Investment Canada Act

Act: Investment Canada Act, R.S.C. 1985, c. 28, 1st Supp.
Regulation: Investment Canada Regulations, SOR/85-611, as amended

To Whom Does This Apply?

Non-Canadian investors who are seeking to buy Canadian enterprises and non-Canadians who propose to start new enterprises in Canada must comply with the terms of the Act. If you are not a Canadian citizen or a permanent resident, within the meaning of the Immigration 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.

Summary

Under the Investment Canada Act, the federal government reviews some proposed investments by non-Canadians; those investments must result in a net benefit for Canada. Investments which are not subject to review are nonetheless notifiable. This Act does not apply to Canadians.

If you are a non-Canadian, then you must either file a Notification or an Application for Review of the investment, unless an exemption applies. Please contact the Investment Review Division for more information on Exemptions. (Please note that the Investment Review Division does not provide information on how to start a business in Canada, immigration, settlement or programs to stimulate investment.)

Application Process

When do I have to file a Notification?
If you are a non-Canadian, then you must file a notification each and every time you begin a new business activity in Canada and each time you acquire control of an existing Canadian business where the establishment or acquisition of control is not a reviewable transaction. A Notification must be filed no later than thirty days after the implementation of the investment. An investor can request a Notification form by calling the Investment Review Division. Please refer to the national contact listed below.

When will an investment be reviewable?
An investment is reviewable if the asset value of the Canadian business being acquired exceeds certain thresholds or if it has been ordered for review. For more information on the threshold amounts please contact the Investment Review Division. Please refer to the national contact listed below.

Waiting Period
The legislation gives the Minister an initial 45 days to make a decision. Most cases are decided within this time frame. However, there are provisions in the legislation to extend the review period.

Fee
Not Applicable.

Forms
An investor can obtain an Application for Review or Notification form directly from the Web or by calling the Investment Review Division at the number listed below.

Web site
The site contains the Investment Canada Act, regulations, interpretation notes, guidelines, forms, answers to frequently-asked questions, as well as links to other sites which contain very useful information for non-Canadians wishing to invest in Canada.

DISCLAIMER
Information contained in this section is of a general nature only and is not intended to constitute advice for any specific fact situation. For particular questions, the users are invited to contact their lawyer. For additional information, see contact(s) listed below.

New Brunswick Contact(s):
See National Contact.

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National Contact(s):
Investment Review Division
Industry Canada
235 Queen Street
Ottawa, Ontario  K1A 0H5
Telephone: 613-954-1887
Fax: 613-996-2515
E-mail: investcan@ic.gc.ca
Web site: http://strategis.ic.gc.ca/epic/internet/inica-lic.nsf/en/Home