Canada’s Start-Up Visa Set to Triple in Size for 2024

Canada is set to significantly increase the number of immigrants coming through the Start-Up Visa (SUV) program in 2024. Data from Immigration, Refugees and Citizenship Canada (IRCC) indicates the country could welcome 5,625 new permanent residents via this program by the end of the year. This represents a 285.3% increase from the 1,460 who arrived through the SUV program last year.

So far this year, 1,875 foreign nationals have already gained permanent residency through the SUV, a remarkable 913.5% rise compared to the same period last year. The SUV, launched in 2015, started modestly with just 55 immigrant entrepreneurs. However, it has grown steadily since then, doubling to 110 new residents in 2016 and increasing by another 22.7% in 2017. By 2018, the number had more than quadrupled to 240 new residents.

Before the COVID-19 pandemic in 2019, the SUV program welcomed 515 new permanent residents. The pandemic led to a 45.9% drop in overall immigration, and the SUV program saw a corresponding decline, with only 260 new residents in 2020. However, as immigration numbers rebounded in 2021, the SUV program also saw an increase, bringing in 385 new residents, a 48.1% improvement from the previous year.

By 2022, the program had fully recovered from the pandemic's effects, more than doubling in popularity compared to the previous year. This year, Ontario and British Columbia have been the most popular destinations for SUV immigrants. By the end of April, Ontario had welcomed 1,030 new permanent residents, and British Columbia had received 610. Alberta saw 15 new residents, and Manitoba added 180 through the SUV program during the same period.

Nova Scotia and New Brunswick also benefited from the SUV program. Twenty-five immigrant entrepreneurs in Nova Scotia gained permanent residency in the first four months of this year, and New Brunswick welcomed 15 new residents. Other provinces and territories had not added any new permanent residents through the SUV by the end of April.

Although the SUV program generates lower overall numbers of new permanent residents than other federal worker programs, such as the Federal Skilled Worker (FSW) and Federal Skilled Trade (FST) programs, it still plays a crucial role. The program allows candidates to come to Canada on a work permit supported by their designated Canadian investor before their permanent residence application is finalized. The current processing time for permanent residence through the SUV is estimated at 38 months by the IRCC.

The SUV program involves three types of private-sector investors: angel investors, venture capital funds, and business incubators. A designated venture capital fund must invest at least $200,000 in a qualifying business. Candidates can also qualify with multiple commitments from designated funds totaling $200,000. A designated angel investor group must invest at least $75,000, or multiple investments from angel investor groups totaling $75,000. A designated business incubator must accept the applicant into its program.

Applicants need a viable business plan meeting the requirements of these designated entities. Business consultants and corporate immigration lawyers often assist in developing these plans to ensure compliance with industry standards.

To be eligible for the SUV, candidates must have a qualifying business, a commitment certificate, a letter of support from a designated entity, sufficient settlement funds, and proficiency in English or French at the minimum Canadian Language Benchmark level 5. Often, higher language proficiency levels are needed to meet the due diligence requirements imposed by designated entities.