Startup visa

Last updated

A Startup visa is a temporary conditional residence permit in different countries. It aims to introduce a visa category for entrepreneurs raising outside funding and converting to a permanent residency visa if certain conditions are met.

Contents

Startup and entrepreneur visas by country

Across many developed and some developing countries, there is an interest in attracting entrepreneurs who can bring about new knowledge and create jobs within the local economy. Therefore, different countries have implemented specific visas for entrepreneurs and startup founders:

Australia

Australia created a visa specifically for entrepreneurs back in the 70s. Several categories exist for business owners. A new category called the Business Innovation and Investment Visa was recently added that targets innovative startups. [1]

Canada

Entrepreneurs and startup founders are offered the option of a startup visa if they meet four main criteria. The program aims to recruit innovative entrepreneurs to the country by linking them with Canadian angel investor groups, venture capital funds, or business incubators to facilitate the establishment of their startup business in Canada. [2]

Chile

Entrepreneurs and startup founders can apply to Startup Chile, an accelerator program that supports entrepreneurs and innovative businesses. Acceptance to the program will grant applicants a visa to stay for a year. [3]

Denmark

A two-year work and residence permit is provided for non-EU/EEA founders seeking to start and grow their businesses in Denmark. The focus is on high-growth and globally-minded entrepreneurs; permits are given for up to three founders for two years and renewable for another three years thereafter. [4]

Finland

The Finnish Startup Permit allows international growth entrepreneurs to build a startup company in Finland and become part of Finland's vibrant startup ecosystem. The permit is meant for innovative startup founders from countries outside the European Union. The permit can initially be issued for a maximum of two years, after which it can be renewed. The permit does not involve investments or financial support.
The permit requires:

Estonia

The Estonian Startup Visa was launched in January 2017 and helps non-EU founders grow their startups in Estonia. The program is meant for startup founders and employees working in Estonian startups. The program has attracted more than 2,500 people in less than 4 years. [6]

Italy

Italy introduced a groundbreaking startup visa in June 2014, reserved for innovative business ideas (a 'standard' self-employed visa is also available; see below). It offers a simplified visa procedure for entrepreneurs by cutting red tape and providing a range of tax and labor regulation benefits. To qualify for it, the entrepreneur applicant must prove the innovative character of the business idea and show access to €50,000 in investment capital for the business. [7] [8]

Lithuania

In 2017 in March, Lithuania launched a Startup Visa program for entrepreneurs from outside the EU to set up operations in Lithuania. [9]

Netherlands

Startup founders are offered the startup visa - a one-year residence permit for the Netherlands - if they satisfy the following criteria:

After the year, the startup entrepreneur may be granted an extended residence permit if they satisfy the standard requirements for the Dutch government's self-employment scheme. [11]

New Zealand

Entrepreneurs and startup founders have had a new option since March 2014: the Entrepreneur Work visa. The visa works in two stages: one to support the settlement in the country and launch the business. After the first year, the entrepreneur(s) needs to develop the business to stay in the country on the visa. [12]

Singapore

Entrepreneurs and startup founders can settle via the entrepass as long as they bring innovation, investment, and revenues. The length of stay is dependent on the cash flow generated by the business and its innovative nature. [13]

Spain

Entrepreneurs are offered a fast-tracked resident permit, requiring a government-vetted business plan, health insurance, and enough money to support themselves while living in Spain. Visa decisions are promised within ten working days, and residence permit decisions in 20 days. [14]

United Kingdom

Entrepreneurs and startup founders are offered three visa options depending on their situation and the length of their stay. The Entrepreneur Visa, the Graduate Entrepreneur Visa, and the Prospective Entrepreneur Visa. [15]

United States

In the U.S., the startup visa was a proposed amendment to the U.S. immigration law to create a visa category for foreign entrepreneurs who have raised capital from qualified American investors (Startup Visa Act of 2011, as introduced on 14 March 2011). The Startup Visa Act had bi-partisan support but was not passed into law.

Background

Foreign entrepreneurs who want to start a company in the United States have no or limited visa options. [16] The few visas offering residency and thus a path to citizenship applicable to entrepreneurs are visa categories such as the EB-1 visa, or the EB-5 visa, which were not designed for entrepreneurs in particular, and can only apply to a minimal number of entrepreneurs. Employment-based visas, such as the EB-2 visa, are not viable options for entrepreneurs and can be denied if the applicant owns a significant stake in the sponsor company.

