By Ajay Sharma
The authorities in United States are thinking of eliminating the International Entrepreneur Rule, and at the same time Canada is making Startup Visa permanent. The United States and Canada appear to be moving in opposite directions when it comes to visas for immigrant entrepreneurs looking to build and grow high-potential start-ups.
Previously, the Department of the Homeland Security (DHS) is reportedly planning to rescind the Obama era International Entrepreneur Rule which offer temporary parole with promising start up idea.
The new visa plan has, reportedly, been long eagerly sought by the tech investors and startup chiefs across the US. To make the cut for the planned Startup Visa, as per the requirements, entrepreneurs must possess not less than 15% of a US startup and illustrate the firm’s growth possibility, investments from the eligible American investors.
The program is interesting in that it furnishes fruitful applicants with Canadian permanent living arrangement, paying little attention to whether the start-up succeeds. Comparable projects in different nations, including the U.S. Worldwide Entrepreneur Rule, just offer short living arrangement towards the beginning.
The Start-Up Visa program is only one of the various choices for business visionaries hoping to build up themselves in Canada. Numerous Canadian regions and domains likewise have entrepreneur centered migration streams that are part of Canada’s Provincial Nominee Program.
The regulation would allow those entrepreneurs who fit into those stipulations, to live in the Maple Leafcountry formaximum time duration of two years. After that, they may apply for additional three years in case the firm encapsulates continued development and the impact on the local US people (such as growths in capital investment, employment creation).
The program is on the target by the administration of U.S. President Donald Trump since 2017. The DHS has clearly said the proposal regarding ending it comes from the belief that it lacks adequate protections for local workers and investors. Furthermore, it is not a proper vehicle to attract and retain global entrepreneurs.
The Start-Up Visa program is only one of the various choices for business visionaries hoping to build up themselves in Canada. Numerous Canadian regions and domains likewise have entrepreneur centered migration streams that are part of Canada’s Provincial Nominee Program.
As expected, the proposal to rescind the International Entrepreneur rule was condemned by the National Venture Capital Association and termed the same not only short-sighted but a major mistake.
Another critic echoed the same feeling when she reportedly announced that the decision to eliminate the International Entrepreneur Rule will spread a negative vibe to the entrepreneurs and investors across the globe that the United States is not concerned about them and doesn’t need them.
Furthermore, she added that when the U.S. has slipped to the 11th ranking in the world in innovation. Additionally, the economic competitors like the United Kingdom, Canada, France, and Singapore, have a dedicated entrepreneur visa for attracting job creators. Such a decision marks a step backwards for the country.
Ottawa Makes Start-Up Visa Made Permanent
In the meantime, Ottawa has reputedly made startup visa permanent. The nation’s start up visa scheme is a crucial instance of the dedicated entrepreneur visas stated a while ago.
It was first launched as a pilot in 2013 and will make the transition to becoming permanent on March 31, 2018. By August 2017, 68 companies were launched in this program and attracted an investment of $3.7 million.
Expressing his Government’s liability to the cause, in-office Immigration, Refugees and Citizenship Canada Minister, Ahmed Hussen, reportedly said that the program helps the government to have an innovation and skills plan. Nurturing entrepreneurship and the growing the start-ups are of great importance to the economy of Canada. Furthermore, making the Start-up Visa Program permanent is a part of the support of this agenda.
For those people who are not tuned in, Canada visa programmecan enable their admission in the Maple Leaf country for proficient people, desirous to set up their business in the hotspot, that is innovative and effectuate job for local people and may compete on an international level.
This Start-Up Visa needs securing support from a designated entity by the government like a business incubator, an angel investor group, or a venture capital fund. The support could be of financial nature or in accepting the candidate into an incubator program. When other requirements are fulfilled, the candidate gets Canadian PR.The aim of the program is to recruit innovative entrepreneurs, in Canada, and linking them with the business in the private sector in Canada and provide all facilities for establishing a start-up in Canada.
The program has a unique feature and provides Canadian PR to successful candidates despite the consequences of the success or failure of the venture. Similar programs in other countries, only offer a temporary residence.
What’s more: the Canadian province of Quebec also has a 100% dedicated entrepreneur category.
Conclusion
So, while the US is unwisely shutting down its doors to global entrepreneur, it’s neighbor Canada is launching and expanding different visa programmes for such proven assets and giving them permanent residence in the country to innovate and prosper together.
Summary
The recent Trump Government move to bring to end the Obama-era Start-up Visa could harm the cause of the US former and assist Canada and other US rivals in a big manner.
Ajay Sharma, President, Abhinav Outsourcings Pvt. Ltd., one of the pioneers and most trusted immigration & visa consultation consultancies in the country. He can be reached at ajay@abhinav.com
