Why there is too many refusals on Start Up Visa application?

Afshin Yazdani – Immigration lawyer – July 31, 2020 Toronto, Ontario

The answer is because the designated organization must perform a due diligence package which includes the 11 items before making any commitment certificates. The designated organization must:

  • has clearly articulated aspects such as the business model, the value proposition as well as the sources of actual and projected revenues;
  • has performed a sufficient level of due diligence for demonstrating that the business is a growth-oriented business that is viable in Canada;
  • has provided a current list of shareholders and has carried out the due diligence process by reviewing the shareholder agreements;
  • has performed the due diligence process completely by covering the business’s overall marketing, sales and distribution strategies properly;
  • has, in its due diligence process, reviewed the business’s relevant material contracts in key areas such as sales, distribution & marketing, employee agreements with executive officers and loan agreements with officers, directors and holders of more than five percent of the shares;
  • has, in its due diligence process, appropriately reviewed the control that the business has over the intellectual property and other assets that it needs for operating successfully;
  • has, in its due diligence process, adequately reviewed the audited financial statements and notes, the quarterly financial statements and the capital budget for the current and the coming fiscal years;
  • has, in its due diligence process, adequately reviewed all the agreements that concern the obligations for borrowed money, copies of all binding agreements and the projected use of proceeds from the current financial round;
  • has, in its due diligence process, adequately reviewed all material employment and consulting agreements as well as stock options, bonus structures, retirement plans, profit-sharing, incentives and pension plan details;
  • has, in its due diligence process, performed the required due diligence on the management team. This would include carrying out a proper assessment of the team’s ability to successfully build and expand the business in Canada;
  • has, in its due diligence process, performed any other due diligence activity or provided any explanation for why it did not complete certain due diligence activities (If applicable).