What is an Ontario Non-Profit Organization?
A non-profit organization (NPO) in Ontario, Canada, is a type of legal entity that operates for purposes other than generating profit for its members or owners. Nonprofits in Ontario are typically incorporated under the Ontario Corporations Act or the newer Not-for-Profit Corporations Act (ONCA).
Not-for-Profit Corporations follow different regulations than standard For-Profit corporations. For a Non-Profit, all profits are not distributed to its members, instead put back into the operations of the business. Therefore, a Non-Profit does not have a share capital.
Benefits of the Non-Profit Organization in Ontario.
- Non-profit organizations in Ontario may qualify for tax-exempt status, meaning they are not required to pay income tax on their surplus income. This allows more resources to be directed towards achieving the organization’s charitable or community-focused objectives.
- Non-profit organizations are eligible to apply for various government grants, foundation grants, and other forms of funding that are specifically earmarked for charitable and community organizations. These funds can support program delivery, operational costs, and capacity-building initiatives.
- Non-profit corporations provide limited liability protection to their directors, officers, and members. This means that individuals associated with the organization are generally shielded from personal liability for the organization’s debts and obligations, subject to certain legal principles.
Incorporation Requirements:
- Minimum 3 directors and applicants.
- No residency requirements for directors.
- Purpose must have a non-profitable nature. This can include providing social services, advancing education, promoting arts and culture, supporting health initiatives, advocating for specific causes, or addressing community needs.
What are the incorporation steps?
Step 1. Name your corporation.
A Non-Profit organization can not be a numbered company, it must have a name.
There are following rules applied for a name:
- Name should not create any confusion.
- Name should be distinctive.
- Distinctive elements “Association”, “Club” etc. are optional.
- The suffix “Foundation” can only be used by a non-profit with charity intentions.
- May contain “Inc.” or “Incorporated” at the end, but cannot end with “Ltd.” or “Limited”, etc.
An Ontario NUANS Reservation Report is required to register a Named Corporation. You can obtain a NUANS Report here.
Step 2. Establish the office address.
Registered office address must be a physical address in Ontario. You are allowed to have a legal land description address too but must have a P.O. Box connected to it. If you don’t have a local provincial address, we provide registered address and mail scanning service.
Step 3. Appoint the Directors, Officers.
Minimum 3 directors are required.
Step 4. Write the Purposes & Provisions.
You need to write the primary motive for this non-profit corporation. You may describe 3 major activities that the corporation plans to perform. Example: providing paid services to adults with special needs.
Step 5. Select your articles of incorporation:
This step establishes the structure of your corporation. Choose the right share structure. It can be a standard one with no special provisions, the default by law;
Custom: let’s you to input your own text (custom interpretation, severability, contracts validity and execution, election term, committees, voting rights of directors, remuneration of directors etc.).
All the articles are prepared and checked by our legal and accounting team.
Mandatory items to run a business.
- Minute book: consists of bylaws, share structure, minutes & other legal sections. Without it, a corporation is not complete.
- Initial Return: It’s a mandatory filing with Service Ontario for each new corporation. It has to be filed within 60 days of Incorporation. It confirms the details of the corporation. It is not a tax filing with CRA.
- Business Number: It is a unique identification of your business with the Canada Revenue Agency. It is required to register accounts like GST/HST, Payroll, Import/Export accounts.
- Corporate Tax ID: It is like a SIN number for a corporation.
- HST Registration, Harmonized Sales Tax: If you are selling goods and collecting HST you must have an HST account. every time a business incurs an expense – be it rent or paying for goods – it pays HST, if you set up the account, you can claim it back.
- Payroll Account: If you have employees, including yourself, you must set up a payroll account.
- Import/Export: If your goods or raw materials cross the Canadian border, you are required to clear customs using the Import/Export account.
- WSIB Account: It’s the Workplace Safety and Insurance Board registration. If your corporation has employees (except directors and shareholders) you must register for WSIB.
- Annual Return: A corporation must file its Annual Return with the Government every year to keep it active. You may add Annual Return to your package to avoid the risk of forgetting it. We will take care of it!
You can find out more information about annual return here:
How do we process the order?
- We start by verifying the payment and reviewing the order to ensure an error-free application.
- For named companies, we conduct name searches, make reservations, and obtain name approval.
- Next, we prepare the application and articles of incorporation.
- Before registering the corporation, we send a draft for a final check.
- Once approved, we register the corporation according to the chosen queue and promptly email all registration documents to the customer.
- Finally, we complete any additional services included in the package, such as initial returns and CRA accounts.
Timeline
There are three timelines available for a Non-Profit organization in Ontario. The standard incorporation will take twenty business days. However, for an additional fee, we can expedite the process and complete the registration in ten or even in three business days. The processing queue includes Incorporation and Emailing the Certificate, Articles and Electronic Minute Book (if included). The remaining processes in this package like Business Number, CRA programs accounts set up, WSIB registration, etc. are initiated after incorporation processes.
What will you receive?
After the registration is completed we will send you a Certificate and Articles of Incorporation and an Electronic Minute Book (if included) by an email.
Why choose us?
- Online Business Registry is an official intermediary of Ontario and a registered member of Corporations Canada.
- Our team of legal professionals and incorporation experts can establish your corporation within two business hours!
- Simply complete the straightforward form on our website, and we’ll handle the rest.
- With a wealth of experience in business incorporation, we pride ourselves on guiding entrepreneurs through the process with expertise and precision.
- Our team of legal professionals and incorporation experts can establish your corporation within two business hours!
- Simply complete the straightforward form on our website, and we’ll handle the rest.
- With a wealth of experience in business incorporation, we pride ourselves on guiding entrepreneurs through the process with expertise and precision.
