Introduction Any non-Canadian who proposes establishing a new Canadian business, or acquiring or investing in an existing business in Canada should be aware of the provisions of the federal Investment Canada Act (ICA). 1 Under the ICA, the federal government reviews investments in Canada by non-Canadians to protect national security and, for certain significant investments, encourage investment, economic growth and employment opportunities in Canada. The review and notification provisions can apply not only to investments in Canadian-owned entities or businesses, but also to investments in businesses or entities that are currently controlled by non- Canadians. They can also apply to a Canadian business that is acquired (or to be acquired) indirectly through the acquisition of a foreign entity that has a Canadian subsidiary. The Foreign Investment Review and Economic Security (FIRES) branch of Innovation, Science and Economic Development Canada is responsible for administering the ICA and reviewing non- cultural investments in Canada by non-Canadians. The Department of Canadian Heritage reviews investments in cultural businesses. This guide provides a high level overview of the ICA. However, many provisions of the ICA are highly technical and counsel should be consulted to confirm the ICA’s application to particular investments.
1 RSC 1985, c 28 (1st Supp). Some other or additional sector-specific measures or approval requirements may apply to foreign investments in certain key sectors, such as telecommunications, broadcasting, mining and transportation. These provisions are beyond the scope of this guide. This guide is current to June 30, 2026.
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