Capital Synergie

Who is eligible?

• Private Canadian-controlled corporations (SPCCs) operating in Quebec
• Innovative and growing companies meeting financial and control criteria
• Companies active primarily in Quebec (at least 75% of activities)
• Businesses operating in sectors such as life sciences, manufacturing or processing, green technologies, artificial intelligence, and information technologies

Who is not eligible

• Financial institutions, investment companies, mortgage investment corporations, or mutual fund corporations.
• Companies primarily engaged in renting, developing, or selling real estate they own.
• Companies mainly engaged in lending money or investing funds in shares, bonds, debentures, promissory notes, mortgages, or similar securities.
• Crown corporations or wholly controlled subsidiaries of Crown corporations.

Eligible expenses

• Use of funds for investments directly related to the operation of the company in connection with eligible activities, as described in the application for the authorized placement certificate and any modifications approved by Investissement Québec.
• For companies primarily engaged in manufacturing and processing (excluding life sciences, green technologies, or information technologies): investments to improve the use or integration of new technologies, including the digitization or automation of business operations.

Eligible geographic areas

• Québec

• Step 1: Prepare the Required Documentation
  • Gather financial statements, income tax returns, and any other documents necessary to demonstrate compliance with investment and activity requirements.
  • Prepare a detailed description of the intended use of funds from the share issuance and the expected timeline for their use.
• Step 2: Complete the Application Form
  • Fill out the prescribed application form for the "attestation de placement autorisé" (authorized investment certificate) available on the Investissement Québec website.
  • Ensure all annexes are completed, all required information is included, and the application is signed.
• Step 3: Submit the Application to Investissement Québec
  • Send the completed application form, annexes, and supporting documentation to Investissement Québec.
  • Include payment for the required analysis fees, as outlined in the fee schedule available on the Investissement Québec website.
• Step 4: Application Review and Attestation
  • Investissement Québec will analyze the submitted application for eligibility and completeness.
  • If approved, the "attestation de placement autorisé" specifying the authorized investment amount and validity period (6 months, extendable by 2 months on request) will be issued to the eligible company.
• Step 5: Emission of Shares
  • Issue ordinary voting shares to eligible investors in accordance with the attestation of placement issued by Investissement Québec.
  • Collect payment from investors for the shares.
• Step 6: File Share Issuance Report
  • Submit a report of share issuance to Investissement Québec, providing the names and addresses of investors, number of shares issued, amount paid per investor, and the portion of the authorized investment allocated to each.
  • Use the reporting form available on the Investissement Québec website.
• Step 7: Annual Compliance and Follow-Up
  • For each fiscal year within the 48 months following attestation issuance, forward financial statements, income tax returns, and detailed reports on the use of investment funds to Investissement Québec.
  • Complete and submit the annual compliance form ("suivi de placement autorisé") via the Investissement Québec website no later than 6 months after year-end.
• Step 8: Claim the Synergy Capital Tax Credit
  • The investor company claims the tax credit at year-end when filing its corporate tax return with Revenu Québec.
  • Include the prescribed form issued by Revenu Québec, a copy of the "attestation de placement autorisé" received, confirmation from the issuing company's representative detailing the investment amount, date of share issuance, and the investor's allocated portion of the authorized capital.
• Step 9: Submit Tax Credit Documentation to Revenu Québec
  • Transmit the required documents to Revenu Québec before the final day of the 18th month following the end of the fiscal year in which the shares were issued.
• Step 10: Request for Review (if necessary)
  • If dissatisfied with a decision from Investissement Québec, file a review request within 60 days of notification using the "demande de révision" form and pay applicable fees listed online.

• Investissement Québec charges fees for the analysis of applications and for attestations of eligibility.
• There are penalties for providing false or inaccurate information, or for hindering the work of Investissement Québec representatives.
• Periodic submission of financial statements and descriptions of fund utilization is required for compliance.
• Investissement Québec may visit the applicant's facilities during the eligibility period to verify the information provided.