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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.
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No conditions are automatically
imposed upon admission;
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Investors may pursue whatever
business opportunities in Canada they wish, once their initial investment is
made;
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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
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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.
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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.
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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).
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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).
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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.
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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.
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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).
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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.
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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.
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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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