Please note the following regulatory update regarding Ontario New Beneficial Ownership Regime is effective from January 1, 2023 for private Ontario corporations.
It requires corporations to record the identities and several details of all individuals who exercise significant control over such corporations. The information which is required to be maintained in respect of individuals with significant control includes name, date of birth, business, tax residence, date of acquiring a status of ‘individual with significant control’ and date on which such person loses such status, etc.
As per the requirement, an individual will be treated as having significant control over a corporation if such individual –
owns or controls shares representing 25% or more voting power or 25% or more fair market value of such corporation; or
exercises significant influence over such corporation directly or indirectly without holding shares as mentioned above
Note: Where a group of persons controls 25% or more shares of the corporation, each such person would be treated as an individual with significant control
Ontario private corporations should take note of the new compliance which would be effective from January 1, 2023.