Incorporate a Medicine Professional Corporation in Ontario for $35
Start your medicine professional corporation in Ontario for $35, HST included. Government and College fees are separate. A CPA builds your share classes, checks the name and sets up OHIP payments before we file.
Medicine is a regulated health profession, so a physician’s company 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 College of Physicians and Surgeons of Ontario issues a Certificate of Authorization. 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.
Only physicians who are members of the College may hold voting shares, while a spouse, child or parent of a physician shareholder may hold non-voting shares under O. Reg. 665/05. A Chartered Professional Accountant builds those classes, and tests them against the tax on split income, before the College reviews your application.
AFFORDABLE Incorporation for Ontario Physicians
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 in the corporation is taxed once at that rate until you take it out.
It matters most to a physician who bills more than they spend. A family physician billing $450,000 and living on $200,000 compounds the difference inside the company, for a home, a practice purchase, a parental leave or retirement.
A resident or new graduate who spends nearly everything they earn gains little more than timing. We tell you which group you are in before you pay anyone anything.
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Medicine Professional Corporation Rules in Ontario
A medicine professional corporation is an Ontario health profession corporation. It is incorporated under the Business Corporations Act (Ontario), and it may not practise medicine until the College of Physicians and 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 Medicine Professional Corporation
| Share class | Who holds it | Voting | Dividend entitlement | Why it is there |
|---|---|---|---|---|
| Class A common | The physician | Yes | Discretionary | Control, required by the College |
| Class B common | A second physician | Yes | Discretionary | Two doctors in one corporation |
| Class C non-voting | The physician’s spouse | No | Discretionary | Dividends where a TOSI exception applies |
| Class D non-voting | An adult child or a parent | No | Discretionary | Family working in the practice |
| Class E non-voting | A trustee for minor children | No | Discretionary | Future flexibility, usually no dividends while minors |
Section 120.4 of the Income Tax Act decides whether those non-voting shares are worth issuing. The excluded shares exception is closed to a corporation providing professional services, so a medical practice cannot use it. What remains is the excluded business test, an average of at least 20 hours a week in the practice, and the rule that frees dividends to a spouse once the physician turns 65.
Dividends to minor children are caught in almost every case. A CPA documents the hours and tells you which dividends will survive a review before any are declared.
HST for Physicians
Consultative, diagnostic and treatment services supplied by a medical practitioner are exempt under Part II of Schedule V to the Excise Tax Act, so most physicians never register. An exempt supplier cannot claim input tax credits, so the HST on rent, equipment and supplies is a cost of the practice.
Where a corporation makes both exempt and taxable supplies, input tax credits are claimed only on the part of each cost that relates to the taxable line. We set the apportionment method at registration, not after the first review.
Common CRA Issues for Medicine Professional Corporations
Spouse dividends with no exception
Triggered by a T5 to a spouse who does not work in the practice and a physician under 65. Section 120.4 taxes the dividend at the top personal rate.
Passive income and the business limit
Triggered by investment income above $50,000 in the prior year. The $500,000 limit falls by $5 for every $1 above it and is gone at $150,000, which often surprises physicians with large portfolios.
Fees reported by the wrong taxpayer
Triggered by OHIP or hospital payments still made to the physician personally but recorded as corporate revenue. Income follows the person entitled to it.
Income from a related clinic
Triggered by fees paid to the corporation by a private clinic company in which the physician or a family member holds shares. That specified corporate income loses the small business deduction unless the business limit is assigned.
Personal costs in the corporation
Triggered by a family vehicle, a home office or travel booked as practice expenses. Personal use becomes a shareholder benefit under subsection 15(1).
The normal reassessment period for a CCPC is three years under subsection 152(3.1); paragraph 152(4)(a) removes it for misrepresentation from carelessness or wilful default.
First-Year Compliance Calendar
| When | What is due | Who files it | What happens if it is late |
|---|---|---|---|
| Before filing | Name with “Medicine Professional Corporation”, NUANS report | Us | A refused name delays the articles |
| After the certificate of incorporation | Certificate of Authorization application | You, with the CPSO | The corporation may not practise medicine |
| Once the College approves | Direction to pay OHIP fees to the corporation | You, with the Ministry of Health | Fees keep going to you personally |
| Within 60 days of incorporation | Initial Return, Corporations Information Act | Us, Ontario Business Registry | Non-compliance. No fee |
| Week 1 to 2 | Business number and RC0001 account, payroll account if you employ staff | Your CPA, with the CRA | Nothing to file or remit against |
| 15th of each month | Payroll source deductions for staff and any salary to you | The corporation, to the CRA | Penalty of 3% to 10%, 20% on a repeat |
| Within 53 weeks of incorporation | First fiscal year end chosen | Your CPA | Hard to change once the first T2 is filed |
| Last day of February | T4 and T5 slips for salary and dividends | Your CPA, with the CRA | Late filing penalty per slip |
| 3 months after year end | Part I tax balance for a CCPC | The corporation, to the CRA | Interest from the day after |
| 6 months after year end | T2 return and Ontario Annual Return | Your CPA, and us | Late penalty, then cancellation of the corporation |
| Every year | Certificate of Authorization renewal | You, with the CPSO | The certificate lapses and practice must stop |
We start with how you are paid, because a family health organization, a fee-for-service practice, a hospital alternate funding plan and locum work each move money differently.
