Incorporate as an Insurance Broker or Agent for $35
Incorporate your insurance business for $35, HST included, with government fees shown separately at cost. A CPA checks the RIBO or FSRA position before anything is filed.
Insurance runs on two Ontario tracks that do not share a rulebook. General insurance brokers answer to RIBO, the Registered Insurance Brokers of Ontario, which registers a broker’s professional corporation as a non-active firm and requires the majority of its shares to be owned by licensees. Life and accident and sickness agents answer to FSRA, the Financial Services Regulatory Authority of Ontario, which licenses the corporation as a corporate agency. Our fee to prepare and file the articles is $35.00, HST included, with government charges passed on unchanged. Open Corporation for $35 is a department of Gondaliya CPA.
A Chartered Professional Accountant reads your agency agreement and your registration category first, because they decide whether commission can be paid to the company at all.
Why Insurance Brokers and Agents Incorporate
Commission taken personally is taxed at your personal marginal rate. A Canadian-controlled private corporation pays 9% federally and 2.2% in Ontario from 1 July 2026, a combined 11.2%, on active business income inside the $500,000 business limit.
Commission income is uneven. A strong new-business year followed by a renewal-only year taxes a proprietor at the top on the first and gives nothing back on the second. A corporation lets you draw a steady amount and leave the rest inside.
Buying a book is the largest cheque most brokers write, and funding it from dollars taxed at 11.2% changes what you can afford.
Our Official Partners
Corporation Rules for Insurance Brokers and Agents
Insurance allows a corporation on both tracks, but the regulator, the authorization and the ownership rules differ. A broker licensed with both RIBO and FSRA needs both, sequenced so nothing is invoiced first.
Your contract matters as much as the regulator. A brokerage, insurer or managing general agent pays commission under its own agreement with you. We read that agreement before filing, because if it cannot be assigned to a corporation, incorporating still helps a book you own outright but shelters no commission.
Typical Share Structure for an Insurance Corporation
| Share class | Who holds it | Voting | Dividend entitlement | Why it is there |
|---|---|---|---|---|
| Class A common | The broker or licensed agent | Yes | Discretionary | Control, and the RIBO majority |
| Class B non-voting common | A spouse or adult child | No | Discretionary | Dividend flexibility, if a split income exception is met |
| Class C preferred | The founder | No | Fixed, redeemable | Freezes value before a buy-in |
| Class D preferred | The founder | No | Fixed, redeemable | Consideration on a section 85 rollover |
Section 120.4 of the Income Tax Act decides whether the Class B share earns its place. The excluded shares exception protects a holder of at least 10% of votes and value, but it fails where 90% or more of the corporation’s business income comes from services, and commission is service income.
A CPA therefore tests each family shareholder against the excluded business test, which looks for regular, continuous and substantial work in the business, usually measured at 20 hours a week. On the RIBO track the family holding also stays below a majority.
HST for Insurance Brokers and Agents
Arranging insurance is an exempt financial service under the Excise Tax Act, not a zero-rated one. You charge no HST on commission, and you cannot claim input tax credits on costs that relate to it.
Common CRA Issues for Insurance Corporations
Personal services business
A career agent writing for one insurer under its supervision may fall within the definition in subsection 125(7) of the Income Tax Act. The corporation then loses the small business deduction and pays an extra 5% federal tax. Our personal services business guide sets out the tests.
Slip mismatch
The insurer reports commission on a slip in your personal name while the corporation reports the same revenue, and the Canada Revenue Agency’s matching assesses you personally.
Income reported by the wrong person
Where the registration and the agency agreement stay with the individual and nothing was assigned in writing, the Canada Revenue Agency can assess the commission to you personally.
Credits on exempt commission
Input tax credits claimed against exempt commission are denied on audit, with interest.
Advances and chargebacks
First-year advances are generally income when received, while the chargeback lands later. Netting them on the return draws a reassessment.
One business limit shared by associated corporations
A second agency or a holding company under common control shares the one $500,000 business limit.
First-Year Compliance Calendar
| When | What is due | Who files it | What happens if it is late |
|---|---|---|---|
| Within 60 days of incorporation | Initial return, Corporations Information Act, filed in the Ontario Business Registry | Us or your CPA | Non-compliance under that Act. No filing fee |
| Before the first commission | Business number and RC0001 corporate tax account | Your CPA | The payer cannot redirect commission to the company |
| Before the first commission | RIBO non-active firm registration or FSRA corporate agency licence | The corporation, to RIBO or FSRA | The company cannot lawfully be paid |
| 15th of the following month | Payroll source deductions | The corporation | Penalty of 3% to 10%, 20% on a repeat |
| If taxable supplies pass $30,000 | HST registration and first return | Your CPA | Tax owed on past taxable sales, plus interest |
| Within 53 weeks of incorporation | First fiscal year end chosen | Your CPA | Difficult to change afterwards |
| 3 months after year end | Part I tax balance for a CCPC claiming the small business deduction | The corporation | Interest at the prescribed rate |
| 6 months after year end | T2 corporation income tax return | Your CPA | 5% of unpaid tax plus 1% per complete month, to 12 months |
| 6 months after year end | Ontario annual return in the Ontario Business Registry, no fee | Us or your CPA | Non-compliance under the Corporations Information Act |
| Every year or every two years | RIBO non-active firm renewal, or FSRA corporate licence renewal every two years | The corporation | The company can no longer be paid commission |
The first document we read is your agency agreement, not the articles.
