If you are planning to build a company in Canada, you are in good company. A stable economy, a business-friendly environment and diverse markets have made Canada a popular destination for international founders. With so many options, though, how do you pick the right city to start in? This guide sets out the factors that matter, the provinces that suit new businesses, and the practical next steps if you are considering immigration to Canada.
How to choose the best Canadian city for a startup
Choosing the right city for a Canadian startup shapes a great deal of what follows. A handful of factors will tell you most of what you need to know about the entrepreneurial climate in any Canadian city:
- Business environment: lower taxes, simpler regulation and solid government support create conditions in which a startup can grow.
- Access to skilled talent: strong graduates, immigration-friendly policy and a reliable labour pool are essential to building a company that lasts.
- Available funding: government grants, angel investors and venture capital networks all help early-stage companies grow.
- Affordability: rent, utilities and salaries have to be workable. Cities with a lower cost of living are often the better place to start.
- Industry growth: some cities have become specialist hubs in fields such as technology, clean energy or ocean sciences, which creates opportunities you will not find elsewhere.
- An active startup ecosystem: accelerators, incubators and founder networks provide the support, training and connections that early companies depend on.
Immigration routes for founders starting a business in Canada
Canada has built several immigration routes for startup founders and business owners, on the view that entrepreneurs drive growth and innovation. The best known of them is the Start-Up Visa program, designed to attract founders with an innovative and scalable business.
To be eligible for the program, an applicant must:
- obtain a formal letter of support from a designated organisation in Canada, such as a venture capital fund, an angel investor group or a business incubator;
- meet the minimum language requirement, which is CLB 5 in each of the four abilities in English or French;
- show enough settlement funds to support themselves and any family members on arrival in Canada.
It is worth knowing that IRCC caps the number of Start-Up Visa applications it accepts each year, and processing has been slow in recent intakes. Meeting the requirements does not entitle anyone to a decision within a set time, and all decisions rest with IRCC.
Beyond the federal program, several provinces run entrepreneur streams under the Provincial Nominee Program (PNP). British Columbia, Ontario, Alberta and Nova Scotia are among the more active provinces here.
These programs commonly require:
- a detailed business plan with a clear direction for the company;
- management or business ownership experience;
- a minimum net worth or a defined level of investment.
Taken together, Canada’s immigration system is built to support founders who want to start and grow a company here, and it offers genuine routes toward Canadian permanent residence. Eligibility is only the starting point, and each application is assessed on its own merits. For founders looking to turn an idea into a working business, the question then becomes where in Canada to do it, and which of the best Canadian cities for a startup visa fits the company they are building.
The best Canadian cities for starting a company
Every year a handful of Canadian cities stand out for founders because of their skilled workforce, developed infrastructure, competitive taxes and supportive ecosystems. Here are the leading options.
1. Vancouver, British Columbia
Vancouver is widely regarded as one of the best Canadian cities for startups and founders. It has a busy technology ecosystem with more than 1,000 active tech startups, and large companies including Microsoft, Amazon and Samsung maintain a significant presence there. The city’s strongest sectors are information and communications technology, clean technology, software development and life sciences.
What makes Vancouver attractive to founders
- Access to skilled talent: the city’s universities supply both the technical and the commercial skills companies need.
- A supportive startup community: strong collaboration and networking through events, meetups and co-working spaces.
- Funding opportunities: a wide network of angel and venture capital investors.
- Government support: a range of federal and provincial programs and funding.
- Quality of life: natural surroundings, work-life balance and an active cultural scene.
In 2017, Vancouver’s GDP was CAD 137 billion, roughly 7.5% of the Canadian economy. Its main economic sectors are trade, film and television, technology, tourism, natural resources and construction. These figures are a few years old and are given for scale rather than as current data.
2. Edmonton and Calgary, Alberta
Both Alberta cities rank among the best Canadian cities for a startup visa and each offers something distinct to founders.
Edmonton:
Edmonton is strong in biotechnology, digital media and oil and gas. Startups draw on incubators such as Startup Edmonton and TEC Edmonton, and the city’s universities produce a steady supply of skilled graduates. Founders choose Edmonton for:
- a diversified economy across technology, health and agriculture
- a growing startup ecosystem with incubators and co-working space
- access to skilled workers
- an affordable cost of living
- a range of government incentives
Edmonton’s GDP in 2017 was estimated at roughly CAD 80 billion.
