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Everyone can get a Letter of Support, but can you get the PR?
This is the question we will cover in this article, regarding Startup Visa Program PRs, processing times, work permit refusals, and of course, some possible hacks and solutions for the applicant’s stuck in the IRCC processing queue.
At INGWE we are EXPERTS in the Canada and UK Startup Visa. 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. Get a FREE assessment with us, fill out our form, click here.
According to an Access to Information and Privacy (ATIP) request published by Lexbase in October 2021, “Start-up Business Class applicants have a backlog of 6,442 people. 188 people have their Start-up Business Class applications in transit and 100 people have their Start-up Business Class cases in process, with selection not started.”
IRCC targets applicants for each immigration program (also called ‘Levels Plan’), and has grouped the Start-up Visa Program with the Federal Self-employed Program. The combined group was allocated a target of 750 spots for each year in the 2020-2022 Levels Plan. The 2021-2023 Levels Plan increased the target to 1,000 spots for each of the three years. The most recent 2022-2024 Levels Plan left the target flat at 1,000 spots for the first two years and only increased the target to 1,500 in 2024.
Since there was a federal election in September 2021, the levels plan was delayed and only released in February 2022. (Normally, the Levels Plan is released every Nov. 1.) The next Levels Plan will be released in just over three months, on Nov. 1, 2022. Don’t expect any miracles with processing times regarding the Startup Visa Program in Canada.
Let’s jump into refusal reasons from actual case law and officer refusal notes that have been published in the public domain.
Here are some specific excerpts from the Startup Visa refusal reasons based on case law:
The most recent case law published in 2022 had these mentioned for the PR refusal of the SUV applicant:
*lack of accomplishments and progress completed in the business venture;
*the applicant’s lack of technology experience; and
*lack of evidence to show collaboration with potential partners.
*The officer was concerned by “what appear[ed] to be a lack of seriousness on the part of the applicant”.
*The officer applied paragraph 89(b) of the IRPR and found that the applicant’s primary purpose in entering the commitment with a designated organization was to acquire a status or privilege under the IRPA. The officer therefore refused the application for permanent residence as a member of the Start-up Business Class under IRPR paragraph 98.01(2)(a).
Under the Startup Visa program, all the eligible co-founders of your business can apply for Permanent Residency and a work permit to Canada, including their families. We can help get your Startup Visa! Get a FREE assessment with us, click here.
*The absence of concrete details and information on how the applicant was personally involved in the business since 2017;
*The work completed in Canada: documentation provided by the applicant did not alleviate the officer’s concerns about a lack of seriousness of the applicant. The officer was concerned about a “faulty business model”, lack of research by the applicant and lack of coaching by Designated organization; and
*The applicant failed to show significant progress and seriousness during the incubation period for the business venture and was involved “primarily for the purpose of acquiring a status or privilege under the Act and not for the purpose of engaging in the business activity for which the commitment was intended.”
*Applicants spent only two weeks in Canada, which was contrary to their claim that there were urgent business reasons for them to come to Canada, and that the business would be working with its incubator in ___[X]___ city.
*The startup business failed to sign any partnership agreements, which was contrary to the Applicants’ claim it was working with entities in the specific Canadian industry.
*There was a lack of evidence that the Startup business acquired customers willing to pay for its services or generate revenue.
*There was a lack of evidence that Startup business diligently pursued a project with the partners it had identified
*The Officer concluded that the Applicants’ contention that they cannot restart their “Go-Forward plan” until they land in Canada seemed “inconsistent with the actions of a person whose primary intent is to develop the business described in the commitment certificate”.
If you’re endorsed (Letter of Support) by an angel investor, incubator, or VC – it’s all the same for IRCC. Whether you have 1 person or 5 – it won’t matter as much as the progress and authenticity of the Startup.
The applicant needs to be proactive and invest time, effort, and money into their Startup otherwise, they are a sitting duck.
We can support you through the process of the Startup Visa! Let the experts help you. Get a FREE assessment with one of our licensed immigration consultants. Click here.
“The applicant has applied under the Startup Visa Program and has provided a letter of support from a designated entity. However, the letter of support does not provide any details on the nature of the business or the anticipated benefits. It simply stated that the founders of the company would like to initiate connections with industry stakeholders in Canada.
“Therefore, I am not satisfied that the applicant has demonstrated a significant benefit to Canada nor that there exists an urgent business need to travel to Canada. Weighing the factors in this application, I am not satisfied that the applicant will depart Canada at the end of the period authorized for their stay”.
You need to refer to the ‘genuine job offer’ Immigration regulations. As well as the ‘significant benefit’ clauses in the regulations and economic immigration programs which are the core foundation of why Canada is accepting these applicants such as the Startup Visa or other business immigration programs.
*You cannot get a full-time job with another employer.
*You cannot withdraw as an essential member of your group (it would cancel the whole group) although you can withdraw as an entire group together.
*You can apply through Express Entry and if you do receive an ITA, then withdraw your SUV application and just go through the fast-track PR processing with Express Entry.
*You can also apply through other PR programs, but they are all quite slow except for family sponsorship and Express entry as well as the TR to PR pathway, so it would defeat the point of withdrawing your PR application under the SUV program to go into another long queue such as the Provincial Nominee Program (PNP).
*You could study part-time while you are here on your wp to Canada.
*You could be an international student while you apply for your Startup Visa PR as well, but the onus is on you to prove that you were completely committed and working on your Startup and your true intentions – and potentially if the subject was related to your Startup.
Here are a few hacks that you can use while you’re waiting for your PR under the Startup Visa program.
*Enter Canada with a work permit, and gain 50 bonus points in the Express Entry from giving yourself a job offer from your own Startup company (LMIA exempt).
*Have your spouse on the payroll of your Startup company so he or she can gain Canadian Work Experience and enter the CEC pool of Express Entry, which we believe will have a lower point threshold by next year this time.
*Enter Canada with your partner or spouse and find full-time employment with another company, convert to an LMIA based work permit inside Canada, and withdraw your SUV PR application (only if you are 1 single founder or non-essential member of your SUV group).
*Enter Canada, and then either you or your partner/spouse apply for a Masters’ graduate stream in either BC, Ontario, or Newfoundland which will give you direct PR after graduation (BC and Newfoundland) or PNP points pool (Ontario). The reason we suggest this is because it’s 99% assured you will be approved for a Study Permit from inside Canada vs the overseas embassy if you are a mature student with a big education gap. We don’t recommend the founder or co-founder of the SUV group to do this unless they withdraw their PR application and they are a single (1) founder or non-essential member of the SUV group.
*Enter Canada with your spouse/partner, and have them on an open work permit. Inside Canada convert your spouse/partner to a closed work permit after they either find an employer to hire them or set up their own company. This is in order to receive independent status inside Canada as the main SUV founder. Just in case your SUV application is refused, you can always hop over to your spouse/partner’s status and obtain an open work permit. Voila! It’s possible, you just need somebody with the sufficient knowledge to help you along the way.
If you’re thinking about immigrating to Canada through Startup Visa, Work permits, Masters Graduate Programs with a direct path to PR, LMIA, or any other Business immigration program, you’re at the right place! We are licensed in Canada, and we help applicants like yourself and your families. Get a FREE assessment with us, fill out the form, click here.
