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Foreign direct investment review in Canada is regulated by the federal government under the Investment Canada Act (ICA). For the most part, the ICA provides that foreign investments fall under the jurisdiction of the Minister of Innovation, Science and Economic Development (Minister of Innovation, Science and Industry).
- Recent Updates
- Who Files
- Types of Deals Reviewed
- Scope of The Review
- Review Process Timeline
- How Foreign Investors Can Protect Themselves
As of 2022, investments that are not subject to mandatory review or notification (such as the acquisition of a non-controlling investment or setting up new Canadian entities that do not qualify as "businesses") may be notified voluntarily to obtain national security clearance. Non-notifiable investments for which no voluntary notification is filed ...
The ICA is a statute of general application that applies to any acquisition of control1of a Canadian business by a foreign investor. If the relevant financial threshold under the ICA is exceeded (subject to certain exceptions), the statute provides for a process of pre-merger review and approval of foreign investments to determine if they are of "n...
It is important to keep in mind that the Canadian government has the power to review any transaction (including minority investments) in which there are "reasonable grounds to believe that an investment by a non-Canadian could be injurious to national security." Unlike the net benefit review process under the ICA, there is no financial threshold fo...
A national security review will generally focus on the nature of the business to be acquired and the parties involved in the transaction (including the potential for third-party influence). In assessing whether an investment poses a national security risk, the Canadian government has indicated that it will consider factors that focus on the potenti...
Obtaining approval under a net benefit review can take anywhere from 45 days to a number of months, depending on the complexity of the investment. The national security review process can take up to 200 days (or longer with the consent of the investor) from the date the initial notice of the transaction is sent to the Minister of ISED. The minister...
Where a transaction gives rise to national security risks, non-Canadian investors should consider filing notice of the transaction with the minister at least 45 days prior to closing to obtain pre-clearance (assuming the minister does not seek further time under the national security review regulations). For an investment that does not require noti...
Dec 9, 2022 · This chapter, current as of September 2022, is a useful overview of Canada’s foreign investment regulations, focusing on the following topics: Foreign Investment Policy Law and Scope of Application
Jul 17, 2023 · Canada has long been a great market for foreign direct investment (FDI). With its fairly stable and increasingly business-friendly environment, strong banking system, robust market conditions, and pro-immigration policies, Canada continues to be an attractive destination – even among other G7 economies – for foreign investors to establish ...
Dec 18, 2020 · Two members of our Competition & Foreign Investment Group recently authored the Canadian chapter of Foreign Direct Investment Regimes 2021(2d ed.), published by International Comparative Legal Guides. This chapter is a useful overview of Canada’s foreign investment regulations, focusing on the following topics:
Nov 15, 2023 · In an era of globalized economies, foreign direct investment (FDI) plays a vital role in shaping international business landscapes. The term FDI is typically used to describe the decision made by a company, often referred to as a multinational entity (MNE) to invest a substantial stake in a company from a foreign country.
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As recognized experts in foreign investment law, McMillan excels at helping national and global businesses by advising on the application of the Investment Canada Act; providing guidance through the regulatory review process; negotiating appropriate undertakings to achieve approval; obtaining ministerial opinions regarding non-reviewability ...
