Canada Announces Changes to Start-up Visa Work Permits

Canada recently announced significant updates to its Start-up Visa (SUV) Program, including the discontinuation of new work permit applications and the suspension of new permanent residence intake, marking a major shift in the country’s approach to attracting entrepreneurial talent. These changes are part of a broader shift in Canada’s business immigration policy in the 2026-2028 Immigration Levels Plan and reflect Ottawa’s efforts to simplify the process and better align immigration programs with economic priorities.

As a founder, investor, or immigration planner, it is essential to stay informed about these developments. Here’s the difference, and how it impacts you, and how to manoeuvre through the new world order.

What Has Changed – A Summary of the New Rules

• Start-Up Visa Optional Work Permits – Closed to New Applicants

Immigration, Refugees and Citizenship Canada (IRCC) ceased accepting new applications for the optional work permit under the Start-Up Visa Program as of December 19, 2025. These permits previously allowed founders to move to Canada to establish their businesses while awaiting their permanent residence applications. 

The only exception is for entrepreneurs already in Canada with an SUV work permit who require an extension of their existing license until their permanent residence file is processed.

• Permanent Residence Intake – Ending This Year

IRCC has confirmed that no further Start-up Visa permanent residence applications will be accepted after 11:59 p.m. EST on December 31, 2025, except for limited exceptions. 

Applicants who already have a valid 2025 commitment certificate obtained through one of the approved incubators, angel investor groups, or venture capital funds may also be subject to a transitional filing window, typically ending on June 30, 2026. After that, no additional SUV applications will be processed.

Why These Changes?

These measures are aligned with other policy objectives such as:

• Reducing application backlogs — The SUV process had accumulated tens of thousands of cases, and some had processing times exceeding a decade.
• Aligning business immigration with Canada’s economic strategy in the 2026-2028 Immigration Levels Plan.
• Shifting towards more focused entrepreneurial directions with more quantifiable economic contribution.

How These Changes Affect Entrepreneurs

• For Current Applicants With Pending Files
  

In case you have already provided a Start-up Visa application before the dates of closure:

1. Your application will still be processed under the current framework.
2. If you have a valid work permit tied to an SUV file, you may be eligible for extensions while waiting for permanent residence.

This is significant transitional protection, as it means that founders already in the system are not left without stature or forced to leave Canada while a decision is being made.

• For New Aspirants Planning to Apply

Unless you have already begun your Start-up Visa application before the end of 2025:

1. You are unable to apply for a new work permit under the SUV Program.
2. There is no option to reapply to obtain permanent residence under the SUV stream after December 31, 2025.
3. If you plan to move to Canada, you may need to consider alternatives, such as other temporary work permits or provincial business streams.

This reorganization sabotages the long-term planning of many founders who envisioned the SUV Program as a sure way to Canada. The new policy environment will require entrepreneurs to recalculate their plans and timetables.

What’s Next: The New Entrepreneur Immigration Strategy

Although Ottawa has not yet released complete information, IRCC has indicated that a new, more focused entrepreneur pilot program will be introduced in 2026. This modern-day program will:

• Target founders already in Canada, especially those with traction or economic impact.
• Consider implementing more transparent performance standards or industry-focused initiatives aligned with strategic sectors such as AI, clean technology, and life sciences.
• Provide a more direct, results-oriented path to permanent residence compared to the previous one.

Information remains incomplete, and no official requirements, quotas, or schedules have been published. Updates on IRCC should be monitored by entrepreneurs and representatives regularly.

Practical Tips for Affected Founders

In case you have plans that are affected by recent policy changes, the following are some of the practical steps to be taken into account:

• Find Expert Advice Much Earlier
  Immigration and business strategies have become increasingly complex. Professional counselling can assess the feasibility of alternative work permits or relocation.

• Check the Deadlines of Applications
  When you have a valid commitment certificate of an applicable organization, you must have a clear understanding of any transitional filing deadlines (including the mid-2026 window) that might still be in place.

• Investigate other Canadian Work Permits
  There are other avenues founders may pursue while waiting to become an entrepreneur pilot: intra-company transfers, the Global Talent Stream, or provincial business nominee programs.

• Follow Up IRCC Announcements
  2026 is proving to be a critical year for business immigration policy. The opportunities for international founders may expand under new rules, but you need to stay prepared.

Conclusion

The termination of the Start-up Visa work permit stream and the discontinuation of new permanent residence applications represent a major policy change in terms of how Canada treats entrepreneurial immigration. Although this shift might seem sudden, it demonstrates the intention to reduce backlogs and create new routes focused on economic needs.

For investors and founders, it is now all about clarity, strategy, and preparation. Regardless of whether you are working within an existing application or exploring alternative paths, an early move and informed decision-making will become imperative in the coming months.

If you are looking for assistance with these changes and how they affect your case, Kurzfeld Law Firm is here to help with a nuanced approach to immigration matters that is most important during this phase of policy transition.

FAQs

1. Am I still eligible to apply for a Start-up Visa work permit?
   No. Canada is no longer accepting new Start-up Visa work permit applications. Existing permit holders are the only people who may seek extensions while awaiting their permanent residence applications.
2. Will my pending Start-up Visa application be denied due to these changes?
   No. Applications received before the program ends will still be processed under the prior rules, provided all eligibility requirements were met at the time of application.
3. Are there any exceptions regarding the Start-up Visa closure?
   Limited transitional exceptions apply to applicants with a valid commitment certificate issued in 2025, who must submit the first application, subject to IRCC’s transitional policies and strict filing deadlines.
4. Am I able to renew my Start-up Visa working permit?
   Yes. One of the criteria allows entrepreneurs who already hold a valid Start-up Visa work permit in Canada to obtain an extension while awaiting a final ruling on their permanent residence application.
5. What are the options for entrepreneurs who missed the Start-up Visa deadline?
   Depending on their business structure and experience, entrepreneurs can pursue alternatives, such as intra-company transfers, Global Talent Stream work permits, or provincial business immigration programs.
6. Will Canada have a new entrepreneur immigration program?
   Yes. In 2026, the government plans to launch a new pilot program for entrepreneur immigration, focused on specific industries for measurable economic impact.