Changes To Corporate Transparency Rules For CBCA Corporations On The Horizon

The federal government is amending the requirements of the Canada Business Corporations Act ("CBCA") relating to the beneficial ownership registry most private federal corporations are required to maintain (the "CBCA Amendments"). Most notably, the CBCA Amendments expand the reporting requirements on private federal corporations, require that certain information from the registry be made publicly accessible, and substantially increase the penalties for non-compliance. The new reporting requirements will come into effect on January 22, 2024.

Background

Since June 2019, most private CBCA corporations have been required to maintain a register (an "ISC Register") of certain information about individuals that, directly or indirectly, have "significant control" over the corporation (the "ISC Rules"). An "individual with significant control" (an "ISC") for purposes of the ISC Rules includes (i) an individual who directly or indirectly owns or controls 25% or more of