Start-up Visa and Permanent Residence in Canada by incorporating a business
Start-up Visa and Permanent Residence in Canada by incorporating a business
03-26-2025, 10:41 AM
Key Changes:
- Cap on Permanent Residence Applications: The program will now limit the number of permanent residence applications linked to the SUV program. Each designated organization (such as venture capital firms, angel investor groups, or business incubators) can submit no more than 10 start-up applications annually. This restriction will remain in place until the end of 2026.
- Priority Processing for Select Start-ups: Applications for start-ups backed by Canadian capital or supported by incubators that are members of Canada’s Tech Network will now receive priority processing. This applies to both new and existing applications in the queue.
Implications for Entrepreneurs:
- Limited Application Slots: With the cap, fewer entrepreneurs will be able to apply through the SUV program each year. This change may create competition for the limited slots, particularly for those who have already secured initial backing from a designated organization.
- Faster Processing for Priority Applications: Start-ups with Canadian financial backing or linked to key incubators will benefit from faster processing, offering a clear advantage over others.
- Quality Over Quantity: The changes are designed to encourage designated organizations to focus on supporting only the most promising ventures, improving the overall quality of applications.
Tips for Entrepreneurs:
- Secure Canadian Support: If possible, aim to secure investment from a Canadian venture capital firm or incubator, as this will enhance your chances of receiving priority processing.
- Explore Other Pathways: If the SUV program is not a viable option due to the new caps, consider alternative routes such as provincial entrepreneur nominee programs, the C11 visa, or intra-company transfers.
- Be Prepared: Given the competition, make sure your business plan is robust and aligns with Canada’s entrepreneurial goals to improve your chances of success.
Processing Time for Start-Up Visa Program
As of September 2024, it takes about 40 months, or just over three years, for most Start-Up Visa applications to be processed. However, this is just an estimate, and the actual time can vary based on how busy the immigration office is. The backlog of applications is quite large. As of February 29, 2024, there are 29,128 people waiting across 9,125 cases. Of these, 14,508 people are waiting to move forward in the process, and 10,458 people are waiting to have their eligibility checked. Only 4,030 people are close to receiving a final decision. With such a large number of pending applications, the recent changes to the Startup Visa program aim to speed up processing by limiting the number of applications each year and giving priority to those backed by Canadian investors or incubators. Entrepreneurs should be aware of these long wait times when planning their immigration journey.
Canada Start-Up Visa Success Rate
According to the most recent statistics, the approval rate for permanent residence applications under the Start-Up Visa program is 77.2%, based on IRCC data from January 2023 to November 2023. During this period, IRCC processed 3,334 applications for permanent residence and approved 2,577 of them. There were 267 permanent residency applications withdrawn and 490 that were refused. Thus, based on these figures, the SUV program has a general success rate above 77%. However, our team achieved an SUV success rate of 100% in 2023.
Start-Up Visa vs Other Business Immigration Programs
In addition to the start-up visa program, there are various business immigration programs in Canada that international entrepreneurs can use to relocate to Canada. Specifically, you can explore the C11 Entrepreneur Work Permit, Intra-Company Transfer Program, Self-Employed Category, Provincial Nominee Programs, or Quebec Immigrant Investor Program. See our table below to compare these programs and understand the pros and cons of each.
How to Get a Canada Startup Visa
Applying for a Canada Start-Up Visa involves a series of steps divided into three phases: 1) ensuring the viability of your business idea and your potential as an entrepreneur; 2) submitting an immigration application for permanent resident status; and 3) actively working to build your start-up in Canada while your permanent residence application is processed. Once you confirm that you meet the basic eligibility criteria for the Start-Up Visa Program—which includes language proficiency and sufficient settlement funds—you can follow the steps outlined below to increase your chances of success in this program.
- Step 1: Business Concept Development: Developing your business concept is a foundational step in turning your innovative idea into a business model with global scalability potential. It’s crucial to start with a clear vision of your start-up project, an understanding of your competitors, a strategy to compete with established players, and a detailed operational plan, including what parts of the project will be carried out in Canada. Many entrepreneurs encounter challenges in creating a robust business concept capable of attracting support from designated organizations. Our business team can assist you in brainstorming ideas, researching your target market, evaluating the competition, and defining your unique value proposition. Our in-house team is equipped to help our clients craft comprehensive business plans, outlining vision, objectives, strategies, financial projections, and the anticipated contribution to the Canadian economy. Our clients have achieved a 100% success rate in securing support from designated organizations.
