 "canada")
Canada’s Startup Visa Programme (SUV) has implemented a cap on the annual processing of permanent residence (PR) applications, limiting it to a maximum of 10 startups per designated organisation.
This significant change came into effect on April 30, as announced by Immigration, Refugees, and Citizenship Canada (IRCC).
The move is expected to impact aspiring business founders in India and other countries. Canada's Start-up Visa (SUV) programme was once hailed as a promising avenue for immigrant entrepreneurs seeking permanent residence.
Key changes to the Startup Visa Programme:
1. Capping PR applications: The programme now restricts PR applications to 10 startups per designated organisation, resulting in about 820 applications yearly across 82 entities like venture capital funds, angel investors, and incubators.
2. Priority processing: Revised regulations prioritise startups backed by Canadian capital or affiliated with Canada’s Tech Network, fostering local entrepreneurship.
More From This Section
3. Investor support: The programme offers a direct route to permanent residence without personal investment or net worth requirements, but applicants must show financial stability on arrival. Support from designated partners, such as venture capital funds or business incubators, is still essential.
Why the cap?
The move aims to tackle the growing backlog and improve processing times for applications, which have soared in recent times.
“Fast processing is critical to the success of entrepreneurs who come to Canada through our federal business programmes. These necessary changes will set the Start‐up Visa Programme and Self-Employed Persons Programme on the path to faster processing times while we look ahead to further reforms to make these programmes more sustainable and effective over the long term,” Marc Miller, Minister of Immigration, Refugees and Citizenship, said.
With around 82 designated organisations including venture capital funds (VCFs), angel investors, and business incubators, the new cap sets a maximum of 820 applications per year.
Full pause on Self-Employed Persons Programme
In addition to changes in the SUV program, the IRCC announced a full pause on new applications for the Self-Employed Persons Programme, starting April 30, 2024. This programme targets individuals with notable experience in art, culture, recreation, or sports, contributing to Canada's cultural vitality.
The Start-up Visa (SUV) programme explained
The Start-up Visa (SUV) Programme is tailored to attract innovative entrepreneurs, aiding them in establishing businesses that bolster the country's economy. Foreign entrepreneurs must secure support from designated venture capital funds, angel investor groups, or business incubators in Canada to qualify.
Venture Capital Fund: Entrepreneurs need a minimum investment of $200,000 (approx Rs 1.7 crore) from a designated venture capital fund.
Angel Investor Group: A minimum investment of $75,000 (approx Rs 62 lakh) from a designated angel investor group is required.
Business Incubator: Acceptance into an incubation programme operated by a designated business incubator is necessary.
To expedite the application process, priority processing is given to applications in the venture capital and angel investor streams. Additionally, business incubator-supported applications reporting an investment of at least $75,000 (approx Rs 62 lakh) also receive priority treatment. These measures aim to encourage serious entrepreneurs backed by Canadian investors, thus supporting the Canadian economy.
