Ontario government introduced two major updates to its incorporation system. One is the amendment to the Ontario Business Corporations Act, and another is a thorough change of its business registry system. Here are some of the main changes that are relevant to our clients:
1. Ontario waived the mandatory requirement that at least 25% of members of the board of directors be Canadian citizens or permanent residents that reside in Canada. Now, an Ontario corporation could be 100% owned, directed and managed by non-Canadian residents, which makes it more attractive to foreign investors and incorporators.
2. Ontario corporations are now allowed to pass resolutions without meetings of shareholders or directors as long as all participants agree to it. It makes maintenance and operating of a corporation much easier and more efficient. As you can see these changes to the Business Corporations Act have major importance for international businesses looking to expand their operations to Canada. By removing the requirement for a local director, Ontario essentially equalized its legal system with other provinces such as BC and Alberta. With major financial, business and industrial resources concentrated in Ontario, the recent amendments make it more convenient to incorporate in Ontario and operate a business here without relying on a local individual.
Another change is the introduction of a direct access to Ontario Business Registry, which allows entrepreneurs to incorporate directly with the Ontario government and reduce the costs of incorporation and waste of time working with intermediary service providers.
Useful links: https://www.ontario.ca/page/ontario-b…
You can find Contracts for Business Owners in Canada here https://www.businessdocs.ca/