Canada’s Start-up Visa (SUV) program is undergoing significant changes that could impact aspiring entrepreneurs, including those seeking flight tickets from Canada to India. The program was formerly a feasible way for immigrant entrepreneurs to get permanent residency. Starting on April 30, the Immigration, Refugees and Citizenship Canada (IRCC) will only accept applications for permanent residence from individuals connected to no more than ten start-ups per recognized organization.
“The success of entrepreneurs who enter Canada through federal business programs depends on quick processing. Minister of Immigration, Refugees, and Citizenship Marc Miller stated, “These necessary adjustments will put the Startup Visa Program and Self-Employed Persons Program on a path to faster processing times while we look ahead to further reforms to make these programs more sustainable and effective over the long term.”
Why the Cap?
This step aims to reduce the backlog and expedite the significantly increased application processing. The new cap equals a maximum of 820 applications every year, assuming that the number of designated organizations remains constant. The approximately 82 permitted entities are made up of business incubators, venture capital funds (VCFs), and angel investors.
The SUV program has shown to be attractive to entrepreneurs due to its simple path to permanent residency and absence of investment or minimum net worth restrictions. However, upon their arrival in Canada, they will have to prove that they are financially stable enough to support themselves and their family. You need the backing of a designated partner, like a VCF, angel investor group, or business incubator, to be qualified.
The immigration level targets for the SUV program under the previous arrangement were 6,000 for 2025 and 2026 and 5,000 for the current year. These numbers are far less under the proposed cap, which worries immigration specialists and business owners.
Canada’s decision to limit applications under the SUV program received criticism from immigration professionals and the business financing industry, who see it as going backward. According to the Organisation for Economic Co-operation and Development (OECD), Canada is the most desirable country for entrepreneurs starting fresh businesses in 2023. Since its introduction in 2013, this kind of program has assisted over 900 entrepreneurs get legal residency, resulting in the creation of over 300 start-ups. In the United States, there is no equivalent visa that provides immigrant entrepreneurs with a path to citizenship.
Key Enhancements to the Startup Visa Programme
- Capping PR applications: Due to the program’s present limitation on PR submissions to ten companies per authorized organization, approximately 820 applications are submitted annually by 82 distinct entities, including incubators, venture capital firms, and angel investors.
- Priority processing: New regulations offer preference to businesses that are connected to Canada’s Tech Network or supported by Canadian financing in an attempt to encourage local entrepreneurship.
- Investor support: The program offers a straight route to permanent residence without requiring a personal investment or a specific level of net wealth; but, upon arrival, applicants must prove their financial stability. It is still necessary to get support from approved partners, such as venture capital funds or business incubators.
Full Stop on Self-Employed Persons Programme
As to the IRCC declaration, the Self-Employed Persons Program will continue to accept new applications after April 30, 2024. This program provides a path to permanent residence to people who have extensive experience in artistic culture, sports, or leisure and who also desire to contribute to Canada’s social and cultural life. Due to a huge number of applications, the turnaround times for this particular program have surpassed four years. The IRCC will have additional time to focus on reducing the backlog and considering potential program reforms thanks to the suspension.
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What is the Start-up Visa (SUV) Program
Canada’s Start-up Visa (SUV) Program aims to draw creative entrepreneurs and assist them in starting companies that boost the national economy. Foreign entrepreneurs must obtain backing from one of Canada’s approved venture capital funds, angel investor groups, or business incubators to be eligible for the program.
- Venture Capital Fund: Entrepreneurs have to obtain a funding commitment of at least $200,000 from an established venture capital fund.
- Angel Investor Group: To be qualified for financing, entrepreneurs have to raise at least $75,000 from an established angel investment group.
- Business Incubator: Entrepreneurs have to be approved to take part in an incubation program managed by an approved business incubator.
About 900 entrepreneurs have gained permanent citizenship since the program’s inception in 2013, and as a result, more than 300 start-ups have been established in Canada. This success emphasizes the importance of the SUV program in promoting innovation and entrepreneurship.
The venture capital and angel investor streams prioritize the processing of all applications to expedite the application process. Additionally, ideas endorsed by business incubators with an investment of at least $75,000 would be given priority consideration. These priority processing policies aim to attract serious enterprises and strengthen the Canadian economy by offering assistance to investors.
In conclusion, Canada’s announcement of the suspension of the Self-Employed Program and the introduction of a quota on applications for PR Start-up Visas suggests a shift in immigration policy. If you plan to buy last minute flights to India from Canada from Flyopedia, be aware of any potential changes to Canadian immigration laws to avoid any surprises.
Also Read: Everything about Renewing an Indian Passport in Canada
