Canada's Startup Visa Applicants Now Face 10-Year Wait Times

Canada’s Start-up Visa program now requires more than a decade to process new applications, according to official data, which the government updated on October 9, representing a dramatic shift from a pathway originally designed to deliver permanent residency within six months.

Immigration, Refugees and Citizenship Canada (IRCC) lists the current estimated processing time as “more than 10 years” for applications submitted today. The backlog has reached approximately 43,200 pending applications, more than double the nearly 20,000 cases that prompted government intervention 18 months ago.

Screenshot from the IRCC’s wait time calculator page

The deterioration occurred despite multiple reform attempts. In April 2024, the government capped each designated organization to ten startup applications annually and increased annual approvals from 1,000 to 5,000 for 2024 and 6,000 for 2025. Processing times stood at 37 months when those changes took effect.

One year later, the situation has worsened substantially. The backlog grew by over 23,000 applications between April 2024 and October 2025, even as the government imposed stricter intake limits.

The processing timeline reveals stark disparities across application years. Entrepreneurs who applied in 2020 face roughly one month of remaining wait time, with about 100 people ahead of them in the queue. Those who submitted applications in 2021 still have 37 months left, with approximately 1,700 applicants ahead.

Anyone who applied in 2022 or later falls into the ten-plus-year category. The data suggests that roughly 41,400 of the total 43,200 pending applications come from 2022 onward, as earlier cohorts near completion.

Screenshot from the IRCC’s wait time calculator page for 2021 applicants

Slava Apel, CEO of Startup Visa Services, believes the current processing patterns point to a focused approach. He suggests that “only priority cases are being reviewed” based on observed application movement.

The government introduced priority processing in April 2024 for entrepreneurs whose startups receive support from Canadian capital or from business incubators that are members of Canada’s Tech Network.

This expedited track applies to both existing inventory and new applications. Apel emphasizes that “all clients should consider priority stream, and it’s still available.”

The government attempted another fix in October 2024 by introducing open work permits that allow entrepreneurs to work for any Canadian employer while awaiting permanent residency.

Lena Metlege Diab was named Minister of Immigration in May 2025

Previously, closed work permits restricted applicants to working only on their startup ventures. Apel notes that the work permit option remains available to applicants.

The program launched in 2013 with the intention of processing permanent residency applications within six months. When processing times reached 24 months and beyond, the closed work permit policy created complications for entrepreneurs who needed flexibility to explore multiple business opportunities while waiting.

The open work permit solution introduced its own delays. Investors must obtain an Acknowledgment of Receipt (AOR) from the government before applying for the work permit, a process that typically takes about 16 months.

Apel offers another theory for the current processing slowdown. He suggests that “the government wants to reallocate resources to a new to-be-announced special path for the USA H-1B stream, which could be temporary until Trump gives clarity on the $100,000 penalty for H-1B.”

The reference relates to recent U.S. immigration policy changes. Trump imposed a $100,000 annual fee on H-1B visas while simultaneously promoting a Gold Card program for investors.

The H-1B fee increase targets technology companies and consulting firms that rely heavily on foreign workers, potentially creating an outflow of skilled workers seeking alternative destinations.

Canada has historically positioned itself as an alternative for technology talent affected by U.S. immigration restrictions. A specialized pathway for H-1B visa holders could represent an opportunity to attract skilled workers from the American technology sector.

Apel stresses the need for official clarification, noting “we need comments from the government” on the current processing situation and future policy direction.

Slava Apel at IMI Connect Istanbul

IRCC attributes the extended timelines in part to Canada’s Immigration Levels Plan, which caps the number of newcomers the country accepts annually. The agency notes on its website that processing times may increase when applications exceed available spaces.

The government calculates processing times based on current inventory, staffing levels, and expected future applications. These forward-looking estimates can fluctuate monthly depending on operational conditions.

IRCC warns that individual applications may take longer than posted estimates if they become complex or non-routine. Factors that can extend processing include outdated contact information, missing documents, changes in family composition, expired medical examinations, and ongoing background checks.

The agency updates its processing time estimates monthly but notes that projections do not account for sharp increases in received applications, urgent shifts in priorities, or other unforeseen circumstances affecting operations.

With roughly 80 designated organizations, each capable of processing 10 files annually, and up to five applicants permitted per file, thousands of new permanent residency applications could still enter the system each year under current regulations.