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Canada is one of the world’s most open economies for foreign investment. Canada welcomes and actively encourages investment by non-Canadians, and places few requirements or restrictions on foreign investors
New Business Investment
Generally, non-Canadians are simply required to file a notification with Investment Canada (notification is not required if an investor has an existing Canadian operation and is expanding in a related line of business)
Acquisition of a Canadian Business
Generally, an acquisition is not reviewable unless the asset value of the Canadian business being acquired exceeds the following thresholds:
$237 million for investors from World Trade Organization (WTO) countries. An indirect acquisition by a WTO investor is generally not reviewable.
$5 million for non-WTO investors for a direct acquisition, and $50 million for an indirect acquisition. The $5 million threshold applies for an indirect acquisition if the asset value of the Canadian business being acquired exceeds 50% of the asset value of the global transaction.
Acquisitions by all non-Canadian investors that involve a few special sectors are subject to review if they exceed the thresholds shown above for non-WTO investors : a) production of uranium and an ownership interest in a uranium producing property, b) financial services, c) transportation services, and d) cultural businesses.
More Info
Investment Canada Act
Source: investing in British Columbia
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All rights reserved to Western Headquarters Ltd. 2007 Yaron Bazaz
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