CPTPP Investors

What is CPTPP?

The Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) is a free trade agreement between Canada and 10 other countries in the Asia-Pacific region: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. Once fully implemented, these 11 countries will form a trade bloc representing 495 million consumers and 13.5% of global GDP, giving Canada preferential access to key markets in Asia and Latin America.

On December 30, 2018, the CPTPP came into effect for the first six countries to ratify the agreement – ​​Canada, Australia, Japan, Mexico, New Zealand, and Singapore. On January 14, 2019, the CPTPP came into effect for Vietnam.

Program requirements:

• The applicant is a citizen (permanent resident, if applicable) of a treaty country.
• At least 50% of the shareholders of a company incorporated in Canada must be directly owned by individuals or companies that are nationals of a treaty country.
• A business must be a real and actively operating company producing some service or for profit.
• A significant investment must be made OR is in the process of being invested.
• "Investing" involves placing funds or other capital assets at risk in the hope of generating a return or return.
• There is no minimum amount of money set to meet the "significant" investment requirement.

Invest:

• Experience shows that less than $80,000-$100,000 may not be enough;
• These are simply funds – not an investment;
• The money must be injected into the Canadian economy (into the company's bank account);
• Businesses need to get close to going live – renting office space, completing the website, developing a business plan, etc.
• Significant investment must be made.
• For example:
• Startup company - about to go public (has an office, employees, and a significant amount of investment in a bank account);
• Investors purchase new franchise locations.
• Investors buy 50% of the shares in an established Canadian company.

Comparison between Owner Operator and Investor

O/O	Investor
Two-step process	Submit your Work Permit directly.
Not applicable to startups.	This applies to startups.
No minimum investment required.	Significant investment is required.
The business must be operational.	The business may be about to start operating.
An average salary must be requested.	No salary required.
There must be 51% or more of the owners.	50% ownership (partnership is permitted)

Ideal investor client

• A Vietnamese citizen has a significant amount of money ($100,000+) to invest in a Canadian business.
• The customer will transfer the money to the Canadian company.
• Customers are not afraid to invest in their businesses.

What is the process?

Example 1: A startup company in Canada

• Customers with good ideas or companies located in Vietnam (not applicable to the IT industry)
• The client establishes their own company in Canada, provides funding (money transfers), rent, and office/warehouse space; invests in machinery or goods to sell - "getting started".
• The client has a website and marketing materials.
• Customers actively participate in the recruitment process;
• The customer registered with the local Chamber of Commerce and received several letters of support.

Example 2: Buying a Company Operating in Canada

• The client wants to buy a business in Canada (at least 50%).
• The customer paid a deposit to the company.
• Clients transfer money to the lawyer's account.
• Attorney issues permanent orders to Client
• Clients apply for and receive work permits.
• The customer completed the purchase transaction and went to Canada to conduct their business.

Example 3: Buying a new franchise

• The client wants to purchase a new property in Canada (at least 50%).
• The customer paid a deposit to the company.
• Clients transfer money to the lawyer's account.
• Attorney issues permanent orders to Client
• Clients apply for and receive work permits.
• The customer completed the purchase transaction and went to Canada to conduct their business.