Canada's Start-up Visa (SUV) program, once a promising pathway for immigrant entrepreneurs to obtain permanent residence, is facing significant changes that could impact aspiring business founders. The Immigration Refugees and Citizenship Canada (IRCC) has announced that from April 30, it will cap the number of permanent residence applications accepted each year to those associated with no more than 10 start-ups per designated organization.
“Fast processing is critical to the success of entrepreneurs who come to Canada through our federal business programs. These necessary changes will set the Startup Visa Program and Self-Employed Persons Program on the path to faster processing times while we look ahead to further reforms to make these programs more sustainable and effective over the long term,” Marc Miller, Minister of Immigration, Refugees and Citizenship, said.
This move is aimed at reducing the backlog and improving processing times for applications, which have grown significantly. With approximately 82 designated organizations comprising venture capital funds (VCFs), angel investors, and business incubators, the new cap translates to a maximum of 820 applications per year, assuming the number of designated organizations remains unchanged.
The SUV program has been attractive because it offers a clear path to permanent residence without requiring entrepreneurs to invest their own funds or meet a minimum net worth. However, they must show they have adequate funds to support themselves and their families upon arrival in Canada. Support from a designated partner, whether a VCF, angel investor group, or business incubator, is mandatory for eligibility.
Under the previous system, immigration level targets for the SUV program were set at 5,000 for the current year and 6,000 for 2025 and 2026. With the new cap, these numbers are drastically reduced, causing concern among immigration experts and entrepreneurs.
Canada's decision to limit applications through the SUV program has drawn criticism from those in the entrepreneur-funding sector and immigration experts, who view this as a step backward. The Organisation for Economic Co-operation and Development (OECD) ranked Canada as the most attractive destination for start-up founders in 2023. Since its inception in 2013, about 900 entrepreneurs have become permanent residents through this category, leading to the launch of more than 300 start-ups. The Uni ..
Full pause on Self-Employed Persons Program
The IRCC also announced a full pause on new applications for the Self-Employed Persons Program, starting April 30, 2024. This program provides a pathway to permanent residence for individuals with notable experience in art, culture, recreation, or sports who can contribute to Canada's cultural vitality. Due to a high volume of applications, processing times for this program have exceeded four years. The pause will allow IRCC to focus ..
What is the Start-up Visa (SUV) Program
The Start-up Visa (SUV) Program in Canada is designed to attract innovative entrepreneurs and help them establish businesses that contribute to the country's economy. To qualify for the program, foreign entrepreneurs must secure support from one of the designated venture capital funds, angel investor groups, or business incubators in Canada.
Venture Capital Fund: Entrepreneurs must secure an investment of at least $200,000 from a designated venture capital fund.
Angel Investor Group: Entrepreneurs must secure an investment of at least $75,000 from a designated angel investor group.
Business Incubator: Entrepreneurs must be accepted into an incubation program operated by a designated business incubator.Since its inception in 2013, the program has seen about 900 entrepreneurs become permanent residents, leading to the launch of more than 300 start-ups in Canada. This success underscores the importance of the SUV program in promoting innovation and entrepreneurship.
To streamline the application process, all applications in the venture capital and angel investor streams are given priority processing. Additionally, business incubator–supported applications that report an investment of at least $75,000 will also receive priority treatment. These priority processing measures aim to encourage serious entrepreneurs with backing from Canadian investors, thereby supporting the Canadian economy.
Source: https://economictimes.indiatimes.com/nri/work/canada-pauses-self-employed-persons-program-caps-pr-applications-via-start-up-visa/articleshow/109749610.cms