Calgary:
Calgary is the centre of Canada’s energy industry, with opportunities in finance, technology and transport as well. A business-friendly environment, competitive taxes and access to skilled workers are its main draws.
What makes Calgary attractive:
- depth in energy and clean technology
- a lower cost of living than the largest Canadian cities
- a supportive business environment and government incentives
- a skilled, university-educated workforce
- proximity to the United States market
In 2017, Calgary’s GDP was approximately CAD 90 billion.
3. Toronto, Ontario
Toronto is one of the largest and best Canadian cities for startups, and a major centre of innovation. It is strong in finance, technology and manufacturing, and draws a large skilled workforce from well-regarded universities.
What makes Toronto attractive:
- a diverse population and a workforce with a broad range of skills
- an active startup ecosystem of incubators, accelerators and co-working spaces
- good access to venture capital and angel investors
- a supportive regulatory environment and government incentives
- proximity to the United States market
In 2017, Toronto’s GDP was around CAD 330 billion, making it the largest urban economy in Canada.
Recommended by Aval Visa: read the full guide to investing in Canada.
4. Montreal, Quebec
Montreal is a major startup hub and one of the better cities for startup immigration to Canada. It is known for video games, fashion and artificial intelligence. A bilingual workforce and access to both North American and European markets are among its advantages.
What makes Montreal attractive:
- a lower cost of living than other large Canadian cities
- a lively startup ecosystem with incubators and co-working spaces
- a well-educated, specialised workforce
- tax and government incentives
- a multicultural, multilingual environment
Montreal’s GDP in 2017 was around CAD 160 billion.
Note that Quebec runs its own immigration system and selects most economic immigrants separately from the federal programs, so the route into Montreal differs from the route into cities elsewhere in Canada.
5. Ottawa, Ontario
Ottawa is the national capital and has a diversified economy spanning technology, government, tourism and health. It offers a supportive business community and straightforward access to national and international markets.
What makes Ottawa attractive:
- proximity to federal institutions and easy access to policymakers
- a skilled workforce, particularly in technology, engineering and life sciences
- a growing startup ecosystem with incubators and accelerators
- high quality of life and an affordable cost of living
- a range of government programs and incentives
Ottawa’s GDP in 2017 was approximately CAD 65 billion.
For official and current information on entrepreneur immigration programs and the Canadian start-up visa, the authoritative source is the Immigration, Refugees and Citizenship Canada (IRCC) website.
Finding the right Canadian city for your business
Canada offers a wide range of opportunities to founders who want to start a company. Whether you are drawn to the pace of Toronto, the setting of Vancouver or the economic steadiness of Calgary, several cities across the country rank among the best Canadian cities for startups. A strong economy, a diverse workforce and a high standard of living make Canada a serious option for entrepreneurs.
You do not have to work through this alone. The consultants at Aval Visa can review your situation and set out the routes that are realistically open to you, from choosing a city to preparing documents and filing an application. Every immigration decision rests with IRCC and, where a provincial stream is involved, with the province. Contact Aval Visa to have your options assessed against your own circumstances.
Frequently asked questions
- Do I need a Canadian partner to start a business in Canada as a foreign national?
No. In provinces such as Ontario, British Columbia and Alberta you can incorporate without a Canadian partner or resident director. Registering a company is a corporate matter, not an immigration one, and incorporating in Canada does not by itself give you the right to live or work here. You still need a work permit or permanent residence to operate the business from within Canada. - Which province is easiest for a foreign national to start a business in?
Ontario, British Columbia and Alberta are generally considered the most straightforward, because they do not impose a residency requirement on directors and their incorporation processes are simpler. Requirements can change, so verify with the provincial corporate registry before you file. - What are the main challenges small businesses face in these cities?
Small businesses in Canada’s leading cities face sharper competition, rising commercial rents and labour shortages in certain sectors. Regulatory complexity, tax differences between provinces and seasonal demand, particularly in cities that depend on tourism, can all make revenue uneven. - What kinds of small businesses do well in these cities?
Technology startups, digital marketing agencies, e-commerce businesses and clean energy companies do well in cities such as Calgary, Waterloo and Ottawa. Tourism services, ocean technology, health and wellness businesses and speciality food producers are established in cities such as Halifax and Kelowna.
