Incorporate a Physiotherapy Professional Corporation in Ontario for $35
Start your physiotherapy professional corporation for $35, HST included, with government fees separate. Complete the incorporation intake form and a CPA reviews your share structure before anything is filed.
The College of Physiotherapists of Ontario states plainly that running a corporate practice without a certificate of authorization is illegal, so the certificate, not the articles, is what lets you bill through the company. We prepare and file your health profession corporation under section 3.2 of the Business Corporations Act (Ontario) for $35.00, HST included, with government charges carried at their own amounts. Open Corporation for $35 is a department of Gondaliya CPA.
Massage, kinesiology and report income are taxable, and crossing $30,000 over four consecutive quarters forces registration. A Chartered Professional Accountant sets the share rule and the HST split.
Why Physiotherapists Incorporate
Active business income inside the $500,000 federal business limit is taxed at 9% federally and 3.2% in Ontario, a combined 12.2%. Income left in the corporation is taxed once at that rate.
That only helps a physiotherapist who does not spend everything billed. A clinic owner billing $390,000 and drawing $150,000 keeps the difference working. A contract physiotherapist who takes home the whole split gains timing, not tax saved.
Equipment decides it for many clinics. Treatment beds, shockwave, laser and an exercise floor are financed over five to seven years, and the corporation services that debt with 12.2% dollars.
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Professional Corporation Rules
Physiotherapy is a regulated health profession under the Regulated Health Professions Act, 1991 and the Physiotherapy Act, 1991, so this is a health profession corporation formed under section 3.2 of the Business Corporations Act (Ontario). You cannot practise through it until the College of Physiotherapists of Ontario issues a certificate of authorization, and the College states that running a corporate practice without one is illegal.
Typical Share Structure for a Physiotherapy Professional Corporation
| Share class | Who holds it | Voting | Dividend entitlement | Why it is there |
|---|---|---|---|---|
| Class A common | Founding physiotherapist on the College Register | Yes | Discretionary | Control, growth, capital gains exemption |
| Class B common | Second physiotherapist on buy-in | Yes | Discretionary | Divides future growth |
| Class C non-voting common | Associate physiotherapist on the College Register | No | Discretionary | Equity without control |
| Class D preferred, redeemable | Founding physiotherapist | No | Fixed rate | Freezes value before a buy-in |
| Family non-voting shares | Not permitted | No | None | Every shareholder must be a physiotherapist |
Section 120.4 of the Income Tax Act still bites with family shares closed off. Where two physiotherapist spouses hold shares, a dividend to the less active spouse is tested under the tax on split income. A physiotherapy practice corporation cannot use the excluded shares exception, because that definition is closed to a corporation earning its income from services.
That leaves the excluded business test, met at an average of 20 hours a week, and a CPA records those hours before the dividend is declared.
HST for Physiotherapists
Physiotherapy services rendered to an individual by a practitioner are exempt under section 7 of Part II of Schedule V to the Excise Tax Act, so treatment billings carry no HST. The Canada Revenue Agency small supplier threshold of $30,000, measured over four consecutive calendar quarters, counts taxable supplies only, and the CRA will generally not register a person making exempt supplies alone.
Common CRA Issues for Physiotherapy Corporations
Massage, kinesiology and report income never registered
Triggered when taxable revenue crosses $30,000 over four consecutive quarters and the clinic treats every line as exempt.
Credits claimed against exempt billings
Triggered by registering for HST and then recovering tax on the whole clinic overhead instead of the taxable share.
Associate treated as an employee
Triggered by a CPP and EI ruling after a contract physiotherapist leaves, where the clinic set the schedule and the fees and supplied the equipment.
Personal services business
Triggered by an incorporated physiotherapist working through one clinic, hospital or agency with no staff and no equipment. That loses the small business deduction.
Shareholder benefits under subsection 15(1)
Triggered by the clinic vehicle, travel attached to a course, or household costs run through the corporate account.
One business limit shared by associated corporations
Triggered by a second corporation holding the premises or a management contract under common control. The $500,000 limit is allocated on Schedule 23.