Requirements

The new legislation provides visas to the following groups under certain conditions: [17]

  1. Entrepreneurs living outside the U.S.—if a U.S. investor agrees to financially sponsor their entrepreneurial venture with a minimum investment of $100,000. Two years later, the startup must have created five new American jobs and raised over $500,000 in financing or generated more than $500,000 in yearly revenue.
  2. Workers on an H-1B visa or graduates from U.S. universities in science, technology, engineering, mathematics, or computer science—if they have an annual income of at least $30,000 or assets of at least $60,000 and have had a U.S. investor commit investment of at least $20,000 in their venture. Two years later, the startup must have created three new American jobs and raised over $100,000 in financing or generated more than $100,000 in yearly revenue.
  3. Foreign entrepreneurs whose businesses have generated at least $100,000 in sales from the U.S. Two years later, the startup must have created three new American jobs and either raised over $100,000 in financing or generated more than $100,000 in yearly revenue.

Use of existing visa numbers

The Startup Visa does not allocate any new visa numbers. Still, it draws from unused numbers out of the EB-5 visa category (investor green card), which is limited to 9,940 visas, of which only 4,191 visas were used in fiscal year 2009. [18]

The office of Senator Lugar stressed the following statement: "The creation of new visas is not authorized in this bill." [19]

In perspective, the United States admitted 1.13 million new legal permanent residents in 2009, of which only 12.7% were admitted through a selective process or "Employment-based" categories. [20]

Legislative history

  • The Startup Visa Act of 2010 was introduced in the Senate on 24 February 2010. It was left to expire in the Judiciary Committee at the end of the 111th Congress, and no further legislative action was taken on it.
  • In a second attempt, the Startup Visa Act of 2011 was introduced in the Senate on 14 March 2011. However, it was again left to expire in the Judiciary Committee at the end of the 112th Congress and not enacted.
  • The Startup Visa Act of 2013 was introduced in the Senate on 30 January 2013 and is currently[ needs update ] awaiting Committee review. It has to undergo a review with the respective Judiciary committees and the Immigration subcommittees of the Senate and the House. According to Govtrack.us, "The majority of bills and resolutions never make it out of committee". [21]

Obama administration

While the Startup Visa enjoys bi-partisan support and the White House have been repeatedly voicing support to principles relating to it, the Obama Administration have not been aggressively pushing the Startup Visa Act, even through the Startup America initiative, introduced in January 2011. During a conversation hosted by The Economist on 24 March 2011, Aneesh Chopra, the United States CTO, responded the following to Vivek Wadhwa's question about the Startup Visa: "The President has been emphatically clear, his support for high-skill immigration, but to do so as part of a broader, comprehensive immigration reform program". [22]

This approach has drawn criticism from some supporters of the Startup Visa who see the White House as wanting to delay the bill for an undetermined length of time to include it in a Comprehensive Immigration Reform broadly covering legal and illegal immigration, viewed as politically "toxic" for the Startup Visa Act. [23]

In the media

Some actual immigration mishaps that the Startup Visa hopes to address have been covered in the documentary film Starting-Up In America, released on 28 February 2011. [24]

Countries without a specific visa for entrepreneurs

France

Currently, France does offer a resident permit called Compétences et talents (Competencies and Talents) that grants visas for entrepreneurs that "are likely to make a significant or lasting contribution, through their skills or talents, to France's economic development or to its intellectual, scientific, cultural, humanitarian or athletic prestige, and directly or indirectly, to that of their own country". [25] This said, it is possible and often more accessible for entrepreneurs who want to start a company in Europe to come under the EU Blue Card or secondment route rather than apply for a Competencies and Talents resident permit.

A new entrepreneur route was launched in May 2015: the FrenchTech Ticket.[ citation needed ]

Italy

In theory, there are two visa options available for entrepreneurs who want to start a business in Italy: a groundbreaking startup visa, which is reserved for innovative business ideas (see above), and a 'standard' self-employed visa (residence permit).

Migrant Entrepreneurs to Italy can also choose to enter the country via the 'standard' self-employed visa. This process requires the applicant to apply for a work permit (nulla osta) from within Italy. Therefore, the applicant must appoint an agent to complete the application in Italy. [26] The minimum startup funds for this visa is a mere €4,962.36 but vary depending on the planned business, in contrast to the €50,000 investment required for the Italian Startup Visa. Nevertheless, the applicant must prove that there are no barriers to entry for their startup and, in essence, work closely with the Italian Chamber of Commerce to succeed with their application. [27]

Germany

Applicants must show access to €500,000 in investment funds and that the business will create at least five job opportunities in Germany unless they are recent graduates from a German institution. [28] Cooperation with the German Chamber of Industry and Commerce is required to succeed with the application. [29]

Spain

The required investment funds depend on the business plan and estimations—the Spanish authorities make decisions on a case-by-case basis.

