Starting October 1, 2020 all B.C. private corporations should have a transparency register. The register should be kept at the company’s records office for inspection, which is normally your lawyer’s office, but not all corporations have a lawyer on retainer. This registry is a document that is not required to be filed with the government but should be accessible upon request.
The register should have the following details of all “significant individuals” of the corporation:
- Full name
- Date of Birth
- Is the individual a Canadian citizen or permanent resident? If no, list every country of citizenship.
- Is the individual a resident of Canada for the purposes of the Income Tax Act (Canada)?
- Date the individual became a significant individual
- Date the individual ceased to be a significant individual
- What makes this person a significant individual?
Significant individuals are those with:
- 25% shares or 25% votes in the corporation (can be beneficial owner or registered owner of shares)
- Right to elect, appoint or remove a majority of the company directors
- Individuals who are related to one another or appear to be acting in concert
Some common scenarios:
- Corporations owned by partnerships
- All partners of the partnership are significant individuals
- Corporations owned by a family trust
- Trustee of the family trust will be the significant individual
- Corporations owned by a holding company
- Owners of the holding company will be the significant individuals if they meet the above criteria
More details on the transparency register can be obtained from the BC Government website.
This post has been prepared for general information purposes. It is not advice. The information presented may not fit your unique situation, please consult one of our trusted business advisors at RHN CPA for further clarification and interpretation of your circumstances.