Federal corporations need to begin filing their beneficial ownership information
Jan. 26, 2024
Global Korean Post
The Government of Canada is committed to ensuring increased corporate transparency by requiring federal corporations to file their beneficial ownership information with Corporations Canada.
Minister of Innovation, Science and Industry, announced that effective January 22, 2024, corporations governed by the Canada Business Corporations Act (CBCA) are required to file beneficial ownership information with Corporations Canada and that some of this information will be made publicly available on its online search. Beneficial owners are also known as individuals with significant control (ISC).
An ISC is someone who owns, controls or directs at least 25% of shares of a corporation individually or jointly with other individuals. Further details on an ISC can be found on Corporations Canada’s ISC web page.
For the past four years, corporations governed by the CBCA have been required to maintain an ISC register. With the new filing rule, these businesses will now need to start filing this information with Corporations Canada on the day they incorporate, within 30 days of when they amalgamate with another corporation or when they file their annual return, as well as within 15 days of any change to their ownership information. Additional information on the new requirement is available on the Corporations Canada ISC web page.
The announcement today is the result of a series of amendments to the CBCA over the last two years to create greater transparency in corporate ownership in Canada and to strengthen actions against illegal activities. Making some beneficial ownership information public will help protect Canadians against money laundering and terrorist financing, deter tax evasion and tax avoidance, and make sure Canada is an attractive place to conduct business.
The database of ISC information will take more than a year to be substantially complete, as businesses governed by these new rules will file their information over the coming months. The government continues to work with provinces and territories to establish pan-Canadian access to beneficial ownership information.