Lithuania

A startup visa gives access to the migration procedure for a temporary residence permit in Lithuania. A temporary residence permit allows one to live in the country for one year, with the possibility of extending for an additional year.

1. The startup must operate in one of the following fields:

2. Applicants must legally be at least a part owner of the newly founded firm.
3. Applicants must have enough financial resources to achieve set business goals for one year. EU citizens who want to open a business in Lithuania do not need a residence permit.

Vetting entreprpeneurs

Most entrepreneur visas available worldwide are temporary but will eventually lead to residency if the entrepreneur proves successful (except in Canada, which provides immediate permanent residency). Generally, these countries evaluate the entrepreneurial migrant application based on the economic interests of the individual's business idea and the project it represents for the country's economic growth. Entry requirements and the definition of success vary between countries, though it typically comes down to two key parameters: • What level must entrepreneurs and their businesses reach to qualify for entry and residency? • How quickly the above has to happen?

Most countries assess an entrepreneur's potential by considering the startup's capital (its amount and source) and the individual's profile (education or business background and/or business proposal). A graph summarising existing entrepreneur visa schemes worldwide can help read and compare the different schemes. [30]

The criteria are often modulated and flexible, making it easier for specific individuals to qualify. For example, in New Zealand, the Entrepreneur Work Visa is a three-year work visa that works in two stages (a Startup stage and a Balance stage) to allow entrepreneurs to enable themselves throughout the time they qualify for the visa. There is also a waiver of the initial investment capital requirement for "businesses in science, ICT, or other high value export-oriented sector, which demonstrate a high level of innovation or credible short-term high growth prospects". [31] In Canada, the initial investment required is of $118k if from VCs but only of $45k if from Angels and none if a business incubator program accepts in the entrepreneur. Some countries also offer simplified routes for recent graduates from that country - notably Germany and the UK.

In most countries, the eligibility to renew entrepreneur visas or to convert to permanent residency is assessed by the number of jobs created by the startup and either the additional investment raised or the revenue produced in a specific timeframe. In the UK, for example, entrepreneurs are expected to create two full-time jobs in three years to renew their visa, whereas in Singapore, to be granted a two-year visa extension, entrepreneurs must create two local jobs in their first year and four in the second. Typically, the tight deadlines for reaching these goals are justified by enabling the early identification of genuine businesses. However, they can have harmful consequences for startups by discouraging risk-taking and preventing entrepreneurs from making rational changes to their business plans that would compromise their visa statuses. It was precisely for this reason that modifications were made to Ireland's entrepreneur visa program. These changes removed the job creation requirement because, for some businesses, it can take longer to get off the ground than others.

Alternatives

Blueseed

A company called Blueseed aims to create a startup community located on a vessel moored in international waters near the coast of Silicon Valley in the United States. The promoters believe that the location would enable non-U.S. startup entrepreneurs to work on their ventures without the need for a US work visa while living in proximity to Silicon Valley and using relatively more straightforward to obtain business and tourism visas. This workaround has been compared to the Startup Visa as it aims to accomplish similar goals. Craig Montuori, an evangelist for the Startup Visa, writes of Blueseed that "I can vouch for their passion on creating workarounds for jobs creating foreign entrepreneurs while waiting for Congress to create a Startup Visa as someone who has been advocating for Startup Visa for the past year." [32]

Related Research Articles

<span class="mw-page-title-main">Green card</span> Lawful permanent residency in the United States

A green card, known officially as a permanent resident card, is an identity document which shows that a person has permanent residency in the United States. Green card holders are formally known as lawful permanent residents (LPRs). As of 2023, there are an estimated 12.7 million green card holders, of whom 9 million are eligible to become United States citizens. Approximately 18,700 of them serve in the U.S. Armed Forces.

Permanent residency is a person's legal resident status in a country or territory of which such person is not a citizen but where they have the right to reside on a permanent basis. This is usually for a permanent period; a person with such legal status is known as a permanent resident.

<span class="mw-page-title-main">Visa policy of the United States</span> Policy on permits required to enter the United States and its unincorporated territories

Visitors to the United States must obtain a visa from one of the U.S. diplomatic missions unless they are citizens of one of the visa-exempt or Visa Waiver Program countries.

