Incorporate a Dentistry Professional Corporation in Ontario for $35
Start your dentistry professional corporation for $35, HST included. Government fees are separate. Complete the intake form and a CPA reviews your shares first.
Dentistry is a regulated health profession, so your company is a health profession corporation under the Regulated Health Professions Act, 1991. Our fee to draft and file the articles is $35.00, HST included, and the registry and College charges go through untouched. Open Corporation for $35 is a department of Gondaliya CPA.
The Ontario regulation governing health profession corporations (O. Reg. 665/05 under the Business Corporations Act (Ontario)) lets only College member dentists hold voting shares, while a family member of a voting shareholder may hold non-voting shares, and that split is the whole basis of dividend planning here. A Chartered Professional Accountant builds those classes before the Royal College of Dental Surgeons of Ontario reviews your Certificate of Authorization application.
Why Dentists Incorporate
Active business income within the $500,000 federal business limit is taxed at 9% federally and 3.2% in Ontario, a combined 12.2%. Money left inside is taxed once at that rate.
It matters most to an owner who does not spend all they bill. A dentist billing $700,000 and living on $250,000 compounds the difference inside the company.
Associates are different. If you take home nearly all you earn, the deferral is small and you gain mainly timing flexibility.
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Professional Corporation Rules for Dentists
Dentistry is a regulated health profession, so this is a health profession corporation under the Regulated Health Professions Act, 1991 and the Business Corporations Act (Ontario). You may not practise through it until the Royal College of Dental Surgeons of Ontario issues a Certificate of Authorization under sections 85.8 to 85.14 of the Health Professions Procedural Code, Schedule 2 to the Regulated Health Professions Act, 1991.
Typical Share Structure for a Dentistry Professional Corporation
| Share class | Who holds it | Voting | Dividend entitlement | Why it is there |
|---|---|---|---|---|
| Class A common | Practising dentist | Yes | Discretionary | Control and growth |
| Class B common | Second dentist shareholder | Yes | Discretionary | Buy-in, College members |
| Class C non-voting | Spouse of a voting shareholder | No | Discretionary | Dividends where TOSI allows |
| Class D non-voting | Adult child or parent | No | Discretionary | Family in the practice |
Section 120.4 of the Income Tax Act decides whether those non-voting shares are worth issuing. A dentistry professional corporation cannot use the excluded shares exception, because the CRA closes it to the professional practice of a dentist. That leaves the excluded business test, met at an average of 20 hours a week. A CPA documents the hours and says when a spouse dividend will not survive review.
HST for Dentists
Dental services supplied by a licensed dentist are exempt under Part II of Schedule V to the Excise Tax Act, so most practices never register. The Canada Revenue Agency generally bars registration where you make only exempt supplies, and its $30,000 threshold, over four consecutive calendar quarters, counts taxable supplies only.
Register voluntarily only where that revenue is real. The quick method has a $400,000 ceiling and dentists are not on the CRA excluded list, but exempt billings rarely make it pay.
Common CRA Issues for Dental Practices
Spouse dividends without hours
Triggered by a T5 to a spouse who does not work in the practice. Section 120.4 taxes it at the top rate, and a subsection 15(1) benefit assessment often follows.
Associate treated as an employee
Triggered by a CPC-1 ruling, chair rental with fixed hours, or a departing associate claiming EI. The clinic owes unremitted CPP and EI.
Personal services business
Triggered by an incorporated associate with one clinic, no staff and no equipment. A PSB loses the small business deduction.
Credits against exempt billings
Triggered by input tax credits claimed on overhead after registration. Notice 339 makes this the live orthodontic audit issue.
First-Year Compliance Calendar
| When | What is due | Who files it | What happens if it is late |
|---|---|---|---|
| Within 60 days | Initial return, Corporations Information Act | Us or your CPA | Penalties under that Act |
| Week 1 to 2 | Business number, RC0001 account | Your CPA | Nothing to file the T2 against |
| If taxable supplies arise | HST registration, first return | Your CPA | Unremitted tax plus interest |
| 15th of the following month | Payroll source deductions | The corporation | Penalty of 3% to 10%, 20% on repeat |
| Within 53 weeks | First fiscal year end set | Your CPA | Hard to change later |
| 3 months after year end | Part I tax balance, CCPC with the small business deduction | The corporation | Interest from the due day |
| 6 months after year end | T2 return, and Ontario annual return via the Ontario Business Registry | Your CPA | Late filing penalty, and non-compliance under the Corporations Information Act |
| First tax year | No instalments required | CRA rule | Instalments start in year two above $3,000 |
We start with the calendar, because two dates govern this file and they are not the same.
