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 beneficiaries ^{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.

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.