The enterprise must be at least fifty percent owned by nationals of the treaty country, traced through to the ultimate individual owners. A forty-five percent stake does not satisfy that, and a management agreement giving day-to-day control does not cure it. Separately, the investor must be able to develop and direct the business.
Two ownership questions, asked of two different subjects
The first question is about the company. At least half of it must be owned by nationals of the treaty country, and if the shares are held through another company the enquiry follows the chain to the individuals at the end of it. Dual nationals and permanent residents of third countries complicate that count and should be identified early.
The second question is about the applicant, who must be in a position to develop and direct the enterprise. Ownership of half or more answers it straightforwardly; something short of half can sometimes be supplemented by operational control, such as a managerial position with genuine authority or a voting arrangement that gives the investor the decisive say. What cannot happen is for the second question to rescue a failure on the first.
Where the numbers do not work, the transaction is restructured, and a further review of the ownership documents follows.