Expatsi

Canada / Business

Canada's Start-up Visa Is Paused

IRCC stopped taking applications on June 30, 2026 and promised a new entrepreneur pilot instead. Here is where that leaves American founders.

If you came here to apply, you can't right now. Canada closed the Start-up Visa to new applicants at the end of 2025 and paused it outright on June 30, 2026, with roughly 43,000 applications still in the queue. Ottawa says a smaller, pickier entrepreneur pilot is coming. Until it lands, there are still real ways for an American to start a business in Canada, and one of them exists only because you hold a U.S. passport.

Take the Expatsi Test
Canada's Start-up Visa Is Paused

Program status, checked September 15, 2026

IRCC's own page reads "Status: Paused." Designated organizations stopped issuing commitment certificates after December 31, 2025, and holders of a valid 2025 certificate had until June 30, 2026 to file. Anything accepted before that date is still being processed. No reopening date has been published.

Ottawa hit pause on its own startup program

What happened

Ottawa hit pause on its own startup program

The Start-up Visa promised founders permanent residence in about six months. By late 2025 the queue had passed 40,000 people and IRCC's wait-time tool was quoting new applicants more than ten years.

So on December 19, 2025, the immigration department stopped the intake. Start-up work permits ended that day, applications ended on December 31, and holders of a 2025 letter of support got six months to file. When that window closed, the program went dark.

The good news is that nothing already filed was thrown out. IRCC says it will keep working through the files it has, and founders already in Canada on a start-up permit go toward the front of the line.

The numbers behind the pause

June 30, 2026

Last day IRCC accepted a Start-up Visa application

no new intake since

500

Federal business immigration spots for 2026

cut from 1,000 under the previous plan

43,000

Applications still sitting in the queue

IRCC says it will keep processing them

$54,000

What an angel group had to commit

CAD 75,000, or CAD 200,000 from a fund

The old rulebook

What the program asked for, and probably will ask again

What the program asked for, and probably will ask again

A Canadian backer had to say yes first

IRCC never judged your business idea. A designated organization did: a venture capital fund, an angel group or a business incubator, picked off a public list of more than 70. Once one wrote you a letter of support, the innovation question was settled.

The money was theirs, not yours

There was no personal investment requirement. A fund had to commit CAD 200,000 (about $144,000), an angel group CAD 75,000 (about $54,000). An incubator put in nothing and simply accepted you into its program.

You still had to arrive with cash

One person needed CAD 15,263 (about $10,980) in settlement money, a family of four CAD 28,362 (about $20,400), none of it borrowed.

The rest was gentler than people expect

Canadian Language Benchmark 5 in speaking, listening, reading and writing. Up to five founders per business, each holding at least 10 percent of the voting rights, with the founders and their backer together holding more than half.

  • Quebec was always carved out. The program covered businesses everywhere else in Canada.
  • Each designated organization could only send IRCC 10 group applications a year, a cap in force since April 2024.

Start-up Visa

For entrepreneurs with a viable business idea supported by a designated Canadian organization. Leads to permanent residence if the business is established in Canada.

Government cost
$1,575
Processing time
~365 days
Timeline
12 months or more
Difficulty
Moderate

Key requirements

  • Qualifying business
  • Letter of support from designated organization
  • Proof of funds
  • Clean criminal record
  • Medical exam

About that data card

The card above pulls from our database, and two of its numbers have aged out. The government fee has been CAD 2,495 (about $1,795) for one adult since April 30, 2026. The 12 month timeline belongs to a version of this program that stopped existing years ago. Files in the queue have been quoted anywhere from 40 months to more than a decade.

What to do now

The routes American founders are using instead

The CUSMA investor work permit

This one is yours alone. Under the Canada United States Mexico Agreement, a U.S. citizen who puts substantial money into a Canadian business and comes to run it can get a work permit with no labor market test attached. There's no fixed dollar minimum; an officer weighs what you put in against what a business like yours costs to start.

U.S. citizens have to hold at least half the company, and you can ask for the permit at a border crossing or airport. It runs a year at a time and renews while the investment stands. Green card holders don't qualify because citizenship is the test.

