Ontario Incorporation

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Register Your Professional Corporation Ontario Online in Minutes!

A Professional Corporation Ontario, includes Physicians, Lawyers, Accountants, Chiropractors, Engineers, and many others in the Province of Ontario. We will register your Ontario Professional Incorporation on your behalf, bringing more than 30 years of expertise and impeccable attention to detail as we help individuals complete their incorporations.

With us, we help you, register your Professional Incorporation registration step by step, for example, presenting a “draft” version of the incorporation for your review with your accountant, lawyer, or regulatory body before finalizing the incorporation with the Province of Ontario. For further information on forming an Ontario Professional Incorporation, see our Professional Learning Centre below.

Professional Corporation Ontario: Helpful Resources & Information

What is a Professional Corporation Ontario?

A Professional Corporation Ontario provides a type of business formation for licensed professionals who want to pursue their careers and enjoy corporate formation at the same time.

Think of a Professional Corporation Ontario like a special-purpose vehicle where you can carry on your practice more easily and efficiently from an income-tax perspective while your profession still relieves you of all responsibilities.

Unlike other corporations, where you can carry on any legal business, here you can only provide services for the specific profession that licenses you.

Name vs Numbered Professional Corporation

To incorporate as a professional corporation in Ontario, there are two ways to have your company registered, which are either as a numbered company OR a named company.

As a numbered company, you do not require a NUANS report; the format goes as:

1234567 Ontario Inc. (or similar, depending on your jurisdiction)

More examples:

1234567 Ontario Inc., Chartered Professional Accountant.
1234567 Ontario Inc., Professional Corporation.

Now, when it comes to your second option, which would be the named company version, the format goes as:

(Your name) Professional Corporation

(Your Name) , (Professional Title)

Examples:

Dr. Sophie Smith, Medicine Professional Corporation
John Doe Law Professional Corporation.

Regarding the named company version, this requires a NUANS report, also known as a name availability search, and must follow strict naming rules set by your profession’s governing body.

Who Can Form a Professional Corporation Ontario?

The Professional Corporation Ontario eligibility is available for any licensed professionals who are governed by a governing body. Licensed professionals who are qualified to create professional corporations are, based on the image depicted and regulations in existence, namely:

Doctors – Medical practitioners regulated by the College of Physicians and Surgeons of Ontario.
Registered Nurses – Licensed nursing professionals under the College of Nurses of Ontario.
Registered Massage Therapists – Professionals regulated by the College of Massage Therapists of Ontario.
Chiropractors – Licensed under the College of Chiropractors of Ontario.
Psychologists – Regulated by the College of Psychologists of Ontario.
Accountants – Licensed CPAs under CPA Ontario.
Engineers – Professional engineers are regulated by Professional Engineers Ontario.
Lawyers – Members of the Law Society of Ontario.
Real Estate Agents and Brokers – Licensed under the Real Estate Council of Ontario.

Benefits and advantages of a professional corporation ontario

Better Economic Outlook: Corporations can also privately source funding from investors and business loans, among others, which provide them with wider sources of capital than an individual’s sources.
Business Growth Versatility: It’s easy to run multiple businesses when you can also put other trade names under your corporate umbrella, such that you can have multiple business operations under one legal framework.
Organizational Continuity: Company structure exhibits stability amid leadership shifts. Ownership, board, or management changes will not disrupt company operations, and succession planning is easy for sustaining business integrity beyond individual involvement.
Permanent Legal Status: Corporation registration sets up a perpetual legal existence without end dates and renewal requirements. Your company maintains its legal existence at all times, and you have lasting business security.
Exclusive Brand Protection: Your company name of choice is protected at the legal level from where you incorporate. This exclusiveness stops competitors from using similar names and gives you redress should similar names be attempted.
Strategic Tax Planning: Corporate structures for taxation generally have lower levels than individual income taxation and would potentially create savings and more cash-flow management opportunities.

