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What’s happening with the Canadian Startup Visa Program? Long wait times, ridiculous promises and guarantees by immigration lawyers and consultants, and not enough support by designated organizations. Is there hope for applicants waiting for their work permit & PRs to be processed? If you haven’t applied yet, would it be a good time to apply? How to differentiate yourself from the pack of ‘fake’ applications clogging up the IRCC processing pipeline?
Before we jump into the latest insights and updates on the Canadian Startup Visa program, please note that IRCC’s policy is NOT to update or post anything for the public on what’s going on internally in terms of their processing policies and future for this program. The information we have put together for you in this article is a compilation of facts collected from industry events, interviews, and 1-on-1 meetings with designated organizations, consultants, lawyers, Federal court documents, and first-hand experiences from applicants like yourself who are ‘waiting’ or are already in the latest ‘correspondence’ stage with IRCC while their applications are being scrutinized.
Here are the latest updates & insights:
Canada Startup Visa Work Permit
1. Let’s talk about the work permit applications. There are Startup applicants who are receiving refusal letters when they apply for their work permit to enter Canada while their PRs are being processed. Why is that? It’s not everyone, but this applies to high refusal regions and Startups which have no activity yet. What do we mean by activity and why is IRCC refusing some of these Startup Visa work permits? The answer lies in the Immigration Refugee Protection Regulations which states that a “Genuine” job offer is required to apply for the work permit. IRCC officers are using their own imagination and interpreting this as per the following:
If there is no company registered and no activity for the company in Canada for the Startup, then in fact this job offer linked to the work permit application is not genuine. As well the letter of support must have the work permit option checked off as being ‘essential’ for urgent business matters in Canada. Their logic is that unless the company exists, has funds, perhaps traction, staff, or other development activities, there is really no urgent requirement for the applicant to come to Canada on a work permit and the job offer is not “Genuine”. As you may already know, when applying for a work permit under the Startup Visa program you need to have an LMIA exemption code which is issued under the code A-75, an employer compliance fee of $230 must be paid for this code, while you apply under the ‘Startup Visa’ work permit category. If you’re not from a high refusal region, then this is not a major issue, and it is also possible for visa-exempt country nationals to apply and pick up their work permits at the port of entry (i.e. airport) if they meet all the eligibility criteria for a Startup Visa work permit.
Get a FREE assessment with us and we will support you with your work permit and the rest of the process for your Startup Visa application. Fill out the form, click here.
2. Processing time by IRCC for Startup Visa PRs is posted as 31 months. Take into consideration that the posted processing times by IRCC are based on historical data, not necessarily current. However, from the information we have from all applicants who are in touch with our firm is that anyone who applied before 2019 has been processed. Anyone who applied from January 2020 onwards is still in process or about to be finalized.
The major backlog applies to applicants who submitted their PR applications from January 2020 onwards. Right now, it looks like it will take 2.5 years to process your PR under this program (as a minimum timeline to consider). The work permit application processing can take anywhere from 4 to 8 months depending on your country of residence, nationality, and the visa processing center you are dealing with. Each applicant’s profile is different; hence the processing times do vary.
3. aking into consideration the above, please note that nationals from Hong Kong, China, Vietnam, Dubai, and Iran are scrutinized more by IRCC specifically on the Startup Visa program and hence also see more refusals and longer processing times. Applicants from India are in better shape than these 5 nationalities.
4. In case you are monitoring the IRCC website which lists all the approved designated organizations who are allowed to issue a Letter of Support for Startup Visa applicants, you’ll notice there are more designated organizations being added this year. Yes, have a look at the site and you will see new names which have been added recently. Is this contradictory to IRCC’s policy? Why are they scrutinizing more applicants under this program and have such slow processing times, yet are approving more designated organizations such as incubators, angel investors, and VC’s. The answer is: there is a major disconnect between departments in the IRCC. NACO (National Angel Capital Organization) is the non-profit which approves and handles the designation of organizations under this program, mandated and reporting to IRCC.
5. A lot of applicants have asked us lately about the peer review process under the Startup Visa program. Here is the insight we have collected about this process:
It can take 2-3 different sessions/meetings between the peer review panel members and the defending representative, and each session can take 45 minutes to an hour. After the final report is sent to IRCC, the officer may NOT update the applicant and you will not know what the result was from the peer review UNLESS it was not successful. Applicants won’t know until 6-8 months afterward on the result of the peer review if it was successful. A successful peer review does not necessarily guarantee a successful PR application under the Startup Visa program.
