Minister Champagne announces federal corporations need to begin filing their beneficial ownership information
News release
January 22, 2024 – Ottawa, Ontario
The Government of Canada is committed to ensuring increased corporate transparency by requiring federal corporations to file their beneficial ownership information with Corporations Canada.
The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, announced that effective today, 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.
Quotes
“Today’s announcement demonstrates our government is following through on its commitment to take the necessary steps to prevent illicit activities, improve Canadians’ trust in corporate institutions and ensure a well-functioning marketplace. The new filing rule now in force helps establish a database of beneficial ownership information, which will strengthen the safety and economic interests of Canadians.”
– The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry
Quick facts
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The design of the ISC database has been informed by public consultations held in 2020 and complementary stakeholder outreach completed in 2022.
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Corporations Canada will leverage existing intake and reporting mechanisms to ease the administrative burden on businesses.
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The database balances transparency with privacy protections, notably by publicly disclosing only the information that is necessary and proportional to meet the objectives of the new requirements.
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The Canada Revenue Agency will be authorized to share data with Corporations Canada to support validation and verification of the information filed by corporations.
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The database will be implemented in a way that makes it scalable to include the information held by provinces and territories that choose to participate.
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Quebec is currently the only province that is collecting beneficial ownership information. British Columbia expects to begin collecting this information in 2025.
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Contacts
Audrey Champoux
Press Secretary and Senior Communications Advisor
Office of the Minister of Innovation, Science and Industry
audrey.champoux@ised-isde.gc.ca
Media Relations
Innovation, Science and Economic Development Canada
media@ised-isde.gc.ca
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