Previously announced plans by the United States to end the International Entrepreneur Rule may benefit Canada. While the Department for Homeland Security proposed to put an end to the rule created by the Obama administration in 2015, Canada is reportedly making the Start Up visa permanent.
The US Obama-era Start Up visa permits international entrepreneurs to temporarily settle in the United States and develop their business in the country.
According to a previous proposal by the DHS, the program should be removed due to “inadvisable, impracticable, and an unwarranted use of limited agency resources”, as well as its lack of sufficient protection for US workers and investors.
The rule was created in 2015, and was scheduled to go into effect on July 2017. However, the Trump administration delayed its launch, with the sole purpose of scrapping it later. In September, the National Venture Capital Association alongside startup founders sued the DHS for not following the “notice-and-comment” procedures before postponing rule’s launch.
On May this year, the DHS officially proposed ending the program by publishing a notice on the proposal to rescind the rule on May 29 and giving a 30-day period for public comment.
On the other hand, Canada is planning to grant Start Up visa holders with Canadian permanent living arrangements, in order to encourage world entrepreneurs to move to Canada.
The Canadian Start Up visa was first launched as a pilot in 2013. As a result, by August 2017, the program had attracted an investment of $3.7 million. Eligible for the program are proficient foreigners who wish to set up their business in Canada. This business must be innovative and create jobs for local people, and capable to compete in an international level, as well.
As a result, analysts believe that Canada will now lure investors, entrepreneurs and businesspersons, who were previously planning to invest in the US, to turn to the Maple Leaf country.