Canada’s Start-Up Visa Program Expands: Open Work Permits Now Available

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LMIA.ca Editorial

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The Canadian government has introduced an important update to the Start-Up Visa (SUV) Program. On October 3, 2024, Immigration, Refugees and Citizenship Canada (IRCC) announced that entrepreneurs applying through this program can now apply for an open work permit. This change allows eligible business owners to work for any employer in Canada for up to three years while they build and grow their business.

What Has Changed?

Prior to this update, entrepreneurs were limited to a closed work permit, which allowed them to work solely within their own start-up. This restriction posed challenges, especially for those who needed additional income to support themselves or fund their business. Now, with the new open work permit option, entrepreneurs have the flexibility to take on other employment while they work to establish their business. This change aims to provide applicants with greater financial security and flexibility in Canada.

Eligibility for the Open Work Permit

To qualify for the new open work permit, applicants must meet specific criteria:

  1. They must have applied for permanent residence through the Start-Up Visa program.
  2. They must have received an Acknowledgment of Receipt (AOR) letter from IRCC.
  3. They must provide documentation to demonstrate they meet additional eligibility guidelines outlined on the Government of Canada’s website.

Note: Applicants intending to live in Quebec are not eligible, as the Start-Up Visa program does not operate in Quebec.

What If You Applied Before October 3, 2024?

If you submitted an application to the SUV program before October 3, 2024, and received a closed work permit, you still have the option to apply for the new open work permit. To do so, you will need to:

  1. Reapply online for the open work permit and provide necessary documentation, such as your AOR letter, proof of funds, and a medical examination.
  2. Withdraw your previous closed work permit application.

If your previous closed work permit application has not yet been processed, IRCC will refund the $155 processing fee. It’s important to apply for the open work permit before withdrawing your closed work permit application, to maintain your authorization to work in Canada without interruption.

Financial Requirements for the Open Work Permit

To be eligible for the open work permit, applicants must show that they have sufficient funds to support themselves and their family for at least one year while they live in Canada. This amount is separate from funds that are intended to support their business. The Government of Canada has provided minimum financial requirements based on the size of the applicant’s family:

  • 1 family member: $29,380
  • 2 family members: $36,576
  • 3 family members: $44,966
  • 4 family members: $54,594
  • 5 family members: $61,920
  • 6 family members: $69,834
  • Each additional family member beyond 6: +$7,916

Applicants can use various forms of documentation to demonstrate these funds, including liquid cash, assets, or other capital payable to them, as well as documents that guarantee payment of a specified amount.

Benefits for Family Members of SUV Candidates

If you are a candidate in the Start-Up Visa Program, your spouse or common-law partner can also apply for an open work permit, enabling them to work in Canada while you pursue your business goals. Additionally, any dependent children are eligible to apply for study permits, allowing them to attend school in Canada.

How to Apply for the Open Work Permit

Applications for the open work permit must be submitted online, along with the required documentation and applicable fees. To avoid delays, ensure that all forms and documents are completed accurately and thoroughly. For guidance on preparing your application, understanding eligibility requirements, or support in gathering the necessary documentation, be sure to review the detailed guidelines provided by the Government of Canada.