Guide: Foreign Investment Review in Canada
The Investment Canada Act (ICA) applies to all investments by non‑Canadian controlled investors in Canada.
The law requires that foreign investors file an application for review with the Foreign Investment Review and Economic Security (FIRES) branch of Innovation, Science and Economic Development Canada (ISED) before acquiring direct control over a Canadian business when the transaction exceeds certain financial thresholds, and not close such investment until the Minister under the Investment Canada Act has concluded the investment is of “net benefit to Canada.”
In addition, all investments by non-Canadian controlled investors in Canada are potentially subject to a national security review – an area that has become increasingly significant as the Canadian government has expanded its focus on national security and related regulatory oversight. New regulations will soon come into force to strengthen national security provisions, which will have additional implications for foreign investors in certain sectors.
This guide highlights the key thresholds, timelines and strategic considerations that can affect deal certainty, helping businesses, investors and advisers identify potential issues early and plan accordingly.
Download the resource for a straightforward overview of what to expect and how to prepare.
What's inside?
The guide answers these frequently asked questions:
- What are the notification and “net benefit” review thresholds?
- Are there exemptions to mandatory notification?
- What is the difference between a notification and a full “net benefit” review?
- If the transaction is subject to a “net benefit” review, what do I need to do?
- How long does the “net benefit” review process take?
- What can the parties do to expedite the “net benefit” review?
- Are parties able to seek pre-clearance of their investments before the investor makes its formal filing?
- What are the filing fees?
- What are voluntary notifications?
- Can FIRES speak with other agencies?
- Does the Minister consider third-party representations as part of the ICA review process?
- Is the review process confidential?
- What are the possible outcomes of an investment review?
- Are there special rules for certain types of investments, such as investments in cultural businesses?
- What types of investments have a heightened risk of triggering a national security review?
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