How Doctors Can Incorporate in Ontario, Canada

Doctors who form a corporation in Ontario can benefit from tax advantages.

Doctors practicing in the Canadian province of Ontario have the option of operating as a sole practitioner, a partner or a corporation. Corporations can enjoy tax advantages and various other benefits, but also face additional responsibilities and potential disadvantages, such as extra fees. Before incorporating your practice, carefully consider the pros and cons of this decision, and then familiarize yourself with all of the necessary steps in the incorporation process.

Instructions

1. Meet all of the conditions for incorporation. As regulated health professionals, doctors are subject to a number of conditions under the Business Corporations Act in Ontario. For instance, all of the shares of your corporation must be legally and beneficially owned, directly or indirectly, by one or more members of the same profession; all officers and directors must be shareholders of the corporation, and therefore physicians; and the corporation may not carry on a business other than the practice of the profession, other than activities that are ancillary or related to the practice of the profession.

2. Consult a lawyer or accountant. Speaking to an experienced accountant or lawyer can help you understand the advantages and disadvantages of incorporating your practice, as they pertain to your specific situation. These professionals can also help guide you through all of the steps of the incorporation process, and can help ensure that your incorporation forms are filled out correctly.

3. Incorporate under the Business Corporations Act. This involves filling out and filing articles of incorporation with the Ontario Ministry of Government Services; submitting a Newly Upgraded Automated Name Search report, which compares your corporation’s proposed name with the names of existing corporate bodies and trademarks; and paying a fee of $360 Canadian. The name search report must be obtained from a private name search company, which are listed on Industry Canada’s NUANS website, and cannot be dated more than 90 days prior to the submission of the articles.

4. Name your corporation. The name must meet certain criteria under Ontario’s Business Corporations Act and the Registered Health Professionals Act. For instance, the name must include the phrase “Professional Corporation,” the surname of one or more shareholders, and must indicate the health profession. A doctor’s corporation is not permitted to have a number name.

5. Apply to the College of Physicians and Surgeons of Ontario for a Certificate of Authorization. Without this certificate, your corporation is not permitted to practice. Download the application package from the website of the College of Physicians and Surgeons of Ontario, and ensure it is fully and correctly completed. Submit the application to the College along with the application fee of $350 Canadian and the required supporting documentation, including a certified copy of your Certificate of Incorporation.

References

• The College of Physicians and Surgeons of Ontario: Incorporation Issuance and Renewal
• The College of Physicians and Surgeons of Ontario: Certificate of Authorization for a Corporation to Practice Medicine
• Government of Ontario: Ministry of Government and Consumer Services: Articles of Incorporation
• PAIRO: Incorporation for Physicians

Resources

• NUANS: NUANS Members
• The College of Physicians and Surgeons of Ontario: Certificate of Authorization Application