Work in Canada
Federal Court Ruling Puts Pressure on IRCC to Resolve Start-Up Visa Canada Delays
Start-Up Visa Canada applicants dealing with endless delays in their permanent residence applications finally have reason to feel optimistic. A recent Federal Court ruling in the Tousi v. Canada (Citizenship & Immigration), 2025 FC 671 case is changing the way Immigration, Refugees and Citizenship Canada (IRCC) must handle prolonged application backlogs.
With average processing times stretching beyond 40 months and over 38,000 applications caught in the queue since 2020–2021, this decision offers a much-needed legal pathway for applicants to demand action from IRCC. Here’s what happened — and what affected entrepreneurs need to do now.
Why the Tousi Decision Matters for Start-Up Visa Canada Applicants
The Federal Court ruling outlines clear conditions under which applicants can use a legal remedy called Mandamus. In simple terms, this allows applicants to legally compel IRCC to process long-delayed applications if the delay is found unreasonable.
Key Conditions for Filing a Mandamus Application
- The applicant has completed all program requirements.
- The applicant has sent at least one request to IRCC for a decision.
- IRCC has either ignored the request or taken an unreasonable amount of time to act.
When courts review such delays, they assess whether:
- The time taken is longer than what’s normal for similar cases.
- The applicant is not at fault for the delay.
- IRCC has failed to provide a valid reason for the prolonged wait.
In Start-Up Visa Canada cases, delays of 40 months or more without specific, credible explanations — such as documented security concerns — are increasingly being flagged as unacceptable.
IRCC Under Pressure to Address the Backlog
This ruling couldn’t have come at a more critical time. Canada’s latest immigration plan includes reducing intake numbers for the Start-Up Visa stream in the coming years. That means IRCC faces growing scrutiny over why thousands of older applications remain unresolved while newer files are being accepted.
What’s more, the court confirmed that IRCC can no longer rely on vague statements like “security background checks are ongoing” to justify delays. Unless they can provide concrete, evidence-backed reasons for the hold-up, IRCC may now be legally compelled to process these cases.
What Start-Up Visa Canada Applicants Should Do Next
If you or your dependents applied for permanent residence under the Start-Up Visa Canada program in 2020, 2021, or 2022 and haven’t heard back in over 38–40 months, it may be time to consider your options.
Steps to Protect Your Application
- Review your file: Ensure all required business progress reports, financial records, and other program obligations are up to date.
- Document your communication: Keep records of any emails, letters, or webform requests you’ve sent to IRCC.
- Consult a legal professional: An experienced immigration lawyer can assess your eligibility for Mandamus and other legal remedies.
- Consider filing Mandamus: If all requirements are met and delays remain unjustified, you may file an application in Federal Court to compel a decision.
Courts Are Holding IRCC Accountable
The Tousi ruling signals a broader shift in how Canadian courts view immigration delays. It reinforces the principle that federal agencies must process applications within a reasonable timeframe, especially when applicants’ futures — and their businesses — are left hanging.
This is a significant win for immigrant entrepreneurs relying on Start-Up Visa Canada to build ventures, create jobs, and contribute to Canada’s economy.
Take Control of Your Start-Up Visa Canada Application
If you’ve been waiting for a decision for more than three years, you don’t have to accept silence any longer. The Tousi v. Canada decision empowers eligible applicants to challenge unreasonable delays through Mandamus applications and other legal options. Stay proactive — review your file, consult with legal experts, and, if necessary, move forward with legal action. The path to permanent residence under the Start-Up Visa Canada may have been long, but now you have the tools to hold the system accountable.
