Canada Shuts Down the Start-Up Visa Program for Entrepreneurs

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Canada will stop accepting Start-Up Visa (SUV) applications for entrepreneurs as of December 31, 2025, the Ministry of Immigration, Refugees and Citizenship Canada (IRCC) reported. The decision effectively brings an end to a popular program that was initially positioned as a fast-track route to permanent residence within six months, but in practice resulted in waiting times exceeding ten years.

Reasons for the changes

The formal reason is system overload. By October, the backlog of unprocessed Start-Up Visa applications had reached 43,200, more than double the level that had already forced government intervention a year and a half earlier. In April 2024, Ottawa introduced a cap of no more than ten applicants per start-up from each designated organization. At that time, official processing times stood at 37 months, but within six months they had increased to more than ten years, despite the restrictions.

The waiting-time timeline clearly illustrates the scale of the problem. Applications submitted in 2020 were, as of October 2025, approximately one month away from completion. For 2021 applicants, the remaining processing time was around 37 months. Meanwhile, those who applied in 2022 and later effectively found themselves in a queue with projected processing times of ten years or more. Such disparities within a single program undermined confidence in it as a predictable immigration pathway.

Reform nuances

The program’s winding down began earlier. As of December 19, IRCC stopped accepting work permit applications from new SUV candidates, IMI Daily notes. At the same time, extensions for entrepreneurs already in the country on Start-Up Visa–linked permits will continue to be processed. This approach allows authorities to “close the entry gate” gradually without creating additional legal uncertainty for those already integrated into the Canadian economy.

An exception has been made for a narrow group of applicants. Entrepreneurs who received valid letters of support from designated organizations in 2025 will be able to submit permanent residence applications until June 30, 2026. For all others, the federal Start-Up Visa pathway will be closed. In parallel, IRCC has extended indefinitely the pause on the Self-Employed Persons Program, which was suspended in April 2024.

Entrepreneurial immigration to Canada is not coming to a complete halt. Alternative business pathways remain available in the following areas:

— Provincial Nominee Program (provincial entrepreneur streams)
— C11 category work permits
— Intra-Company Transfer work permits
— Rural and Community Immigration Pilot for small and rural communities.

Expert reactions

Market participants are divided over the future of the SUV. Slava Apel, CEO of StartUp Visa Services, views the move as a temporary pause rather than a final shutdown. He draws parallels with Quebec’s Immigrant Investor Program, which was reopened in 2025 after years of suspension, and expresses hope that federal authorities may follow a similar path. In his view, the program was strong in concept but requires a relaunch.

A more skeptical stance is taken by Afshin Sarhangpour, Director of Canada at Beyond Global Partners. He does not expect the Start-Up Visa to reopen in 2026 and believes IRCC may move to close a large number of cases on formal grounds to reduce the accumulated backlog. In his assessment, the end of the program marks the close of an entire era. The so-called “golden era” of the SUV, when it was seen as a relatively accessible—albeit slow—route to permanent residence for entrepreneurs with a solid business plan, has come to an end. Going forward, priority will shift from quantity to quality, with a focus on founders already in Canada who can demonstrate immediate and measurable economic impact.

The government has confirmed plans to launch a new pilot program for immigrant entrepreneurs in 2026, but has not yet disclosed eligibility criteria, processing capacity, or application procedures. In official comments, IRCC emphasizes that the changes align with its sustainable immigration levels strategy and the broader Talent Attraction Strategy, which предполагает more targeted selection.

Immigration plan

Under Canada’s 2026–2028 Immigration Levels Plan, the country provides for priority processing of permanent residence applications from Start-Up Visa participants already working in Canada. For the federal entrepreneur stream, an indicative target of 500 admissions per year has been set, with actual numbers potentially ranging from 250 to 1,000 depending on the implementation scenario.

Against this backdrop, figures from previous years appear significantly higher. In 2023, the approval rate for Start-Up Visa applications stood at around 60%. In 2024, it rose to 75%, while the total number of accepted applicants, including family members, reached 7,635. This contrast highlights Ottawa’s shift from mass intake toward a tightly capped and more selective model of entrepreneurial immigration.

Authorities are prioritizing economic immigration as the main channel for attracting new permanent residents, with preference given to those already in the country and active in the labor market. At the same time, the government aims to reduce the share of temporary residents in the population and stabilize pressure on infrastructure. Provinces and regions will play a greater role in implementation, receiving expanded powers to select candidates in line with local economic needs. Particular emphasis is placed on supporting regional development and Francophone communities outside Quebec.

Analysts at International Investment note that these developments reflect a shift toward a more controlled and targeted immigration model. Overall, the strategy seeks to reduce quantitative pressure and move toward formats that deliver tangible economic contributions from migrants. Canada continues to maintain a target of more than 500,000 new immigrants per year, meaning entrepreneurs remain within the government’s scope of interest, but the rules of the game are becoming stricter.