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The Province of Ontario: New requirement to maintain register of Individuals with Significant Control
As from the 1st of January 2023, private corporations incorporated in Ontario, Canada are now required to create and maintain a register of Individuals with Significant Control (“ISC”).
Basic personal information on the ISC will have to be included in the register, which will not be publicly available, alongside a description of each reasonable step taken to ensure that all ISCs have been identified and that the register’s information is accurate, complete and up-to-date.
This register must be set up by the end of the corporation’s 2023 financial year, subject to an annual review. However, there is currently no need to provide the register to the authorities unless otherwise requested.
In case the corporation is unable to identify an ISC, then no one has to be listed in the register, however, a register template must still be created and maintained, alongside a description of the steps taken to determine that the company has no individuals with significant control.
Failing these requirements, corporations may be liable to fines of up to CAN$5,000, while the directors, officers and Shareholders may also face criminal charges.