Canada Start-up Visa vs PNP: Why the SUV Stands Out Among Business Immigration Options
July 22, 2024 · Start-up Visa · 11 min read
Recent announcements and rule changes across Canada’s investment migration programs have left many investors uncertain about their relocation plans. This Canada Start-up Visa vs PNP comparison sets out where each program currently stands, giving you a clearer basis for choosing the route that fits your family.
Two Canadian investment migration routes are widely used today: the Start-up Visa (SUV) and the provincial entrepreneur streams of the Provincial Nominee Program (PNP). The Start-up Visa is a direct route to permanent residence (PR) for the whole family, while provincial entrepreneur streams require the investor to first complete a business phase in the province (a temporary residence period) before applying for PR. Both programs attract investors from around the world. Recently, however, they have been rolling out a series of changes to tighten their rules and make immigration policy more effective, as high immigration levels put pressure on Canada’s infrastructure and housing. Investors need an accurate picture of the current rules to choose the right program and make sound decisions for their family’s plans.
Provincial entrepreneur streams face one headwind after another
In February 2024, the Ontario Immigrant Nominee Program (OINP) Entrepreneur Stream closed without any official announcement. Ontario is Canada’s largest province and its economic engine.
In March 2024, the Saskatchewan Immigrant Nominee Program (SINP) Entrepreneur category also announced new rules to tighten its requirements, including English proficiency equivalent to IELTS 5.0 (previously not required), a mandatory in-person exploratory visit to the province, in-person interviews for applicants, and a minimum business operating period of 12 months (previously 6 months), among others.
British Columbia, another major Canadian province, also issues very few invitations to entrepreneur candidates. In addition, reaching the minimum qualifying score requires a substantial investment (potentially up to C$1,000,000) and a commitment to invest and live in areas far from major centers, which makes the program highly selective.
Prince Edward Island (PEI) has long been seen as having more accessible rules for work permits and nominations for permanent residence (PR) than other Canadian provinces, and as the only province with a monthly draw schedule. Recently, however, it has shown signs of tightening. The July 19, 2024 draw was the first since March 2024, with a minimum score of 105 points — relatively high compared with an average of around 80 points in earlier draws.
The provincial government says it is slowing the pace of immigration so that infrastructure and public services can keep up with a growing population. In 2024, PEI will cut its PR nominations by 25%, from 2,120 to 1,590, including nominations for skilled worker streams, with a focus on sectors facing labor shortages such as health care, construction, and manufacturing.
PEI PR nominations by sector in 2024
Provinces are clearly focusing more on workforce immigration streams, especially in critical sectors, to address labor shortages and support sustainable long-term growth. Investment streams remain important and continue to operate, but their requirements are complex and suit only a small number of investors with a particular profile. In the current climate, the options for Canadian investment migration through provincial entrepreneur streams are relatively limited — only PEI remains realistically viable — and are unlikely to meet the needs of most investors.
Start-up Visa: a promising route for investment migration in Canada
The Start-up Visa (SUV) has emerged as one of the strongest Canadian investment migration options thanks to the distinct advantages it offers. Although applicants must demonstrate English proficiency equivalent to IELTS 5.0, the Start-up Visa is a federal program that allows the applicant and their family to apply directly for permanent residence (PR), without the temporary residence phase required by provincial entrepreneur streams. Investors are also free to choose the province where they wish to live, including major cities such as Toronto or Vancouver, without the restrictions that apply under provincial programs.
Investors need an innovative start-up idea that an organization designated by the Government of Canada agrees to support. This is a significant challenge, but it also opens up opportunities for a much wider range of investors. Designated organizations focus on the business idea and the investor’s entrepreneurial capability, with no requirement to prove total net worth, source of funds, or revenue.
The SUV has also become more competitive since the Government of Canada recently introduced a new rule limiting the number of start-ups each designated organization can support to 10 per year. Even so, the number of Canadian immigration applications accepted and processed under the SUV is far higher than under provincial entrepreneur streams.
IMM Group offers a Canada SUV advisory package from approximately US$166,000. Our experienced team in Canada supports investors in refining and executing their start-up idea, working with the designated organization, and developing the start-up company in Canada, with the aim of improving the application’s prospects of approval. Rather than working through the criteria for a qualifying start-up idea on their own, investors coordinate with and follow guidance from IMM Group and its partners throughout the start-up’s development, through to the permanent residence stage.
It is not only Canada: other developed countries are also signaling further reforms to tighten and improve their national immigration policies. Investors should therefore identify a program that suits them and still offers clear advantages and opportunities. At present, the Start-up Visa is the strongest Canadian option for investors to consider while its current rules remain in place.
| See full details of Canada’s Start-up Visa program
If you are interested in Canada’s Start-up Visa program, contact IMM Group or leave your details below. Our experienced advisors will provide detailed guidance and help assess your application’s prospects. We are committed to keeping your personal data confidential and will use the information you provide only to advise on your family’s case.
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