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It is permitted to invest in a small private company not publicly traded.
    
 

Invest in a small company not publicly traded



 

It is possible using funds in your self-directed RRSP. Only the company's shares are eligible (and other debt obligations are not). It is not possible if you are the owner operator of the business.

 

Conditions

The Company is:

a Canadian company controlled by Canadian residents. 90% of assets directly or indirectly held by the private company is in Canada.

or

It is a venture capital firm regulated.

or

It is a cooperative. The acquisition of shares is not a condition of membership.

If it is your own company:

You can't have or can't acquire, with options, 10% or more of the capital stock. In this calculation, you must include the shares held by persons dealing at arm's length with you. Such as your spouse, a parent. For an investment of less than $ 25,000, this requirement does not apply.

 
  

 

 

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