If you’re a licensed professional in Ontario—whether a doctor, lawyer, accountant, or architect—you may have heard of the term Professional Corporation (PC). But what exactly does it mean to incorporate professional corporation in Ontario, and how does it differ from a regular corporation?
What does incorporating professional corporation in Ontario mean, exactly, and how is it really different from a regular corporation? This guide goes in-depth into the setup of a professional corporation in Ontario, its benefits, and major considerations.
Whether it be starting a professional corporation in Ontario or managing an ongoing one, this extended blog will detail everything you may want to learn about the registration, continuation, and dissolution of a professional corporation in Ontario.
A professional corporation in Ontario is a specific corporate vehicle tailored for licensed professionals, including physicians, lawyers, accountants, and other regulated professions. Although it functions in many ways like any other corporation, because of the nature of the services provided by a professional corporation, different rules and regulations apply to it.
Professional corporations in Ontario provide a means whereby an individual can offer their services, enjoying certain tax benefits accruing to a corporation, yet remaining liable in person for acts of professional misconduct or negligence.
Some of the legal and regulatory processes that one must follow while setting up a professional corporation in Ontario are provided by the said Ontario professional corporations. No other business can be compared to this because it will need approvals from a governing professional body and the Ontario Business Registry.
1. Apply to the governing body for a certificate: The first step is to receive approval from your profession’s regulatory body (e.g., the Ontario College of Physicians and Surgeons, Law Society of Ontario). The governing body will assess whether your proposed corporation meets the professional standards.
2. Choose a Corporate Name: The name of your Ontario professional corporation must be formed in accordance with requirements and include certain phrases, such as the phrase “Professional Corporation” or “P.C.,” which would identify it as a professional corporation. Be sure to select a name that is acceptable to the Ontario Business Registry. An Ontario NUANS Reservation Report is required to register a Named Corporation. You can obtain one through this trusted service provider. More about NUANS Report you can learn from this blog.
A name that will distinguish your professional corporation in Ontario, which will have to be approved by the OBR, ensures your professional corporation name is unique and to industry standards.
3. Articles of Incorporation: Go ahead and file the Articles of Incorporation with the Ontario government, stating the business and how it is structured. You will have to specify that you’re going to register a professional corporation in Ontario because this is the specific paperwork requiring specific approval. Ontario Incorporation can file and email the articles in just 2 business hours! Incorporate professional corporation in Ontario hassle free.
4. Creation of by-laws and setting up internal policy: Once incorporation is performed, you have to establish internal policies and by-laws of the corporation, describing how it functions and what structure it possesses.
5. Obtain Licenses and Certificates: Along with incorporation, you will need to get the licenses and certificates from your regulatory body so that you can practice legally having a professional corporation.
6. Register Professional Corporation in Ontario: For the final step, you will need to go online through the platform and register your professional corporation in Ontario. Conclusion: It legalizes the standing of your business as a Professional Corporation.
When registering a professional corporation in Ontario, the following documents are typically required:
The use of the Ontario Incorporation, also known as OBR, for professionals looking to incorporate professional corporation in Ontario provides huge advantages. It simplifies not only the initial registration process itself but also the ongoing management of compliance.
Benefits of Using for the Incorporation of Professional Corporations in Ontario:
Save on taxes: A properly set up professional corporation in Ontario will enable a professional to save on taxes by paying lower corporate taxes on the retained earnings, allowing them to save on personal income taxes by not withdrawing the profits.
Nevertheless, besides the fact that personal liability for professional negligence cannot be escaped, professional corporations can offer other forms of limited liability protection, especially when it relates to business debts and obligations.
If you decide that you no longer wish to practice in a professional corporation, you must formally dissolve the corporation. Dissolution involves:
Yes, you may choose to incorporate a professional corporation yourself in Ontario. However, this can be cumbersome given the number of approvals that may be required, so it is typically less of a hassle and more accurate to hire a service for incorporating a professional corporation in Ontario.
If your documents are in order, one may set up a professional corporation quite quickly in Ontario, especially using the platform. The timeline will vary depending on how fast your professional regulatory body approves it.
Yes, you can. However, all shareholders must be licensed in that particular profession. Professional corporations offer a more formalized way of working in a partnership, providing tax benefits and clear ownership stakes.
No, this is not necessary, but hiring professional services to incorporate a professional corporation in Ontario online can ensure everything is set up properly and meets legal requirements. Accountants and lawyers may also offer valuable tax and legal advice.
If you move out of Ontario but wish to continue operating your corporation, you’ll need to comply with the new province’s laws. This could involve dissolving your Ontario corporation and incorporating a new one in the new province, or maintaining multi-jurisdictional operations.
Thinking about starting a professional corporation in Ontario? You’re in for some great perks, like tax savings and a more organized way to run your business. But before you jump in, keep in mind that there are specific steps and rules you’ll need to follow to stay in line with provincial laws and your profession’s guidelines.
If you’re looking to get your professional corporation up and running, using the Ontario Incorporation is a fantastic option. It makes the whole process easier and gives you handy tools to help manage your corporation.
Want to know more about how to incorporate an Ontario professional incorporation online? It’s a good idea to check out some professional advice or explore online platforms to register your professional corporation in Ontario online. You’ve got this!
Tel: 647 695 9934
Email: [email protected]
Fax: 647 695 9933
Address: 102-1270 Central Pkwy W, Mississauga, L5C 4P4, ON
Copyright ©2002-2025 All Rights Reserved.
