S-29.1, r. 1 - Québec Business Investment Companies Regulation

Schedule Disposition versions

2022-09-01

SCHEDULE I

(s. 3)

For the purposes of the Act, a legal person operates in a qualified sector of activity if it carries on any of the following businesses:

(1) A business in the manufacturing sector that is:

(1) a business at least 25% of whose operations consist in carrying out a manufacturing activity, namely that of assembling or transforming a material to obtain a product therefrom, whether the material be raw or have undergone one or more transformations;

(2) a rubber recycling business whose operations consist in the regeneration of rubber, the recapping of tires or the conditioning of rubber with a view to making it useful as a finished product for other purposes;

(3) a paper recycling business whose operations consist in the removal of contaminants, the separation of paper according to type and the conditioning of fibres;

(4) a scrap metal recycling business whose operations consist in the recycling of metal strips and wastes by separating the metals, removing pollutants and sizing for remelting;

(5) a business recycling electrical or mechanical automobile parts and electric motors and generators whose operations consist in dismantling, cleaning, reboring and adding certain materials or certain new subassembly components.

Such business must also demonstrate that it carries on mass production of recycled products, that it accumulated inventory stocks of these and that its recycled products meet specifications and carry a warranty;

(6) a glass recycling business whose operations consist in recovering different types of glass, removing pollutants and transforming them into cullet, or whose operations consist in the production of glass pellets;

(7) a plastic recycling business whose operations consist in the recovery of plastic waste from manufacturing or household waste and the making of a raw material from it used directly in manufacturing;

(8) a business recycling bark, sawdust or shavings produced by the wood processing industry whose operations consist in the conditioning of these materials to make a homogeneous product suitable for the production of energy for commercial purposes;

(9) a business related to the field of transportation whose operations are defined by the Government.

(2) A business in the tourism sector that is:

(1) an accommodations business existing on the date of the qualified investment, or a new accommodations business intended primarily for holiday or convention tourists, for which a classification certificate has been issued under the Tourist Accommodation Act (chapter H-1.01);

(2) a campground business or a new campground business for which a classification certificate has been issued under the Tourist Accommodation Act and offering more than 40% of its sites or a minimum of 150 sites, whichever is lower, exclusively to campers other than seasonal campers;

(3) a business operating excursion boats on a watercourse in Québec;

(4) an outfitting operation holding an operating licence issued under the Act respecting the conservation and development of wildlife (chapter C-61.1);

(5) a business operating an alpine ski centre whose existing or potential skiable territory in Québec has a vertical drop of not less than 250 m or which demonstrates the existence of not less than 100 commercial accommodation units within a radius of 1 km from the starting point of the mechanical ski tows, or which demonstrates that a construction project in progress would make it possible to reach that concentration within 12 months following the date of the qualified investment, or a business which operates an alpine ski centre in Québec and which demonstrates that 50% or more of its clientele comes from outside Québec;

(6) a business offering nature or adventure activities in Québec for tourists under a package trip arrangement which includes accommodations, whether provided by the business or by a third party, provided, in the latter case, that the package trips are under contract agreement with other establishments or with distributors;

(7) a business offering recreational activities primarily used by a tourist clientele, located on the grounds of an accommodations establishment or at least 25% of whose capital investment is financed by accommodations establishments for which a licence has been issued under the Tourist Accommodation Act, and whose activities are a part of package trip arrangements including accommodations, whether provided by the business or by a third party, provided, in the latter case, that the package trips are under contract agreement with other establishments or with distributors;

(8) a business operating a tourist attraction and receiving paying guests.

The expression “holiday or convention tourists” means persons travelling for recreation, vacation, conventions, symposia or seminars and requiring accommodations for those purposes outside their principal residence.

A business operating a school camp and a business operating an establishment reserved for members of a club or organization that owns the establishment or operating an establishment the majority of whose users are members of a club or organization are excluded from this definition.

(3) A business in the tertiary actuators sector that is:

(1) a profit-making business operating a research laboratory whose activities correspond to those classified under activity No. 7753 of the Répertoire de la classification des activités économiques du Québec (1984) of the Bureau de la statistique du Québec;

(2) a business whose activities consist in product development and industrial design;

(3) a business whose activities consist in fashion design;

(4) a business whose activities consist in providing data processing and office automation services;

(5) a business whose activities consist in producing computer programs and software packages;

(6) a business operating in the biotechnology sector to the extent that the business represents more than 50% of the activities of the qualified legal person.