How you are paid
OHIP fee-for-service, a group payment model, hospital or university stipends, or locum fees, and which of them can actually be paid to a corporation.
Earning against spending
The gap between what you bill and what you live on decides whether incorporating saves real money or only defers it.
Family shareholdings
Who may hold non-voting shares under O. Reg. 665/05, and whether any dividend to them escapes section 120.4.
The name
Your name exactly as on the College register, with the words the College requires, screened before a NUANS report is bought.
OHIP and group billing
The direction to pay the corporation, group billing numbers, and the date the first corporate payment can be expected.
Clinic and spouse corporations
Whether a clinic company or a spouse’s corporation is associated with yours, or turns your fees into specified corporate income.
Investment plan
How much will stay invested, and how to keep passive income from eroding the $500,000 small business limit.
The fiscal year end
Chosen against your salary, dividend and personal instalment timing.
AFFORDABLE Pricing for a Medicine Professional Corporation
Our fee is $35.00 with HST included. A medicine professional corporation is incorporated in Ontario and must carry a name, so the named Ontario price applies. The College’s application and renewal fees are paid to the CPSO directly, at its current rates.
Ontario Provincial Incorporation
| Service | Final Fee | Frequency |
|---|---|---|
| Ontario named corporation – Government filing CAD 300 + NUANS CAD 25 + our incorporation fee CAD 35 | CAD 360 | One-time |
| Our professional incorporation fee component | CAD 35 | One-time |
| NUANS name search | CAD 25 | One-time |
| Annual Virtual Registered Address Service Package | CAD 900 | Annual |
Our Services for Physicians
Our professional fees include HST. Government and College fees are separate, itemised and charged at cost with no mark-up.
NUANS Report for Physicians
The Ontario-biased name report your medicine professional corporation needs, with the name checked against the College’s wording and your register entry before it is bought.
Incorporation Service for Physicians
Articles drafted with the voting and non-voting classes the College allows, the business restricted to medicine, and the corporation ready for your Certificate of Authorization application.
Address Service for Physicians
A registered office address in downtown Toronto, so your home address stays off the public register and corporate mail does not go to the clinic or the hospital.
Payroll Service for Physicians
The payroll account for your own salary and any clinic staff, source deductions worked out each pay run, and T4 slips filed before the February deadline.
One Window Service for Physicians
The articles, the business number, the payroll account and the first year of filings handled through one person, with the College and OHIP steps listed in order.
Corporate Annual Filing for Physicians
The Ontario Annual Return filed on time, with director and address changes reported, so the corporation stays in good standing for the College’s renewal.
Corporate Tax Filing for Physicians
The T2 with GIFI statements, investment income tracked against the small business limit, and salary and dividends reconciled to the T4 and T5 slips.
Minute Book for Physicians
The by-laws, resolutions, share registers and the register of individuals with significant control the College and the bank expect to see.
Share Structure for Physicians
How voting, non-voting and trust classes work for a medicine professional corporation, and which ones are worth authorising at the start.
The Bundle for Physicians
After incorporation the accounting moves to the parent firm. Gondaliya CPA reconciles OHIP remittance advice and group payments to the bank, keeps the books, runs payroll, prepares the T2 and the Ontario Annual Return, sets the salary and dividend mix each year, tracks investment income against the small business limit, and prepares the statements a lender asks for on a home or practice purchase.
Why Physicians 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.
- CPA Ontario firm registration number 61330051
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Free CPA Consultation for Physicians
Case Studies: Medicine Professional Corporation Incorporation
Three Ontario physician files, each showing where the doctor started and what changed before anything went to the registry or the College.
Mississauga Family Physician – Incorporated, but OHIP Still Paying Her Personally
The problem: A family physician in a Mississauga family health organization had incorporated online and received her Certificate of Authorization, but four months later OHIP and the group’s payments were still landing in her personal account. Her bookkeeper had been recording them as corporate revenue.
