On July 1, 2014, certain provisions of Bill 128, An act to enact the Money-Services Business Act and to amend various legislative provisions (the "Bill"), will come into force, and will require that trusts operating a commercial enterprise register with the Quebec enterprise register in the same way as corporations or partnerships. The Bill was assented to December 10, 2010, but the provisions amending the Act respecting the legal publicity of enterprises ("Act") to create the registration requirement for trusts are only coming into force as of July 1, 2014. The main consequences of these amendments are:
- Under the new regime, a trust operating a commercial enterprise in Quebec falls under the definition of a registrant and is therefore required to register. However, trusts which are administered by a registered registrant are not required to register.
- The Enterprise Registrar defines a trust operating a commercial enterprise as one which carries on an organized economic activity with the objective of turning a profit. Such trusts include, but are not limited to, business trusts, investment trusts and real estate investment trusts.
- Affected trusts will have 60 days from July 1, 2014 to comply.
- The registration fees and annual fees for affected trusts are initially set out at $319.00 and $84.00, respectively.
- Affected trusts that were voluntarily registered before July 1, 2014 (which was possible prior to February 14, 2011) must update their information.
- Affected trusts whose voluntary registrations were cancelled ex officio must first produce an application for revocation of striking off.
- The registration requirements also entail annual filing requirements and updates upon the occurrence of certain events.
- The Act provides for fines for failure to comply with its requirements.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
