Vancouver Cross-Border Investment Guide
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Claire to try illustration idea as one final cover option Vancouver Cross-Border Investment Guide Essential legal, tax and market information for cross-border investment into Vancouver, Canada Digital Download 1 Vancouver Cross-Border Contents Investment Guide Published October 2020 Why Invest in Vancouver ............................................................................1 Sectors to Watch ........................................................................................... 3 About the Vancouver Economic Commission Technology ..................................................................................................3 The Vancouver Economic Commission (VEC) serves one of the world’s fastest-growing, low- Cleantech .................................................................................................... 4 carbon economies. As the economic development agency for the city’s businesses, investors and citizens, VEC works to strengthen Vancouver’s economic future by supporting local companies, attracting high-impact investment, conducting and publishing leading-edge industry research, Media and Entertainment ............................................................................5 and promoting international trade. VEC works collaboratively to position Vancouver as a global destination for innovative, creative, diverse and sustainable development. Life Sciences ............................................................................................... 6 VEC respectfully acknowledges that it is located on the traditional, ancestral and unceded territory of the Skwx̱wú7mesh (Squamish), Səl̓ílwətaʔ/Selilwitulh (Tsleil-Waututh) and Incentives and Tax Credits ........................................................................ 7 xʷməθkʷəy̓əm (Musqueam) Nations. Vancouver Investment Activity ...............................................................9 The Canadian Advantage. .........................................................................13 www.vancouvereconomic.com @VanEconomic An Interview with Joel Solomon ................................................................ 15 1500 - 401 West Georgia, Vancouver, BC V6B 5A1 Legal Considerations .................................................................................17 Corporate Law ........................................................................................... 17 Acknowledgements Securities Law ........................................................................................... 19 The VEC would like to thank its partners for their valuable contributions. Special thanks to The CCPC Advantage ................................................................................. 19 Caroline Caestecker from the Artesis Plantijn University College Antwerp for assisting in the data collection and analysis. Investment Structures ..............................................................................20 Taxation Considerations ......................................................................... 23 Foreign Investors ....................................................................................... 23 Canadian Corporations. .............................................................................26 The information in this guide does not necessarily represent the views of VEC’s funders, or any other organizations with which VEC is associated. We Can Help .................................................................................................29 Why Invest Best City in the World for Startups Forbes/PeoplePerHour in Vancouver High-Tech Vancouver is one of the Designing the future, today top 15 high-tech cities in the world, according to Business Insider Vancouver’s competitive advantage lies The city’s collaborative energy motivates in its highly skilled and culturally diverse businesses to consistently push boundaries workforce; a supportive government offering and deliver the newest ideas and latest generous incentive programs; and world- advances. In essence, Vancouver’s resident Competitive leading university, research and development businesses and professionals have cultivated KPMG ranks Vancouver th programs. Here, entrepreneurs and innovators an enviable ecosystem of innovation, creativity Most Resilient City as North America’s 5 Top City for enjoy space and freedom to think outside and sustainability – a truly smart city designed in the World most competitive city American Expats the box without the limits or restrictions they for the demands of the 21st century. for overall cost of doing might face elsewhere. Grosvenor Group business US Government 1 2 Developer of quantum computing software that allows Provider of clean energy services that use applications to continually benefit from advances commercializing technology to capture carbon dioxide in both quantum and classical hardware. 1QBit has directly from the atmosphere which is then used to hardware partnerships with Microsoft, IBM, Fujitsu and produce ultra-low carbon fuels for clients’ vehicles. D-Wave Systems. Notable Investors Notable Investors Accenture Allianz X Bill Gates Chevron Technology Allianz Global Investors CME Ventures Starlight Ventures Ventures First Round Capital Technology Cleantech Vancouver is one of the world’s top 10 Unparalleled talent, geographic advan- Developer of a next-generation server security platform Manufacturer of plant-based pesticide products that tages, and some of the lowest operating designed to protect production environments. The cleantech clusters. It is home to hundreds offer alternatives to conventional chemical pesticides costs and taxes of any major global city platform is tailored to the specific needs of large of cleantech companies leveraging global and fertilizers. The result: sustainable farming that is are a few of many reasons the world’s enterprises to granularly control, monitor, and and cross-sectoral expertise, as well cheaper, more productive and satisfyingly abundant. leading technology companies call authenticate user activity. as supportive government policies and programs promoting new wave thinking. Vancouver home. Notable Investors Notable Investors Global imports – such as Amazon, GV (Google Ventures) Expa The city is at the forefront of global Bold Capital Partners S2G Ventures Microsoft, Apple, Cisco, GE, Intel and Amplify Partners Norwest Venture Partners innovation, especially in fuel cell Ingka GreenTech AB Renewal Funds SAP – and homegrown successes like solutions, power electronics and waste Slack, D-Wave, Avigilon, Plenty of Fish, & wastewater treatment technologies; and Hootsuite continue to gravitate and is home to world-leading companies to Vancouver’s rich creative pool, like Westport Innovations (advanced inspiring natural beauty and top-tier natural gas engines), General Fusion infrastructure. In fact, technology is (commercially viable nuclear fusion), the city’s fastest-growing sector, with Ballard Power Systems (hydrogen fuel over 75,000 tech professionals based cells) and Saltworks Technologies in and around the city. According Provider of a cloud-based practice management platform (wastewater remediation). Even young Developer of tunable, full-spectrum Circadian Rhythm to CBRE’s 2019 Scoring Tech Talent designed for the legal industry. The platform eases the cleantech startups have established Lighting using quantum dots. Tunable lighting simulates process of time tracking, billing, administration and far-reaching commercial relationships, natural sunlight, changing color temperature throughout Report, Vancouver ranks 12th in North collaboration for law firms of all sizes. the day to enhance health and wellbeing. America for tech talent and boasts the including global supply chains and highest labor quality in Canada. Notable Investors investments from multinational venture Notable Investors capital firms. Technology Crossover Bessemer Venture Partners Colin Harris Sanja Moll Ventures (TCV) Jason Finger Ian Marchant Shahram Tafazoli JMI Equity 3 4 Developer of a virtual character production tool that Pioneer of microfluidic 3D bioprinting of living, human uses real-time and anatomy-warping technology, tissue. The company’s proprietary technology is enabling physics-based character simulation and pre-made advances in disease research, regenerative medicine human anatomy to create accurate and scalable and the development of novel therapeutics. characters. Notable Investors Notable Investors Millennium Technology Grishin Robotics Pangaea Ventures Pallasite Ventures Value Partners Epic Games Endure Capital Rising Tide Fund Toyota AI Ventures Media and Life Entertainment Sciences One of the fastest growing life sciences Vancouver is a leading visual effects Producer of immersive games and viewing experiences Developer of a health application designed to monitor, (VFX) and animation hub, is the third using virtual reality (VR), augmented reality (AR), mixed clusters in North America, Vancouver is record and assess potentially cancerous skin lesions. largest film and production center in reality (MR) and holographic imagery for industry, particularly advanced in biotechnology The app enables patients to diagnose skin problems in North America, and is recognized as government and community organizations. and biopharmaceuticals. Here, the advance and assists in the early detection of skin cancer. a top 10 global game development industry has proven successful in Notable Investors Notable