The Impact of Bill C-12 on Pending Start-Up Visa Applications in Canada

Canada’s immigration authority, IRCC, is introducing Bill C-12, a legislative update aimed at streamlining immigration processing, particularly for the Canada Start-Up Visa (SUV) program. The bill gives IRCC broader powers to cancel pending applications across multiple programs, addressing the backlog that has slowed application approvals.

Why Start-Up Visa Applicants Are at Risk

• Thousands of SUV applications are pending, with 42,200 applications currently in the queue (including dependents).
  
  
• Around 80% of designated business incubators fail to meet Ministerial Instructions MI72 (issued April 30, 2024).
  
  
• Applications supported by non-compliant incubators, often from South East Asia, China, and Iran, are particularly at risk of cancellation under Bill C-12.
  
  

Current Processing Issues

• IRCC’s published processing times are not fully reliable for applicants, as they may not reflect delays caused by non-compliant incubators.
  
  
• Even new applicants backed by compliant incubators face theoretical delays that often exceed real processing times.
  
  

Legal Authority and Compliance

• Bill C-12 allows IRCC to suspend or terminate applications, prioritizing program compliance over filing order.
  
  
• Of the 56 designated business incubators, only 12 meet MI72 priority standards. Non-compliant incubators could result in cancellations for their supported applicants.
  
  

Legal Remedies for Affected Applicants

Applicants facing cancellations have limited but available options:

1. Judicial Review: Request a review in Federal Court based on procedural fairness or legal errors.
   
   
2. Reconsideration Requests: Submit new evidence for IRCC to reassess.
   
   
   
3. Filing New Applications: Eligible applicants may submit fresh applications under compliant streams.
   
   
   

Temporary Permits and Early Entry

Applicants who receive early work and residence permits may lose these rights if their permanent residence application is later cancelled due to non-compliance of the supporting incubator.

Potential Expansion to Other Programs

Bill C-12’s framework may later apply to Federal Skilled Worker (FSW) or Provincial Nominee Program (PNP) streams to manage other backlogs.

FAQs

Q1: What is Bill C-12?
A: A law giving IRCC authority to cancel or suspend immigration applications to manage backlogs and enforce compliance.

Q2: Why are Start-Up Visa applicants particularly affected?
A: Many applications are tied to incubators failing MI72 standards, making them susceptible to cancellation.

Q3: How many SUV applications may be cancelled?
A: Estimates suggest 15,000–25,000 applications could be affected.

Q4: What options do applicants have if cancelled?
A: Judicial review, reconsideration requests, or new compliant applications. Compensation or reinstatement is limited.

Q5: Will this affect other immigration programs?
A: Potentially, if IRCC decides to apply similar cancellation rules to FSW or PNP streams.

Q6: Will processing times improve?
A: Yes, priority applications under compliant incubators are expected to move faster once backlogs are reduced.