- Step 2: Select the Right Designated Organization: Choosing the right designated organization is a critical step in this process. As of 2024, there are 84 Designated Organizations—comprising angel investor groups, venture capital funds, and business incubators—authorized by the Canadian government to invest in or support potential start-ups for the Start-Up Visa Program. Each has distinct criteria and interests, so selecting one that aligns with your business idea involves researching their investment history, examining the types of start-ups they have previously supported, and assessing their mentoring capabilities. Moreover, most organizations charge administrative fees that range from $10,000 to $50,000. While some organizations do not charge fees, they may have limited intake capacities or be highly competitive. We have cultivated relationships with numerous designated organizations and can guide you in choosing the organization that best fits your project.
- Step 3: Obtain Support from the Designated Organization: Once you have selected several designated organizations, follow the instructions on their websites to apply for the Start-Up Visa (SUV) program. The process typically involves pitching your business concept to them with a compelling presentation and demonstrating the potential of your idea. If they are convinced of your start-up’s viability, they will issue a Letter of Support, a critical document for your SUV application. If you feel intimidated by this process and need support, our team can assist you throughout the application process and can accompany you during the pitch to provide support.
- Step 4: Prepare Your Documents: Gather all necessary documents, including the Letter of Support from a Designated Organization, proof of language proficiency at CLB 5, proof of settlement funds, business plan, and other required documents per the application guide.
- Step 5: Submit Your SUV Immigration Application: Complete the application forms for the Start-Up Visa Program and submit them along with the required documents and the application fee. Along with your personal documents, submit a Pitch Deck that clearly communicates your business vision, Articles of Incorporation to prove legal business formation, and a Capitalization Table detailing the start-up ownership structure. Include your start-up’s logo, comprehensive customer or supplier lists, documentation of any intellectual property, and financial statements for financial transparency. Also include forward-looking financial forecasts, which are essential for assessing the potential success of your enterprise. Before submission, review your application for completeness to prevent any unnecessary delays.
- Step 6: Start Your Business in Canada: After you’ve submitted your application for permanent residence, you can turn your attention to launching and nurturing your business in Canada according to your business plan and the commitments you’ve made to the Designated Organization. If you’re an essential member of your start-up and need to be in Canada sooner, you may apply for and obtain a work permit. This will allow you to move to Canada while the Canadian immigration authorities process your PR application.
- Step 7: Update IRCC about Your Progress with Business: While awaiting your permanent residence status, it is crucial to keep IRCC updated on the progress of your start-up project. Updating IRCC has become increasingly important, especially after a notable decline in approval rates in early 2023 (January to April 2023), which fell to 51% from the historical average of about 75% from 2016 to 2022. IRCC officers have been known to routinely refuse SUV applications if they are not satisfied with the business progress thus far. Many rejections occur because the applicant has made minimal progress, presented a poor business model, or appeared to lack serious intent. To mitigate IRCC’s concerns, it’s advisable to proactively provide updates on your business’s progress every 6 months. This regular reporting can demonstrate your commitment to the venture and may help alleviate any potential issues regarding the seriousness of your intentions or the quality of your business model.
- Step 8: Receive a Decision: After evaluating your application, IRCC will notify you of their decision. The communication will come via the contact details in your application, so it’s important to ensure they are current and accurate. If your application is successful, you will be granted PR status, a significant milestone on your entrepreneurial journey in Canada. Should the decision be negative, you will be given reasons and, if applicable, instructions on how to address any deficiencies or appeal the decision.
List of Designated Organizations
Depending on the type of designated organization you partner with, you will need to either complete a startup development program or receive funding from them in exchange for equity in your company to receive your letter of support. It is one of the most critical requirements of the SUV. You must obtain a Commitment Certificate and Letter of Support from one or more Venture Capital Funds, Angel Investor Groups, and/or Business Incubators. Here is a complete list of the designated organizations.
Advantages and Disadvantages of Start-Up Visa
It would be best to consider the benefits and drawbacks of this program before taking any further steps. It is crucial to fully understand what this program offers and whether it is right for you.
Advantages of the Program
Below are some of the pros of the SUV program:
- A direct pathway for permanent residence in Canada.
- Open to all nationalities.
- No limitations on business activities in Canada.
- No net worth requirement or verification.
- Allows for a partnership of 5 individuals in the same start-up (min. 10% of ownership for each partner is required); and
- Opportunity to relocate to Canada by obtaining a work permit while the permanent residence application is processed.
Disadvantages of the Program
Below are some of the cons of the SUV program:
- High competition to obtain support from designated organizations in Canada; thus, it can be challenging to get such support.
- Lengthy processing times (3+ years) to obtain permanent residence.
- High capital investments by the founding partners are often required to secure support from a designated organization.
- An extremely well-developed, viable and scalable business model is needed with a proven track of success and
- There is a moderate risk of refusals at the permanent residence stage and/or delays due to peer reviews.
Article is featured by Sobirovs Law Firm
Edited 03-26-2025, 10:43 AM by MindKing.