Immigration to South Korea is low due to restrictive immigration policies resulting from strong opposition to immigrants from the general Korean public. However, in recent years with the loosening of the law, influx of immigrants into South Korea has been on the rise, with foreign residents accounting for 4.9% of the total population in 2019. Between 1990 and 2020, South Korea's migrant population has grown 3.896%, second highest level of growth in the world.

The E-2 Investor Visa allows an individual to enter and work in the United States based on an investment in a U.S. business. The E-2 visa is valid for three months to five years and can be extended indefinitely. The investment must be "substantial", although there is no legally defined minimum. The E-2 visa is available only to citizens of certain countries.

The United States EB-5 visa, employment-based fifth preference category or EB-5 Immigrant Investor Visa Program was created in 1990 by the Immigration Act of 1990. It provides a method for eligible immigrant investors to become lawful permanent residents—informally known as "green card" holders—by investing substantial capital to finance a U.S. business as long as it creates at least 10 new, full-time jobs for Americans and work-authorized immigrants. The EB-5 program is intended to encourage both "foreign investments and economic growth." The EB-5 Immigrant Investor Visa Program is one of five employment-based (EB) preference programs in the United States.

A work permit or work visa is the permission to take a job within a foreign country. The foreign country where someone seeks to obtain a work permit for is also known as the "country of work", as opposed to the "country of origin" where someone holds citizenship or nationality.

<span class="mw-page-title-main">Visa policy of Hong Kong</span> Policy on permits required to enter Hong Kong

The visa policy of Hong Kong deals with the requirements in which a foreign national wishing to enter Hong Kong through one of the 15 immigration control points must meet to obtain an entry permit or Visa, which depending on the traveller's nationality, may be required to travel to, enter, and remain in the Hong Kong Special Administrative Region. Visitors from over 145 countries are permitted without Visa entry for periods ranging from 7 to 180 days, to the Hong Kong Special Administrative Region for tourism or certain business-related activities. All visitors must hold a passport valid for more than 1 month.

The Dutch-American Friendship Treaty is an agreement between the United States and the Netherlands signed into law at The Hague on March 27, 1956. The treaty is a treaty of friendship, commerce and navigation with protocols. The treaty allows US Entrepreneurs to acquire Dutch residency for the purpose of starting a business. The treaty also allows Dutch traders and investors to enter the US and engage in business in the US.

<span class="mw-page-title-main">Visa policy of South Korea</span> Policy on permits required to enter South Korea

The visa policy of South Korea allows citizens of certain countries to enter South Korea with a Korea Electronic Travel Authorization (K-ETA)

Immigrant investor programs are programs that allow individuals to more quickly obtain residence or citizenship of a country in return for making qualifying investments.

<span class="mw-page-title-main">Visa policy of Thailand</span> Policy on permits required to enter Thailand

Visitors to Thailand must obtain a visa from one of the Thai diplomatic missions unless they are citizens of one of the visa-exempt countries, or citizens who may obtain a visa on arrival, or citizens eligible for an e-Visa.

Blueseed is a Palo Alto, California-based startup accelerator. It began as a seasteading venture.

<span class="mw-page-title-main">Provincial Nomination Program</span> Immigration programs by the Government of Canada

The Provincial Nominee Program (PNP) is a set of Canadian immigration programs operated by the Government of Canada in partnership with individual provinces, each of which having its own requirements and 'streams'. In a program stream, provinces and territories may, for example, target: business people, students, skilled workers, or semi-skilled workers.

<span class="mw-page-title-main">Dan Dascalescu</span>

Dan Dăscălescu is a Romanian-American entrepreneur based in Silicon Valley, who co-founded the ship-based seed accelerator project Blueseed in an attempt to allow entrepreneurs to start companies near Silicon Valley without US visa restrictions. He is also a public speaker and former software engineer at Google and Yahoo! and ambassador for The Seasteading Institute, a think tank researching ocean communities.

<span class="mw-page-title-main">Dario Mutabdzija</span>

Dario Mutabdzija is an American entrepreneur based in Silicon Valley, who co-founded the seed accelerator project Blueseed. He was previously Director of Legal Strategy at The Seasteading Institute. He is now head of business development at Israeli startup PayKey.

