Canada has paused its Start-Up Visa (SUV) programme after finding widespread misuse. Many applicants treated it as a fast track to permanent residence instead of building real businesses. The government announced the pause on December 19 and stopped accepting new applications from December 31. Immigration, Refugees and Citizenship Canada (IRCC) made the decision after an internal review.

Why the Start-Up Visa was launched

Canada introduced the Start-Up Visa in 2013 to attract innovative entrepreneurs. The goal was to help founders build high-growth companies in Canada and create local jobs. Applicants had to secure support from approved venture capital firms, angel investors, or incubators. They could work in Canada while waiting for permanent residence approval.

Where the programme failed

Over the years, IRCC noticed a clear shift in applicant intent. Many candidates focused more on getting permanent residence than running a startup. Some designated incubators and investors supported weak or non-genuine business ideas. This practice diluted the programme’s original purpose.

Immigration officers also found cases where founders played little role in their own startups. In one example, an applicant claimed to develop wearable fitness technology. Officials later discovered that a Canadian university professor already led the project. The applicant’s contribution remained unclear.

In another case, an incubator employee handled most of the work for a fintech startup. The listed founder received only brief updates. Officers questioned whether the business existed mainly to support the visa application.

Questions around relocation and high fees

Officials also raised concerns about startups that did not need a Canadian base. One applicant proposed a daycare app for Southeast Asia. Officers questioned why the founder needed to move to Canada at all. The review also flagged a C$300,000 payment to the supporting incubator, raising doubts about the true intent of the application.

Middlemen and paid immigration routes

Internal emails and government records showed growing concern about middlemen. Many intermediaries promised Canadian immigration in exchange for fees. In some cases, they created business ideas after applicants expressed a desire to immigrate.

Lawyers and consultants also came under scrutiny. Authorities found cases of ready-made business plans, unauthorised charges, and questionable applications. Experts noted that permanent residence, not entrepreneurship, became the main selling point.

Application surge and long delays

The situation worsened after 2020. Applications to the programme more than tripled in one year. By the time IRCC paused the programme, the backlog exceeded 44,000 people. Some applicants faced processing times of over 10 years. These delays further damaged the programme’s credibility.

A 2023 government review confirmed multiple signs of abuse. It flagged fraudulent filings and improper sponsor practices.

What Canada plans next

The pause forms part of a wider reset of Canada’s economic immigration system under Prime Minister Mark Carney. Post-pandemic immigration levels strained housing and public services. The government now aims to tighten selection standards.

IRCC has confirmed that a new immigrant entrepreneur programme will replace the Start-Up Visa. The revised model will include fewer incubators and investors. All participants will operate under stricter and clearer rules.

Canada also plans a separate pathway to attract skilled workers from major US tech firms. This move targets global talent affected by tighter US visa policies.

Planning to apply for a Canada startup or entrepreneur visa? Get expert guidance to avoid costly mistakes and choose the right immigration pathway. Speak with our immigration specialists today and make your move to Canada the right way.