New Obligations for Corporate Transparency
About the New Obligations for Corporate Transparency
Corporate transparency plays an essential role in the fight against fraud and tax evasion. This fight is one of the Québec government's priorities and is perfectly in line with the approach adopted internationally by various countries.
On June 8, 2021, the Québec government introduced new measures and enhanced the information available in the enterprise register to improve corporate transparency and strengthen public protection. The changes also help to prevent and fight tax evasion.
The new obligations include transmitting to the Registraire des entreprises information on the ultimate Read the content of the note 1 in order to make their identity public. With the introduction of these new measures, Québec is at the forefront of corporate transparency.
The main new developments are as follows.
It should be noted that registered enterprises are informed of their new obligations when they receive the letter advising them to file their annual updating declaration.
Declare ultimate beneficiaries
Certain companies subject to the Act respecting the legal publicity of enterprises must declare to the Registraire des entreprises information concerning their ultimate beneficiaries, such as their name, domicile and date of birth.
Send a copy of your identity papers
Enterprises must provide a copy of an identity document (in French only) only for current directors declared in the enterprise register as proof of their identity.
Declare date of birth
Enterprises must declare the date of birth (in French only) of all natural persons entered in the enterprise register.
Declare a business address
Enterprises must declare the home address of natural persons. However, they may declare the business address (in French only) of the natural persons entered in the register so that their home address cannot be consulted in the enterprise register.
Optimize the enterprise register search tool
In 2024, a search using a natural person's first and last names will be permitted in the enterprise register to find out who is associated with an enterprise. However, the Act respecting the legal publicity of enterprises stipulates that certain personal information (such as date of birth) cannot be included in such a search.
Amendments to the Act respecting the legal publicity of enterprises
The objectives of the Act respecting the legal publicity of enterprises are clarified, in order to:
- to enhance the protection of the public by providing free access to certain information held in the enterprise register, particularly in the context of socio-economic relations.
- to prevent and fight tax evasion, money laundering and corruption.
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Footer note number 1In its common meaning, an ultimate beneficiary is a natural person who holds a right to benefit from a portion of the income or assets of an enterprise, or a right to direct or influence the activities of such an enterprise. In Québec, an ultimate beneficiary includes a person who holds 25% or more of the voting rights or fair market value.
Back to the reference of the note 1
Last update: September 19, 2023