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Every day, thousands of entrepreneurs desperate for Canadian permanent residence are bombarded with "guaranteed" Startup Visa opportunities. Immigration agencies, lawyers, consultants, designated organizations, and countless middlemen are all vying for your money and attention.
But here's the uncomfortable truth: many of these offerings are misleading and ineffective, leaving you frustrated, financially drained, and no closer to your Canadian dream.
The stakes couldn't be higher. You're not just investing money; you're betting your future, your family's security, and years of your life on a single immigration pathway.
The Canadian Startup Visa program has become the holy grail of Canadian immigration, and for compelling reasons:
It is the only active Federal business immigration program in Canada that directly leads to PR.
The applicant has the option to stay back in their current country of residence until the PR is issued, or obtain a 3-year open work permit to enter Canada and run their business from inside the country until a PR decision is issued (along with study permits for their children and open work permit for spouse or common-law partner).
It is a federal program; hence no geographic restrictions exist except for the province of Quebec which is not part of the program (applicants cannot plan to settle or reside in Quebec to become eligible for this program).
There are no points-based system or age restrictions, making it very easy to become eligible for the Startup Visa program.
Education is not mandatory to be eligible for this program.
Up to 5 co-founders or investors of a startup business can become eligible to apply for their permanent residencies after the business is endorsed by a designated organization (i.e. family and friends can join into the same startup business).
Book a strategy call with our team to assess your options under IRCC’s latest Startup Visa requirements
The main challenge many potential applicants have in applying for this program, is where to start, who to believe, and understand all the nuances of the Startup Visa program.
Unfortunately, the Canadian government website for the Startup Visa program is extremely vague in communicating about the expectations and processing of applicants and their businesses. The SUV Canada website is ambiguous at best and leaves many applicants with more questions than answers. The unfortunate truth is that this leads to many intermediaries and agencies in the market making up the missing info as they go along to entice more applicants to apply for this program. This information can be misleading, potentially leading applicants to have unrealistic expectations about the Canadian government’s requirements for the Startup Visa program.
The reality is that many Startup Visa applicants are going to be involved in Startup businesses which are made of a pitch deck, business plan, website and perhaps even a few social media posts. What many applicants fail to realize is that the IRCC (Canada’s immigration department) has evolved in their processing of these Startup Visa PR cases.
Avoid the mistakes others have made. Learn from real case outcomes — and let us help you. Schedule a consult today.
Initially when the program was launched in 2013, the processing time was 3-4 months until 2016. Around 2016 to 2018 the processing time extended from 6 to 8 months and even eventually to 1 year for the final permanent residency of the SUV applicants. During this golden age of SUV, having a Letter of Support from a designated organization , a business plan, meeting the basic SUV eligibility criteria (Language exam, police check, minimum settlement funds, medical check) would have led to permanent residency in a matter of months without ANY questions.
After 2020, the processing times extended and the IRCC officers started asking questions regarding the Startup businesses. These questions included the applicant’s incorporation documents inside Canada, business plan updates since their original application submission date, and progress in terms of MVP, pilot projects, licensing requirements, and intellectual property status.
As the IRCC officers processing Startup Visa PR applicants evolved and matured in terms of their line of questioning, the market still remained stuck in the ‘golden age’ of SUV, meaning investors and applicants are signed up for Startup Visa business groups which only have a business plan, a pitch deck and a website, with some photos of their MVP. IRCC case processing officers are classifying these startups as not 'genuine' since there is no tangible investment or progress evident in their activities inside Canada.
The 3 pillars of the Startup Visa Business Immigration program have always been:
A) Innovative business
B) Scalable to compete globally
C) Economic benefit for Canada.
These 3 pillars are the foundation of the SUV program and a direct guideline of what is expected now from the government for eligible startup businesses.
TIP: If you want to understand any Canadian Immigration process, always look at those that have come before you. In this article, we have done it for you.
Based on the recent case law which have been published by the Canadian courts for refused Startup Visa applicants who have appealed the decision of the IRCC, you will notice the regular use of the terminology in the officer’s refusal decisions when there is a problem with the Startup business as being an ‘artificial transaction’, and ‘for the purpose of acquiring a status or privilege under the Act…”. We have summarized here the most recent Startup Visa PR application cases from 2024-2025 that were reviewed by Canadian Federal courts and had their results published (this is public information posted on the CanLii website).
