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Investor Category  

Investor Visa Program

Top 10 reasons to invest in Canada

Investment Facts

 

Investor Visa Program

Investors must have successfully operated, controlled or directed a business and must have a net worth, accumulated by their own endeavors, of at least CAD$500,000. They must also have made a minimum investment in an approved fund or business since the date of their application.

  • No conditions are automatically imposed upon admission;

  • Investors may pursue whatever business opportunities in Canada they wish, once their initial investment is made;

  • Investors have little or no control over their investment and have no access to these funds
    during the five-year lock-in period. Investments are not guaranteed.

    The Immigration Regulations which govern the selection of investor immigrants require that investors make a minimum investment after applying for an immigrant visa. Immigrant visas will be issued to qualified investors and their dependants once they have demonstrated, to the satisfaction of the visa office, that the investment has, in fact, been made and once they and their dependants have met all other Canadian immigration requirements.

    Investor immigrants may decide to invest in a business venture, a privately-administered venture capital fund or a government-administered venture capital fund which has received prior government approval and is under Canadian control.

    The approval process prescribes certain organization and operating standards. It is important to note, however, that the government is not responsible for the viability or success or any investment option or any investment made under such an option.

    Top 10 Reasons to Invest in Canada

  • Doing business in Canada costs less. A 1996 comparison of location-sensitive business costs in
    Canada and the United States found Canadian costs, on average, 15.7 percent lower. The overall after-tax advantage is 6.7 percent.

  • Canada is a gateway to the North American market. Through the North American Free Trade Agreement (NAFTA), companies based in Canada have preferred access to a North American market of 386 million people, with a combined gross domestic product (GDP) of roughly US$11 trillion.

  • You won’t find a higher quality of life anywhere else. According to the United Nations’ Human
    Development Index, an aggregate measure based on three composite indexes that rate life expectancy, education and income, Canada ranked number one in the world in 1995. (Canada Business Facts).

  • Foreign direct investment is hassle-free. Investment protection agreements and bilateral treaties on double taxation allow easy foreign direct investment. The accumulated stock of foreign direct investment in Canadareached C$168 billion in 1995, nearly double the 1985 value. (Canada Business Facts).

  • Canada is the world’s leading location for research and development (R&D). Canada’s research and
    development (R&D) tax incentive system is one of the most generous among industrialized countries. This, combined with the country’s highly developed infrastructure and leading-edge researchers, led a 1995 (KPMG) study to rank Canada first among 23 industrialized nations as the best place for any company to conduct R&D.

  • Canada is a globally integrated trading partner. In 1994, Canada led the G7 countries in terms of
    total trade as a share of gross domestic product (GDP). Exports and imports taken together were worth the equivalent of 66 percent of Canada’s
    GDP. Canada is the seventh largest exporter and the eighth largest importer in the world.

  • Economic growth potential abounds. Canada ranks fourth in the World Economic Forum’s 1997 study of economic competitiveness. Openness to investment, a high level of infrastructure, the availability of technology and management expertise and a well-functioning system of public safety and legal institutions were cited as Canada’s strengths. (Globe and Mail).

  • The Canadian market is rich and developed. With an ethnically diverse population of over 30 million and an average family income of C$54,200 in 1995, Canada offers a valuable consumer market. Canadians spend over C$500 billion annually on consumer products, more than half of which goes to buying services.

  • Education is a priority. Canada ranks first among G7 countries in per capita post-secondary education enrollment with about 1.4 million students enrolled on a full or part-time basis. Almost 50 percent of the Canadian labour force has a post-secondary degree, diploma or certificate.

  • Exciting possibilities exist in some of the world’s fastest-growing sectors. In addition to its traditional strengths in forestry, mining, fisheries and other natural resource sectors, Canada has proven expertise and growth in some of the most promising technological areas of opportunity — information technology, medical devices, biotechnology, pharmaceuticals, agri-food and semiconductors.

    Investment Facts

    Statistics Canada released figures indicating that in 1995, foreign multinationals increased their investment in Canada at a faster pace than in the previous seven years. This was fueled by a large inflow of capital and the reinvestment of some of their near-record profits earned from Canadian operations. At the end of 1995, total FDI in Canada amounted to $168.1 billion, an increase of $15 billion compared to the cumulative total of 1994 ($152.8 billion). With a share of 67%, U.S. companies continued to account for the greatest proportion of existing, foreign-owned assets, while Europe placed second with 24% and Pacific Rim countries third.

    On the other hand, Canadian direct investment abroad in 1995 grew at a slower pace, with an increase of 8% to $142 billion, compared with a near-record increase of 14% in 1994. Canadian investment in the United States accounted for 54%. Europe occupied the second place with 21% and Pacific Rim countries came in third with 10%.  

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