The C11 work permit

Same idea, open to any nationality: own and run a Canadian business that brings a real benefit to Canada. IRCC tightened it in 2025 around majority ownership and temporary intent, so treat it as permission to build, not a residence plan.

A province, then permanent residence

Most provinces run their own entrepreneur streams, and that is where founders on a work permit go for status. Expect a net worth test, a real investment, and a commitment to settle in that province. Ontario shut its stream in 2026, so check before you plan around one.

Or skip the founder route

If your own resume scores well, Express Entry and the Provincial Nominee Program are open, faster and far cheaper. Plenty of people land residence on their work history and start the company after.

Worth an hour with someone who does this daily

A paused program is exactly when advice pays for itself, because the right answer now depends on your passport, your business and how much of it already exists. These three partners work with Americans heading to Canada: a licensed consultant for the strategy, a documents specialist for the paperwork, and a U.S. tax firm, because a citizen who owns a foreign company keeps filing at home.

Visas and immigration
Master Immigration Services (Canada)

Master Immigration Services (Canada)

Canada Immigration

A Vancouver consultancy led by Sal Koyuncu, a regulated Canadian immigration consultant with more than 15 years on Canadian files. The first call worth making about which permit your business actually fits.

Documents and checks
Legalize That Doc

Legalize That Doc

Document Preparation

Melissa Di Nardo's team handles US and Canadian vital records, FBI background checks, apostilles and translations. Every Canadian route wants police certificates and clean paperwork, and that is the part founders underestimate.

U.S. taxes
MyExpatTaxes

MyExpatTaxes

U.S. Expat Tax Service

A tax practice built for Americans abroad. Worth talking to before you incorporate in Canada rather than after, since the structure you pick follows you onto your U.S. return.

Questions founders are asking right now

What can an American entrepreneur do instead?

The most American-specific route is the CUSMA investor work permit, open only to US and Mexican citizens who invest substantially in a Canadian business and come to run it. There is no fixed minimum investment, US citizens have to hold at least half the business, and Americans can apply at a port of entry. The C11 work permit covers owners of any nationality whose venture brings a real benefit to Canada. For permanent residence, provincial entrepreneur streams, Express Entry and the Provincial Nominee Program are all still open.

Can I get the Start-up Visa open work permit?

Not as a new applicant. IRCC stopped accepting applications for that optional work permit on December 19, 2025. People already in Canada holding a start-up work permit may still apply to extend it while their permanent residence application is processed.

Is Canada's Start-up Visa still open in 2026?

No. Immigration, Refugees and Citizenship Canada stopped accepting new Start-up Visa applications after December 31, 2025, and paused the program on June 30, 2026, once the last holders of 2025 letters of support had filed. IRCC's own program page now shows the status as paused, with no date for reopening.

What happens to a Start-up Visa application already in the queue?

It stays alive. IRCC has committed to keep processing applications accepted before the pause, roughly 43,000 of them. Files are worked in priority order, with applicants already in Canada on a start-up work permit moved up. Quoted waits have ranged from about 40 months to more than ten years, so anyone with a pending file should keep the business genuinely running and documented.

Did the Start-up Visa require you to invest your own money?

No, and that was the unusual part. The capital had to come from a Canadian designated organization: at least CAD 200,000 from a venture capital fund or CAD 75,000 from an angel investor group, while a business incubator could support a founder without investing anything. Applicants still had to show unborrowed settlement funds of their own, CAD 15,263 for a single person as of the last published table.

Did the Start-up Visa work in Quebec?

No. The federal Start-up Visa was for businesses outside Quebec. Quebec selects its own business immigrants under its agreement with Ottawa and runs separate entrepreneur and investor programs with their own rules, so a Montreal or Quebec City venture was never a fit for this program.

What is replacing the Canada Start-up Visa?

IRCC has said it is designing a new, targeted pilot for immigrant entrepreneurs, with details to come in 2026. As of September 2026 no program name, eligibility rules, intake size or launch date has been published. Canada's 2026 to 2028 levels plan sets federal business immigration at 500 spots a year, down from 1,000, so the replacement is expected to be much smaller and more selective.

Still set on leaving? Start with the map.

Take the Expatsi Test and see which countries actually fit your business, your budget and your family.

Why not you?

Take the Expatsi Test