Understanding the correct process for forming and building a company for a Start-Up Visa (SUV) application.

Many people have misconceptions about the Start-Up Visa program, from its equity structure to fundraising, or even the education required to run a startup. Today, we will clarify these points:

• What does it mean to act in accordance with the law?
• What constitutes a legitimate company?
• And where does the line lie between genuine entrepreneurship and fraud?

🧩 SHAREHOLDER STRUCTURE - AN IMPORTANT BUT OFTEN MISUNDERSTOOD

🔹 1. Legal basis

According to the official guidelines of Immigration, Refugees and Citizenship Canada (IRCC), a Start-Up Visa application is only considered valid if the company's ownership structure fully meets the following two mandatory conditions.

🔹 2. Two mandatory conditions regarding ownership and voting rights

✅ Condition 1: The group of candidates (founders) must hold at least 51% of the voting rights.

• This means that the total number of voting shares held by all candidates in the group must represent at least 51% of the company.
• Each individual candidate must hold at least 10% of the voting shares.
  

✅ Second condition: A maximum of 5 candidates can participate in an SUV project.

• A Start-Up Visa group can have a maximum of 5 people listed in the immigration application.
• Each person must be a genuine shareholder – no "borrowing names," "buying seats," or "acting as a nominee" is allowed.
• Everyone must play a practical role in the company, for example:
  • CEO, CTO, COO, Chief Technology Officer, Product Manager, R&D Manager, etc.
  • IRCC will evaluate each individual based on actual performance, not just on their shareholding percentage.

🔹 3. The remaining 49% can go to anyone.

Many people mistakenly believe that a Start-Up Visa company "must be 100% foreign-owned." That is completely wrong. According to regulations, the remaining 49% of the company can belong to:

• Canadian individuals or organizations,
• Investment fund, incubator, or strategic partner,
• Or even another company overseas (as long as it doesn't affect the 51% control structure).

👉 Having Canadian shareholders, foreign investors, or partner companies contributing capital is normal and encouraged, as it indicates that the project has real scalability.

🔹 4. The Role of Designated Organizations (DO)

DOs are not required to own shares, but many angel investment funds or groups often hold a small stake (5-10%) as a form of investment or project backing.

If the DO is a business incubator, they typically don't require equity, but instead issue a Letter of Support (LOS) based on the project's potential.

If the DO is a venture capital (VC) fund or angel investor group, they can invest real money and receive corresponding shares – this is perfectly legal and consistent with the nature of SUVs.

🔹 5. Model Shareholder Chart

Ingredient	Voting rights (%)	Note
SUV candidate group (1-5 people)	51% or more	Each person ≥10%
Designated Organization	0-10%	Not mandatory, but often included.
Other investors (Canadian or international)	0-49%	Flexible
Total	100%	✅ Valid

🔹 6. Some common mistakes

Mistake	Explain
"The shareholders must be 100% foreigners."	❌ Incorrect. There may be Canadian investors.
"No Canadian funds or companies are allowed to contribute capital."	❌ Incorrect. Yes, provided the SUV segment retains 51%.
"The Designated Organization must hold a stake."	❌ Not required. Many incubators only issue LOS (Loss of Life).
"Calling on shareholders to participate in the project is like selling slots."	❌ Incorrect. Excluding companies that intentionally "sell slots," inviting others to join a startup company is a form of fundraising and talent acquisition, a normal activity within a startup. In fact, they even bring their projects to Pitch Days to recruit members.

🧩 THERE IS NO REQUIREMENT THAT MEMBERS MUST BE "INVENTORS"

IRCC does not require you to be the inventor of the product. You can:

• Collaborating with another company that already has a patent and a real product.
• Establish a joint venture company in Canada to expand the market.
• Obtaining technology licensing rights to develop new applications.

👉 The important thing isn't "who invented it," but whether you actually do it. If you actually do it, have a product, customers, reports, an office, and staff – then it's a real project. But if you're just "creating ideas using AI and making PowerPoint presentations look nice," with no tangible product, then it's a virtual project.

🧩 RAISING FUNDING - NOT ONLY LEGAL BUT ALSO A NECESSARY REQUIREMENT FOR A REAL PROJECT

When a project is in the seeding stage, or even when it has developed and generated revenue, promoting it and attracting investors from outside sources to participate in its development is perfectly normal, and even encouraged in the startup world. This is because:

• Each project may go through several different funding rounds: Seed round, Series A, Series B, etc.
• In each round, the project will select investors who are a good fit in terms of capabilities, vision, and development strategy.
• This is how every start-up in the world operates – no one grows solely on their own capital or money from acquaintances.

Therefore, advertising to find investors and invite shareholders to participate is a professional move – because it shows that the project is real, has genuine ambition, and a long-term development plan.

Fundraising is essentially a form of "filtering": When you publicly announce your project, advertise for investors, or seek suitable co-founders, you're doing something very common in the startup world – attracting talented people with a shared vision and ambition to join you. In the investment world, this is called "smart money" – meaning investors who contribute capital but also bring their knowledge, experience, connections, and vision.