(4) A business related to the field of exports that is:

(1) a engineering consultant business, where the business presents a specific project for exports;

(2) a business whose activities consist in providing services in land or aerial surveying, prospecting and geographical scaling or other technical services to businesses referred to in paragraph 7759 of the Répertoire de la classification des activités économiques (1984) of the Bureau de la statistique du Québec, where the business presents a specific project for exports;

(3) a business at least half of whose sales are generated by activities that consist in organizing and managing the exporting of products, within the scope of specific turn-key projects, and in purchasing for its own account a certain quantity and variety of products manufactured in Québec by legal persons to which it is not related, within the meaning of the Taxation Act (chapter I-3), and exported within the scope of those projects;

(4) an export consortium belonging to the members of the consortium and managing the exporting operations on their behalf in special cases or generally;

(5) a trade business at least half of whose sales are generated by the exporting of products manufactured in Québec by one or more legal persons to which it is not related within the meaning of the Taxation Act and on whose behalf it intervenes in return for a commission or acts as the principal in the course of legal persons involving foreign trade;

(6) a forwarding business, including associated services;

(7) a business involved in distributing films outside Québec and operated by a legal person, insofar as at least half the business’s turnover is derived from the sale outside Québec of films certified as Québec films and from the sale outside Québec of Canadian productions for which a stamp has been issued and which were produced in Québec by a legal person with which the business is not related within the meaning of the Taxation Act.

(5) A business whose main activities are related to an aquacultural operation, with the exception of a business whose activity consists in operating a fishing pond.

(6) A business that operates an “industrial creator” is certified as such if its main activity consists in helping launch or expand legal persons that have been in operation for less than 3 years and if it meets the following conditions:

(1) it must offer, for a period of not more than 5 years and exclusively to created legal persons, rental space and significant administrative support and management consulting services under an assistance contract;

(2) a minimum of 3 legal persons must be created by that business and those legal persons must operate a business in the manufacturing sector or in the tertiary actuators sector referred to in sections 1 and 3, respectively, of Schedule I; if more than 3 legal persons are created by the business, the majority of those legal persons must operate a business in one of those sectors;

(3) the legal persons created by the business must not be related to each other or to that business within the meaning of the Taxation Act.

(7) (Revoked).

(8) A business in the cinema or television productions sector operated by a legal person meeting the following requirements:

(1) the majority of the legal person’s expenses consist in film development and production expenses incurred on its own behalf or on behalf of other persons;

(2) the majority of the legal person’s film development and production expenses consist in development and production expenses incurred on its own behalf or on behalf of other persons, during the 12 months preceding the date of the qualified investment and during the 24 months following that date, for the purpose of producing Canadian productions for which a stamp has been issued; and

(3) it has produced, prior to the date of the qualified investment, at least one Canadian production for which a stamp has been issued.

For the purposes of the requirements set out in the first paragraph on the date of a qualified investment and only insofar as the legal person is unable to meet those requirements on its own, a legal person must consider the activities of a subsidiary that it controls as well as, on a combined basis, the aggregate of the film production and development expenses incurred by the legal person and by a subsidiary that it controls.

(9) A business in the environment sector and operated by a legal person, where the majority of the business’s activities consist:

(1) either in general site depollution and decontamination or in the thermal, physico-chemical or biological treatment of soil, ground or surface water, liquid effluents, atmospheric emissions and contaminated sediments;

(2) or in the recovery, transportation, thermal, physico-chemical or biological treatment and utilization for energy purposes of waste or of sludge from treatment plants or from septic tanks.

(10) A business in the cultural sector that is operated by a legal person, other than a business referred to in paragraph 7 of section 4 or in section 8 of this Schedule and meeting the following requirements:

(1) its principal activity consists in producing, processing or marketing outside Québec a product made or a service rendered in Québec related to the field of films, records, videodiscs, videocassettes and the interpretation arts;

(2) its receipts come from the production, processing or marketing outside Québec of goods or services related to one of the fields mentioned in subparagraph 1 and total at least $200,000 for the fiscal year that ended immediately prior to the date of the investment.

A business created only for the purpose of managing the professional activities of an artist or a group of artists, a business created for a single event or show, as well as a business whose principal activity consists in booking shows does not perform activities in the cultural sector defined in the first paragraph.

(11) A business operated by a qualified legal person where more than 50% of the activities of the business consist in operating a broadcasting licence issued by the Canadian Radio-television and Telecommunications Commission and operating in the broadcasting sector.

(12) A business operated by a qualified legal person where more than 50% of the activities of the business consist in operating an accredited bookstore in accordance with the Act respecting the development of Québec firms in the book industry (chapter D-8.1).

O.C. 1627-85, Sch. 1; O.C. 883-88, s. 5; O.C. 1428-89, ss. 6, 7 and 8; O.C. 1256-90, ss. 12 and 14; O.C. 1549-91, s. 7; O.C. 1148-92, s. 3; O.C. 848-93, s. 2; Erratum, 1996 G.O. 2, 3399; O.C. 1260-94, s. 2; O.C. 1727-94, s. 3; O.C. 1136-2004, ss. 13 and 15.