Drawback and Disadvantages of a professional corporation ontario

Ongoing Administrative Requirements: Corporations are required to file annual regulatory reports to keep them in good standing. The latter involves annual submission of certificates of status or corporate reports to appropriate bodies. Other compliance policies still apply depending on your sector and region.
Initial Investment Levels: Forming a corporation requires higher initiation costs than basic business structures, and formation costs usually come up to about $700 or higher, depending on where you are and what you need.
Expanded Documentation Requirements: Corporate ownership places you with dual record-keeping duties. There will be individual financial records for yourself and also separate corporate records to maintain, which will mean more formalized bookkeeping systems.
Tax Return Requirements: The corporate form imposes separate tax reporting responsibilities. Owners will be obliged to submit individual income tax returns and corporate income tax returns, consequently doubling annual tax preparation work and costs.

Contact Your Respective Organization To Learn More About Professional Corporation Ontario Guidelines

We’ve put together an extensive list to help you grow your Professional Corporation Ontario and career! Each link below is specific to s specific governing organization by professional industry so that you can make the right decision following all guidelines of your governing body set by the industry you cater to.

Professional Corporation Ontario: History, Updates, and Information To Know

During the 2000 Ontario Budget, the government of Ontario intended to start allowing professionals just like yourselves to incorporate their practices, further increasing and enhancing professional careers all over the province.

Incorporating under the name of a Professional Corporation Ontario provides business advantages that accrue to other self-employed individuals who incorporate.

However, this structure for Professional Corporation Ontario, does not shield against professional liability, and only individuals from the same profession can become shareholders of such corporations.

NUANS Name Search Online: What Exactly is it?

When it comes to the process of Professional Corporation Ontario it’s important to also consider the pre-tasks.

Certain jurisdictions, such as Federal, Ontario, Alberta, New Brunswick, and Prince Edward Island, require a NUANS Report as the pre-requisite for name pre-approval.

These jurisdictions require a name pre-approval after you submit the NUANS report to them.
On the other hand, other jurisdictions such as BC, Saskatchewan, Manitoba, Nova Scotia, Newfoundland, Yukon, and Northwest Territories provide name pre-approval without requiring you to submit a NUANS report. For these jurisdictions, you do not need to submit a NUANS report; rather, you simply apply for name pre-approval directly.

If these jurisdictions require a NUANS report to complete the name pre-approval process, they will obtain it themselves. Therefore, you can conclude that a name pre-approval guarantees you will get the name if you use it before the expiry date, while a NUANS report does not guarantee name pre-approval—rather, it simply proposes a name that you reserve for 90 days to consider for name pre-approval purposes.

What Else Do You need to Register a Professional Corporation In ontario?

The Initial Notice

For Professional Corporation Ontario, our province sets off an automatic requirement for an obligatory filing of an Initial Return, also classified as an Initial Notice. It must be placed on record 60 days after incorporation and validates significant information such as the corporation’s structure and officer information. Timely filing helps towards corporate compliance and maintains your records up to date alongside the Ontario government.

Office Address

To complete incorporation registration for a Professional Corporation Ontario, you must provide an address at an official head office that is located in the province; you cannot provide P.O. boxes. This is for correspondence and legal services. You will also be asked to file an Initial Notice (or an Initial Return) of incorporation within 60 days.

This is for notifying significant corporate information such as head office address, directors, and officers to the Government of Ontario. Filing it on deadline is significant for remaining in compliance and maintaining the legal existence of your corporation.

Directors Legals Names

Please provide all directors’ full legal names exactly as their names appear on photograph-identification documents from any branch of government, such as on a driver’s license or passport. This will maintain records accurately and will not cause any Professional Corporation Ontario processing delays or rejections. It is an Ontario statute requirement that such information be up-to-date and precise for reasons of corporate transparency and compliance.

Addresses for each director involved

You must provide a valid street address for all directors listed on the incorporation documents relative to the Professional Corporation Ontario. These must be street addresses (not P.O. boxes) and will be kept on file for governmental records and any subsequent legal mail. Accurate and detailed information is necessary for compliance under Ontario corporate registration.

Share Structure in the Articles of Incorporation (Ontario)

When drafting your Articles of Incorporation regarding the Professional Corporation Ontario, the share structure section outlines key provisions related to how your corporation can issue and manage shares:

Business Restrictions (Article 5): Specify any limitations on the corporation’s business activities or powers. If there are none, that must be clearly stated.

Authorized Share Classes (Article 6): Indicate the types of shares and the total number (or specify if unlimited) that the corporation is permitted to issue, e.g., unlimited common shares.

