Why consider entrepreneurship?Non-Canadians who acquire control of an existing Canadian business or who wish to establish a new unrelated Canadian business are subject to this Act, and they must submit either a Notification or an Application for Review.
The purposes of the Investment Canada Act (the Act) are "to provide for the review of significant investments in Canada by non-Canadians in a manner that encourages investment, economic growth and employment opportunities in Canada and to provide for the review of investments in Canada by non-Canadians that could be injurious to national security." (s. 2).
The legislation and associated rules are complex and because of that complexity, the information provided here is intended to serve both as an introduction to and a description of the key features of the Act. It is intended to help investors and others who are interested in the application of the legislation understand how non-Canadian investors are to respond to the requirements of the Act.
An Overview of the Investment Canada Act (FAQs)
Note: This document is not intended to provide legal advice. Investors and their representatives are urged to contact Investment Review Division officials directly at 343-291-1887 for more detailed information.
Introduction
The purposes of the Investment Canada Act (the Act) are "to provide for the review of significant investments in Canada by non-Canadians in a manner that encourages investment, economic growth and employment opportunities in Canada and to provide for the review of investments in Canada by non-Canadians that could be injurious to national security." (s. 2). The legislation and associated rules are complex and because of that complexity, this document is intended to serve both as an introduction to and a description of the key features of the Act. It is intended to help investors and others who are interested in the application of the legislation understand how non-Canadian investors are to respond to the requirements of the Act.
It should be noted, however, that this is only a general guide for the reader. It does not include all the details found in the Act and is not intended to express a legal opinion of the Government of Canada as to the interpretation of the Act nor is the Government bound by its content. For the application of the Act to a particular situation, the reader is advised to consult the specific provisions of the Act and obtain appropriate legal counsel.
With respect to all investments except those that fall within a prescribed type of business activity as set out in Schedule IV of the Regulations, the Department responsible for the administration of the Act is Innovation, Science and Economic Development Canada. With respect to investments which fall within a Schedule IV prescribed business activity, the Department responsible for the administration of the Act is the Department of Canadian Heritage.
For further information on investments other than Schedule IV investments, please call 343-291-1887 or contact us by fax at 343-291-2469, or by letter addressed to:
Investment Review Division
235 Queen Street,
Room 400B East Tower,
Ottawa, Ontario, K1A 0H5
Email: ic.investmentcanada-investissementcanada.ic@canada.ca
For further information on Schedule IV investments, please call 613-998-9266 or contact the Department of Canadian Heritage by fax at 613-998-9200, or by letter addressed to:
Department of Canadian Heritage
Cultural Sector Investment Review
25 Eddy Street, 7th Floor, Suite 216
Gatineau, Quebec K1A 0M5
Email: Harold.Boies@pch.gc.ca
Whats Covered in the FAQs
Does the Investment Canada Act apply to me?
When do I have to file a Notification?
When will an investment be reviewable?
How is the enterprise value of assets calculated?
How do I know which Department will review my investment?
How long does the review process take?
Can I implement an investment that is subject to review prior to a decision?
What does "net benefit" mean?
What happens if the Minister is not satisfied of "net benefit" and does not approve the investment?
Binding Opinions
Third Party Representations
Confidentiality
For More Information
Does the Investment Canada Act apply to me?
If you are not a Canadian citizen or a permanent resident, within the meaning of the Immigration and Refugee Protection Act (i.e., a person who has been ordinarily resident in Canada for not more than one year after the time at which he/she first became eligible to apply for Canadian citizenship), then you are a non-Canadian and must comply with the provisions of the Investment Canada Act.
For the purposes of the Act, a non-Canadian includes any entity that is not controlled or beneficially owned by Canadians.
If you are a non-Canadian and you propose to establish a new Canadian business or to acquire an existing Canadian business, then you MUST either file a Notification or an Application for Review of the investment unless a specific exemption applies (s.10).
http://www.ic.gc.ca/eic/site/ica-lic.
Have the potential to earn more
As an entrepreneur, you have the luxury of working your own hours and stretching your earning potential. Usually, this success comes with real hard work and long hours. If your business is successful, you could potentially make more money than you would working as an employee. However, the downside is that there is no guaranteed paycheque and your hard work can cut into time for personal and family obligations.
Have the freedom to work less
While some people go into business to make more money, some people go into business for themselves in order to work less. When you are your own boss, you have the flexibility to decide how much vacation time you want, to delegate responsibility to others and to work part-time, if you wish. Of course, you need to ensure that you are making enough money to support yourself; there may be times when you will need to invest more time and effort into your business, particularly in the beginning. However, in general, being self-employed gives you more flexibility to set your own schedule.
Be involved in the total operation of your business
Running your own business can provide you with a tremendous source of satisfaction and pride. You will be able to see your business grow from the ground up.
However, you will also be responsible for the initial capital that will be required for your business and the costs involved with the day-to-day operations. There are tasks involved that you may not be trained for, such as purchasing, inventory management, or accounting. It never hurts to get professional help with the running of your business. Focus on the areas where you can provide the most value.
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