Ensure Your Canadian Business Is Compliant With the Investment Canada Act

The Investment Canada Act (the “ICA”) is federal legislation that applies to, among other things, an investment to establish a “new Canadian business.” Except for investments in Canada to establish certain cultural businesses or those raising national security concerns, all other investments to establish new Canadian businesses are subject to a notification process only under the ICA. The Director of Investments (an officer appointed under the ICA) must be notified within thirty days of the implementation of the investment (the “ICA Notification”).

A “Canadian business” is defined in the ICA as “a business carried on in Canada” that must include “a place of business in Canada, an individual or individuals in Canada who are employed in connection with the business and assets in Canada used in carrying on the business.” Thus, any non-Canadian investor wishing to establish a new Canadian business must complete an ICA Notification.

Click here to read the full article.