What is an Ontario Registered Charity?
It is a charitable organization that has been officially registered and recognized by the Canada Revenue Agency (CRA) under the Income Tax Act as eligible to issue official donation receipts for tax purposes. This registration signifies that the organization meets specific criteria set out by the CRA related to charitable purposes, activities, and governance.
Benefits of a Registered Charity:
- Registered charities are exempt from paying income tax on most of their revenues, including donations and investment income, provided that these funds are used for charitable purposes. Additionally, donors who contribute to registered charities are eligible to receive official donation receipts for their gifts, which can be claimed as tax deductions on their personal tax returns.
- Registered charities have the authority to issue official donation receipts for eligible donations received from individuals and corporations. These receipts are critical for donors to claim tax credits or deductions and incentivize charitable giving.
- Registered charities benefit from certain legal protections, including limited liability for directors and officers, which helps safeguard individuals associated with the organization from personal liability related to the charity’s activities.
Registration Requirements:
To qualify for charitable registration, an organization must demonstrate that its activities are exclusively charitable, meaning they fall within one or more of the following categories recognized by the CRA:
- Relief of poverty
- Advancement of education
- Advancement of religion
- Other purposes beneficial to the community, such as promoting health, advancing the arts, protecting the environment, or assisting vulnerable populations.
More information about charitable purposes you can find here:
Minimum 3 directors and applicants are required to register an Ontario Charity. At least 50% of the directors must be Canadian citizens.
What are the incorporation steps?
Step 1. Name your organization.
A Registered Charity 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.
- Suffixes like “Association”, “Club”, “Foundation”, etc. are optional.
- May contain “Inc.” or “Incorporated” at the end, but cannot end with “Ltd.” or “Limited”, etc.
A NUANS report is required to register a name.
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. At least 50% of directors must be Canadian Citizens or Permanent Residents (PR).
Step 4. Write the Purposes & Provisions.
You need to write the primary motive for this charity organization. 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 Registered Charity in Ontario. The standard incorporation takes 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 for Ontario Province and a registered member of Corporations Canada.
- Our team of legal professionals and incorporation experts can establish your corporation within two business hours!
- Our online form offers the option to select, customize, and build your bundle according to your preferences. 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!
- Our online form offers the option to select, customize, and build your bundle according to your preferences. 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.
