In recent developments, the Immigration, Refugees, and Citizenship Canada (IRCC) has introduced notable changes to its Start-up Visa Program (➨page), Faiming to streamline the application process and enhance support for innovative entrepreneurs seeking to establish businesses in Canada. These changes came to effect as of April 30, 2024. Issuing detailed instructions on the assessment of applications under the start-up business class (➨immilib.com/SUV30Apr24), the IRCC seeks to provide clarity and guidance to both applicants and immigration officers involved in the evaluation process.
Outlined below are key aspects of the updated instructions provided by the IRCC:
Prioritization of the Inventory
Until December 31, 2026, immigration officers are directed to prioritize group applications associated with Canadian venture capital funds, angel investor groups, and business incubators. This prioritization emphasizes the importance of partnerships with designated entities, such as those within Canada's Tech Network (CTN) (➨immilib.com/CTN), in facilitating entrepreneurial ventures. The following designated entities are from Canada’s Tech Network:
- Waterloo Accelerator Centre
- Genesis Centre
- Invest Nova Scotia
- Interactive Niagara Media Cluster o/a Innovate Niagara
- Innovation Factory
- North Forge Technology Exchange
- Platform Calgary
- The DMZ
- VIATEC
Cap on New Applications Under Canada's Start-up Visa Program
Designated entities, including venture capital funds, angel investor groups, and business incubators, are required to issue commitment certificates directly to IRCC Montreal. These certificates, accompanied by a letter of support, serve as crucial documentation demonstrating the endorsement and support of the applicant's business venture by reputable entities within the Canadian entrepreneurial ecosystem.
Effective April 30, 2024, IRCC is mandated to restrict the processing of new applications under the start-up business class. Specifically, only 10 group applications per designated entity per calendar year will be assessed.
Group applications associated with the same commitment certificate will be identified under the designated entity's organizational ID until all applicants for the same business venture have submitted their applications. These applications will undergo a thorough review to ensure completeness (compliance with section R10 of the Immigration and Refugee Protection Regulations (IRPR)) before being transferred to the Domestic Network for further processing.
It's important to note that any unused cap space cannot be transferred between designated entities or carried over to the subsequent year. Applications received after reaching the annual cap will be promptly returned to the applicants along with a refund of any fees paid, accompanied by a detailed letter explaining the situation.
When a group application member, whether essential or non-essential, does not pass the completeness check, the entire group will be rejected and processing fees will be refunded. The application will still count against the cap.
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Restricted Updates to Commitment Certificates
Before the recent updates announced on April 30, 2023, start-up teams had the flexibility to request updates to their commitment certificate or support letter. This included changes such as substituting essential members with non-essential ones, removing or adding team members, or extending the expiry date. However, with the new regulations in place, the following rules apply:
Officers are now only permitted to accept updated commitment certificates for all applications until they receive the first permanent residence application under the Start-up Visa (SUV) program (➨page) from any member of the entrepreneurial team listed on the certificate.
Once the first permanent residence application is received, it serves as the lock-in date for the commitment certificate. Subsequently, no further changes can be made to the certificate after this point. This measure ensures greater stability and consistency in the application process, providing clarity for both applicants and immigration officers.
These instructions provide a comprehensive framework for assessing applications under Canada's Start-up Visa Program, emphasizing the importance of partnerships with designated entities, the establishment of qualifying businesses, and the demonstration of necessary financial and language proficiency requirements. By implementing these updates, IRCC aims to attract and support innovative entrepreneurs, further contributing to Canada's dynamic and thriving start-up ecosystem.
New Protocols for Essential Member Removal
In the event of a refusal or withdrawal of a permanent residence application by an essential member within an entrepreneurial team, specific procedures must be followed.
If such an occurrence arises, all other applications within the same entrepreneurial team must be refused, except under the following circumstances:
If an essential member obtains permanent residence through another program, their Start-up Visa (➨page) application will be placed on hold while the remaining group members are assessed. If all other requirements are met, officers have the discretion to approve the remaining group members before proceeding with the administrative withdrawal of the member who obtained permanent residence through another program.
In the unfortunate event of the passing of an essential team member, their application will similarly be placed on hold while the rest of the group is assessed. If all other requirements are satisfied, officers can proceed to approve the remaining group members before administratively withdrawing the application of the deceased member.
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Inclusion of Spouses and Common-law Partners
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If a spouse or common-law partner is part of the entrepreneurial team, they must be listed on the commitment certificate and will undergo processing as a business applicant under the Start-up Visa program (➨page), whether they hold an essential or non-essential role. However, if the spouse or common-law partner owns shares in the business without being part of the entrepreneurial team, their shares cannot contribute to meeting the ownership percentage requirement which is required to be more than %50.
For spouses or common-law partners who are not part of the team, they may immigrate as family members of the principal applicant provided they meet all necessary requirements.
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