Hello,
My wife has been offered a full time job abroad by a Canadian company but although it is owned by Canadian citizens, it is sort of owned indirectly. I explain, the Canadian company is owned by a foreign company and that company is owned 100% by Canadian citizens (I imagine for tax purposes). As per the CIC, a Canadian company includes enterprises "in which a majority of voting or ownership interests is held by Canadian citizens, permanent residents or Canadian businesses". In this case, I see the majority of voting being held by Canadian citizens but not so sure about the majority of ownership but on the other hand, while I am no law expert, I would understand that either the majority of voting or majority of ownership will suffice to qualify as Canadian company. Are my assumptions correct?
Finally, the definition for Canadian businesses says it includes 3 scenarios. I would also understand here that with either of these 3 scenarios met, the company wouldl qualify a company as Canadian, is that accurate? Because I have no doubt about 1 and 3 being met, just #2 which is the one above. I paste here from CIC:
6.2 Canadian business
The definition applies to both large and small businesses, and includes:
federally or provincially incorporated businesses which have an ongoing operation in
Canada;
other enterprises that have an ongoing operation in Canada, are capable of generating
revenue, are carried out in anticipation of profit and in which a majority of voting or
ownership interests is held by Canadian citizens, permanent residents or Canadian
businesses;
enterprises which have been created by the laws of Canada or a province.
It may be possible they focus more on the restriction of businesses created to primarily for keeping the status which is not the case, this is a profitable business that's been operating for about a decade.
I guess I could do a summary with 3 questions:
1.- For a business to be considered Canadian, does it suffice to meet one of the 3 scenarios?
2.- For scenario #2. Does it suffice that voting majority is held by Canadian citizens or does it also need that ownership is held by Canadian citizens?
3.- If a Canadian company is owned by a foreign company which is owned 100% by Canadian citizens, is ownership considered to be held by Canadian citizens?
Has anyone been through a similar situation or has any knowledge or experience? Thanks
My wife has been offered a full time job abroad by a Canadian company but although it is owned by Canadian citizens, it is sort of owned indirectly. I explain, the Canadian company is owned by a foreign company and that company is owned 100% by Canadian citizens (I imagine for tax purposes). As per the CIC, a Canadian company includes enterprises "in which a majority of voting or ownership interests is held by Canadian citizens, permanent residents or Canadian businesses". In this case, I see the majority of voting being held by Canadian citizens but not so sure about the majority of ownership but on the other hand, while I am no law expert, I would understand that either the majority of voting or majority of ownership will suffice to qualify as Canadian company. Are my assumptions correct?
Finally, the definition for Canadian businesses says it includes 3 scenarios. I would also understand here that with either of these 3 scenarios met, the company wouldl qualify a company as Canadian, is that accurate? Because I have no doubt about 1 and 3 being met, just #2 which is the one above. I paste here from CIC:
6.2 Canadian business
The definition applies to both large and small businesses, and includes:
federally or provincially incorporated businesses which have an ongoing operation in
Canada;
other enterprises that have an ongoing operation in Canada, are capable of generating
revenue, are carried out in anticipation of profit and in which a majority of voting or
ownership interests is held by Canadian citizens, permanent residents or Canadian
businesses;
enterprises which have been created by the laws of Canada or a province.
It may be possible they focus more on the restriction of businesses created to primarily for keeping the status which is not the case, this is a profitable business that's been operating for about a decade.
I guess I could do a summary with 3 questions:
1.- For a business to be considered Canadian, does it suffice to meet one of the 3 scenarios?
2.- For scenario #2. Does it suffice that voting majority is held by Canadian citizens or does it also need that ownership is held by Canadian citizens?
3.- If a Canadian company is owned by a foreign company which is owned 100% by Canadian citizens, is ownership considered to be held by Canadian citizens?
Has anyone been through a similar situation or has any knowledge or experience? Thanks