Canada’s Start-Up Visa Program at Risk: Bill C-12 Jeopardizes Thousands of Business Incubator Applications

Basio badr

ago 3 hours

Canada’s Start-Up Visa Program at Risk: Bill C-12 Jeopardizes Thousands of Business Incubator Applications

The introduction of Bill C-12 poses significant risks to Canada’s Start-Up Visa program, affecting thousands of applicants tied to non-compliant business incubators. This legislative change enables Immigration, Refugees and Citizenship Canada (IRCC) to wield broad powers to cancel pending applications, thereby aiming to reduce the substantial backlogs in the immigration processing system.

Overview of Bill C-12

Introduced on October 7, 2025, Bill C-12 replaces Bill C-2 and comes with expanded powers for IRCC. It allows the cancellation of pending applications across various immigration streams, including the Start-Up Visa program.

Impact on Start-Up Visa Applicants

The Start-Up Visa program currently faces a backlog of approximately 42,200 pending applications.
Of these, an estimated 15,000 to 25,000 are linked to designated business incubators that do not meet the Ministerial Instructions (MI72).
Approximately 80% of designated incubators fail to comply with MI72, raising red flags for applicants.

Risks and Compliance Issues

Many applicants, primarily from Southeast Asia, China, and Iran, are supported by incubators that are not compliant with updated standards. As these applications continue to be processed, Bill C-12 empowers IRCC to cancel them en masse, causing potential loss for applicants who have invested significantly in their immigration journey.

Legal Remedies for Affected Applicants

If an application is canceled, affected individuals have limited options:

Judicial Review: Applicants can apply for judicial review at the Federal Court of Canada.
Reconsideration Requests: Submissions for reconsideration can be made, though they do not guarantee a reversal.
Administrative Appeals: Appeals can be filed in cases of refusals, but not all cancellations are appealable.
Filing New Applications: Fresh applications can be submitted if previous ones are canceled, though previous denials may affect credibility.

Published Processing Times

The published processing times by IRCC should not be relied upon as accurate forecasts. They often serve as strategic signals rather than realistic expectations for applicants.

Future Implications of Bill C-12

The reach of Bill C-12 is not limited to the Start-Up Visa program. The legislation potentially opens avenues for similar actions concerning other immigration programs, such as the Federal Skilled Worker or Provincial Nominee streams. The broad regulatory framework under Bill C-12 provides IRCC the authority to systematically address backlogs across various pathways.

Conclusion

Prospective applicants should exercise caution when engaging with designated business incubators. As the landscape shifts due to Bill C-12, understanding compliance with Ministerial Instructions is crucial for navigating Canada’s immigration system effectively.