<span class="mw-page-title-main">Border Security, Economic Opportunity, and Immigration Modernization Act of 2013</span> Proposed immigration reform bill

The Border Security, Economic Opportunity, and Immigration Modernization Act of 2013 was a proposed immigration reform bill introduced by Sen. Charles Schumer (D-NY) in the United States Senate. The bill was co-sponsored by the other seven members of the "Gang of Eight", a bipartisan group of U.S. Senators who wrote and negotiated the bill. It was introduced in the Senate on April 16, 2013, during the 113th United States Congress.

<span class="mw-page-title-main">United Arab Emirates corporate law</span>

United Arab Emirates corporate law regulates the governance, finance and power of corporations in the United Arab Emirates (UAE) through UAE law. Every emirate has its own basic corporate code.

Immigration policies of the United Kingdom are the areas of modern British policy concerned with the immigration system of the United Kingdom—primarily, who has the right to visit or stay in the UK. British immigration policy is under the purview of UK Visas and Immigration.

The Hungary Guest Investor Program (GIP) is an immigrant investor program created by the Government of Hungary to attract investments from outside the country. Under the program, foreign investors can obtain a Hungarian residence permit for 10 years by contributing at least €250,000.

References

  1. ↑ "Department of Home Affairs Website".
  2. ↑ McKinsley, Sean (22 June 2019). "FAQ's about the Startup Visa Program for Entrepreneurship Immigration to Canada". Canada Immigration & Visa Services. CIVS. Retrieved 15 April 2020.
  3. ↑ "Startup Chile" Archived 19 March 2011 at the Wayback Machine , Startup Chile
  4. ↑ "Start-up Denmark", Start-up Denmark
  5. ↑ "FINNISH STARTUP PERMIT", BUSINESS FINLAND
  6. ↑ "Startup visa". 21 March 2023.
  7. ↑ "Richiesta Rifiutata" (PDF).
  8. ↑ "Home". italiastartupvisa.mise.gov.it.
  9. ↑ "Startup Visa Lithuania | Start business, Lithuanian startup ecosystem".
  10. ↑ "Start-up Amsterdam"
  11. ↑ "Start-up Netherlands", Dutch Immigration and Naturalisation Service, 2017
  12. ↑ "Changes to Business Policies effective from 24th March 2014" Archived 19 April 2014 at the Wayback Machine , Immigration New Zealand website, 25 March 2014
  13. ↑ "Ministry of ManPower - EntrePass Eligibility criteria", Ministry of ManPower, Singapore Government Website, latest access 22 April 2014
  14. ↑ "Ley de Emprendedores / Support to entrepreneurs and investors", Gobierno de Espana website September 2013
  15. ↑ "Government 'rolls out the red carpet' for entrepreneurs and investors", UK Border Agency, 16 March 2011
  16. ↑ 'Promising Progress for Immigrant Entrepreneurs and Startups,'
  17. ↑ "Bill Text 112th Congress (2011-2012) S.565.IS" Archived 2 November 2014 at the Wayback Machine , The Library of Congress
  18. ↑ Angus Loten, "Wall Street Journal", Kerry, Lugar Re-Start Start-Up Visa, 15 March 2011
  19. ↑ Senator Lugar, Kerry-Lugar-Udall Visa Bill Will Create Jobs in America, Press Release of Senator Lugar, 14 March 2011
  20. ↑ U.S. Legal Permanent Residents: 200, Department of Homeland Security, April 2010
  21. ↑ "Status", Govtrack.us
  22. ↑ "STARTING UP AMERICA?", The Economist, March 30, 2011
  23. ↑ "Startup Visa D.O.A., and Startup America Just a Giant Press Release?", Vivek Wadhwa, March 30, 2011
  24. ↑ Brad Feld, "Startup in America", Fast Company, March 2, 2011
  25. ↑ Pour la promotion de l'Immigration Professionelle: Compétences et Talents"
  26. ↑ "Ministero dell'Interno - Scheda Editoriale". www.interno.gov.it. Archived from " the original on 18 June 2013.
  27. ↑ Website of the Italian Chamber of Commerce"
  28. ↑ "Self-employment - Make it in Germany". www.make-it-in-germany.com. Archived from " the original on 24 February 2014.
  29. ↑ "The German Chambers of Commerce Abroad". ahk.de.
  30. ↑ Entrepreneur Visa Report, Migreat march 2014" Migreat.com, UK Entrepreneur Visa Report, 26 March 2014
  31. ↑ "Welcome to Immigration New Zealand".
  32. ↑ Blueseed on AngelList
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.