On October 3, 2024, Immigration, Refugees and Citizenship Canada (IRCC) announced a significant policy change for work permits issued through the Start-Up Visa (SUV) program. The change introduces an open work permit for up to three years for entrepreneurs arriving through the Permanent Residence program. Previously, entrepreneurs applying through the SUV pathway could apply for a work permit valid for one year.
The new policy addresses the long-standing issues around lengthy processing times and limited work permit validity periods, bringing relief to SUV applicants. The change promises to make life easier for SUV applicants by offering them more time to work on the early stages of their start-up business and the ability to supplement their income while waiting in line for notoriously long processing times that are now up to 40 months.
What Has Changed?
The duration of the SUV work permit is now extended from one year to up to three years, aligning it with the current processing times for permanent residency applications under the program. This is a significant improvement to the program, as previously, applicants had to frequently renew their work permits while waiting for their permanent residency applications to be processed. The policy is now in line with the reality of immigration timelines, providing applicants with improved stability throughout their immigration journey.
Also crucial is the shift to open work permit. Unlike the previous employer-specific permit, the new policy will enable applicants to work for any employer while simultaneously working on their start-up business. This added flexibility will help entrepreneurs supplement their income and support their families, especially during the most financially challenging stages of their start-ups.
Why Was the Change Necessary?
This change, a facilitation measure, was born out of necessity due to the overwhelming backlog of SUV program applicants that are causing the current multi-year processing times. The misalignment between application volumes and processing capacity within Immigration, Refugees, and Citizenship Canada (IRCC) has left many applicants in limbo, forced to apply for extensions to their expiring one-year work permits.
The IRCC is also acknowledging that start-up entrepreneurs face financial constraints during the initial phases of business development. The change to open work permit will give applicants the opportunity to earn additional income to sustain themselves and their families while building their ventures in Canada.
Benefits for SUV Applicants
- Extended Work Permit Validity: A three-year permit offers much-needed breathing room, allowing entrepreneurs to focus on building their start-ups without the constant worry of permit renewals.
- Open Work Permit Flexibility: Essential start-up founders now have the ability to work for other employers, easing the financial strain and providing greater economic security while their business gains traction.
- Alignment with Processing Times: By matching work permit durations with processing times for permanent residency, the new policy brings stability to applicants and reduces processing burden on the IRCC.
- Streamlined Re-Application Process: Entrepreneurs who applied under the old policy can switch to the new work permit by withdrawing their previous application and reapplying, without jeopardizing their permanent residency application.
A Positive Move for Canada’s Start-Up Ecosystem
This change is more than just an administrative update—it demonstrates Immigration Canada’s commitment to attracting global entrepreneurial talent. By making the SUV program more adaptable and accommodating, the country is sending a clear signal that it values innovation and is willing to evolve its policies to ensure the success of inbound entrepreneurs.
Startup Visa Services works with entrepreneurs around the globe seeking to bring their start-ups to Canada. Our services include business validation, business plan writing, IP protection, projections, marketing, training, websites, interview coaching, market research, post landing support (grants, reporting, marketing, biz dev) and peer review defence. Our main service is getting our clients the Letter of Support in the shortest possible time.
Contact us directly for more information about how these changes will affect your clients.
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