Your agency agreement
It tells us whether commission can be paid to a corporation, whether the payer has a corporate payee process, and whether an amendment is needed first.
Which regulator you sit under
A RIBO broker registers a non-active firm and keeps the majority of shares in licensee hands. A life agent applies to FSRA and names a designated agent. A dual-licensed broker needs both, sequenced so nothing is invoiced first.
The personal services business question
Most life agents have never been asked it. If you write for one insurer under its supervision, we read the contract and say plainly whether the structure holds.
The shareholders
A spouse holding a non-voting share only helps if section 120.4 lets the dividend through, so we test the hours actually worked first.
Year end, HST and pay
We set the year end against your renewal season, check whether a second agency makes you associated for the one $500,000 business limit, confirm your HST position, decide salary against dividends, and price any section 85 rollover before filing.
AFFORDABLE Incorporation Pricing for Insurance Brokers and Agents
Our fee is $35.00 with HST included. Every government and regulator fee is its own line, at the amount the body charges.
| Item | Amount | HST | Total | Who charges it |
|---|---|---|---|---|
| Incorporation preparation and filing | $35.00 | Included | $35.00 | Open Corporation for $35 |
| Ontario Articles of Incorporation, filed online | $300.00 | Not applicable | $300.00 | Ontario Business Registry |
| Federal Articles of Incorporation, filed online, if you choose federal | $200.00 | Not applicable | $200.00 | Corporations Canada |
| Ontario NUANS name search report, named company only | $25.00 | Included | $25.00 | Ordered through us |
| FSRA life and accident and sickness corporate agency licence, first two years | $400.00 | As charged by FSRA | $400.00 | Financial Services Regulatory Authority of Ontario |
| RIBO non-active firm registration | Confirmed with RIBO before you apply | As charged by RIBO | As charged | Registered Insurance Brokers of Ontario |
The FSRA amount is the one published on its corporate agency licensing page. We confirm the current RIBO fee with RIBO before you apply. Minute book, bookkeeping, payroll and the T2 are quoted on request.
Our Services for Insurance Brokers and Agents
Our professional fees include HST. Government fees are separate, itemised and charged at cost with no mark-up.
NUANS Report for Insurance Brokers and Agents
The Ontario name search for a named corporation. A RIBO non-active firm name must not be used publicly, so many brokers choose a numbered company.
Incorporation Service for Insurance Brokers and Agents
Articles filed under the Business Corporations Act (Ontario), with share classes that keep the RIBO majority in licensee hands.
Address Service for Insurance Brokers and Agents
A registered office address in downtown Toronto for the public register and corporate mail, separate from your home address.
Payroll Service for Insurance Brokers and Agents
Payroll for your own salary and staff, with source deductions remitted on time and T4 slips filed.
One Window Service for Insurance Brokers and Agents
The articles, the business number, the payroll account and the Initial Return set up in one engagement.
Corporate Annual Filing for Insurance Brokers and Agents
The Ontario Annual Return filed in the Ontario Business Registry within six months of year end, with director and address changes kept current.
Corporate Tax Filing for Insurance Brokers and Agents
The T2 with GIFI statements, prepared from books that reconcile commission, advances and chargebacks.
Federal Incorporation for Insurance Brokers and Agents
A federal corporation suits an agency licensed in several provinces. Ontario registration and the RIBO or FSRA authorization are still needed.
Holding Company Setup for Insurance Brokers and Agents
A holding company that takes surplus out of the operating corporation once it builds beyond working capital.
The Bundle for Insurance Brokers and Agents
Incorporation is the first filing, not the work. Gondaliya CPA acts for brokers, life agents and licensed agencies across Ontario and takes over once the certificate is issued: bookkeeping around commission and chargeback statements, the T2, the personal T1, payroll, and the salary and dividend mix each year. Life agents can read accounting for insurance agents.
Why Insurance Professionals Use Us
Gondaliya CPA Professional Corporation is registered with CPA Ontario under firm registration number 61330051. Our clients have left us 1,300+ five-star Google reviews, and we work from 13 Ontario offices, open 9:00 AM to 8:30 PM, Monday to Sunday. We back every filing with a 30-day money-back guarantee and a 60-day fee-matching policy, and we are a Xero Partner Award Winner 2026. Open Corporation for $35 is a department of Gondaliya CPA.
