Canadian Controlled Private Corporation

A Canadian-Controlled Private Corporation (CCPC) is defined under Section 125(7) of the Income Tax Act as a private corporation that is resident in Canada and is not controlled by:

• a non-resident,
• a public corporation (other than a prescribed venture capital corporation),
• a Canadian resident corporation whose shares are listed on a designated stock exchange, or
• any combination of the above.

Despite its name, a CCPC does not need to be controlled by Canadian residents. For example, a Canadian resident may own 50% of the corporation, while the remaining 50% may be owned—either individually or collectively—by one or more of the prohibited persons listed above. Even in such a case, the corporation would still qualify as a CCPC, provided it is not controlled by those prohibited persons.

Additional provisions in the Income Tax Act support and refine the definition of a CCPC, particularly in situations involving complex ownership structures.