Canada's start-up visa: How delays push Indian founders to breaking point

Canada's Start-up Visa backlog has swelled to more than 43,000 applicants, leaving many Indian founders facing decade-long waits, stalled business plans and growing uncertainty over settlement

Don't want to miss the best from Business Standard?

Broken promises, shattered dreams. The reality of Canada’s Start-up Visa (SUV) programme came into view last month after an Indian-origin entrepreneur running an artificial intelligence-powered foodtech platform in Toronto decided he had had enough. Maulik Pandya, the chief executive and founder of Eatance, announced on LinkedIn that he was leaving Canada after what he described as a daily battle with “a new trap from the Canadian system”.

 

“We are leaving Canada. We made this decision through tears. We are dissolving our beautiful nest we built with love as a family of four with two wonderful daughters,” wrote Pandya.

 

“We did not come to this lightly. We have spent many sleepless nights, cried and watched our mental health and physical health fade,” he added.

 

Pandya said his family’s journey came undone due to bureaucratic hurdles that spilled over into his daughter’s education and his company’s future. He said he continued losing money while paying taxes, creating jobs and contributing to the local economy.

 

“Many countries provide a single window for startups and for businesses. In Canada we met delays and traps. It felt as if our innocent children became targets. That is our lived experience,” he said.

 

He added that he was now planning his child’s education in the UAE or India. “Our decision is simple. We are not asking for anything more. We are closing this chapter and moving forward for the sake of our children and our peace,” he said.

 

Pandya’s post struck a chord with hundreds of founders in similar situations. Many Indian entrepreneurs had moved to Canada with the promise of building companies, raising capital and securing permanent residency for their families. Instead, they now find themselves stuck—unable to scale, unable to travel freely and, in some cases, unsure how long they can stay.

 

What did Canada’s start-up visa promise?

 

The SUV programme was launched as a pilot in 2013. Immigration, Refugees and Citizenship Canada (IRCC) describes it as a route created to “attract innovative entrepreneurs who will create jobs and compete globally.” It became permanent in 2018, replacing Canada’s earlier federal entrepreneur pathway.

 

To qualify, applicants must meet a few core requirements:

 

• Show they have a business.

• Meet a minimum language score.

• Prove they have sufficient settlement funds.

• Secure a letter of support from a designated VC (minimum CAD 200,000 commitment), angel group (CAD 75,000), or be accepted into an incubator.

 

Once the letter is secured, founders can apply for permanent residency. They may also apply for a work permit while their application is processed. Spouses and dependent children are included in the PR application.

 

The route quickly gained traction. Canada’s offer of PR upfront, followed by eligibility for citizenship after three years of residency, created one of the quickest naturalisation pathways in the Commonwealth. With a mix of safety, stability and long-term certainty, the programme drew strong interest from Indian entrepreneurs.

 

Why has the programme slowed?

 

However, the programme has slowed because of its own success. IRCC data show that demand has outgrown processing capacity. As of October 2025, about 43,200 applicants remain in the SUV queue.

 

Founders applying now face estimated waits of more than 10 years. Many applicants who filed their paperwork in 2021 did so under the earlier 12–18-month timelines displayed on official websites.

 

In response to Business Standard’s query on the state of the SUV route, IRCC shared its standard position.

 

“Applicants who submit an application must comply with eligibility and admissibility requirements. Decisions are made by highly trained officers who carefully and systematically assess each application on a case-by-case basis against the criteria set out in the Immigration and Refugee Protection Act (IRPA) and its Regulations,” said Matthew Krupovich, senior communications advisor at IRCC.

 

“IRCC processes Start-up Visa (SUV) applications according to admissions targets in the Immigration Levels Plan (which includes both the Start-up Visa and Self-Employed programmes). When application intake is higher than the available admission spaces, the application inventory grows, leading to longer waits for new applicants,” he said.

 

Why did Indian founders previously choose Canada?

 

For many Indian entrepreneurs, Canada stood out over the United States, the United Kingdom or Australia because it offered a faster path to settlement and smoother access to North American markets.

 

Over the past two decades, Canada’s startup environment has expanded beyond a few regional hubs. Strong universities, public research institutions and government incentives helped build a wider innovation ecosystem. The Scientific Research and Experimental Development (SR&ED) tax-credit initiative—one of the country’s most well-known incentives—reimburses companies for part of their spending on new technologies, giving early-stage founders crucial breathing room.

 

The early 2010s saw companies such as Shopify bring global attention to Canadian tech. Toronto, Vancouver, Montreal, Waterloo and Calgary became centres drawing startups from around the world. As incubators, accelerators and programmes such as the Global Skills Strategy worked to bring in talent, the SUV route added momentum. VC funding surged during the pandemic years before cooling in 2022–24 as markets adjusted worldwide.

 

What comes next for the programme?

 

For now, IRCC says it is examining the SUV programme.

 

“We are reviewing the programmes and exploring options for ensuring that this program selects the best entrepreneurs to drive innovation, competitiveness and job-creation in Canada,” IRCC told Business Standard.

 

If you want, I can continue with data, case studies, policy reactions or what recent reforms may mean for new applicants.