Start-Up Visa Program Canada: A Complete SUV Guide for 2024.

Foreign entrepreneurs can gain permanent residence in Canada by starting innovative businesses through Canada’s start-up visa. The program offers a pathway for entrepreneurs and their families to relocate to Canada, emphasizing the eligibility requirements, application process, and potential for securing permanent residence.

If you’re exploring business immigration options in Canada and have access to capital between CAD $200,000 and CAD $500,000, the Canada Start-Up Visa program could be the right opportunity to consider. It offers the chance to start your business in Canada, providing a pathway to live and work in Canada with your family. This guide will help you understand how to seize this opportunity and cover program eligibility, the application process, and other essential aspects of navigating the Start-Up Visa Program.

What is a Start-Up Visa in Canada?

The Canada Start-Up Visa Program is a business immigration program that allows foreign entrepreneurs to obtain permanent residence in Canada by starting innovative businesses. Successful applicants and their families can relocate to Canada within 3 to 6 months and obtain permanent residency within 2.5 to 3 years. The program targets entrepreneurs supported by Canadian designated organizations (incubators, angel investor groups or venture capital funds). Up to five business partners can participate in the same start-up, provided they meet certain requirements.

Start-Up Visa Canada Requirements

To be eligible for the Canada Start-up Visa Program, applicants must:

• Obtain a Letter of Support from a Designated Organization in Canada;
• Incorporate the business within Canada;
• Individually hold a minimum of 10% voting rights in the company alongside a Designated Organization;
• Collectively, the applicants and the Designated Organization must possess over 50% of voting rights;
• Actively manage the business, with core operations in Canada during and after the application process;
• Fulfill language proficiency at CLB 5 in English or French;
• Have adequate settlement funds and operational capital, ideally over $200,000.

Changes to Canada’s Start-Up Visa Program

On April 29, 2024, Canada’s Minister of Immigration, Refugees and Citizenship, Marc Miller, announced significant changes to the 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:

1. 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.
2. 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:

1. 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.
2. 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.
3. 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 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 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 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 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; 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.

Start-Up Visa Canada Costs: Full Review

The costs of the Start-Up Visa program in Canada range between CAD $150,000 to $250,000+, depending on various factors.  Please refer to the sample cost structure below to understand how much money you must set aside to fund your Start-Up Visa program application. All fees below are approximate estimates in Canadian dollars, including the fees that are charged by service providers and various companies providing the SUV Program support:

Our Experience with Startup Visas

In our experience with Start-Up Visas in Canada this past year, we’ve noted that IRCC frequently sends follow-up letters requesting additional information.

Examples of the types of questions included in these inquiries are as follows:

• What actions have you undertaken to establish your business in Canada?
• Could you detail the contributions from the Designated Organization up to the present?
• Do you have a concrete plan to ensure your business’s success, and has such a plan been successful previously?
• We require further details on your product development roadmap, the percentage of progress made, and the planned timeline and budget for completion.
• Can you outline the advancements your business has made since its incorporation?
• Why was Canada chosen as the location for your business, and were other countries considered?
• Could you explain how critical parts of your business operations will be conducted in Canada?
• Can you provide information on how you met the other founding partners?
• Explain why your presence in Canada is urgently needed.

“These inquiries by IRCC suggest a more rigorous examination of the authenticity and intent of SUV applicants’ business activities in Canada. The agency is shifting towards a more independent assessment of the business venture’s viability and the applicants’ true intentions beyond the support evidenced by the Letter of Support. Therefore, it’s essential to demonstrate intent that aligns with the program’s objectives—to establish and grow an innovative business in Canada and to relocate permanently to oversee its development rather than using the program solely as a means for immigration.” Feruza Djamalova, Senior Business Immigration Lawyer

Start-Up Visa Application Delays and Rejections 

Sometimes, the Immigration Officer may initiate a peer review if the Officer doubts the genuineness or feasibility of the enterprise. The peer review panel will verify if the designated entity has conducted the proper checks and investigations according to industry standards.

Recently, a series of cases at the Federal Court level highlighted common issues that IRCC officers have been questioning in Start-Up Visa applications. These cases shed light on several key areas of concern for IRCC, such as:

• applicant’s direct experience
• substantive proof of the business’s past and projected performance
• essential operations that are to be based in Canada
• applicant’s engagement with the Designated Organization during the application’s waiting period,
• overall viability of the business, including its growth orientation and the size of the target market.

Applicants are now often asked to detail their efforts in establishing their business within Canada, the nature and extent of the contributions made by the Designated Organization thus far, and to substantiate the presence of a solid, actionable business plan that is likely to lead to a prosperous outcome based on previous successes. These inquiries are designed to ensure that the Start-Up Visa program fosters genuine, growth-oriented business endeavours with a tangible presence and future in the Canadian economy.

In general, make sure that your business performance is well-documented and that there is significant evidence available to demonstrate the genuineness and viability of your undertaking. Most importantly, make sure to follow our top tips to ensure the success of your application.

How We Can Help With Your Canada’s Start-Up Visa Applications

At our firm, we approach Start-Up Visa (SUV) applications with a distinctive methodology that sets us apart from the industry standard. Our initial step is personal—we take the time to get to know you. Understanding your background, experience, budget limitations, aspirations, and business goals is crucial for us to evaluate your startup idea’s viability and potential effectively. We believe in honesty; if we find that your idea is unfeasible or too vague, we’ll tell you straight.

Once we establish the groundwork, our in-house business team collaborates closely with you to refine your idea into a viable startup project. We delve into understanding the capital and human resources required, ensuring you have a solid foundation. Unlike many in our field, we don’t outsource business plan writing. Our legal experts, trained in business, work alongside our specialized business team to craft pitch decks and business plans. This synergy ensures perfect coherence and alignment with your entire application, reflecting your experience and documentary evidence. Each element is tailor-made for you, underlining our commitment to your success both in business and immigration.

But our support doesn’t end there. We assist you in selecting the right Designated Organization, leveraging our status as intake partners for many to negotiate discounts on your behalf—passing any commission we receive directly to you. We’re there for you during the pitch interview, offering robust support as you navigate the due diligence process. With us, you’ll be well-prepared to answer questions and showcase your thoroughly researched and viable business plan.

After securing the Letter of Support, we meticulously prepare and submit your immigration application, ensuring no document is overlooked and preemptively addressing potential issues. Our dedication continues as we partner with you in Canada, staying on course with your business plan and providing regular updates to IRCC to expedite the processing your PR application.

We are more than transactional lawyers; we are your partners on this journey. We take the trust you place in us seriously when you entrust your future to our care. We believe every newcomer deserves an honest, competent, and caring immigration professional by their side. Your trust is something we value deeply and are always grateful for.

Frequently Asked Questions

Below you will find answers to the most frequently asked questions that are based on our experience with Start-Up visas: