Federal court rejects SUV application from two Vietnamese citizens: Failure to prove genuine business purpose.

Ottawa, June 29, 2020 – In ruling 2020 FC 734, the Canadian Federal Court rejected the appeal for reconsideration of two Vietnamese applicants – NTPL and VNL – in the Start-Up Visa (SUV) program. The court ruled that the pair failed to demonstrate a genuine intention to conduct business in Canada, focusing instead on obtaining permanent residency.

Immigration applications – From hope to deadlock

The couple intends to establish Mekso Energy Ltd., a company specializing in providing solar power solutions for the Vietnamese market, but registered in British Columbia (Canada). The project is being incubated by the designated organization, Empowered Startups Ltd.

After being rejected by the first officer, both sides agreed to have the application re-evaluated by a different officer. However, the result remained unchanged – the application was still rejected.

Why was it rejected?

IRCC officials stated that:

"The applicant's primary goal in entering into the Empowered agreement is not to conduct business but to achieve permanent resident status."

The main reasons include:

1. I only stayed in Canada for two weeks, even though I claimed to have urgent business reasons.
2. No contracts have been signed with energy partners in Canada.
3. No specific clients, revenue, or projects were undertaken.
4. There is no evidence to prove that he pursued a project with Adidas/Jia Hsin.
5. The delay in deploying Mekso is seen as a lack of proactiveness.

Arguments and counter-arguments were rejected.

The applicants argued that they could not proceed with the next steps because they did not yet have legal residency status in Canada. Empowered even sent a confirmation letter stating that they could not recommend Mekso sign anything before the applicants obtained their visas.

However, the Court stated:

• Many foreign business owners still come to Canada on tourist or work permits to get the initial stages of their projects underway.
• There is no evidence to suggest that the lack of status caused the project to be halted.
• The lack of clear commitment to implementing the project in Canada suggests the primary goal is to obtain permanent residency, not to develop the business.

Court ruling

• The petition for review is rejected.
• There are no legal questions that need to be escalated to a higher level.

The court concluded that halting all business operations while awaiting a visa was unreasonable, especially when many steps could be taken remotely or through a partner. This goes against the spirit of the Start-Up Visa program, which requires a commitment to developing a real business in Canada.

Lessons for SUV candidates

This ruling highlights the following key points:

• 🛑 Insufficient written commitment letter and plan.
• 🧾 There must be evidence of actual implementation, from contracts to customers, from activities to specific roles.
• 🛫 Inaction over an extended period demonstrates a lack of seriousness.

KeyApply and Ontario Startup Studio – Partnering with real businesses

Although the two defendants in this case were not KeyApply clients, the case clearly demonstrates the importance of genuinely investing effort into a business project in Canada.

KeyApply and Ontario Startup Studio:

✅ No fake applications – only accept projects that are truly promising and committed to implementation.
✅ We have a physical office in Ontario, supporting clients in building legally compliant businesses.
✅ Comprehensive consulting services covering strategy, technology, legal matters, and finance.

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