Attached Files
Thumbnail(s)On April 29, 2024, Canada’s Minister of Immigration, Refugees and Citizenship, Marc Miller, announced significant changes to Canada’s Start-Up Visa program aimed at reducing application backlogs and improving processing times. These changes, effective from April 30, 2024, are part of a broader effort to modernize Canada’s immigration system. Here’s a breakdown of what’s new and what it means for entrepreneurs looking to move to Canada.
Key Changes:
- Cap on Permanent Residence Applications: The program will now limit the number of permanent residence applications linked to the SUV program. Each designated organization (such as venture capital firms, angel investor groups, or business incubators) can submit no more than 10 start-up applications annually. This restriction will remain in place until the end of 2026.
- Priority Processing for Select Start-ups: Applications for start-ups backed by Canadian capital or supported by incubators that are members of Canada’s Tech Network will now receive priority processing. This applies to both new and existing applications in the queue.
Implications for Entrepreneurs:
- Limited Application Slots: With the cap, fewer entrepreneurs will be able to apply through the SUV program each year. This change may create competition for the limited slots, particularly for those who have already secured initial backing from a designated organization.
- Faster Processing for Priority Applications: Start-ups with Canadian financial backing or linked to key incubators will benefit from faster processing, offering a clear advantage over others.
- Quality Over Quantity: The changes are designed to encourage designated organizations to focus on supporting only the most promising ventures, improving the overall quality of applications.
Tips for Entrepreneurs:
- Secure Canadian Support: If possible, aim to secure investment from a Canadian venture capital firm or incubator, as this will enhance your chances of receiving priority processing.
- Explore Other Pathways: If the SUV program is not a viable option due to the new caps, consider alternative routes such as provincial entrepreneur nominee programs, the C11 visa, or intra-company transfers.
- Be Prepared: Given the competition, make sure your business plan is robust and aligns with Canada’s entrepreneurial goals to improve your chances of success.
Processing Time for Start-Up Visa Program
As of September 2024, it takes about 40 months, or just over three years, for most Start-Up Visa applications to be processed. However, this is just an estimate, and the actual time can vary based on how busy the immigration office is. The backlog of applications is quite large. As of February 29, 2024, there are 29,128 people waiting across 9,125 cases. Of these, 14,508 people are waiting to move forward in the process, and 10,458 people are waiting to have their eligibility checked. Only 4,030 people are close to receiving a final decision. With such a large number of pending applications, the recent changes to the Startup Visa program aim to speed up processing by limiting the number of applications each year and giving priority to those backed by Canadian investors or incubators. Entrepreneurs should be aware of these long wait times when planning their immigration journey.
Canada Start-Up Visa Success Rate
According to the most recent statistics, the approval rate for permanent residence applications under the Start-Up Visa program is 77.2%, based on IRCC data from January 2023 to November 2023. During this period, IRCC processed 3,334 applications for permanent residence and approved 2,577 of them. There were 267 permanent residency applications withdrawn and 490 that were refused. Thus, based on these figures, the SUV program has a general success rate above 77%. However, our team achieved an SUV success rate of 100% in 2023.
Start-Up Visa vs Other Business Immigration Programs
In addition to the start-up visa program, there are various business immigration programs in Canada that international entrepreneurs can use to relocate to Canada. Specifically, you can explore the C11 Entrepreneur Work Permit, Intra-Company Transfer Program, Self-Employed Category, Provincial Nominee Programs, or Quebec Immigrant Investor Program. See our table below to compare these programs and understand the pros and cons of each.
How to Get a Canada Startup Visa
Applying for a Canada Start-Up Visa involves a series of steps divided into three phases: 1) ensuring the viability of your business idea and your potential as an entrepreneur; 2) submitting an immigration application for permanent resident status; and 3) actively working to build your start-up in Canada while your permanent residence application is processed. Once you confirm that you meet the basic eligibility criteria for the Start-Up Visa Program—which includes language proficiency and sufficient settlement funds—you can follow the steps outlined below to increase your chances of success in this program.
- Step 1: Business Concept Development: Developing your business concept is a foundational step in turning your innovative idea into a business model with global scalability potential. It’s crucial to start with a clear vision of your start-up project, an understanding of your competitors, a strategy to compete with established players, and a detailed operational plan, including what parts of the project will be carried out in Canada. Many entrepreneurs encounter challenges in creating a robust business concept capable of attracting support from designated organizations. Our business team can assist you in brainstorming ideas, researching your target market, evaluating the competition, and defining your unique value proposition. Our in-house team is equipped to help our clients craft comprehensive business plans, outlining vision, objectives, strategies, financial projections, and the anticipated contribution to the Canadian economy. Our clients have achieved a 100% success rate in securing support from designated organizations.
