Eligibility & registration

Does your business qualify for an Indigenous set-aside?

An eligible Indigenous business is at least 51% owned and controlled by Indigenous persons, has at least one third Indigenous staff if it employs 6 or more full-time people, and is listed in the Indigenous Business Directory to bid on set-asides.

Answer four questions to see whether you are likely eligible for the Procurement Strategy for Indigenous Business.

01Your businessPSIB criteria

At least 51% owned and controlled by Indigenous persons?

First Nations, Inuit, or Metis ownership and control.

Full-time employeesThe one-third Indigenous workforce test only applies at 6 or more full-time employees.

Listed in the Indigenous Business Directory (IBD)?

Listing in the IBD is needed to bid on set-asides.

The 5% target

The federal government has a mandatory minimum target to award at least 5% of the value of contracts to Indigenous businesses. Set-asides under the PSIB are one of the main ways departments meet it, which is why eligibility and an IBD listing matter.

Awaiting your answers

Answer the ownership, workforce, and registration questions to see whether your business is likely eligible to bid on federal Indigenous set-asides.

Procurement Strategy for Indigenous Business · eligibility

Test	Requirement	Notes
Ownership and control	At least 51%	Owned and controlled by Indigenous persons (First Nations, Inuit, or Metis)
Workforce (6+ employees)	At least one third	If 6 or more full-time employees, a third must be Indigenous
Indigenous Business Directory	Listed	Required to bid on set-asides
Federal procurement target	5% minimum	Mandatory minimum value of contracts to Indigenous businesses

Last verified 2026-06-27

What makes a business eligible

The Procurement Strategy for Indigenous Business, formerly the Procurement Strategy for Aboriginal Business, lets the federal government set contracts aside for Indigenous businesses. The core test is ownership: an eligible business is at least 51% owned and controlled by Indigenous persons, meaning First Nations, Inuit, or Metis. That control has to be real, not just on paper.

The one-third workforce rule

Size brings a second test. If the business has 6 or more full-time employees, at least one third of them must be Indigenous. Below 6 full-time employees the workforce ratio does not apply, so the ownership and control test carries the eligibility on the people side. This checker only asks for the Indigenous headcount when you report 6 or more employees, because that is when the ratio matters.

Listing and the 5% target

Meeting the criteria is not the same as being able to bid. To bid on a set-aside, your business should be listed in the Indigenous Business Directory (IBD). The directory exists partly because the federal government has a mandatory minimum target to award at least 5% of the value of its contracts to Indigenous businesses, and set-asides are a main way departments hit that number. Getting listed early puts you in the running when those contracts come up.

What this tool leaves out

This is a planning check of the headline eligibility tests. It does not verify ownership documents, joint-venture rules, the treatment of specific corporate structures, or the audit and certification steps the program can require. Use the result as guidance, not legal advice, and confirm your status against the official Procurement Strategy for Indigenous Business and the Indigenous Business Directory.

Common questions

Who is eligible for the Procurement Strategy for Indigenous Business?

An eligible Indigenous business is at least 51% owned and controlled by Indigenous persons (First Nations, Inuit, or Metis). If the business has 6 or more full-time employees, at least one third of them must be Indigenous. To bid on set-asides it should be listed in the Indigenous Business Directory.

Does the one-third workforce rule always apply?

No. The requirement that at least one third of staff be Indigenous applies only when the business has 6 or more full-time employees. Below that, the ownership and control test is the main eligibility gate for the workforce side.

What is the Indigenous Business Directory?

The Indigenous Business Directory (IBD) is the federal listing of Indigenous businesses. To bid on contracts set aside under the Procurement Strategy for Indigenous Business, your business should be listed in the IBD.

What is the 5% Indigenous procurement target?

The federal government has a mandatory minimum target to award at least 5% of the value of its contracts to Indigenous businesses. Set-asides under the Procurement Strategy for Indigenous Business are a main way departments meet that target.

Is this set-aside checker free?

Yes, free and no signup. It runs the headline PSIB eligibility tests on the answers you enter. Treat the result as guidance and confirm your status against the official program and Indigenous Business Directory before bidding.

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