This SUV application was denied due to the officer's concerns about the startup's business activities and efforts. We've included the case link and key officer comments for your reference.
Artificial transactions
89 For the purposes of this Division, an applicant in the self-employed persons class or an applicant in the start-up business class is not considered to have met the applicable requirements of this Division if the fulfillment of those requirements is based on one or more transactions that were entered into primarily for the purpose of acquiring a status or privilege under the Act rather than
(a) in the case of an applicant in the self-employed class, for the purpose of self-employment; and
(b) in the case of an applicant in the start-up business class, for the purpose of engaging in the business activity for which a commitment referred to in paragraph 98.01(2)(a) was intended.
The officer found the following problems with the Startup business and stated in their refusal reasons and explanation that “Given the minimal growth of the start-up business over the long period since the application. Moreover, in their business plan, the company's reasoning for their value proposition was not compelling and lacked validation. For instance, all projection and numbers in financial statements are doubtful and are not supported by logical reasoning or proof. Upon reviewing the document received on January 04th, 2023, many attendances to designated entity events and researches are done but no changes into business status. I am not satisfied that the members are contributing significantly in their new business in Canada.”
The officer continued to question the Startup business by stating that “Consequently, I remain concerned by what appears to be a lack of seriousness on the part of the essential applicants. I am therefore satisfied, on the balance of probabilities, that the primary purpose of the essential applicants in entering the commitment with the designated entity Empowered startups ltd is for the purpose of acquiring a status or privilege under the Act and described under R89(b) of IRPR. Therefore, applicant is not a member of the Start-up Business Class as per R98.01(2)(a).”
Another critical example of a Startup Visa PR refusal was Neri v. Canada (Citizenship and Immigration), 2025 FC 1087 (https://canlii.ca/t/kcwlp). The officer used a typical explanation for the refusal regarding the genuineness of the Startup business; “….the officer found that pursuant to subsection 89(b) of the Immigration and Refugee Protection Regulations, SOR/2002-227 [IRPR], he was satisfied that the primary purpose of the Applicant’s start-up business venture had been to acquire residency status under the IRPA, rather than to legitimately engage in the business activity. Per that section of the regulations, such an ‘artificial transaction’ prevents the Applicant from meeting the applicable requirements to qualify as a member of the start-up business class.”
“I am satisfied on a balance of probabilities that your primary purpose for entering into the commitment with the [designated entity], Empowered Startups Ltd., is for the purpose of acquiring a status or privilege under the Act, as described under ss. 89(b) of IRPR.”
“The Officer also noted that while the Applicant was asked to provide contact details of individuals whom he had hired or with whom he proposed to work to realize his business, the contact details then provided by the Applicant were either not in service, did not connect to the individuals in question, or were inoperative website links.”
This recent case, which involved both a refused Startup Visa work permit and subsequent PR, is Rezaie v. Canada (Citizenship and Immigration), 2025 FC 662 (https://canlii.ca/t/kbhxq). The Officer’s GCMS notes state regarding the refusal outlined the following key points:
“The company was incorporated in May 2022. Client has not provided the proof of the company operation viability such as the company bank statements, financial statements and operations accounts to demonstrate transactions that occurred.
Client submitted a personal RBC account that shows a balance of $17,926.36, which is less than the minimum money required for family size (only client in this case).
Client has not provided proof of investment they already put towards the business. No evidence of investment funds received or that these funds are transferrable, available and unencumbered.”
With the new internal changes of the Startup Visa program, the IRCC expects to see significant activity and investment in the Canadian Startup entity by the SUV applicants. Although new changes have not yet been officially announced by the IRCC for the Startup Visa program as of the publishing date of this article, internally the officers do expect to see tangible investments.
Based on these new trends and internal changes by the IRCC it would be expected for each Startup business to complete the following:
Applicants/Co-Founders to prove actual investment (transfer of funds) into the new Startup business incorporated locally in Canada (i.e. into the actual Canadian bank account for the business).