- Step 2: Select the Right Designated Organization: Choosing the right designated organization is a critical step in this process. As of 2024, there are 84 Designated Organizations—comprising angel investor groups, venture capital funds, and business incubators—authorized by the Canadian government to invest in or support potential start-ups for the Start-Up Visa Program. Each has distinct criteria and interests, so selecting one that aligns with your business idea involves researching their investment history, examining the types of start-ups they have previously supported, and assessing their mentoring capabilities. Moreover, most organizations charge administrative fees that range from $10,000 to $50,000. While some organizations do not charge fees, they may have limited intake capacities or be highly competitive. We have cultivated relationships with numerous designated organizations and can guide you in choosing the organization that best fits your project.
- Step 3: Obtain Support from the Designated Organization: Once you have selected several designated organizations, follow the instructions on their websites to apply for the Start-Up Visa (SUV) program. The process typically involves pitching your business concept to them with a compelling presentation and demonstrating the potential of your idea. If they are convinced of your start-up’s viability, they will issue a Letter of Support, a critical document for your SUV application. If you feel intimidated by this process and need support, our team can assist you throughout the application process and can accompany you during the pitch to provide support.
- Step 4: Prepare Your Documents: Gather all necessary documents, including the Letter of Support from a Designated Organization, proof of language proficiency at CLB 5, proof of settlement funds, business plan, and other required documents per the application guide.
- Step 5: Submit Your SUV Immigration Application: Complete the application forms for the Start-Up Visa Program and submit them along with the required documents and the application fee. Along with your personal documents, submit a Pitch Deck that clearly communicates your business vision, Articles of Incorporation to prove legal business formation, and a Capitalization Table detailing the start-up ownership structure. Include your start-up’s logo, comprehensive customer or supplier lists, documentation of any intellectual property, and financial statements for financial transparency. Also include forward-looking financial forecasts, which are essential for assessing the potential success of your enterprise. Before submission, review your application for completeness to prevent any unnecessary delays.
- Step 6: Start Your Business in Canada: After you’ve submitted your application for permanent residence, you can turn your attention to launching and nurturing your business in Canada according to your business plan and the commitments you’ve made to the Designated Organization. If you’re an essential member of your start-up and need to be in Canada sooner, you may apply for and obtain a work permit. This will allow you to move to Canada while the Canadian immigration authorities process your PR application.
- Step 7: Update IRCC about Your Progress with Business: While awaiting your permanent residence status, it is crucial to keep IRCC updated on the progress of your start-up project. Updating IRCC has become increasingly important, especially after a notable decline in approval rates in early 2023 (January to April 2023), which fell to 51% from the historical average of about 75% from 2016 to 2022. IRCC officers have been known to routinely refuse SUV applications if they are not satisfied with the business progress thus far. Many rejections occur because the applicant has made minimal progress, presented a poor business model, or appeared to lack serious intent. To mitigate IRCC’s concerns, it’s advisable to proactively provide updates on your business’s progress every 6 months. This regular reporting can demonstrate your commitment to the venture and may help alleviate any potential issues regarding the seriousness of your intentions or the quality of your business model.
- Step 8: Receive a Decision: After evaluating your application, IRCC will notify you of their decision. The communication will come via the contact details in your application, so it’s important to ensure they are current and accurate. If your application is successful, you will be granted PR status, a significant milestone on your entrepreneurial journey in Canada. Should the decision be negative, you will be given reasons and, if applicable, instructions on how to address any deficiencies or appeal the decision.
List of Designated Organizations
Depending on the type of designated organization you partner with, you will need to either complete a startup development program or receive funding from them in exchange for equity in your company to receive your letter of support. It is one of the most critical requirements of the SUV. You must obtain a Commitment Certificate and Letter of Support from one or more Venture Capital Funds, Angel Investor Groups, and/or Business Incubators. Here is a complete list of the designated organizations.
Advantages and Disadvantages of Start-Up Visa
It would be best to consider the benefits and drawbacks of this program before taking any further steps. It is crucial to fully understand what this program offers and whether it is right for you.
Advantages of the Program
Below are some of the pros of the SUV program:
- A direct pathway for permanent residence in Canada.
- Open to all nationalities.
- No limitations on business activities in Canada.
- No net worth requirement or verification.
- Allows for a partnership of 5 individuals in the same start-up (min. 10% of ownership for each partner is required); and
- Opportunity to relocate to Canada by obtaining a work permit while the permanent residence application is processed.
Disadvantages of the Program
Below are some of the cons of the SUV program:
- High competition to obtain support from designated organizations in Canada; thus, it can be challenging to get such support.
- Lengthy processing times (3+ years) to obtain permanent residence.
- High capital investments by the founding partners are often required to secure support from a designated organization.
- An extremely well-developed, viable and scalable business model is needed with a proven track of success and
- There is a moderate risk of refusals at the permanent residence stage and/or delays due to peer reviews.
Article is featured by Sobirovs Law Firm
Attached Files
Thumbnail(s)