The Ultimate Guide to Letter of Intent (LOI) for Canada’s Start-Up Visa Program

Thinking about immigrating to Canada through the Start-Up Visa (SUV) Program? One powerful way to boost your application is by including Letter of Intent (LOIs) from Canadian partners, customers, or suppliers. These simple, non-binding documents can significantly strengthen your case with Immigration, Refugees and Citizenship Canada (IRCC).

In this guide, you’ll learn what LOIs are, why they matter for SUV applicants, and how to craft strong ones that validate your startup’s potential in the Canadian market.

What Is a Letter of Intent (LOI)?

A Letter of Intent (LOI) is a non-binding document that expresses a preliminary agreement between two parties to collaborate, partner, or transact in the future. For SUV applicants, an LOI acts as proof of market validation—showing that a Canadian business is interested in your product or service.

Example:
A Canadian retailer signs an LOI to pilot your eco-friendly packaging product in 10 locations, contingent on your permanent residency approval.

Types of LOIs for Start-Up Visa Applications

Each LOI should serve a purpose aligned with your business goals. Here are the most common types:

Type	Purpose	Example Partners
Customer LOI	Demonstrates demand in the Canadian market	Retailers, tech companies
Supplier LOI	Secures access to local supply chains	Manufacturers, logistics firms
Partnership LOI	Formalizes collaboration	Universities, accelerators, nonprofits
Investor LOI	Shows funding interest (rare in SUV)	Angel investors, VC firms

Key Components of a Strong LOI

To be effective, an LOI should include the following elements:

• Parties Involved: Full names and contact information for both your startup and the Canadian entity.
• Intent Statement: A clear purpose, such as a pilot project, supply agreement, or collaboration.
• Key Terms: Scope, timeline, quantities, pricing (if applicable), and conditions (e.g., PR approval).
• Non-Binding Clause: Clearly states the LOI is not legally binding.
• Confidentiality Clause: Protects sensitive business information.
• Authorized Signatures: Signed by a representative from the Canadian organization.

Benefits of Including an LOI in Your SUV Application

• Market Validation: Shows IRCC there is real Canadian interest in your offering.
• Credibility Boost: Independent confirmation from a third party builds trust.
• Economic Contribution: Supports your claims around job creation or innovation.
• IRCC Compliance: Shows proactive efforts to establish Canadian operations.

Best Practices for Creating High-Impact LOIs

Best Practices	Explanation
Prioritize Canadian Entities	Focus on Canadian companies, not international ones.
Be Specific and Realistic	✅ Good: “XYZ Retailers intends to purchase 500 units of Product A at $50/unit after pilot success.” ❌ Bad: “We plan to explore potential collaboration.”
Use Professional Formatting	Include the partner’s logo, letterhead, contact information, and proper business tone.
Attach Supporting Documents	Strengthen the LOI by including relevant emails, MOUs, or pitch decks as appendices.

How to Present an LOI to IRCC

• Include as an Appendix: Attach LOIs to your business plan, financials, or milestone updates.
• Reference in the Main Business Plan

Example: “We have secured a Letter of Intent from ABC Distributors (Appendix B), confirming their intent to supply biodegradable packaging materials for our Q4 2025 launch.”

• Update During Processing: If you secure more LOIs after applying, submit them as additional supporting documents.

LOI Template for Start-Up Visa Applications

You can use this format when requesting LOIs from your Canadian contacts:

[Partner’s Letterhead]

Date: [Month Day, Year]
To: [Your Startup Name]
[Your Address]

Subject: Letter of Intent for [Partnership/Pilot/Supply Agreement]

Dear [Your Name],

This Letter of Intent confirms that [Partner Company] is interested in collaborating with [Your Startup Name] to [brief description, e.g., “test your AI-powered logistics solution in our Toronto warehouse”].

Key Terms Under Discussion:

Scope: [e.g., 3-month pilot project]

Deliverables: [e.g., Integration, monthly reports]

Timeline: [Start and end dates]

Conditions: [e.g., Subject to permanent residency approval]

This LOI is non-binding and intended to facilitate further discussions. Both parties agree to maintain confidentiality regarding shared information.

Sincerely,
[Name]
[Title]
[Company Name]
[Email / Phone Number]

Common Mistakes to Avoid

• ❌ Generic Language: Phrases like “explore synergies” are too vague.
• ❌ Overpromising: Unrealistic expectations (e.g., $1M in revenue in Year 1) can raise red flags.
• ❌ Missing Signatures: Unsigned LOIs may be dismissed as unverified or informal.

Real-World Example: LOI in Action

Scenario: A health-tech startup secures an LOI from a Toronto-based clinic to pilot its telemedicine software.

IRCC Impact:

• Confirms a real Canadian market need.
• Supports job creation claims (e.g., hiring local developers).
• Shows integration into Canada’s healthcare ecosystem.

Final Tips for SUV Founders

• Consult Experts: Work with an immigration lawyer or RCIC to ensure your LOIs are legally sound.
• Use Supporting Evidence: Pair LOIs with pitch decks, demo videos, and incorporation documents.
• Be Honest and Transparent: IRCC values credibility more than grand promises.