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If you`re planning to start a business in Quebec, Canada, you may have come across the term “prete nom agreement.” This agreement is an essential legal document that establishes the relationship between a nominee and a real beneficiary. In other words, it is an agreement that allows someone to act as the legal owner of a business or property, even though they are not the actual owner.

The prete nom agreement is often used in Quebec to protect the identity of the real owners of a business or property. The use of a nominee is common in situations where the real owner wants to maintain anonymity or privacy. It is also used to avoid personal liability in business transactions.

The prete nom agreement is a legal contract between the nominee and the real owner, and it outlines the rights and responsibilities of both parties. The document includes information about the nature of the business or property, the role of the nominee, the extent of their authority, and the compensation they will receive. It is essential to ensure that the agreement is drafted carefully and reviewed by a legal professional to avoid any misunderstandings or legal issues in the future.

One of the essential aspects of a prete nom agreement is that it must be registered with the appropriate government authorities. In Quebec, the agreement must be registered with the Registraire des Entreprises under the Business Corporations Act. Failure to register the agreement can result in severe consequences, including fines or legal action.

In conclusion, a prete nom agreement is a crucial legal document for businesses and property owners in Quebec. It allows them to maintain anonymity and protect themselves from personal liability in business transactions. However, it is essential to ensure that the agreement is drafted carefully and registered with the appropriate government authorities to avoid any legal issues in the future. If you`re planning to use a nominee in your business, it is highly recommended that you seek the advice of a legal professional experienced in this area to ensure that you are fully compliant with the relevant laws and regulations.

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