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A-33.01 - Act to promote the capitalization of small and medium-sized businesses

Section 3
Disposition versions

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3. A qualified legal person is a legal person which, on the date of investment, meets the following requirements:
(1)  it is a legal person;
(2)  it has assets of less than $25,000,000 or a net shareholders’ equity not in excess of $10,000,000, taking into account for that purpose the assets and equity of any legal person associated with the qualified legal person at any time during the 12-month period preceding the investment;
(3)  it has its head office in Québec;
(4)  it has paid, in the last 12 months preceding the date of acquisition or in the months preceding that date in the case of a legal person which has been in operation for less than 12 months, more than 75% of the salaries paid to its employees, within the meaning given to that expression in the Taxation Act (chapter I-3), to employees of an establishment situated in Québec; for that purpose, only salaries paid by the qualified legal person itself shall be considered;
(5)  it operates mainly in one of the sectors of activity determined by regulation;
(6)  it deals at arm’s length with the qualified investor, within the meaning of the regulations, on that date.
The conditions set out in subparagraphs 4 and 5 of the first paragraph must be met by a qualified legal person during the 24 months following the acquisition of a qualified investment.
The legal person, unless authorized by the body designated under section 1, must meet the condition set out in subparagraph 6 of the first paragraph during the entire term of the qualified investment, as defined by regulation.
1992, c. 46, s. 3; 1998, c. 17, s. 64; 1999, c. 40, s. 34; 2001, c. 69, s. 12; 2010, c. 37, s. 89.
3. A qualified legal person is a legal person which, on the date of investment, meets the following requirements:
(1)  it is a legal person;
(2)  it has assets of less than $25,000,000 or a net shareholders’ equity not in excess of $10,000,000, taking into account for that purpose the assets and equity of any legal person associated with the qualified legal person at any time during the 12-month period preceding the investment;
(3)  it has its head office in Québec;
(4)  it has paid, in the last 12 months preceding the date of acquisition or in the months preceding that date in the case of a legal person which has been in operation for less than 12 months, more than 75% of the salaries paid to its employees, within the meaning given to that expression in the Taxation Act (chapter I‐3), to employees of an establishment situated in Québec; for that purpose, only salaries paid by the qualified legal person itself shall be considered;
(5)  it operates mainly in one of the sectors of activity determined by regulation;
(6)  it deals at arm’s length with the qualified investor, within the meaning of the regulations, on that date.
The conditions set out in subparagraphs 4 and 5 of the first paragraph must be met by a qualified legal person during the 24 months following the acquisition of a qualified investment.
The legal person, unless authorized by La Financière du Québec, must meet the condition set out in subparagraph 6 of the first paragraph during the entire term of the qualified investment, as defined by regulation.
1992, c. 46, s. 3; 1998, c. 17, s. 64; 1999, c. 40, s. 34; 2001, c. 69, s. 12.
3. A qualified legal person is a legal person which, on the date of investment, meets the following requirements:
(1)  it is a legal person;
(2)  it has assets of less than $25 000 000 or a net shareholders’ equity not in excess of $10 000 000, taking into account for that purpose the assets and equity of any legal person associated with the qualified legal person at any time during the 12-month period preceding the investment;
(3)  it has its head office in Québec;
(4)  it has paid, in the last 12 months preceding the date of acquisition or in the months preceding that date in the case of a legal person which has been in operation for less than 12 months, more than 75 % of the salaries paid to its employees, within the meaning given to that expression in the Taxation Act (chapter I‐3), to employees of an establishment situated in Québec; for that purpose, only salaries paid by the qualified legal person itself shall be considered;
(5)  it operates mainly in one of the sectors of activity determined by regulation;
(6)  it deals at arm’s length with the qualified investor, within the meaning of the regulations, on that date.
The conditions set out in subparagraphs 4 and 5 of the first paragraph must be met by a qualified legal person during the 24 months following the acquisition of a qualified investment.
The legal person, unless authorized by Garantie Québec, must meet the condition set out in subparagraph 6 of the first paragraph during the entire term of the qualified investment, as defined by regulation.
1992, c. 46, s. 3; 1998, c. 17, s. 64; 1999, c. 40, s. 34.
3. A qualified corporation is a corporation which, on the date of investment, meets the following requirements:
(1)  it is a corporation;
(2)  it has assets of less than $25 000 000 or a net shareholders’ equity not in excess of $10 000 000, taking into account for that purpose the assets and equity of any corporation associated with the qualified corporation at any time during the 12-month period preceding the investment;
(3)  it has its head office in Québec;
(4)  it has paid, in the last 12 months preceding the date of acquisition or in the months preceding that date in the case of a corporation which has been in operation for less than 12 months, more than 75 % of the salaries paid to its employees, within the meaning given to that expression in the Taxation Act (chapter I-3), to employees of an establishment situated in Québec; for that purpose, only salaries paid by the qualified corporation itself shall be considered;
(5)  it operates mainly in one of the sectors of activity determined by regulation;
(6)  it deals at arm’s length with the qualified investor, within the meaning of the regulations, on that date.
The conditions set out in subparagraphs 4 and 5 of the first paragraph must be met by a qualified corporation during the 24 months following the acquisition of a qualified investment.
The corporation, unless authorized by Garantie-Québec, must meet the condition set out in subparagraph 6 of the first paragraph during the entire term of the qualified investment, as defined by regulation.
1992, c. 46, s. 3; 1998, c. 17, s. 64.
3. A qualified corporation is a corporation which, on the date of investment, meets the following requirements:
(1)  it is a corporation;
(2)  it has assets of less than $25 000 000 or a net shareholders’ equity not in excess of $10 000 000, taking into account for that purpose the assets and equity of any corporation associated with the qualified corporation at any time during the 12-month period preceding the investment;
(3)  it has its head office in Québec;
(4)  it has paid, in the last 12 months preceding the date of acquisition or in the months preceding that date in the case of a corporation which has been in operation for less than 12 months, more than 75 % of the salaries paid to its employees, within the meaning given to that expression in the Taxation Act (chapter I-3), to employees of an establishment situated in Québec; for that purpose, only salaries paid by the qualified corporation itself shall be considered;
(5)  it operates mainly in one of the sectors of activity determined by regulation;
(6)  it deals at arm’s length with the qualified investor, within the meaning of the regulations, on that date.
The conditions set out in subparagraphs 4 and 5 of the first paragraph must be met by a qualified corporation during the 24 months following the acquisition of a qualified investment.
The corporation, unless authorized by the Société de développement industriel du Québec, must meet the condition set out in subparagraph 6 of the first paragraph during the entire term of the qualified investment, as defined by regulation.
1992, c. 46, s. 3.
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