Canada suspends Start-Up Visa as entrepreneurs face 10-year PR waits

Canada has halted new Start-Up Visa applications and work permits as it prepares a targeted entrepreneur pilot expected in 2026

Canada is pausing parts of its business immigration system as it prepares the ground for a new pilot for immigrant entrepreneurs.

 

On December 19, Immigration, Refugees and Citizenship Canada said it would no longer accept applications for the optional work permit available to Start-Up Visa applicants. The only exception is for those already in Canada who are applying to extend their existing Start-Up Visa work permit.

 

The department also said it will stop accepting new Start-Up Visa applications from December 31 at 11.59 pm.

 

There is a limited exception. Applicants who already have a valid commitment from a designated organisation issued in 2025, but who have not yet applied, will still be able to submit an application. Those applicants must apply by June 30, 2026.

 

Why is Canada reviewing the Start-Up Visa programme?

 

Last month, in response to a query from Business Standard, IRCC said it was re-examining the Start-Up Visa 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.

 

The Start-Up Visa programme came under scrutiny in 2025 over long processing times.

 

A tool launched earlier this year to estimate processing timelines showed that some entrepreneurs faced waits of up to ten years to become permanent residents through the programme. Several startup founders chose to leave Canada after years of waiting.

 

One of them was Maulik Pandya, chief executive and founder of Eatance, who announced on LinkedIn that he was leaving the country 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,” Pandya wrote.

 

“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 bureaucratic hurdles affected his daughter’s education and the future of his company. He said he continued to lose 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 said he is 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.

 

How are founders being affected by the pause?

 

Pandya’s post drew responses from hundreds of founders who said they were facing similar problems. Many Indian entrepreneurs moved to Canada expecting to build companies, raise capital and secure permanent residency for their families. Instead, many now say they are stuck.

 

• Some say they are unable to scale their businesses

• Others say they cannot travel freely

• Some say they are unsure how long they can remain in Canada

 

What is the government’s reasoning for the move?

 

The federal government said the measures were introduced in part to “help address the large inventory of applications for Canada’s business programs”.

 

It also said the changes support the country’s Talent Attraction Strategy, announced in the latest Immigration Levels Plan.

 

IRCC said it will extend the pause on new applications under the Self-Employed Persons Program until further notice. That programme has been paused since April 30, 2024.

 

What is known about the new entrepreneur pilot?

 

The federal government said the current changes are part of a “transition to a new, targeted pilot program for immigrant entrepreneurs”.

 

Details of the new pilot are expected to be announced in 2026.