Share Rights and Conditions (Article 7): Describe the rights, preferences, restrictions, and conditions associated with each share class, including any authority given to directors to issue shares in series.

Share Ownership Restrictions (Article 8): Detail any limitations on the issuance, transfer, or ownership of shares, if applicable.

Additional Provisions (Article 9): Include any other special clauses or provisions that apply to the corporation.

Registration of Trade Names in Ontario: What Every Business Owner Should Know

In Ontario, a trade name, also called an operating name or business name, is basically an open name used by a business or corporation which is other than its registered corporate name. Filing for a trade name also allows businesses to have a more brandable name but maintain their actual legal name on record.

What is a Trade Name?

A trade name is any name used by an enterprise for its routine work, which is not its legal name.

Why Should You Register Your Trade Name

Registration of a trade name permits business corporations to promote themselves under an easily marketable name, ideally for branding and promotion reasons, but not legally changing their company name.

Who Should Register?

Any Ontario-incorporated business company that desires to conduct its business under any name apart from its registered name needs to file for a trade name. Where and How to Register: Ontario trade names are registered at the Ontario Business Registry, which is an official portal for business registration and updates for the province.

Setting Up HST, WSIB, and Payroll for a Professional Corporation in Ontario

Once you have incorporated your Professional Corporation Ontario, you’ll most likely want to sign up for some required government accounts—HST, WSIB, and Payroll—depending on the structure and income of your business. Signing up is free and can be accomplished through the respective provincial and federal gateways.

Below is a list of each, including additional information for Professional Corporation Ontario:

HST (Harmonized Sales Tax) Registration

If your Professional Corporation Ontario receives $30,000 or more of gross revenue over 12 months, you will be required to register for an HST number from the Canada Revenue Agency (CRA). It is voluntary until you reach that threshold.

Benefits for Professionals: Early registration will qualify you to claim Input Tax Credits (ITCs) for business-related purchases like office supplies, software, or even medical equipment.

Ontario Sales Tax Rate: Currently 13%, which consists of federal and provincial sales taxes.

Filing Requirement: Quarterly, usually or once annually, depending on revenue and choice of CRA.

For certain practitioners, deferral of HST registration can be a short-term promotional campaign to market services as “tax-free,” but it will need to be offset against recoveries on an ITC basis.

WSIB (Workers Safety & Insurance Board)

If an employee becomes ill or is injured at work, WSIB offers workplace insurance coverage.

Certain regulated professions or those that hire administrative or support personnel may be required to register, although not all professional firms are.

Professional Tip: Business owners can choose to protect themselves by purchasing optional WSIB insurance, even if coverage is not required.

Next Steps: To find out if your professional services need to be registered under Ontario legislation, get in touch with WSIB directly or utilize their classification inquiry tool.

Payroll Account Setup

Anytime your Professional Corporation Ontario hires employees, including receptionists, assistants, or junior associates must register for a payroll account with the CRA.

Includes obligations:

Income Tax Withholding and Remittance.
Canada Pension Plan (CPP) contributions.
Employment Insurance (EI) premiums.

Although you may be the only employee for your company (i.e., you’re paying yourself), you will generally require a payroll account.

Conclusion: Need Help? Let's Get You Started

While the registration process for starting a business can be done independently through government websites, many professionals just don’t have the time and rather choose to work with a Professional Corporation Ontario service provider, just like us here at Ontario Business Registry.

Whether you’re an aspiring accountant, medical professional legal professional, or simply in any other professional industry within Ontario, we can help you from start to finish and a few simple and stress-free steps when it comes to Professional Corporation Ontario.

Professional Corporation Ontario FAQs

How long does it take to register a Professional Corporation Ontario?

The timeline for professional corporation Ontario registration through governmental websites done independently can typically take 4-6 Weeks.

Can I convert my existing practice to a Professional Corporation Ontario

Yes, you can convert your existing practice to a Professional Corporation Ontario.

Can multiple professionals from different disciplines form one Professional Corporation Ontario?

No, professional corporations in Ontario require all shareholders to be licensed in the same profession. Different professions cannot form a single professional corporation together.

What happens to my professional corporation if I retire or become unable to practice?

When you retire or become unable to practice, your professional corporation, Ontario, has several options depending on your profession’s governing regulation. You can explore your respective professions governing website using the links provided above in this article.

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