- CPA Ontario firm registration number 61330051
- 1,300+ five-star Google reviews
- 13 Ontario offices
- Open 9:00 AM to 8:30 PM, Monday to Sunday
- 30-day money-back guarantee
- 60-day fee-matching policy
- Xero Partner Award Winner 2026
Google Reviews
Free CPA Consultation for Insurance Brokers and Agents
Case Studies: Insurance Brokers and Agents
Three Ontario insurance files, each showing where the owner started and what changed before anything went to the registry or the regulator.
Toronto General Broker – Commission Paid Personally
The problem: A Level 2 broker had been paid commission personally for years and wanted it paid into a corporation instead.
What we did: We incorporated a numbered Ontario company owned by the broker, prepared the RIBO non-active firm registration, and confirmed with the brokerage how commission would be redirected once it was approved.
The result:
- Ontario corporation filed at $335.00
- RIBO majority ownership in place
- Commission redirected only after registration
Mississauga Life Agent – One Insurer, One Manager
The problem: A life agent writing almost entirely for one insurer under its supervision wanted to incorporate for the lower tax rate.
What we did: We read the agency contract against the personal services business rules, set out the risk in writing, and only then incorporated and applied for the FSRA corporate agency licence.
The result:
- Personal services business risk set out first
- FSRA corporate licence applied for at $400
- Designated agent named in the application
Ottawa Broker – Buying a Retiring Broker’s Book
The problem: A broker planned to buy part of a retiring broker’s book and wanted to fund it from after-tax income.
What we did: We incorporated the company with a preferred class for a future freeze, so the purchase is funded from income taxed at the small business rate and a later buy-in prices only future growth.
The result:
- Book funded from income taxed at 11.2%
- Preferred shares ready for a freeze
- First T2 prepared by the same firm
Six steps from the intake form to a corporation your regulator will register and your payer will pay.
Send the intake form
Your licence type, your regulator, the shareholders, and a copy of your agency or brokerage agreement.
A CPA reviews the file
Whether commission can be assigned, the personal services business risk, the share classes and how you plan to pay yourself.
The name
Usually a numbered company, since a RIBO non-active firm name must not be used publicly. A named company is checked with a $25.00 NUANS report.
You approve the draft
You see the articles, the share classes and the registered office before anything is filed.
Filed online
The articles go through the Ontario Business Registry at $300.00, and you receive the certificate of incorporation.
RIBO or FSRA
The corporation registers with RIBO as a non-active firm or applies to FSRA for a corporate agency licence, and is paid only once authorized.
Meet the Lead CPAs Behind Your Insurance Corporation
A Chartered Professional Accountant checks the RIBO or FSRA position and your agency agreement before anything is filed.
What Our Clients Say
These Google reviews belong to Gondaliya CPA Professional Corporation and cover every service the firm provides. See all reviews.
Incorporating an Insurance Business Across Ontario
We incorporate insurance brokers and agents from thirteen Ontario offices, and the filing is electronic, so no visit is needed. RIBO and FSRA authorize Ontario businesses, so the corporation must meet their rules wherever in Ontario you practise.
Insurance Incorporation FAQs
Can an insurance broker incorporate in Ontario?
Can a corporation hold a life agent licence in Ontario?
Can my commissions be paid to my corporation?
Do insurance brokers charge HST on commissions?
Who may own shares in a broker’s corporation?
Is an insurance agent’s corporation a personal services business?
What does it cost to incorporate an insurance business?
When is the Ontario annual return due for an insurance corporation?
Related Industries We Serve
Real Estate Agents
- Personal real estate corporation
- Commission paid to the company
- HST on commission
IT Consultants
- Contract work through agencies
- Personal services business risk
- HST on consulting fees
Engineers
- Certificate of Authorization
- Flexible share ownership
- Quick method for HST
Franchise Owners
- Franchise agreement review
- Equipment and leasehold
- Payroll from day one
Read our Ontario incorporation service and the federal incorporation service for the wider rules.
Set Up Your Insurance Corporation Properly
A Chartered Professional Accountant reads your agency agreement, confirms the RIBO or FSRA position and sets the share structure before filing. Our fee is $35, HST included.
No legal advice. Gondaliya CPA Professional Corporation is a firm of Chartered Professional Accountants licensed by CPA Ontario, firm registration number 61330051. It is not a law firm. We prepare and file corporate documents and we provide accounting and tax advice. Nothing on this page is legal advice, and reading it creates no solicitor and client relationship. For legal advice, including advice on a shareholder agreement before you sign it, consult a lawyer licensed in the province where your corporation carries on business.
Open Corporation for $35 is a department of Gondaliya CPA.
