate or Letter of Support is outdated compared to the progress or activities or group structure you have.
Remember that we are always blogging about the crucial elements of Canada’s Startup Visa program and other immigration programs for company investors and entrepreneurs- and if that’s what you’re looking for, you can subscribe to our YouTube channel for more in-depth videos.
What you should invest in instead of the Letter of Support to improve your chances of receiving PR approval from the IRCC. Rather than only paying for a Letter of Support and a PR immigration application, you should invest in the following:
- An actual startup company with a commercially viable product or solution.
- Unambiguous investments in business development and pilot projects in Canada.
- Investing in new operations and recruiting within Canada. Hint: IRCC likes it when you recruit Canadians and can demonstrate genuine traction.
What you should not pay for is a Letter of Support with no follow-up plan.
We will list what you should pay for in order of priority of value:
- The most crucial factor is investing in business development. Your priority should be to find someone or an organization that can assist you with this element.
- Immigration and business advice and help. You will require specific advice from immigration and/or business advisers on what to do after the Letter of Support, as well as preparation for the IRCC questioning. Your selected group is unable to do so, as they are not immigration specialists.
- Investing in market research and developing company strategy. This is your third priority.
- The organization’s selected cohort or accelerated program. 90% of the programs are of little value and costly, and the IRCC does not regard them as meaningful traction for your business, investment, or any assistance in confirming your actual intentions of establishing and managing your business from within Canada. Based on IRCC’s ruling on recent startup visa instances, this is the truth and evidence. Regardless of the cost of these accelerator or cohort programs with your incubator or approved organization.
- A letter of recommendation. This is most likely the last and least crucial portion of your investment. The sole exception is if the designated entity, such as a VC or Angel Investor, pledges to and invests in your firm before you become a PR, in which case their Letter of Support is more valuable than anything else. Another example of a high-value Letter of Support is when the authorized organization invests in your firm without charging you an admission fee. But, at the end of the day, if you don’t have meaningful development for your Startup in either of these two scenarios, you could be a sitting duck for IRCC.
You should not pay more than $25,000 to join an incubator’s cohort and accelerator program. Incubators range in price from $8,000 to $90,000 and everything in between. Choose your collaborators wisely. Consider the possibility of higher fees for authorized Angel Investors and Venture Capital companies.
Do you still want a one-dollar letter of support? Alternatively, do you want IRCC to approve your PR application? Which is the most important outcome for you? This is the $1 million question that you must plan for and address with your co-founders who intend to apply for your Startup.
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