2012-09-01

SCHEDULE I

(s. 3)

For the purposes of the Act, a legal person operates in a qualified sector of activity if it carries on any of the following businesses:

(1) A business in the manufacturing sector that is:

(1) a business at least 25% of whose operations consist in carrying out a manufacturing activity, namely that of assembling or transforming a material to obtain a product therefrom, whether the material be raw or have undergone one or more transformations;

(2) a rubber recycling business whose operations consist in the regeneration of rubber, the recapping of tires or the conditioning of rubber with a view to making it useful as a finished product for other purposes;

(3) a paper recycling business whose operations consist in the removal of contaminants, the separation of paper according to type and the conditioning of fibres;

(4) a scrap metal recycling business whose operations consist in the recycling of metal strips and wastes by separating the metals, removing pollutants and sizing for remelting;

(5) a business recycling electrical or mechanical automobile parts and electric motors and generators whose operations consist in dismantling, cleaning, reboring and adding certain materials or certain new subassembly components.

Such business must also demonstrate that it carries on mass production of recycled products, that it accumulated inventory stocks of these and that its recycled products meet specifications and carry a warranty;

(6) a glass recycling business whose operations consist in recovering different types of glass, removing pollutants and transforming them into cullet, or whose operations consist in the production of glass pellets;

(7) a plastic recycling business whose operations consist in the recovery of plastic waste from manufacturing or household waste and the making of a raw material from it used directly in manufacturing;

(8) a business recycling bark, sawdust or shavings produced by the wood processing industry whose operations consist in the conditioning of these materials to make a homogeneous product suitable for the production of energy for commercial purposes;

(9) a business related to the field of transportation whose operations are defined by the Government.

(2) A business in the tourism sector that is:

(1) an accommodations business existing on the date of the qualified investment, or a new accommodations business intended primarily for holiday or convention tourists, for which a classification certificate has been issued under the Act respecting tourist accommodation establishments (chapter E-14.2);

(2) a campground business or a new campground business for which a classification certificate has been issued under the Act respecting tourist accommodation establishments and offering more than 40% of its sites or a minimum of 150 sites, whichever is lower, exclusively to campers other than seasonal campers;

(3) a business operating excursion boats on a watercourse in Québec;

(4) an outfitting operation holding an operating licence issued under the Act respecting the conservation and development of wildlife (chapter C-61.1);

(5) a business operating an alpine ski centre whose existing or potential skiable territory in Québec has a vertical drop of not less than 250 m or which demonstrates the existence of not less than 100 commercial accommodation units within a radius of 1 km from the starting point of the mechanical ski tows, or which demonstrates that a construction project in progress would make it possible to reach that concentration within 12 months following the date of the qualified investment, or a business which operates an alpine ski centre in Québec and which demonstrates that 50% or more of its clientele comes from outside Québec;

(6) a business offering nature or adventure activities in Québec for tourists under a package trip arrangement which includes accommodations, whether provided by the business or by a third party, provided, in the latter case, that the package trips are under contract agreement with other establishments or with distributors;

(7) a business offering recreational activities primarily used by a tourist clientele, located on the grounds of an accommodations establishment or at least 25% of whose capital investment is financed by accommodations establishments for which a licence has been issued under the Act respecting tourist accommodation establishments, and whose activities are a part of package trip arrangements including accommodations, whether provided by the business or by a third party, provided, in the latter case, that the package trips are under contract agreement with other establishments or with distributors;

(8) a business operating a tourist attraction and receiving paying guests.

The expression “holiday or convention tourists” means persons travelling for recreation, vacation, conventions, symposia or seminars and requiring accommodations for those purposes outside their principal residence.

A business operating a school camp and a business operating an establishment reserved for members of a club or organization that owns the establishment or operating an establishment the majority of whose users are members of a club or organization are excluded from this definition.

(3) A business in the tertiary actuators sector that is:

(1) a profit-making business operating a research laboratory whose activities correspond to those classified under activity No. 7753 of the Répertoire de la classification des activités économiques du Québec (1984) of the Bureau de la statistique du Québec;

(2) a business whose activities consist in product development and industrial design;

(3) a business whose activities consist in fashion design;

(4) a business whose activities consist in providing data processing and office automation services;

(5) a business whose activities consist in producing computer programs and software packages;

(6) a business operating in the biotechnology sector to the extent that the business represents more than 50% of the activities of the qualified legal person.