Actual expenses paid by the Startup business in Canada related to paying for development, marketing, accounting and taxes, office or virtual office space, payroll, intellectual property filings, and other business related expenses. Everything should be paid through its local entity and bank account.
Financial statements and corporate tax filings submitted the Canada Revenue Agency (CRA: Canada’s tax department)
Proof of payroll for hiring local Canadian staff (not the co-founders or their families – although they can be on payroll but they would not be considered as an investment in hiring staff)
Tangible communication and proof of progress made with potential customers, joint venture entities, distribution partners, pilot projects etc.
If the startup business is related to manufacturing; related licenses, permits, locations, and other tasks related to starting the manufacturing business inside Canada
If IRCC reviews all the Startup Visa applications for the past 12 years, more than 90% of these startups will NOT have any of the above documentation and proof, and rather only have a website, business plan, pitch deck and photos of their MVP.
If you’re not sure, let our expert team do a full review before you invest in a program that might not meet your expectations.
It is imperative for startup visa applicants who are planning to have a successful PR to Canada to sign up and invest in real tangible businesses which would follow the course of a regular business in expensing to grow & scale in Canada and abroad.
The questions Startup Visa applicants should be asking before they sign up with any agency or intermediary who is offering them an existing group should be:
What is the plan and timeline to open a bank account?
Will the investors fund the bank account for startup business inside Canada?
Will all business expenses be flowing through the startup businesses local bank account in Canada?
Will there be real Canadians hired on payroll by the startup business? When, how and within which timeline?
What is the timeline to have a working product to offer in the market?
What is the process & plan to obtain customers for this new startup inside Canada and abroad?
Will there be enough funds allocated to the business account to cover the 3.5 years processing timeline for Priority Designated Organization Entities (DOE) and 5-6 year processing time for non-Priority Designated Organization Entities (DOE)?
Here are eight red flags and key points to watch out for when negotiating with service providers involved in the Canadian Startup Visa program are:
Not explaining to the applicant regarding the main difference between priority processing designated organizations vs non-priority.
Informing clients that Venture capital Letters of Support would lead to faster processing of 1-2 years for applicant’s Permanent Residencies.
Guaranteeing the PR under the Startup Visa program.
Combining applicants from different backgrounds and profiles which would not have any common overlap (in terms of nationality, country of residence or previous studies or work in the same country).
Not outlining the exact plan on how the startup inside Canada will gain business traction, hire Canadians, and sign-up customers.
When the ‘working’ product would be ready to test.
Not providing your phone numbers and contact info of existing and past successful Startup Visa clients (past success cases).
Not being able to answer your most questions regarding Startup Visa on the spot without having to “check with the head office” or “refer to the senior lawyer or consultant”.
We’ve been actively working in the Startup Visa space for over eight years, successfully supporting applicants and startup teams from all over the world. Over that time, we’ve seen the program shift, and with it, Canadian immigration policies have become more rigorous. This tightening isn't just happening in Canada; it reflects a broader global trend in how countries approach immigration nowadays.
Today, the process is more demanding than it used to be. Immigration authorities are more cautious, and the expectations for what qualifies as a legitimate startup have become much higher. But despite these changes, we still believe the Startup Visa remains one of the best and most flexible pathways to permanent residence in Canada, if properly done.
We’ve helped hundreds of clients succeed by focusing on substance over shortcuts. The reality is, no pitch deck or business plan alone is enough anymore. What matters now is building a real business that can grow, create value, and meet the standards set by IRCC.
What we’ve shared here isn’t theory. It’s based on what we’ve seen up close in the industry. We want applicants to make informed choices, ask the right questions, and avoid being misled by promises that don’t reflect how things actually work.
We’re not here to win you over with promises. Our goal is to help you clearly understand what the process involves and guide you to take the right steps toward a successful outcome. The Startup Visa isn’t the right fit for everyone, but for those who are ready to commit and build something real, it remains one of the most direct and viable pathways to Canadian permanent residency.
If you’re exploring the Startup Visa program and want guidance based on experience and results, our team is ready to support you. Let’s make sure your efforts lead to possibilities.