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 and penalties under that Act |
| Before billing through the corporation | Certificate of authorization from the College | The physiotherapist | Corporate practice is not permitted and the income stays personal |
| Week 1 to 2 | Business number and RC0001 corporate tax account | Your CPA | No account for the T2 to be filed against |
| When taxable supplies pass $30,000 in four quarters | HST registration and first return | Your CPA | CRA assesses uncollected tax plus interest |
| 15th of the following month | Payroll source deductions on the RP account | The corporation | Penalty of 3% to 10%, 20% on a repeat |
| Within 53 weeks | First fiscal year end, fixed by the first T2 | Your CPA | A later change needs CRA approval |
| 3 months after year end | Part I tax balance for a CCPC claiming the small business deduction | The corporation | Interest from the day after the balance due day |
| 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, off the T2 since 15 May 2021 | Us or your CPA | Non-compliance under the Corporations Information Act |
| By 11:59 p.m. on 31 March | College renewal for the registration year running 1 April to 31 March | The physiotherapist | Late fee, and the certificate can be revoked after the grace period |
| Second tax year onward | Instalments where tax exceeds $3,000 | The corporation | Instalment interest at the prescribed rate |
The certificate is what legalises the practice, not the articles.
The certificate first
The College of Physiotherapists of Ontario states that running a corporate practice without a certificate of authorization is illegal, so we sequence the incorporation, the certificate application and the first corporate invoice, and put the dates in writing.
A mixed HST picture
Treatment rendered to an individual by a practitioner is exempt under section 7 of Part II of Schedule V to the Excise Tax Act. Pilates classes, equipment sales, braces and insurer reports are taxable supplies, and once those pass $30,000 across four consecutive quarters registration is mandatory. Input tax credits must then be apportioned against exempt billings, and the quick method is open below $400,000.
Shares follow the register
Every shareholder must be a physiotherapist, so the classes are built for practitioners: Class A voting for the founder, Class C non-voting for an associate, and a redeemable preferred class to freeze value before a buy-in.
Family planning, outside the corporation
Because family members cannot hold shares in the professional corporation, any spouse or adult child planning moves to a separate company, where section 120.4 applies and the excluded business and excluded shares tests decide whether the dividend survives. That second company is usually associated, so the $500,000 small business deduction is shared.
Year end, structure and pay
We then set the fiscal year end against the billing cycle, decide whether a holding company yet earns a second T2, settle salary against dividends, and where a sole practice is converting, elect under section 85 so equipment and goodwill move in without a gain.
AFFORDABLE Incorporation Pricing for Physiotherapists
Our fee is $35.00 with HST included. Every government and College 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 government incorporation fee, filed online | $300.00 | Not applicable | $300.00 | Ontario Business Registry |
| Certificate of authorization, application | $774.00 | As charged by the College | $774.00 | College of Physiotherapists of Ontario |
| Certificate of authorization, annual renewal | $283.00 | As charged by the College | $283.00 | College of Physiotherapists of Ontario |
| Official paper certificate of authorization, optional | $29.00 | As charged by the College | $29.00 | College of Physiotherapists of Ontario |
| Ontario NUANS name search report | $25.00 | Included | $25.00 | Ordered through us |
The College amounts are those published on the College of Physiotherapists of Ontario registrant information page. The College has consulted on changes to its fee by-law, so we confirm the current application fee before you apply.
Our Services for Physiotherapists
Our professional fees include HST. Government fees are separate, itemised and charged at cost with no mark-up.
NUANS Report for Physiotherapists
The name search for a professional corporation name carrying your surname as it appears on the College Register and the word physiotherapy.
Incorporation Service for Physiotherapists
Articles drafted under section 3.2 of the OBCA, with the Article 5 restriction and share classes built for physiotherapist shareholders only.
Address Service for Physiotherapists
A registered office address in downtown Toronto for the public register and corporate mail, separate from the clinic address patients see.
Payroll Service for Physiotherapists
Payroll for front desk staff and employed associates, with source deductions remitted on time and T4 slips filed.
One Window Service for Physiotherapists
The articles, the business number, the payroll account, any HST account and the Initial Return set up in one engagement.
Corporate Annual Filing for Physiotherapists
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 Physiotherapists
The T2 with GIFI statements, prepared from books that split exempt treatment from taxable massage, kinesiology and report revenue.
Federal Incorporation for Physiotherapists
A physiotherapy professional corporation is formed in Ontario, not federally. This service suits a separate management or holding company where one is needed.
Holding Company Setup for Physiotherapists
A holding company that takes surplus cash out of the professional corporation once it builds beyond the clinic’s working capital.
