Federal Court Case Reveals Critical Pitfalls for Business Immigrants.
What Entrepreneurs Need to Know About Canada's Start-up Business Class
The pathway to Canadian permanent residence through entrepreneurship offers tremendous opportunities, but also contains technical requirements that can derail even the most promising applications. A recent Federal Court case (Achacoso v. Canada, 2025 FC 876, decided May 13, 2025) provides valuable insights for anyone considering the Start-up Business Class immigration program.
What is the Start-up Business Class?
The Start-up Business Class is designed for innovative entrepreneurs who have secured support from designated Canadian investor organizations. Successful applicants receive permanent residence to build their businesses in Canada.
Key Requirements Revealed in Recent Case Law
The Achacoso case highlights several critical elements that applicants must understand:
1. Timing of Documentation is Critical
The court case revealed that applicants must ensure their commitment certificates from Designated Entity Organizations (DEOs) are:
Less than six months old when applying for permanent residence
Properly received by Immigration, Refugees and Citizenship Canada (IRCC) at the time of application submission
As stated in IRPR s. 98.01(2)(a), applicants must have "obtained a commitment that is made by one or more entities designated under subsection 98.03(1), that is less than six months old on the date on which their application for a permanent resident visa is made."
2. All Essential Team Members Must Maintain Valid Applications
Perhaps the most important takeaway from this case is the operation of section 98.08(2) of the Immigration and Refugee Protection Regulations:
"If there is more than one applicant in respect of the same business and one of the applicants who was identified in the commitment as being essential to the business is refused a permanent resident visa for any reason or withdraws their application, the other applicants must be considered not to have met the requirements of subsection 98.01(2) and their permanent resident visa must also be refused."
This means that if any essential team member's application fails or is withdrawn, ALL team members' applications will be refused. This creates a significant vulnerability for business teams applying together.
3. Connected Work Permits Depend on Valid PR Applications
The case also confirmed that temporary work permits connected to Start-up Business Class applications are dependent on the permanent residence application being in process. If the PR application is refused, any associated work permit will also be refused.
Practical Tips for Applicants
Based on the lessons from this case, we recommend:
Document Submission Timing: Ensure all commitment certificates are properly filed with IRCC and acknowledged
Team Application Coordination: All essential team members should maintain their applications and coordinate legal strategies
Procedural Backup Plans: Develop contingency plans if any team member's application faces challenges
Expert Guidance: Work with immigration professionals familiar with business immigration nuances
Is Business Immigration Right for You?
The Start-up Business Class is just one of several pathways for entrepreneurs and business professionals. Depending on your circumstances, other options might include:
Provincial Nominee Programs with entrepreneur streams
Self-employed Persons Program
Business investor programs
Rural and remote community business immigration programs
Next Steps
Join our upcoming Entrepreneur Immigration Seminar this June to learn more about these options and which might be right for your situation. Our team of experienced immigration professionals can provide personalized advice tailored to your business background and goals.
Don't forget to drop us a message through our Contact Us page or book a consultation today. Remember, your journey is our commitment!
This article is provided for informational purposes only and does not constitute legal advice.