Two dates
The RCDSO Certificate of Authorization expires 31 August, and the renewal fee is $175 if paid by 31 July and $200 after. Your fiscal year end is a separate choice, set against the practice cash cycle and the remuneration plan, and it fixes the T2 and the instalments.
Ownership
Only members of the Royal College of Dental Surgeons of Ontario may hold voting shares, and every officer and director must be one. O. Reg. 665/05 lets a spouse, parent or adult child hold non-voting shares, and RCDSO permits a trustee to hold shares for a voting shareholder’s minor child.
Section 120.4
The excluded shares exception is closed to dentists, which leaves the 20 hour a week excluded business test, so we measure hours before shares are issued rather than after a reassessment.
HST
HST is narrower than owners expect. Treatment is exempt, while cosmetic work and appliances are taxable supplies, and the registration decision turns on how much of that revenue is real.
Structure
A hygiene company or a company holding the premises is associated, so the $500,000 small business deduction is shared, and a holding company is weighed against the same RCDSO ownership rules.
The transaction
Acquiring a practice by shares leaves the vendor’s tax history in place, while acquiring the assets resets depreciation and lets goodwill be valued directly. Where a proprietorship is folding in, a section 85 election moves equipment and goodwill across without triggering a gain.
Fees to Incorporate as a Dentist in Ontario
Our fee is $35.00 with HST included. Registry and College charges go through untouched, on their own lines.
| Item | Amount | HST | Total | Who charges it |
|---|---|---|---|---|
| Incorporation preparation and filing | $35.00 | Included | $35.00 | Open Corporation for $35 |
| Ontario government incorporation fee | $300.00 | Not applicable | $300.00 | Ontario Business Registry |
| Ontario-biased NUANS report, named company only | $25.00 | Included | $25.00 | Open Corporation for $35 |
| RCDSO Certificate of Authorization, application | $750.00 | Not applicable | $750.00 | Royal College of Dental Surgeons of Ontario |
| RCDSO Certificate of Authorization, annual renewal | $175.00 if paid by 31 July, $200.00 after | Royal College of Dental Surgeons of Ontario | ||
| Minute book, bookkeeping, payroll and T2 | Quoted on request | Gondaliya CPA | ||
| Total to incorporate, numbered corporation | $335.00 ($300.00 government filing + $35.00 our fee), before College fees | One-time | ||
| Total to incorporate, named corporation | $360.00 ($300.00 government filing + $25.00 NUANS + $35.00 our fee), before College fees | One-time | ||
The Bundle for Dentists
After incorporation the accounting moves to the parent firm. Gondaliya CPA keeps the books, runs payroll, prepares the T2 and the Ontario annual return, sets the salary and dividend mix, reconciles insurer and Canadian Dental Care Plan receivables, and prepares the statements a lender or vendor asks for on a practice purchase.
Why Dentists Use Us
Gondaliya CPA Professional Corporation is registered with CPA Ontario under firm registration number 61330051. Open Corporation for $35 is a department of Gondaliya CPA.
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A Chartered Professional Accountant builds your share classes before anything is filed.
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Dentistry Professional Corporation FAQs
Can a dentist incorporate in Ontario?
What is a Certificate of Authorization for a dentistry professional corporation?
Can my spouse own shares in my dentistry professional corporation?
Can I pay my spouse dividends?
Do dentists charge HST?
What changed for orthodontists in 2025?
What tax rate will my dental corporation pay?
Can I incorporate federally as a dentist?
Related Industries We Serve
Orthodontists
- Appliance zero-rating after Notice 339
- Input tax credit apportionment
- Treatment plan receivables
Dental Hygienists
- Health profession corporation setup
- Associated corporation limits
- Independent clinic payroll
Physicians
- Family non-voting shares
- OHIP billing reconciliation
- Salary and dividend mix
Optometrists
- Taxable eyewear sales and HST
- Equipment financing and CCA
- Practice purchase structure
Start Your Dentistry Professional Corporation
One form stands between you and a corporation the College will certify. Pay $35 including HST and a CPA checks the shares, name and year end first.
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.
