Private companies in BC are currently required to maintain “transparency registers” at their records office, which are only accessible to directors and certain government officials like the police and tax authorities in the hopes of fighting money laundering and tax evasion. They require companies to disclose significant individuals who, directly or indirectly, have substantial shareholdings in a BC company (25% or more) or who have the ability to exercise control or significant influence over a BC company.

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The BC government recently approved the implementation of a public transparency register that will be introduced by 2025. Similar to Land Owner Transparency Register (LOTR) implemented last year, the new company transparency register will be searchable by the public.

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Failure to comply can expose companies to regulatory offences and fines of up to $50,000.

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To avoid these fines, companies and their directors can review the new corporate transparency rules pre-emptively to ensure they are prepared to comply with the new reporting requirements once the public transparency register is introduced in 2025.

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If you have any questions about the new rules or if you need assistance in reviewing or preparing your company’s transparency register, reach out to Aman Bindra at abindra@kswlawyers.ca or 604-591-7321 today.

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