# Canadian Shield Institute Proposes Canadian Ownership Test

The Canadian Shield Institute proposes defining a “Canadian” company for preferential procurement and public-support purposes as a Canadian-headquartered firm that is not majority-controlled by a foreign parent or foreign government. This is a policy recommendation, not a change to current eligibility rules. If adopted, the definition could affect access to Canada’s Buy Canadian Policy, Defence Industrial Strategy opportunities, and business-support programs such as SR&ED.

- Canadian contractors should assess their headquarters, ownership, and control structures against the proposed test; the signal does not establish any new compliance obligation or deadline.
- Procurement teams and suppliers should account for the possibility that future eligibility criteria may distinguish Canadian-headquartered firms from foreign-controlled subsidiaries when allocating procurement or public support.
- The proposal links domestic procurement preferences with broader economic supports, so its eventual scope could matter to firms pursuing both government contracts and programs such as SR&ED.

**Jurisdictions:** international
**Industries:** Defense & Military
**Published:** November 06, 2026

### Government Entities
- Government of Canada
- Defence Investment Agency

### Key Quotes
> We will be our own best customer
> — Mark Carney, Prime Minister of Canada

### Sources
- [What exactly does it mean to be a “Canadian” company? 

The @CanShieldInst argues that government tax breaks, procurement, and economic supports are too often claimed by foreign multinationals that operate so-called “Canadian” branch plant companies.

https://t.co/xmIge5O3cv](https://x.com/BetaKit/status/2118720099565605060) - twitter-fed-procurement