Foreign Investment Review

Foreign investments in Canada are regulated under the federal Investment Canada Act (“ICA”). Its purpose is to encourage foreign investment in Canada by non-Canadians on terms beneficial to Canada. The ICA is primarily administered by Innovation, Science and Economic Development Canada Industry Canada, except for investments in cultural businesses which are administered by the Department of Canadian Heritage. 

Under the ICA, the establishment of a new Canadian business by a foreign investor is subject to notification, and the acquisition of control of an existing Canadian business by a foreign investor is either “notifiable”, which requires the filing of a notice of investment, or reviewable, which requires the filing of an Application for Review. 

In addition, pursuant to the ICA’s national security provisions, the Government can order the review and ultimately challenge any foreign investment in a business in Canada that is deemed injurious to national security.