CPTPP Investors - EN
What is the CPTPP?
The Comprehensive and Progressive Agreement for 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, the 11 countries will form a trading bloc representing 495 million consumers and 13.5% of global GDP, providing Canada with preferential access to key markets in Asia and Latin America.
On December 30, 2018 the CPTPP entered into force among the first six countries to ratify the agreement – Canada, Australia, Japan, Mexico, New Zealand, and Singapore. On January 14, 2019, the CPTPP entered into force for Vietnam.
Program Requirements
- Applicant is citizen (PR where applicable) of treaty country
- At least 50% of the company established in Canada must be directly owned by individual or corporate person with nationality of treaty country
- Enterprise must be a real and active undertaking which operates to produce some service or good for profit
- A substantial investment must have been made OR is in the process of being invested
- “Investment” involves placing funds or other capital assets at risk in the hope of generating a profit or a return
- No minimum dollar figure established for meeting the requirement of “substantial” investment
Investment
- Experience dictates that less than $80,000-$100,000 may not be sufficient;
- Mere possession of funds – is not an investment;
- Money have to be put into Canadian economy (in the bank account of the company);
- Business must be close to operational – office rented, website done, business plan developed etc.
- Substantial investment must be made
- Examples:
- Start-Up Company – near operational (has an office, employee and substantial part of the investment in the bank account);
- Investors buying new locations of franchise
- Investors buying a 50% shares in an established Canadian company
Owner-Operator Vs. Investor
O/O | INVESTOR |
2-step process | Direct application for a WP |
no start-ups | OK for start-ups |
no minimum investment | must be “significant” investment |
business must be operational | can be close to operational |
FN must meet median wage requirement | does not have to |
FN must have 51% of ownership |
50% of ownership (allows partnerships) |
Ideal INVESTOR Client
- A citizen of Vietnam who has substantial amount ($100K+) to invest into a Canadian business.
- The Client will transfer the funds into the Canadian company.
- The Client does not mind investing into his/her business.
How Does It Work?
Example 1: Start-Up Company in Canada
- Client has a good idea or company in Vietnam (that is not suitable for ICT)
- The Client establishes his own company in Canada, funds it (transfers money), rents and office/warehouse; invests in machinery or goods to be sold – “nearly operational”.
- Client has a website, marketing material
- Client actively engaged in recruiting;
- Client has a registration in local Chamber of Commerce & obtains several letters of support.
Example 2: Buying an Operational Company in Canada
- Client wishes to buy a business in Canada (at least 50%)
- The Client gives a deposit for the company
- Client transfers funds to lawyer’s account
- Lawyer issues a standing order for the Client
- Client applies and gets a work permit
- Client completes the purchase transfer and comes to operate his/her business in Canada
Example 3: Buying a new Franchise
- Client wishes to buy a new location in Canada (at least 50%)
- The Client gives a deposit for the company
- Client transfers funds to lawyer’s account
- Lawyer issues a standing order for the Client
- Client applies and gets a work permit
- Client completes the purchase transfer and comes to operate his/her business in Canada