ARTICLE
9 July 2025

Canadian Court Orders Government To Process Delayed Start-Up Visa

S
Sobirovs Law Firm

Contributor

Toronto-based boutique Sobirovs Law Firm assists corporate and tech-sector clients, foreign businesses, entrepreneurs and investors, with Canadian immigration matters. The firm specializes in labour market impact assessments, permanent residence applications, TechImmigration, and treaty-based immigration.
If you're an entrepreneur caught in Canada's Start-Up Visa processing limbo, a recent Federal Court decision might offer a glimmer of hope.
Canada Immigration

A landmark Federal Court ruling could signal hope for entrepreneurs facing endless delays in Canada's Start-Up Visa program

If you're an entrepreneur caught in Canada's Start-Up Visa processing limbo, a recent Federal Court decision might offer a glimmer of hope. In April 2025, the court ordered Immigration, Refugees and Citizenship Canada (IRCC) to make a decision on a dentist-inventor's SUV application that had been stalled for over five years.

The Case That Gives Hope

Dr. Amirhossein Majidi, a dentist who invented a “dental implant prosthetic and surgical life-saving kit” with patents in Canada, the US, and the EU, applied for permanent residence through the Start-Up Visa program in December 2019. His business plan involved manufacturing, marketing, and selling his patented device to dentists in Canada.

Fast-forward to 2025: still no decision.

Frustrated by the endless wait, Majidi took the government to court—and won.

Start-Up Visa Application Timeline

The timeline reveals a familiar pattern that many Start-Up Visa applicants will recognize:

  • December 2019: Application submitted
  • September 2021: IRCC finally “began” processing (nearly 2 years later)
  • March 2023: Procedural fairness letter with concerns raised
  • 2023-2025: Radio silence, except for requests to update medical exams

The government's excuse? Security screening was still ongoing for a family member of one of Majidi's co-applicants. Under Start-Up Visa rules, if one essential applicant is refused, all related applications must be refused together.

The Court's Game-Changing Ruling

Federal Court Justice A. Grant didn't buy the government's explanation. Here's what he ruled:

  • Vague Security Explanations Won't Cut It:  The Court rejected what it called “blanket statements” about ongoing security reviews. Simply saying “security screening is ongoing” without explaining why it's taking so long is insufficient justification for years-long delays.
  • Government Has a Duty to Act: Even though Start-Up Visa applications can be complex and interconnected, IRCC still has a legal obligation to process them within reasonable timeframes.
  • Entrepreneurs Suffer Real Harm:  The Court recognized that lengthy delays cause genuine business harm:
  • Time-limited patent protection expires while waiting
  • Business plans become stale
  • Opportunities are lost in other countries
  • Entrepreneurs are stuck in limbo

Why This Matters for Your Start-Up

This decision could be significant for entrepreneurs facing similar delays because:

  • Legal Precedent: The ruling establishes that courts will scrutinize government explanations for delays and won't accept vague security-related excuses indefinitely.
  • Practical Relief: The Court ordered a 90-day deadline for processing, showing judges are willing to impose specific timelines on government agencies.
  • Business Reality: The decision acknowledges that entrepreneurs face unique time pressures, especially with patent protection and market opportunities.

The Bigger Picture

This case highlights ongoing systemic issues with Canada's Start-Up Visa program:

  • Processing Times: What should be a streamlined program for job-creating entrepreneurs often takes years
  • Lack of Transparency: Applicants receive minimal information about delays
  • Security Screening: Legitimate security concerns are being used to justify indefinite delays
  • Economic Impact: Canada loses innovative entrepreneurs to other countries with faster processes

Moving Forward

While this decision is encouraging, it's just one case. The Start-Up Visa program needs broader reforms to live up to its promise of attracting innovative entrepreneurs to Canada.

For now, entrepreneurs should:

  • Set realistic expectations about processing times
  • Maintain detailed records of their applications
  • Consider legal options if delays become unreasonable
  • Have backup plans for other jurisdictions

The Majidi decision sends a clear message: Canada's immigration system can't use vague security concerns to indefinitely delay decisions that affect people's lives and businesses. For entrepreneurs trapped in the Start-Up Visa maze, that's a welcome development.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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