On April 29, 2024, Immigration, Refugees and Citizenship Canada (IRCC) announced significant changes to the Start-Up Visa Program (SUV) in hopes of reducing processing times and application backlogs. The announcement introduced a cap on the number of permanent residence applications that designated organizations can support each year under the SUV program and prioritized certain types of applications for faster processing. Here, we outline the key points of the announcement, outline the potential implications of the cap, and provide an overview of the Start-Up Visa Program.
Key Points of the Announcement
- Permanent Residence Application Cap - Effective April 30, 2024, each designated organization can support only up to 10 complete group of start-up visa applications annually. This introduction of the cap intends to streamline the application process and reduce backlogs.
- Priority Processing - IRCC will prioritize Start-Up Visa applications supported by:
- Venture capital funds
- Angel investor groups
- Business incubators with committed capital or are members of Canada's Tech Network
- This measure is intended to allow designated organizations to utilize a more focused approach, concentrating their support on high-impact start-ups.
- How Long the Cap Will Last - The cap will be in effect from April 30, 2024, until the end of 2026.
Potential Implications of the Cap
- Cap on Supported Groups: Each designated organization (D.O.) can now support a maximum of 10 startups per year, leading to a total cap of approximately 820 applications annually across the present 82 designated organizations.
- Group Size: Each group can consist of up to 5 applicants, which means the total number of applicants could reach 4,100 per year if all groups are to reach its capacity.
- Increased Competition: Applicants will need to present exceptionally innovative business ideas and compelling proposals to secure support from a D.O.. This will likely lead to increased competition among applicants.
- Quality Over Quantity: The new regulations aim to improve the quality of applications by enforcing stricter scrutiny, which may benefit both the organizations and the applicants by ensuring that only viable projects are supported.
- Faster Processing for Priority Applications: Applicants that are backed by Priority D.O.s will benefit from faster processing, especially after IRCC has eventually cleared up the backlog that was created during covid.
- Higher Costs: The costs associated with applying for the Start-Up Visa are expected to rise. D.O.s may require applicants to hire reliable immigration consultants to ensure their applications meet all filing requirements and avoid failures that could waste quotas. Projects with minimal invested capital will have difficulty getting D.O.s support.
- Risk of Wasted Quotas: If any group fails the completeness check, the quota for that application will be wasted, further emphasizing the need for thorough preparation.
- Limited Availability of Priority D.O.s: Quota for prioritized designated organizations will be filled quickly, potentially by mid-2025. Applicants may then have to seek support from D.O.s that still have quotas available, which may not be as familiar with the SUV program. This might eventually lead to PR applications refusal.
Overview of the Start-Up Visa Program (SUV)
The Start-Up Visa Program is designed to attract immigrant entrepreneurs who have the skills and potential to build innovative businesses in Canada. These businesses should be able to create jobs for Canadians and compete on a global scale.
Eligibility Requirements
To apply for the Start-Up Visa Program, applicants need to:
- Have a qualifying business, including a credible plan for the future active and ongoing management of the company from Canada;
- Get a letter of support from a designated organization;
- Meet minimum language requirements in either English or French, equivalent to a Canadian Language Benchmark (CLB) Level Five;
- Show enough proof of funds to settle in Canada.
Commitment from a Designated Organization
Designated organizations are business groups approved to invest in or support possible start-ups. Applicants will have to convince a designated organization that their business is worth supporting. They must obtain a letter of support in the form of a Commitment Certificate to IRCC for their SUV application to be eligible for processing.
There are 3 types of designated organizations:
- Venture Capital Funds: A designated venture capital fund must provide a letter of support to confirm that they are investing at least CAD $200,000 into the qualifying business.
- Angel Investor Groups: A designated angel investor group must provide a letter of support that they are investing at least CAD $75,000 into the qualifying business.
- Business Incubators: A designated business incubator must accept the applicant’s qualifying business into their business incubator program, providing support and resources to help the start-up succeed. Applicants do not have to secure financial investment from a business incubator.
View the list of designated organizations on IRCC’s website here.
Get in Touch to Inquire About Your Immigration Options and the Start-Up Visa Program
The new cap on start-up visa applications per designated organization and the prioritization of certain applications mark a significant shift in Canada's approach to managing its Start-Up Visa Program. IRCC anticipates these changes will help to reduce application backlogs and improve processing times so that high-potential businesses can contribute to Canada's economy more efficiently. As the SUV program evolves, it remains a vital pathway for innovative entrepreneurs seeking to establish and grow their businesses in Canada.
At Rothe International Canada, our team has extensive successful experience in the Start-up Visa program and provide our clients with guidance and comprehensive support for a seamless and hassle-free immigration experience.
If you are interested in the Start-Up Visa Program and would like to inquire about your options for immigrating to Canada, speak to a Regulated Canadian Immigration Consultant (RCIC) recognized by the Canadian government. Our professional team is dedicated to assisting clients on a personalized basis based on their individual needs and qualifications with suitable immigration programs towards attaining immigration to Canada.
For further enquiries, please contact us at 28683780 or email [email protected]
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Official links on Canada's SUV Program:
Start-up Visa Program
What happens if my business fails?
Disclaimer
The information provided above is for general private reference purposes only and is not intended to be a comprehensive explanation of Canadian immigration laws or a substitute for professional legal advice. Rothe International Canada is not responsible for any losses caused by the use of the above information.
If you have any specific questions, you are welcome to contact Rothe International Canada directly at (852) 2868-3780 or fill in our online enquiry form.
