Permanent residence (PR) applications under Canada’s Start-Up Visa (SUV) program are subject to rigorous scrutiny. While the pathway offers promising entrepreneurs a chance to build a business in Canada, many applications are refused-often for reasons that are avoidable.
This special edition of ImmPulse Weekly Monitor highlights 10 of the most common reasons for refusal-each, based on current IRCC trends, case law, and field experience.
1. Lack of Active Business Operations in Canada
The start-up is not actively operating or making genuine business progress inside Canada. IRCC officers often assess economic viability and presence on the ground.
2. Weak Supporting Documentation
Incomplete or outdated documents, vague business plans, or a failure to submit proof of business activity (e.g., leases, payroll, financials) can undermine the application.
3. Essential Member Withdrawals or Refusals
If one designated “essential” team member withdraws or is found inadmissible, all co-founders may face refusal.
4. Lack of Canadian Business Engagement
No evidence of connection to the Canadian market, such as clients, partners, advisors, or industry events, can indicate the business is not integrated into Canada’s ecosystem.
5. Admissibility Concerns
Issues such as past immigration violations, misrepresentation, or criminality can result in outright refusals.
6. Inadequate Language Proficiency (CLB 5 Minimum Not Met)
Even if the business is promising, not meeting the minimum English or French requirements is a dealbreaker.
7. Designated Entity Support Lacks Substance
Letters of support that do not reflect real due diligence or continued involvement are treated as superficial endorsements.
8. Financial Inadmissibility (Settlement Funds Not Proven)
Applicants must show sufficient funds for initial settlement. Missing or weak evidence can lead to refusals, especially where business income is not yet stable.
9. Business Model Unclear or Unscalable
If the officer does not understand the innovation or questions its market potential, the application may be deemed to lack economic benefit.
10. Delays or Gaps Between Work Permit and PR Filing
A long delay between securing a work permit and filing for PR, with no significant progress, can trigger scrutiny and refusal.
What Can Be Done?
For founders, incubators, and advisors: understanding these pitfalls is crucial. Proactive compliance, transparent communication, and early legal guidance can dramatically improve outcomes.
Need a Risk Review?
Our team offers compliance audits and PR-readiness reviews for SUV applicants, designated entities, and legal representatives.
The content of this bulletin is for informational purposes only, and is not intended to provide or be relied on as legal advice.