They can, if you can show the earnings were lawfully generated, properly reported, actually available to you, and then committed to the new enterprise and placed at risk. Profit recorded on a statement is not invested capital. What counts is the portion moved into the business and irreversibly deployed.
Distinguish the accounting figure from the committed sum
Reconcile the accounting profits, cash actually available for lawful distribution, and the amount committed to the proposed enterprise. These may differ because of receivables, liabilities or other owners’ rights. Identify both paid expenses and any qualifying commitments; do not rely solely on whether funds have left an account. Have counsel assess working capital and reserves on the actual deployment evidence rather than automatically excluding every unspent business dollar.
The enterprise must be at least 50 per cent owned by nationals of the treaty country, and ownership is traced through corporate layers rather than stopping at the immediate parent. Supplier credit secured only by business assets does not represent the investor’s personal capital at risk, and the invoice value should not be counted twice. The investor must hold treaty-country nationality, place substantial capital irrevocably at risk in a real operating business, and develop and direct it through at least fifty percent ownership or operational control.