As Canada adjusts its immigration strategy for the 2026–2028 period, the Start-Up Visa (SUV) program has undergone significant changes. With the program now paused for new applicants, the focus for many entrepreneurs has shifted toward meeting the strict regulatory requirements for existing applications. Central to these requirements is the concept of “active and ongoing management,” a legal standard that ensures founders are truly contributing to the Canadian economy.
Understanding Active and Ongoing Management
The core of the Start-Up Visa compliance framework lies in Section 98.06(1) of the Immigration and Refugee Protection Regulations (IRPR). This rule is designed to ensure that the business entity is not merely a shell, but a functioning enterprise that provides economic value to Canada. Founders are expected to be physically present in the country and engaged in the day-to-day operations of their venture. The government looks for evidence that the applicant is making key decisions, managing staff, or overseeing product development. If an applicant is found to be a passive investor, their application for permanent residence will likely be denied.
More Read
Regulatory Expectations for Founders
To remain compliant, founders must maintain a clear trail of their operational involvement. The IRCC assesses this through several lenses, focusing on the following core activities:
- Regular participation in strategic business meetings.
- Direct oversight of business development and marketing efforts.
- Active management of the company’s financial and legal obligations.
- Physical presence in Canada to conduct essential business operations.
- Consistent communication with the designated organization that provided the initial support.
Navigating the 2026 Backlog and Priority Framework
With the program pause and a cap of 500 federal business admissions per year, the IRCC has implemented a priority processing framework. This system aims to clear the existing backlog while ensuring that high-potential businesses are processed efficiently. As one legal expert noted:
The transition to a more rigorous assessment of active management reflects Canada’s commitment to ensuring that only businesses with genuine economic impact receive permanent residency status.
Sobirovs Law Firm, 2026 analysis
Applicants should ensure their documentation is up to date and reflects their ongoing commitment to their Canadian operations, as the scrutiny on these files remains at an all-time high.
Frequently Asked Questions
Can I still apply for the Start-Up Visa in 2026?
No, the program officially paused for new applications on December 31, 2025.
What happens if I am not actively managing my business?
If you cannot prove active and ongoing management as required by the IRPR, your application for permanent residence may be refused.
Does being a shareholder count as active management?
No, passive shareholding or holding a nominal title is insufficient; you must be involved in the daily operations of the business.
