Bill C-12 is set to significantly impact Canada’s immigration landscape, specifically concerning the Start-Up Visa (SUV) program. Introduced on October 7, 2025, this legislation expands the powers of Immigration, Refugees and Citizenship Canada (IRCC) to cancel pending applications across various immigration streams, including the Start-Up Visa.
Impact on Start-Up Visa Applications
Under the new regulations, many applications currently in the backlog are at risk. As of mid-2025, there are around 42,200 pending Start-Up Visa applications, including main applicants and their dependents. This backlog is exacerbated by the fact that almost 80% of designated business incubators do not comply with the April 30, 2024 Ministerial Instructions (MI72).
Statistics on Designated Business Incubators
- Total pending Start-Up Visa applications: 42,200
- Estimated number of applications linked to non-compliant incubators: 15,000 to 25,000
- Percentage of designated business incubators meeting MI72: 21.5% (12 out of 56)
- Refusal rate from designated incubators in 2025: 73%
Many applicants originate from regions like South-East Asia, China, and Iran. The systemic issues within the processing protocols have created an environment of uncertainty, especially for those working with non-compliant incubators.
Legal Remedies and Options for Applicants
Applicants whose files are canceled under Bill C-12 have limited options for recourse. They can pursue the following avenues:
- Judicial Review: Challenge IRCC’s decision in federal court, focusing on procedural fairness or legal errors.
- Reconsideration Requests: Submit new evidence to IRCC for reassessment, though success is not guaranteed.
- Administrative Appeals: Appeal certain decisions to the Immigration Appeal Division or similar bodies.
- Filing New Applications: Submit new applications under compliant streams after cancellation.
The legislation lacks explicit compensation clauses, providing only potential fee refunds upon application termination. This limitation raises concerns about fairness and potential challenges in court.
Future Implications of Bill C-12
Bill C-12’s broad authority extends beyond the Start-Up Visa program. Its framework can apply to other immigration streams, such as the Federal Skilled Worker Program and Provincial Nominee Program. This ability to programmatically address backlogs could reshape the immigration landscape in Canada.
As prospective applicants navigate the immigration system, exercising caution is paramount. Engaging exclusively with designated business incubators that meet existing Ministerial Instructions is crucial to minimize the risk of cancellation.
Conclusion
Bill C-12 represents a transformative shift in Canadian immigration policy. By granting IRCC enhanced cancellation powers, the bill aims to manage application backlogs effectively. However, it poses significant risks to thousands of applicants in the Start-Up Visa stream, necessitating a careful approach to compliance and submission practices.