What we did: We filed the direction for OHIP to pay the corporation, confirmed the change with the group’s administrator, and separated the months paid to her personally so they were reported on her own return. The first T2 started from the date the corporation was actually paid.
The result:
- OHIP and group payments redirected to the corporation
- Personal and corporate months reported correctly
- First T2 built on the right revenue
Ottawa Anesthesiologist – Shares for a Spouse and Two Young Children
The problem: An Ottawa anesthesiologist wanted his spouse and two children, aged 7 and 10, to own shares so dividends could be split four ways. His draft gave the spouse voting shares and planned annual dividends to all three, none of which the College or the tax rules would accept.
What we did: We authorised voting shares for him alone, a non-voting class for his spouse and a non-voting class held by a trustee for the children, as O. Reg. 665/05 allows. We explained that dividends to his spouse and the children would be caught by section 120.4 for now, and kept the classes for later.
The result:
- Named corporation filed at $360.00
- Share classes accepted by the College
- No dividends declared that would attract TOSI
Hamilton Dermatologist – A Cosmetic Line Inside an Exempt Practice
The problem: A Hamilton dermatologist was adding injectables and laser treatments to her insured practice. The cosmetic revenue was heading past $30,000 a year, nobody had registered for HST, and her clinic manager assumed everything a doctor bills is exempt.
What we did: We incorporated, registered the corporation for HST, and separated insured and medically necessary services, which stay exempt, from the cosmetic services, which carry 13%. Input tax credits were set to be claimed only on the share of costs used for the taxable line.
The result:
- HST charged on cosmetic services from day one
- Exempt insured services kept separate
- Credits apportioned on a documented basis
Six steps from the intake form to a corporation the College has authorized and OHIP pays. You always know what is with us, what is with the registry, what is with the College and what comes next.
Send the intake form
Your CPSO registration, how you are paid, your family, any second physician, and the date you want to start billing through the corporation. It takes about ten minutes.
A CPA reviews the file
Share classes, family shareholdings under O. Reg. 665/05, the tax on split income, clinic arrangements and the year end. Questions come back the same working day.
The name
Your name as on the College register with “Medicine Professional Corporation”, screened first and confirmed by a $25 NUANS report.
You approve the draft
You see the articles, the share classes, the directors and the registered office before anything is submitted. Changes cost nothing at this stage.
Filed in Ontario
The articles go through the Ontario Business Registry, are processed on submission, and the certificate of incorporation is emailed to you for the College application.
College, OHIP and CRA
You apply for the Certificate of Authorization, then direct OHIP to pay the corporation. We open the business and payroll accounts and the minute book.
Meet the Lead CPAs Behind Your Medicine Professional Corporation
A Chartered Professional Accountant checks the share classes, the name and the OHIP payment setup before anything is filed.
What Our Clients Say
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Incorporating a Physician Practice Across Ontario and Canada
We set up medicine professional corporations from thirteen Ontario offices, and the filing is electronic, so no visit is needed. The CPSO rules on this page apply to Ontario physicians. A physician practising in another province incorporates under that province’s statute and College rules, which we confirm, with the fees, in writing first.
Medicine Professional Corporation FAQs
How much does it cost to incorporate a medicine professional corporation in Ontario?
Can a doctor incorporate in Ontario?
What is a Certificate of Authorization for a medicine professional corporation?
What must the name of a medicine professional corporation include?
Can my spouse or children own shares in my medicine professional corporation?
Can I pay my spouse dividends from my medicine professional corporation?
Will OHIP pay my professional corporation directly?
Do physicians charge HST?
What tax rate will my medicine professional corporation pay?
Can my medicine professional corporation invest its surplus?
Can I incorporate federally as a physician?
Should I incorporate as a resident or a newly practising physician?
What annual filings does a medicine professional corporation have?
Related Industries We Serve
Dentists
- Dentistry professional corporation
- Family non-voting shares
- RCDSO Certificate of Authorization
Chiropractors
- Health profession corporation setup
- College share rules
- HST on orthotics and supplements
Walk-In and Multi-Doctor Clinics
- Clinic management company
- Specified corporate income
- Staff payroll and EHT
Specialists and Surgeons
- Hospital and AFP income
- Investment income and the limit
- Salary and dividend mix
Start Your Medicine Professional Corporation
One form stands between you and a corporation the College will authorize. Pay $35 including HST, and a CPA checks the shares, the name, the OHIP setup and the 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 purchase agreement, lease or shareholder agreement before you sign it, consult a lawyer licensed in the province where your corporation carries on business.
