When the Canada Start-Up Visa Open Work Permit was announced, it quietly solved a problem many founders didn’t even know had a solution.
Last fall, I called a couple in Germany who were approved by a designated organization and ready to launch their start-up in Canada. The plan was solid, and the funding was secure. But there was one problem.
They thought they might need to sell one of their properties. This was to cover living expenses while waiting for permanent residence. It wasn’t because they lacked money. They just couldn’t work anywhere else during this waiting period.
When I told them they could apply for a Startup Visa open work permit, they felt relief right away. They realized they could earn income through other work, consulting, or even buying a small business without touching their savings. That’s the kind of freedom this new policy gives founders.
In this article, we will go through the details of the Startup Visa open work permit eligibility, processing time and more. Let’s get started.
What is Startup Visa Open Work Permit?
- The Start-Up Visa Program grants permanent residence to innovative entrepreneurs supported by designated Canadian investors or incubators who can help build globally competitive businesses.
- An Open Work Permit lets a person work for any employer in Canada without needing a job offer, offering flexibility and financial stability.
- The Start-Up Visa Open Work Permit combines both allowing founders awaiting permanent residence to work on their venture or for other employers for up to 3 years.
Start-Up Visa Open Work Permit Requirements
To be eligible for the Start-Up Visa Open Work Permit:
1. Permanent Residence Application
You need to have already submitted your application for permanent residence through the Start-Up Visa Program and received confirmation from IRCC.
2. Essential Founder Status
Your designated organization must identify you as essential member to the business on both your commitment certificate and letter of support. An essential person is someone critical to running the venture, if your application gets refused, all connected applicants will also be refused.
3. Language Ability
You need to score at least Canadian Language Benchmark (CLB) Level 5 in reading, writing, speaking, and listening. Your test results must be less than two years old when you apply.
4. Proof of Funds
Show you have enough money to support yourself and your family for at least 52 weeks in Canada. These funds must be available, transferable, and not tied up—separate from your business investment.
5. Economic Impact
Demonstrate how your venture will benefit Canada through job creation, innovation, or regional economic growth. You’ll need documents proving your entrepreneurial background.
6. Team Applications
If you’re applying with co-founders, everyone on the team must submit their permanent residence applications before any work permits can be issued.
7. Family Members
Your spouse or common-law partner can apply for an open work permit, and dependent children can get study permits.
Startup Visa Processing Time (From 12 to 50+ Months)
When Canada launched the Start-Up Visa Program in April 2013, processing times averaged around 4-6 months during its pilot phase. That made the one-year closed work permit reasonable. You could work on your venture, and permanent residence would arrive before the pressure got unbearable.
Then COVID hit. Processing times climbed to 24 months, then 30, then 35. Officials expected times would normalize post-pandemic but it didn’t happen. Applications kept increasing while allocated seats in Canada’s Immigration Levels Plan decreased.
By mid-2023, processing reached 35 months. One year later in 2024, it hit 37 months. Founders were depleting their savings, unable to secure more funding without permanent status, and limited to working only on projects that might take years to turn a profit. The closed work permit system wasn’t just an inconvenience anymore; it became financially unsustainable
By August 2025, IRCC averaged it to 52 months which is over four years longer than the program originally designed for. As of October 2025, IRCC’s official estimate now reads “more than 10 years” for new applications.
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New Open Work Permit Policy for SUV Applicants
On October 03, 2024, IRCC introduced optional open work permits for Start-Up Visa applicants, valid for three years instead of one, and critically, open instead of closed.
Founders can now work for almost any Canadian employer while building their venture. Spouses and dependent children get the same flexibility.
Before this, you could come to Canada on an employer-specific work permit and work on your start-up, hire staff, sign leases, and open bank accounts. But you couldn’t take a side job to cover rent while your product was in development. That restriction is gone.
Why IRCC Made This Change?
Immigration policy doesn’t change because governments feel generous but because something stops working. IRCC stated clearly that these reforms aim to cut processing times and reduce application backlogs. The open work permit is part of a broader recalibration meant to fix structural problems in the program. Here’s what they’re actually solving:
Stopping founders from leaving: When processing takes four years, founders give up. They move to other countries or abandon their ventures entirely. IRCC loses the exact talent they already approved. An open work permit keeps families financially stable while they wait, reducing the chances they’ll leave Canada before decisions are made.
Keeping businesses alive during the wait: Founders who can work and earn income stay in Canada. They build customer bases, hire teams, generate revenue. When IRCC finally reviews their permanent residence applications years later, there’s actual Canadian business activity to assess not just a stale letter of support from 2022.
Focusing on stronger applicants: IRCC capped each designated organization at ten startups per year and prioritizes ventures backed by Canadian capital or members of Canada’s Tech Network. These intake limits force designated organizations to be selective. The goal is fewer applications, but better ones, ventures with real funding and momentum that are more likely to succeed.