(4) A business related to the field of exports that is:

(1) a engineering consultant business, where the business presents a specific project for exports;

(2) a business whose activities consist in providing services in land or aerial surveying, prospecting and geographical scaling or other technical services to businesses referred to in paragraph 7759 of the Répertoire de la classification des activités économiques (1984) of the Bureau de la statistique du Québec, where the business presents a specific project for exports;

(3) a business at least half of whose sales are generated by activities that consist in organizing and managing the exporting of products, within the scope of specific turn-key projects, and in purchasing for its own account a certain quantity and variety of products manufactured in Québec by legal persons to which it is not related, within the meaning of the Taxation Act (chapter I-3), and exported within the scope of those projects;

(4) an export consortium belonging to the members of the consortium and managing the exporting operations on their behalf in special cases or generally;

(5) a trade business at least half of whose sales are generated by the exporting of products manufactured in Québec by one or more legal persons to which it is not related within the meaning of the Taxation Act and on whose behalf it intervenes in return for a commission or acts as the principal in the course of legal persons involving foreign trade;

(6) a forwarding business, including associated services;

(7) a business involved in distributing films outside Québec and operated by a legal person, insofar as at least half the business’s turnover is derived from the sale outside Québec of films certified as Québec films and from the sale outside Québec of Canadian productions for which a stamp has been issued and which were produced in Québec by a legal person with which the business is not related within the meaning of the Taxation Act.

(5) A business whose main activities are related to an aquacultural operation, with the exception of a business whose activity consists in operating a fishing pond.

(6) A business that operates an “industrial creator” is certified as such if its main activity consists in helping launch or expand legal persons that have been in operation for less than 3 years and if it meets the following conditions:

(1) it must offer, for a period of not more than 5 years and exclusively to created legal persons, rental space and significant administrative support and management consulting services under an assistance contract;

(2) a minimum of 3 legal persons must be created by that business and those legal persons must operate a business in the manufacturing sector or in the tertiary actuators sector referred to in sections 1 and 3, respectively, of Schedule I; if more than 3 legal persons are created by the business, the majority of those legal persons must operate a business in one of those sectors;

(3) the legal persons created by the business must not be related to each other or to that business within the meaning of the Taxation Act.

(7) (Revoked).

(8) A business in the cinema or television productions sector operated by a legal person meeting the following requirements:

(1) the majority of the legal person’s expenses consist in film development and production expenses incurred on its own behalf or on behalf of other persons;

(2) the majority of the legal person’s film development and production expenses consist in development and production expenses incurred on its own behalf or on behalf of other persons, during the 12 months preceding the date of the qualified investment and during the 24 months following that date, for the purpose of producing Canadian productions for which a stamp has been issued; and

(3) it has produced, prior to the date of the qualified investment, at least one Canadian production for which a stamp has been issued.

For the purposes of the requirements set out in the first paragraph on the date of a qualified investment and only insofar as the legal person is unable to meet those requirements on its own, a legal person must consider the activities of a subsidiary that it controls as well as, on a combined basis, the aggregate of the film production and development expenses incurred by the legal person and by a subsidiary that it controls.

(9) A business in the environment sector and operated by a legal person, where the majority of the business’s activities consist:

(1) either in general site depollution and decontamination or in the thermal, physico-chemical or biological treatment of soil, ground or surface water, liquid effluents, atmospheric emissions and contaminated sediments;

(2) or in the recovery, transportation, thermal, physico-chemical or biological treatment and utilization for energy purposes of waste or of sludge from treatment plants or from septic tanks.

(10) A business in the cultural sector that is operated by a legal person, other than a business referred to in paragraph 7 of section 4 or in section 8 of this Schedule and meeting the following requirements:

(1) its principal activity consists in producing, processing or marketing outside Québec a product made or a service rendered in Québec related to the field of films, records, videodiscs, videocassettes and the interpretation arts;

(2) its receipts come from the production, processing or marketing outside Québec of goods or services related to one of the fields mentioned in subparagraph 1 and total at least $200,000 for the fiscal year that ended immediately prior to the date of the investment.

A business created only for the purpose of managing the professional activities of an artist or a group of artists, a business created for a single event or show, as well as a business whose principal activity consists in booking shows does not perform activities in the cultural sector defined in the first paragraph.

(11) A business operated by a qualified legal person where more than 50% of the activities of the business consist in operating a broadcasting licence issued by the Canadian Radio-television and Telecommunications Commission and operating in the broadcasting sector.

(12) A business operated by a qualified legal person where more than 50% of the activities of the business consist in operating an accredited bookstore in accordance with the Act respecting the development of Québec firms in the book industry (chapter D-8.1).

O.C. 1627-85, Sch. 1; O.C. 883-88, s. 5; O.C. 1428-89, ss. 6, 7 and 8; O.C. 1256-90, ss. 12 and 14; O.C. 1549-91, s. 7; O.C. 1148-92, s. 3; O.C. 848-93, s. 2; Erratum, 1996 G.O. 2, 3399; O.C. 1260-94, s. 2; O.C. 1727-94, s. 3; O.C. 1136-2004, ss. 13 and 15.