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Venture Capital Corporation
The following is meant solely to help the reader understand the main features of primary regulations governing this activity, and not meant in any way to provide a legal interpretation.
Small Business Venture Capital Act:
The Equity Capital and Community Venture Capital Programs are the operating names of the investment incentive program set out in the Small Business Venture Capital Act. This program is designed to encourage arm's length investors to make equity investments in businesses which enhance exports, replace imports or otherwise diversify the British Columbia economy.
The British Columbia government provides investors with a tax credit equal to 30 percent of their investment in a special holding company called a Venture Capital Corporation ("VCC"), which subsequently invests in one or more eligible businesses. A VCC is a newly incorporated British Columbia company and is registered under the program.
To be eligible for investment from a VCC, the small business must meet a number of requirements including:
-The business must be "substantially engaged" in an eligible activity involving export enhancement, import replacement, or economic and community diversification;
-The business must pay at least 75 per cent of wages and salaries to employees who regularly report to work at operations located in British Columbia; (50% for export companies)
-The business, together with its affiliates, must employ not more than the equivalent of 75 full-time employees at the time of investment.
Before establishing a Venture Capital Company please visit the Business Investment Branch webpage listed below.
Primary Contact
Ministry of Economic Development
Business Investment Branch
PO Box 9800, 7th floor 1810 Blanshard St.
Victoria, BC V8W 9W1
Tel: 250-952-0136
Toll Free (BC): 1 800 665 6597
Fax: (250) 387-1080
email: ecp@tbc.gov.bc.ca
www.equitycapital.gov.bc.ca
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