Turning approval letters into real activity: IRCC wants Canadian hiring, pilots, revenue, SR&ED filings. Not support letters collecting dust in filing systems. The open work permit gives founders flexibility to build while they wait, turning applications into active Canadian businesses instead of files stuck in processing queues.
Managing backlogs without killing the program: The open work permit buys time. It keeps applications alive and founders in Canada while IRCC works through 43,200 pending cases. Without it, more founders would leave, and the program would collapse under its own weight.
This isn’t charity. It’s damage control.
Why Does the Open Work Permit Matter for Start-Up Visa Founders?
Most start-ups aren’t profitable in the first or second year. If you’re building a tech platform, developing a SaaS product, or running clinical trials, revenue is years away. You’re investing, not earning.
Meanwhile, you’re covering your family’s living expenses out of pocket in Canada, where the cost of living is steep. Investors won’t commit more capital until you have permanent status. You can’t raise a proper Series A round on a work permit.
So you’re stuck, burning savings and watching your runway shrink, hoping your PR application moves faster than the published timeline. The open work permit doesn’t remove that pressure but provides some breathing room. That’s the real win here.
Why Not To Rely on SUV Open Work Permit Instead of Building Your Start-Up?
The open work permit gives you freedom, but your permanent residence application still depends entirely on your venture’s progress. If you spend three years working a comfortable side job and your start-up stalls, IRCC will notice. They’re not assessing your employment history; they’re assessing whether you built what you said you’d build.
I tell my clients that “the SUV work permit is mainly for working on your start-up”. The side income option is there for financial stability, not career pivoting. You gained temporary status, but the ultimate goal is permanent residency. That only happens if the venture progresses. Don’t lose sight of that.
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What IRCC Looks for When Assessing Your SUV Application?
When IRCC assesses your PR application three or four years in, they’re not looking for unicorn metrics. They’re looking for evidence that your company has been actively building in Canada. Here’s what I coach founders to focus on.
Foundation and Compliance
Ensure your business is fully established in Canada. This includes corporate registration, active CRA and T2 filings, a Canadian business bank account, payroll setup for any hires, required insurance, and intellectual property assigned to the Canadian entity.
Product Development
Show concrete progress in your product’s development. Maintain records of build logs, release notes, and sprint plans. Provide access to demo environments or live versions with usage data. Highlight technical milestones achieved, such as moving from MVP to subsequent versions.
Market Engagement
Demonstrate customer interest and use. This can include pilot projects with Canadian or international clients, letters of intent, recurring revenue, user metrics (e.g., monthly active users, retention rates), or meaningful partnerships.
Financial Stability and Runway
Prove you have sufficient funds to sustain operations. Document any Canadian grants (e.g., IRAP, SR&ED), equity investments with term sheets and wire confirmations, or a clear cash-flow plan covering at least 12–18 months tied to business milestones.
Canadian Job Creation
Highlight how your venture benefits the Canadian economy. Show Canadian employees on payroll or contractor agreements, and confirm founders are working on-site in Canada.
Industry and Regulatory Milestones
For regulated sectors, provide evidence of progress with relevant authorities (e.g., Health Canada approvals, security certifications, patent filings). This shows you understand and are meeting industry requirements.
Governance and Reporting
Maintain thorough records of board meetings, investor updates, and regular check-ins with your designated organization. Keep a clear paper trail of key decisions, hires, product changes, and financial reports just as you would if preparing for an audit.
Safeguards Against Misuse of the SUV Program
To prevent applications without genuine business intent, IRCC enforces two key checkpoints:
1. Designated Organization Checkpoints
Applicants must secure both a Letter of Support and a Commitment Certificate from a designated organization. Each organization is limited to nominating ten ventures per year and must prioritize businesses backed by Canadian investors or connected to Canada’s Tech Network. This ensures only high-quality, well-supported start-ups enter the program.
2. Permanent Residence Assessment
The open work permit provides you with time, not a free pass. At the permanent residence stage, officers assess whether you’re providing active, ongoing management from within Canada and whether essential operations are taking place here.
Applications that cannot demonstrate credible, continuous Canadian activity will be refused. The Commitment Certificate serves as a performance benchmark. If your venture no longer meets the agreed-upon criteria or fails to show sustained progress, your PR application will be refused.
Take Professional Advice From Licensed Consultants
If you have just been approved for your three-year open work permit and are arriving in Canada next month, here’s what I would tell you. You now have your playground, so go build a venture that will not only secure permanent status for you and your family but also establish a business capable of supporting generations.
The policy change removed a massive financial barrier. It gave you breathing room and acknowledged the reality that start-ups take time and founders need stability. But it didn’t change the ultimate assessment: your permanent residence depends on what you build. Use your side income for stability, but keep your focus on venture growth.
Our licensed RCIC consultants at Elaar Immigration understand every nuance of the Start-Up Visa program. We’ll help you leverage your entrepreneurial experience, meet IRCC’s requirements, and demonstrate genuine Canadian business activity.
Contact us or Book a consultation with RCIC Keshav Sharma to secure the support you need for a successful journey from open work permit to permanent residence.
