Starting a business in Canada? File your investment notification.
buying business canada foreign Investment Canada Act investment notification UncategorizedInvestment notification under the Investment Canada Act
If you are not a Canadian citizen and you are planning on doing business in Canada, you will need to fulfill several legal requirements (we have already addressed the obligation to register your business).
Less known is the obligation to notify the Canadian authorities each and every time you start a new business activity in Canada and each time you acquire control of an existing Canadian business.
The purposes of the Investment Canada 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.”
More specifically, and in most cases, 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 file a notification no later than thirty days after the implementation of the investment.
In some other instances, this investment will be subject to a governmental review, such as when there is an acquisition of a Canadian business valued at an amount exceeding the current threshold under the Investment Canada Act.
So make sure to add this task to your checklist… and welcome to Canada!
Any questions or ideas for our next article? Please contact us at the 514-856-5601 or at sam@malekavocat.com.
