Transcription – Who controls your federal corporation?
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Federally incorporated businesses now need to identify who controls their corporation. These people are called individuals with significant control, also known as ISCs.
Not sure you're federally incorporated? Search for your business at canada.ca/federal-incorporation to confirm that you're incorporated under the Canada Business Corporations Act.
You're probably asking yourself: "What's an ISC?"
An ISC is someone who controls your corporation. In most cases, this person owns 25% or more of your corporation's shares. Business owners are usually ISCs.
So, why does this matter?
Knowing who controls your corporation is useful because it:
- improves trust and transparency in Canadian businesses; and
- helps law enforcement agencies fight fraud.
Plus, your bank could ask you for this information, so it's good to be prepared!
Now, what do you need to do?
You simply need to create a register of all individuals ‒ whether there's one or several ‒ who have significant control over your business. You can use the template on our website, or create your own.
For more information, visit canada.ca/significant-control.
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