The Bundle for Physiotherapists
After the corporation exists, the work is ongoing. Gondaliya CPA prepares the year-end financial statements and the T2, runs payroll for associates and front desk staff, keeps bookkeeping split between exempt treatment billings and taxable massage, kinesiology and report revenue, reconciles auto insurance and WSIB receivables, files the Ontario annual return, and sets the salary and dividend mix against your drawings.
Why Physiotherapists 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. The platform is operated by WealthBamboo Inc., a federal corporation. 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 Physiotherapists
Case Studies: Physiotherapy Professional Corporations
Three Ontario physiotherapy files, each showing where the owner started and what changed before anything went to the registry or the College.
Mississauga Clinic – Massage Revenue Nobody Registered
The problem: A Mississauga clinic owner had added two massage therapists and a kinesiologist and treated every billing as HST-exempt. The taxable lines had passed $30,000 over four quarters months earlier.
What we did: We incorporated the physiotherapy professional corporation, registered it for HST from the correct effective date, and split the books between exempt treatment and taxable massage and kinesiology revenue. Input tax credits were apportioned to the taxable share only.
The result:
- Ontario professional corporation filed at $360.00
- HST charged on the taxable streams only
- Credits apportioned, not claimed on the whole overhead
Toronto Physiotherapist – A Spouse on the Share Register
The problem: A Toronto physiotherapist planned to issue non-voting shares to a spouse who works in finance, having read that family members may hold shares in a professional corporation.
What we did: We explained that the family share route under O. Reg. 665/05 is open only to medicine and dentistry, so the professional corporation was issued shares to the physiotherapist alone. Family planning was moved to a separate holding company, reviewed under section 120.4.
The result:
- Share register the College will accept
- No family shares in the professional corporation
- Holding company plan tested against TOSI
Brampton Associate – Buying Into an Established Clinic
The problem: An associate physiotherapist in Brampton was offered a third of the clinic shares, but the founder’s corporation had one class of common shares and no way to separate past growth from future growth.
What we did: We set up the associate’s own professional corporation and recommended a freeze in the clinic corporation, with redeemable preferred shares for the founder and new common shares for both physiotherapists, so the buy-in priced only future growth.
The result:
- Associate’s corporation filed at $360.00
- Founder’s value frozen in preferred shares
- Buy-in priced on future growth only
Six steps from the intake form to a professional corporation the College will authorize and the CRA will recognise.
Send the intake form
Your College registration number, the shareholders, the clinic’s revenue streams and whether you are buying in or converting a sole practice.
A CPA reviews the file
The share rule, the HST split between exempt and taxable revenue, and how you plan to pay yourself.
The name
Your surname exactly as on the College Register, the word physiotherapy and the ending Professional Corporation, checked with a $25 NUANS report.
You approve the draft
You see the articles, the Article 5 restriction, 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 for the College application.
Certificate of authorization
You apply to the College through the PT Portal, and the corporation bills only once the certificate is issued.
Meet the Lead CPAs Behind Your Physiotherapy Corporation
A Chartered Professional Accountant checks the share rule and the HST split before anything is filed.
What Our Clients Say
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Incorporating a Physiotherapy Practice Across Ontario
We incorporate physiotherapists from thirteen Ontario offices, and the filing is electronic, so no visit is needed. A physiotherapy professional corporation is formed under the Business Corporations Act (Ontario) and authorized by the College of Physiotherapists of Ontario, so the practice must be in Ontario.
Physiotherapy Professional Corporation FAQs
Can a physiotherapist incorporate in Ontario?
Can my spouse own shares in my physiotherapy professional corporation?
What does it cost to incorporate as a physiotherapist in Ontario?
Do physiotherapists charge HST in Canada?
Are braces and orthotics zero-rated when a physiotherapist orders them?
When does a physiotherapy professional corporation renew its certificate?
Should a physiotherapist incorporate federally or in Ontario?
When is the Ontario annual return due for a physiotherapy corporation?
Related Industries We Serve
Chiropractors
- Chiropractic professional corporation
- HST on orthotics and supplements
- Members-only share rule
Physicians and Doctors
- CPSO certificate of authorization
- Family non-voting shares
- OHIP payments and TOSI
Dentists
- RCDSO certificate
- Family non-voting shares
- HST after Notice 339
Immigrants and Newcomers
- Internationally trained professionals
- Temporary SIN and business number
- First-year tax residency
Set Up Your Physiotherapy Corporation Properly
Send us the intake form and we prepare your articles, the Article 5 restriction and the name in the form the College of Physiotherapists of Ontario expects, for $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.
