Venture Capital Corporation (“VCC”)

A VCC is a newly incorporated British Columbia company registered under the Small Business Venture Capital Act (the “Act”).  British Columbia investors earn a 30% tax credit for purchasing shares in registered VCCs.  These VCCs then use capital raised from investors to make equity investments in qualifying small businesses.

To register as a VCC, an applicant must, amongst other things:

• incorporate under the Business Corporation Act (British Columbia);

• raise at least $25,000 in equity capital;

• never have previously carried on business; and

• have authorized capital of only voting common shares (the shares must be without par value and have no special rights or restrictions except for special rights relating to share redemption).  A VCC is entitled to have more than one class of common shares.

NOTE:  The Act limits the dollar value of tax credits that may be issued in a calendar year.  There are no guarantees that any applicant will be registered under the Act.  Click here for the current status of equity capital raised to date.

STEP 1: Incorporation - VCC Name Consent

The Registrar of Companies will not incorporate a company with the initials "VCC" in its name without pre-approval from the Ministry of Economic Development.  This approval can be obtained by completing the following steps:

After incorporation, the new company must raise at least $25,000 in cash (up to a maximum of $50,000).  After issuing shares to one or more shareholders in exchange for the minimum $25,000 investment, the company may apply for registration by completing the Registration Application and all attachments.

Upon registration, all VCCs are automatically approved to raise $50,000 of equity capital.  If the VCC wishes to raise more than $50,000, it must file an Additional Equity Application.  Approvals to raise additional equity may be restricted by the Act’s limited tax credit budget. 

A registration letter will be issued to the VCC confirming the date of registration under the Act.  The letter will also specify the total amount of equity capital that the VCC is approved to raise under a particular program budget for the current program year.

Please note that the VCC cannot make any investments until it has been registered under the Act.

After registration, the VCC will deposit 30% of all funds raised into a special bank account called an “investment protection account”.  The VCC may apply for a release from the IPA when it makes eligible investments.  Further details are included with the VCC’s registration letter. 

Useful Links

   British Columbia Securities Commission  

Independent provincial government agency responsible for regulating securities trading in B.C.

   Business Start-Up Assistant

Essential business start-up information from the federal and provincial governments.

   Ministry of Small Business and Revenue

Supports the prosperity of British Columbians through small business growth, effective tax administration and
revenue management, and a responsible regulatory system.

   OneStop Business Registry

Offers integrated business registration and business address change services based on the Business Number.

   Registrar of Companies

Creates and registers business and not-for-profit entities.

   Small Business BC

Key resource centre for business information and services.