Yes, most businesses in Ontario, particularly corporations, are legally required to prepare financial statements.

  • Corporations: Under the Ontario Business Corporations Act (OBCA), corporations must maintain proper financial records and present financial statements to shareholders annually.
  • Private Companies: While private companies may not need to file statements publicly, they must prepare them for tax filings and reporting to stakeholders.
  • Public Companies: Publicly traded companies are subject to stricter rules under securities regulations, requiring audited financial statements to be filed with regulatory bodies like the Ontario Securities Commission (OSC).