The Start-Up Visa (SUV) Program has long been a cornerstone of Canada’s innovation-driven immigration system, offering permanent residency to entrepreneurs who secure support from designated incubators, venture capital firms, or angel investor groups.
However, the recently introduced Bill C-12 may significantly alter the way Immigration, Refugees and Citizenship Canada (IRCC) manages these applications — raising concern among business incubators and foreign founders alike.
Understanding Bill C-12
Introduced in Parliament in October 2025, Bill C-12 is part of a broader modernization effort that gives IRCC greater discretion to pause, limit, or terminate processing of certain immigration application streams when deemed necessary for system efficiency.
While the legislation’s stated goal is to help the government control application backlogs and focus on high-demand programs, it may also empower IRCC to cap or suspend SUV applications — including those submitted through designated incubator organizations.
Potential Impact on the Start-Up Visa Program
The proposed changes could affect thousands of pending applications under the business incubator stream, many of which involve international entrepreneurs awaiting decisions after months or years of processing.
Key potential impacts include:
- Application freezes: IRCC could temporarily halt intake or processing if it determines that incubator submissions exceed capacity or program limits.
- Stricter oversight: Business incubators may face closer scrutiny to ensure that supported ventures are genuine and economically viable.
- Longer processing times: Prioritization of other immigration streams could slow SUV approvals further.
- Reduced predictability: Entrepreneurs planning relocation to Canada under the SUV pathway may find it harder to project timelines or secure investor confidence.
Why This Matters for Entrepreneurs and Incubators
The Start-Up Visa has been a gateway for global innovation talent, attracting founders who establish high-potential companies in Canada and generate local employment.
If Bill C-12 passes in its current form, it could disrupt this momentum by:
- Introducing uncertainty for pending applicants,
- Limiting opportunities for early-stage entrepreneurs, and
- Creating administrative challenges for designated incubators managing multiple active portfolios.
Canadian innovation hubs, business organizations, and immigration professionals are closely monitoring the bill’s progress to evaluate its potential impact on economic development and the global perception of Canada as a destination for start-ups.
Preparing for Policy Shifts
Applicants and incubator partners should take proactive steps now:
- Stay informed about Bill C-12’s progress through official IRCC and parliamentary updates.
- Ensure documentation and compliance are up to date for all pending SUV cases.
- Work with immigration counsel to explore alternate pathways — including Provincial Nominee Programs (PNPs) or other entrepreneur streams — if processing delays occur.
- Communicate transparently with investors and partners about potential policy impacts.
While program modernization can improve efficiency, it’s critical that any reforms balance administrative control with Canada’s commitment to fostering global innovation and entrepreneurship.
Our attorneys assist both entrepreneurs and incubator organizations in navigating evolving regulations, safeguarding pending applications, and exploring alternative immigration strategies.
FAQ – Bill C-12 and the Start-Up Visa Program
Q1: Does Bill C-12 cancel existing Start-Up Visa applications?
Not at this stage. The bill has not yet passed, but it could grant IRCC the power to limit or suspend processing if needed.
Q2: Will this affect all SUV categories?
The primary concern is for business incubator-supported applications, which currently make up a large portion of SUV cases.
Q3: What should applicants do now?
Monitor official announcements, maintain compliance, and seek legal advice to prepare for potential program adjustments.
Contact Information
If you or your family members have any questions about how immigration and nationality laws in the Canada may affect you, or if you want to access additional information about immigration and nationality laws You can reach us by emailing info@visaserve.ca or by calling us at +1 905-203-2266 .We also invite you to visit our website at www.visaserve.ca/contact for more information.
