Ontario proposes Beneficial Ownership Regime effective from January 1, 2023
On November 4, 2021, the Minister of Finance of Ontario has released the fall economic update which includes establishment of beneficial ownership information requirements 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.
As per the requirement, an individual will be treated as having significant control over a corporation if such individual –
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. 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.
Ontario private corporations should take note of the new compliance which would be effective from January 1, 2023. No specific penalties are yet prescribed for failure to comply with the new requirements.