No matter which form of business you choose, to do business in Canada you must comply with the Investment Canada Act.
This Act provides for the review of investments in Canada by non-Canadians to ensure benefit to Canadians. Under this Act, Non-Canadians must file a notification or application for review of their investments, unless a specific exemption applies.
Don't let this deter you from doing business in Canada; if you plan to start a new business in Canada or acquire control of an existing Canadian business with less than $5 million in assets, usually the investment is not classed as reviewable. All that is required is that you file notification with the Investment Canada Agency before you make the investment or within thirty days of making the investment.
The notice is a simple two page form. Once you've filed it, the Investment Canada Agency will acknowledge the notice with a receipt stating that the investment is not reviewable, or that the Agency reserves the right to send the notice for review.
Businesses related to Canada's national identity or cultural heritage are the exception to this general rule of less than $5 million in assets and are classed as reviewable. Generally, any investment is reviewable if the asset value of the Canadian business being acquired is over $5 million. This Overview of the Investment Canada Act provides details of which investments are reviewable, outlines the notification and review process, and provides contact information for Industry Canada's Investment Review Division.
If you're a Non-Canadian thinking of starting a business or want to expand your company's operations, think Canada! We have a lot more to offer business than just beautiful scenery. A stable financial system, highly-skilled work force and competitive corporate taxes are only some of the advantages of doing business in Canada that will benefit your business' bottom line.
