Structuring For Economic Reconciliation: Supporting Indigenous Business In Public Procurement

For businesses pursuing partnerships with Indigenous organizations, properly structuring the relationship is a key early step, especially in the context of government procurement. For non-Indigenous businesses in particular, these arrangements can present significant opportunities, but they also come with legal and compliance risks if not properly structured.

Whether engaging in a contractual joint venture (CJV) or investing as a minority shareholder in a corporation that is 51% Indigenous-owned and controlled, each approach presents certain benefits and challenges. The decision will weigh factors such as risk allocation, governance, financing, long-term sustainability, and compliance with government programs like Canada's Procurement Strategy for Indigenous Business (PSIB).