The new optional open work permit (OWP) for Start-Up Visa (SUV) applicants is a game-changer, offering flexibility for entrepreneurs establishing businesses in Canada. While we anticipate further clarifications from IRCC soon, here’s what you need to know right now:
Key Takeaways:
AOR (Acknowledgment of Receipt) Requirements:
Applicants who filed their SUV PR application before April 30, 2024, can apply for the Open work permit without the AOR. This will provide relief/flexibility to applicants facing significant processing delays on pre-cap cases.
After April 30, 2024, the AOR is required but should be processed faster due to new caps and efficiency measures being introduced by IRCC.
Priority Case Processing:
“Priority cases” (Supported by Canadian capital or by a business that is a member of Canada’s Tech Network) are expected to get faster AORs.
Non-Priority Cases:
If your application is not a priority case and was submitted after April 30, 2024, the AOR timeline remains unclear. Alternative options, like a one-year closed work permit, may be necessary on a case-by-case basis.
Closed Work Permit Holders:
Entrepreneurs already in Canada on a closed work permit who applied for PR before April 30th, 2024, can transition to the new OWP without an AOR.
Important:
If an applicant has already submitted a closed work permit inside of Canada and is on implied status, do not withdraw and reapply for a three-year open work permit. IRCC will likely issue additional guidance on this scenario shortly.
GH Analysis:
The new optional SUV open work permit aims to relieve the financial stress of processing delays for applicants filed before April 30. It lets entrepreneurs work and generate income while building their businesses in Canada.
However, SUV applicants must balance this flexibility with full commitment to their start-up, as IRCC will closely assess the business’s development and involvement of the applicant in the SUV Business when reviewing the PR application.
SUV Three-Year Open Work Permit Clarification: Further Update
Have you submitted an SUV one-year closed work permit before October 3, 2024, and are now considering switching to a three-year open work permit?
Here’s the latest internal guidance from IRCC regarding pending closed work permits:
“Entrepreneurs who submitted a work permit application before October 3, 2024, and wish to apply for this new open work permit must submit a new application. If they are already in Canada with temporary resident status and have an employer-specific permit application pending, they should submit the open work permit application before withdrawing the pending one to maintain their immigration status. Note that this will not impact their permanent residence application.”
A few key observations:
1. While an open work permit under the SUV program does not directly affect permanent residence applications, engaging in activities outside of your SUV business could impact an officer’s assessment of your genuine effort and commitment to the SUV venture. Be strategic in how and when to exercise rights under an open permit.
2. When submitting a three-year open SUV work permit, it’s still a requirement to meet all regulatory and policy requirements for the SUV program. Given the high level of scrutiny and refusal rates, applications must be thoroughly prepared and explained.
3. It is critical to properly explain the policy/rationale of seeking an open three-year work permit after a closed work permit has already been filed. Failure to do so can result in an applicant being refused and falling out of status.
4. Lastly, where an application for an open work permit is submitted an applicant must adhere to the conditions of their original work permit until a decision is rendered. Failure to do so can result in an allegation of working illegally in Canada.
If you have any questions or need guidance on navigating this process, feel free to reach out.
The content of this bulletin is for informational purposes only, and is not intended to provide or be relied on as legal advice.