🧩 THE DIFFERENCE BETWEEN "REAL PROJECTS" AND "FAKE PROJECTS", BETWEEN CALLING FOR INVESTORS AND "SELLING RESIDENTIAL SLOTS"

Currently, projects under IRCC review are not being conducted because of "who gets the shares," but rather because:

• No actual operations, no product, no customers.
• The project exists only on paper; the idea was created by AI or a ghostwriter, with no actual implementation.
• There is no evidence of any viable investment, transaction, or development plan.

A real company would have:

• Product or prototype (MVP).
• Office lease contracts, R&D costs, and actual personnel.
• The business plan has a specific roadmap.
• Participants must submit pitches, investment invitations, or evidence of collaboration with funds/partners.

🧩 HOW CAN A BEGINNER WITHOUT ENTREPRENEURSHIP LEGITIMATELY MAKE AN SUV?

No one is born an entrepreneur, knowing how to start a company, write a business plan, or raise capital. Starting a business is a skill, and skills must be learned, guided, and practiced.

Therefore, someone who has never run a business or managed a project but wants to join a start-up company has every right to hire consultants, take training courses, or participate in an incubator to receive proper guidance.

The Canadian government has never prohibited hiring mentors or taking entrepreneurship programs. On the contrary, IRCC encourages those without experience to receive training and guidance, because:

• The goal of the SUV program is not to "select already talented people," but to attract those with an entrepreneurial spirit, willing to learn and actually do the work.
• Learning, receiving guidance, and working with experts within the startup ecosystem are positive signs that you're on the right track.

There are three legal and common ways to learn:

1. Join the Startup Studio / Incubator Program. These are formal training programs specifically designed for SUV candidates. You will learn about:
   - How to develop a business idea.
   - Develop a prototype (MVP).
   - Shareholding structure, financial model, legal aspects.
   - Prepare the application materials and pitch deck to submit to the Designated Organization (DO).
2. Hire a business consultant or coach. They can help you analyze the market, develop a business plan, and choose a growth path that suits your abilities.
3. Learn through short-term training courses or personal mentoring. You can invest in learning more about management, marketing, technology, finance, etc. This is an investment in knowledge – perfectly normal and worthwhile.

🌍 OUR STARTUP MODEL MEETS ALL THE HIGHEST CRITERIA OF THE START-UP VISA PROGRAM

A Start-Up Visa is not just a path to immigration, but a true entrepreneurial journey – where ideas, people, and products are nurtured with international knowledge, action, and standards.

And that is why the inventions, research, and projects we propose to students and investors in the SUV program are all built to the highest standards of the global start-up model.

• Inventions and patents are legally permitted for use.
  • All products, technologies, and patents used in the projects have clear origins and are legally licensed.
  • ChatGPT is not used to create fictitious business plans.
  • We work directly with the patent holder or original research team, ensuring that each project has a genuine scientific basis and clear application value.
• There are science and technology experts closely monitoring each project.
  • Each project has specialized experts in charge of R&D (research and development), ensuring that the product does not fall behind international technology.
  • Our mentoring team comprises experts in the fields of: biotechnology, materials, energy, IoT, artificial intelligence, biomedical science, etc. The goal is to help students and founders gain a deep understanding of their products, not just "talk the talk" but actually make them work.
• Having marketing and business development experts by your side.
  • Each project has mentors in business, finance, and market strategy, who help identify specific revenue models, distribution channels, and growth paths.
  • As a result, founding teams not only know how to create products, but also how to bring them to market, how to price them, and how to raise capital.
• Founders receive hands-on training – gaining real-world experience with the market.
  • Founders receive training in presentation, persuasion, and pitching skills.
  • You'll have the opportunity to participate in real pitch days in front of investment funds, angel investors, and expert advisors.
    
  • This is the difference between genuine training and superficial training.
• Continuously connected to the Canadian and international startup ecosystem.
  • Students and founders are connected with other startups, incubators, investment funds, and mentors in Canada.
  • Regularly attend seminars, workshops, and networking events to learn practical experience from other entrepreneurs.
  • This has led to the formation of a true startup community, where people share, support, and develop sustainably together.

🧩 TWO WAYS TO PROVIDE START-UP VISA CONSULTING: WE CHOOSE THE DIFFICULT BUT RIGHT PATH

In the field of Start-Up Visa consulting today, there are two distinct approaches:

🔹 Method 1: Quick and easy, but contrary to the entrepreneurial spirit.

• No actual product research or development is being conducted.
• Just wait for customers to come, collect the fee, then use ChatGPT or copy a pre-made template to write the business plan.
• After submitting the application, no actual activities or products were launched.

👉 This is why many projects are reviewed or rejected by IRCC, due to a lack of real value and no evidence of operation.

🔹 The second approach: Do it properly, do real research, and develop it to the end.

• Invest in research, development, and prototype testing.
• Each project is closely monitored by technical, scientific, and business experts.
• There is a clear R&D roadmap, data, contracts, and commercialization plan.

👉 This is a more difficult and time-consuming path, but it is legal, has practical value, and promotes sustainable development.

🔹 Because We Choose to Do It Right, therefore:

• We are not creating a virtual "selling" of residency slots.
• We invite investment in accordance with the law.
• We are closely involved in the operational process to ensure the product reaches Canadian customers and expands globally.

We pride ourselves on our projects having legitimate inventions, real products, a team of real experts, and clear business plans. We focus on quality, transparency, and tangible value.

All of this contributes to the safety of the project and our clients.

You can contact our offices for more specific advice.

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