Investment Opportunities in Canada
Protection of Foreign Investment
- Bilateral Investment Conventions Signed By Canada
- On 1 June 2007, Canada had signed bilateral agreements with more than 25 countries. See the
list of the countries.
To see the conventions, click here.
Canada is a signatory to agreements and arrangements with more than 70 bilateral partners in the aviation sector.
It has concluded FTAs with the United States and Mexico (NAFTA), as well as with Chile, Israel, Costa Rica in July 2007 and Panama in August 2009 (elimination of tariffs in sectors of industry, agriculture, forestry and fishing).
Canada, Peru and the countries of the European Free Trade Association (EFTA: Iceland, Liechtenstein, Norway and Switzerland) signed a free trade agreement on 26 January 2008 at Davos, in Switzerland.
- International Controversies Registered By UNCTAD
- A controversy with the United States about lumber has been registered.
- Organizations Offering Their Assistance in Case of Disagreement
ICCWBO , International Chamber of Commerce in Rio
ICSID , International Center for settlement of Investment Disputes
- Member of the Multilateral Investment Guarantee Agency
Country Comparison For the Protection of Investors
|Index of Transaction Transparency*||8.0||6.0||7.0||5.0|
|Index of Manager’s Responsibility**||9.0||5.2||9.0||5.0|
|Index of Shareholders’ Power***||8.0||6.8||9.0||5.0|
|Index of Investor Protection****||8.3||6.0||8.3||5.0|
Source: Doing Business
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
Procedures Relative to Foreign Investment
- Freedom of Establishment
- Yes, on condition that the company follows the directives required by the Canadian government.
Foreign investment is subject to the Investment Canada Act.
- Acquisition of Holdings
- Possible on condition of observing the in-depth procedure of examination of the project.
- Obligation to Declare
- The foreign investment promotion bureau in the country gives information about the necessary authorizations for setting up a company. Canada is in the first rank of OECD countries as regards the low number of procedures (2) and the shortest time limit (3 days) imposed for setting up an industrial or commercial company. A foreign company can set up in Canada by creating a distinct legal entity or a subsidiary under Canadian federal law or a provincial law governing companies. A subsidiary is treated in the same way as a branch office. It must have a commercial permit or be registered with the province where it does business.
- Competent Organization For the Declaration
Citizenship and immigration Canada - Guide 4000
- Requests For Specific Authorizations
- There are particular restrictions in the communications and transport sectors. All requests must be sent to the
Ministry of Foreign Affairs.
For further information, see investment laws in Canada.
Office Real Estate and Land Ownership
- Possible Temporary Solutions
- There are several solutions: domiciliation of the company at the private address of the owner, in a business center, at the office of a Chamber of Commerce, at the office of a Local Development Center, or company "nurseries" or renting professional premises.
- The Possibility of Buying Land and Industrial and Commercial Buildings
- It is possible to buy freehold or leasehold, to build industrial and commercial premises or to buy through a real estate company.
- Risk of Expropriation
- Canada wanted to make a clear distinction between expropriation with compensation and a measure taken in the normal exercise of government power, which would not involve any compensation (zoning regulations, environmental standards, etc.). There are a few cases of legal precedents.
- Forms of Aid
- The Canadian government offers several programs of fiscal incentives:
- Canadian Manufacturing and Processing Profits - Reduced Rate of Corporate Tax
- Investment Tax Credit
- Flow-Through Share Programfd
- Canadian-Controlled Private Corporation
- Federal Corporate Tax Rate Reductions.
The provincial governments also offer fiscal incentives; consult the websites of the 10 provinces or 3 territories: Newfoundland, Prince Edward Island, Nova Scotia, New Brunswick, Quebec, Ontario, Manitoba, Saskatchewan, Alberta, British Columbia, North West Territories, Yukon, Nunavut.
Invest in Canada also provides useful information.
- Privileged Domains
- The privileged sectors are those of processing, life sciences, advanced technologies, agri-food, plastics, and any sector with a strong potential for creating employment.
For further information, click on the following links: Scientific Research and Experimental Development (SR&ED); Mining-specific tax incentives ; Film or Video Production Services Tax Credit (PSTC) Program.
- Privileged Geographical Zones
- At the level of both federal and provincial governments, investment is encouraged especially in zones affected by large-scale unmployment or when economic development is slow.
- Organizations Which Finance
The Business Development Bank of Canada offers programs of subsidies and start up assistance.
Canadian Chartered Banks can grant loans for purchasing equipment. Provincial investment centers, Local Development Centers in each province and territory can offer programs of subsidies and professional start up assistance.
- The Key Sectors of the National Economy
- Hydro-electricity, mines, agri-food, agriculture, aerospace, advanced technologies, etc.
- High Potential Sectors
- Biotechnologies, telecommunications, information and communication technologies, environment, etc.
- Privatization Programs
- At the present time, the health sector is talking of privatizing healthcare. The road infrastructure sector is carrying out some PPP works - "Partnership, Private, Public".
- Tenders, Projects and Public Procurement
Merx, Canadian Public Tenders
Tenders Info, Tenders in Canada
PODS Providers, Procurement Opportunities in Canada
DgMarket, Tenders Worldwide
Sectors Where Investment Opportunities Are Fewer
- Monopolistic Sectors
- Several sectors are provincial or federal monopolies in Canada, among others: health, alcohol imports, energy, road and education systems.
- Sectors in Decline
- All manufacturing sectors, particularly the clothing industry and furniture making.
Finding Assistance For Further Information
- Investment Aid Agency
Business Development Bank of Canada
Foreign Affairs and International Trade Canada
Invest in Canada
- Other Useful Resources
Investissement Québec (Investment Quebec)
Ontario Immigration - doing business
Manitoba Trade and Investment
Investment in the community support programs
Invest in Alberta
Invest in British Columbia
Invest in New Brunswick
Invest in Nova Scotia
Invest in Prince Edward Island
Invest in Newfoundland and Labrador
- Doing Business Guides
Industry Canada - Trade and investment
CIDA - Industrial Cooperation Program Guide
Canada Commercial Guide 2010 - Buy USA
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