A few questions re: Startup visa

[NAUAE]

Hi everyone,

I had a few questions regarding the startup visa program. Not the mechanics, mind you but some technicalities from a specific context.

A friend of mine is working with some consultants who are charging him a lot of fees - which includes securing funding from an angel investor. Now this guy has no intention of starting a business as he is a very high paid executive outside of Canada. His only reason is to get a PR and to relocate his family to Canada so after staying the 3 odd years, they can get Citizenship in time for the kids to go to college. The consultants are telling him that this is entirely plausible as the SUV program does not require you to have a successful business and in fact, you don't even have to set one up if you are fully willing to write off the capital in the escrow account. Now he is asking me to join in with him.

Somehow, it doesn't seem to make sense to me and I wanted to clarify some points:

1) Does the above statement hold true i.e. you get PR through SUV, relocate the family, they stay the time on the ground and get citizenship? even if you haven't started any business?
2) I assume that the primary applicant of the SUV program will lose his PR if he doesn't fulfill the physical presence requirement but will that impact the PR of the family members who have stayed there and their subsequent application for citizenship? and if the application for citizenship is in processing by the time the PR renewal comes up, will PR be renewed?
3) Also in the application for citizenship, since the family is dependent on support from the primary applicant of the SUV (who is non-resident and gainfully employed outside Canada), they will file zero tax returns while the primary applicant won't file at all? how does that factor into 1 and 2 above?
4) The consultants even said that you can file an application for citizenship after staying 2 years but I saw no reference of this. How is this possible?
5) Are there any implications that I am missing in this scenario that also need to be considered? it just seems too easy to be true

Sorry for the detailed questions but I am trying to reconcile the logic of this in my head.

Thanks everyone.

 

[Startup_Visa]

Hi everyone,

Firstly, thank you for being honest and upfront! If I was to be equally honest, I will say that your friend and his consultant are trying to pull a big fraud on IRCC and they are trying to sell you an expensive dream!

1) False - You need to start a genuine business and IRCC can check anytime by visiting your business address or check your clients or other details.
2) True - Primary applicant will lose PR if they don't comply by the SUV criteria or have misrepresented anytime. So even if you were granted PR and later IRCC finds out that you misrepresented, they can cancel your PR. And all your dependent's PR will also be cancelled as they are linked to the Primary applicant. In fact, even if one of the Startup Visa founder's PR application is rejected, automatically all other co-founder and their families applications are also rejected.
3) Like I said, it's a fraud and sooner or later it will be found.
4) Even I would like to hear how your consultant can manage this? You are paying him the high fees, at the very least you should ask for a reference for how is PR to citizenship possible in 2 years, without having stayed in Canada more that 3 years in the past 5 years under any legal status.
5) Yes - you are missing the main point that this is a fraud! Even if by some hook-or-crook you mange to get the application approved, later down the line IRCC will find out your fraud and you will lose your and your family's PR and not to mention lots of time and money.

Humble advice, don't go for such consultants and fraud co-founders. Either plan a genuine startup or find another way to immigrate to Canada. With your current plans you will end up losing lot of money and time, and not to mention you and your family will most likely be banned from Canada for 5 years for misrepresentation. There are better legal investment PR routes in Canada, it will probably cost you slightly more than what your fraud friend and consultant are suggesting, but at least that will be a legit route. Explore Rural Entrepreneur programs or explore with your company for an intra-company transfer.

If you still have doubts, tell your consultant you will pay them zero upfront and double of what they are asking after you get your Citizenship. So technically, he will get double the amount in 2 years, (since he claims to offer Citizenship in 2 years) see how that conversations goes

All the best!

 

[NAUAE]

Thanks man. Exactly what I wanted to know.

My friend has been taken in by the spiel and genuinely believes in that so asked me to do the due diligence to put "MY' mind at ease.

The modus operandi of these consultants is that they say that they have ready made business plans and they also guarantee money from an angel investor. So they then bring 2-3 people together and charge each $100K in staggered payments till the PR is approved. If you bring in someone yourself then you get a discount on the fees which is why my friend asked me. Otherwise the consultants bring people like you and connect you - without a discount.

Just two quick follow up questions if I may:

1) Assume I want to start a genuine business (my plan B when I lose my job) and the way I look at the timelines is: 2 years for the process to conclude into a PR. The PR is for 5 years. So if I land in the 3rd year of the PR (i.e. 4 years from now after finishing work and putting affairs in order), start a genuine business and give it a proper go, it seems to me that I will still be able to qualify for the residency / citizenship requirements i.e. 2/3, correct? basically what I am asking is that, do I have to start a business the moment the PR is granted or I can wait a few years and then start (within the boundaries of the residency/citizenship requirements)?

2) Do you have any links to reading materials / requirements related to the start up visa i.e. the inspections from ICRC and the obligations of the start up visa? I ask because the Government site does not have the ins and outs as you explained them.........and I want to hold up the "light" so to speak, in my friend's face

Thanks once again. Really appreciate your time.

 

[Startup_Visa]

Yes, there are plenty of so-called consultants who will not even entertain you after they take the money and submit your application. They have created a ponzi scheme, where they get one person to sign-up and then through him get others like you to join-in.

1) Please understand startup visa does not work like that, it's meant for genuine startups. It doesn't mean just starting any business and that also after getting the PR. Even to get the "Letter of Support" is an easy one year hard work, that is assuming you already have a startup with a team, product, and hopefully some paying customers. Without that even getting a Letter of Support will be a challenge. There are a few consultants/agents/incubators who will let you pay your way into gettig a Letter of Support, but you will eventually get caught by IRCC. So it will be a waste of time and money.

2) Buddy, you are again trying to fool the system. It's not worth trying to work around things. Either you want to do a genuine startup or not. If you are planning to start working on the startup after you get the PR, sorry to break it to you, it doesn't work like that. The program is for founders who are currently actively working on a startup.

3) Also you seem to be confused on the timeline - Assuming you quit your job tomorrow and genuinely start working on a new startup immediately, It will easily take you 12 months to get to a point of submitting your application to IRCC. From there it takes another 20-24 months to get the PR application approved or rejected.

IRCC is not run by fools, they know a genuine startup from a fake one! There is a good reason so far less than 500 Startup visas have been issued since it was launched about 8 years ago.

You seem to be an experienced executive who can't make it via Express Entry due to age; for people like you there are investment program route for immigration. Explore them yourself without any consultant. If you are really keen you will have to do the due-diligence yourself, there are plenty of resources online and on this forum. And members can help answer specific question after you have done enough research on your own.

 

[NAUAE]

Thank you. Very clear. Appreciate the help.