Do you need some support for your peer review process? At INGWE we are experts in Business Immigration, and we will help you out! Get a FREE assessment with us, click here.
6. What is a Progress report request by IRCC and why are they issuing it to Startup Visa applicants? This letter which we have seen that has been started to be issued since mid of 2021, asks several questions to Startups that DO NOT have traction yet or have not submitted proof of it with their PR applications. These are some of the questions you may see in this letter from IRCC – and each case can vary: A) How do you meet your group members. B) How did you come up with your Startup idea and what due diligence have you done to validate the concept. C) Please send us the latest progress report from your Startup.
The first two questions, if you do receive them (not everyone does) are pretty basic and straightforward. The last request on the progress report is the most important piece of information they want. Why do they request a progress report? There are hundreds of ‘Fake’ Startup Visa applications that have no intention or means to run and operate their Startup or to invest in it. This is both clogging up the IRCC processing pipeline AND undermining the integrity of the program.
In order to combat this, IRCC is asking for progress reports from Startups they are suspicious of (especially for applicants from the Middle East and the Far East) to check if they meet the requirements and intentions before refusing them. Sometimes they are accompanied or followed by procedural fairness letters (which is just a fancy legal term that means they are ready to refuse you but are giving you one more chance to defend yourself).
7. Many applicants have been complaining about the support provided by the designated organizations such as incubators, VCs, and angel investors. This is a fact not a myth. Many incubators are all fluff with no substance. Some are better than others, but much more difficult to receive admission. The reality is that this is a 100% for-profit business stream, and 90% of designated organizations are finding ways to make money off this program and cut costs by minimizing any support they provide you as a Startup. Be aware that not all designated organizations are created equal. Obviously, this is not the case for everyone, but it is becoming a common theme.
8. Why are immigration firms, business consultants, agents, and lawyers guaranteeing successful PR applications under the Startup Visa Program? Why is it that the first business immigration program all agencies are offering potential applicants is the Startup Visa Program? What is the genuine underlying reason? Don’t think too hard, it’s the money. The amount of money that is charged is the most profitable immigration program for all these lawyers, consultants, and agents. Especially for applicants WHO do not have a real Startup or an innovative Startup business concept or idea. If you’re a real Startup, then you will be working with genuine consultants and firms which will not overcharge you, similar to INGWE Canada. Get a FREE assessment with us and we will support you throughout the process, click here.
Considering all the above, would I recommend anyone to apply for the Canadian Startup Visa now? My answer is: Yes, only under the following conditions: 1) You have an existing Startup that is in the early revenue stage or about to enter that stage or have serious backing from VCs because of the potential of the Startup. 2) You would like to come to Canada on a work permit and invest and run your Startup business. The activity is important for you while you are inside Canada – and whether the PR processing takes over 2.5 years is not important. 3) When IRCC requests a progress report from you, you have enough revenue and investment in the business that it’s a no-brainer. Under these conditions, we would say ‘Yes’ to you choosing and applying under the Startup Visa program. If you don’t meet all these 3 conditions, we would 100% say no, do not apply under this program but consider the other Federal and Provincial investment and business immigration programs which can lead you to a PR within 2 years without all the doubts, hassles, and delays of the Startup Visa Program – while you enter Canada in less than 6 months with a work permit to start your business and it doesn’t need to be a Startup, as it can be a JV, branch office, or existing business equity purchase.
If you are deciding on applying Canadian / UK / or Portugal Startup Visa Program, you will need proper advice and guidance to avoid falling into an ‘immigration’ trap. That’s our specialty here at INGWE Immigration. We don’t guarantee you anything, but what we will guarantee is that you will know what to expect, the entire process clearly outlined for you, and all the risks and areas where we will support you 100%. No surprises, just results!
During the time you work with our specialized Business Team, a project coordinator will be assigned to you to meet with you regularly to check your business status, guide you in the right direction to make sure you gain enough traction and assist you with networking. We will guide and support you throughout the endorsement letter or Letter of Support process and the entire immigration process including work visas and permanent residencies.
We have 1-million-dollar liability insurance which protects you and us from mistakes or fraud as well as a dedicated client trust account in Canada. We help applicants from over 47 different countries if you require assistance in terms of Business Immigration process. Fill out our form and get a FREE assessment, click here.
