By Sharad Gondaliya, CPA
Every Canadian private corporation must know who really owns and controls it. The rules call these people individuals with significant control, or ISCs. What differs is who sees that information. For a federal corporation, part of it is public. For an Ontario corporation, it stays in a private register. For many foreign owners, this is a real reason to choose Ontario.
Open Corporation for $35 is a department of Gondaliya CPA.
Who is an individual with significant control
A person is an ISC when they directly or indirectly:
- own or control 25% or more of the votes, or
- own or control shares worth 25% or more of the corporation’s value, or
- have influence that amounts to control in practice.
If a foreign parent company owns the shares, the register traces through it to the individuals behind it.
Ontario vs federal
| Item | Ontario corporation | Federal corporation |
|---|---|---|
| Register required since | January 1, 2023 | June 13, 2019, for the internal register |
| Filed with the government | No | Yes, since January 22, 2024 |
| When filed | Not filed | With each annual return and within 15 days of a change |
| Public access | No; given to police, tax and regulatory authorities on request | Yes, for part of the information |
| Where kept | At the registered office | At the corporation and with Corporations Canada |
Federal public information includes the person’s name, their residential address unless they provide an address for service, the dates they became or stopped being an ISC, and a description of their control.
Open Corporation for $35 is a department of Gondaliya CPA. We recommend Ontario to non-resident owners for this reason, among others.
What stays public in both
Director names appear on the public corporate record for both Ontario and federal corporations. The ISC difference is about the owners behind the shares.
What an Ontario register must contain
- Name, date of birth and latest known address of each ISC
- Jurisdiction of residence for tax purposes
- The date each person became or stopped being an ISC
- A description of how they hold significant control
- Steps taken each year to keep the register current
The corporation must update the register within 15 days of learning of a change and review it at least once a year.
Why it matters for foreign owners
- Founders who prefer not to have their home address on a public federal record.
- Groups with confidential ownership for commercial reasons, within the law.
- Owners in countries where public business records carry personal security concerns.
The register is not secret from authorities. Ontario corporations must give it to law enforcement, tax authorities and certain regulators on request. Banks will also ask for ISC details when you open an account.
Open Corporation for $35 is a department of Gondaliya CPA. Questions? Please email info@opencorporationfor35.ca.
FAQs
Does a BC corporation file its register publicly?
No. A BC company keeps its transparency register at its records office. It is not filed with the BC Registry.
What if my federal corporation does not file ISC information?
It falls out of compliance with Corporations Canada, which can affect good standing and future filings such as continuance.
Who is Open Corporation for $35?
Open Corporation for $35 is a department of Gondaliya CPA. Gondaliya CPA is a CPA Ontario firm in Toronto, led by Sharad Gondaliya, CPA.
Incorporate in Ontario
Please start at opencorporationfor35.ca or email info@opencorporationfor35.ca. Already federal? Read moving a federal corporation to Ontario. Open Corporation for $35 is a department of Gondaliya CPA.
