Document background
The Foreign Investment Agreement serves as the primary legal instrument for structuring and documenting foreign investments in Canadian businesses or assets. This document is essential when non-Canadian entities seek to invest in, acquire, or establish business operations in Canada. It must comply with the Investment Canada Act, which requires review and approval of significant foreign investments based on various thresholds and factors, including net benefit to Canada and national security considerations. The agreement typically includes provisions for regulatory compliance, governance structures, operational commitments, and reporting requirements. It is particularly crucial for investments exceeding prescribed thresholds, investments in cultural businesses or national security-sensitive sectors, and transactions requiring ministerial approval. The document needs to address both federal and provincial requirements, depending on the location and nature of the investment.
