AFFORDABLE Engineering Incorporation, Filed by a CPA Firm

Incorporate an Engineering Company in Ontario for $35

Incorporate your engineering company for $35, HST included, with the Ontario government fee shown separately at cost. Complete the incorporation intake form and a CPA reviews your share structure before anything is filed.

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Engineering is the licensed profession that does not use a professional corporation in Ontario. Sections 3.1 to 3.4 of the Business Corporations Act (Ontario) are open only to professions whose own statute provides for one, so what we file is an ordinary corporation whose name does not end with “Professional Corporation”. Our fee is $35.00, HST included, and the registry charge sits beside it at cost. Open Corporation for $35 is a department of Gondaliya CPA.

The company then applies to Professional Engineers Ontario for a Certificate of Authorization before it offers or provides engineering services to the public. A Chartered Professional Accountant checks your share structure and your personal services business exposure first.

Why Engineers Incorporate

Active business income inside the $500,000 federal business limit is taxed at 9% federally and 2.2% in Ontario from 1 July 2026, a combined 11.2%. Income left in the corporation is taxed once at that rate until you draw it.

For an independent consultant the deferral is the point. An engineer billing $240,000 who lives on $110,000 pays personal tax on the draw and leaves the rest working in the company.

Contract work often forces the question earlier than tax does. Engineers placed through an agency are frequently told the client will only contract with a corporation.

Gondaliya CPA team preparing an engineering company incorporation
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Flexible ownership

Professional Engineers Ontario does not limit shares to licence holders, so a spouse or a holding company can hold them. Surplus can move up to a holding company as an intercorporate dividend under section 112 of the Income Tax Act.

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Equipment inside the company

Instruments, design software licences and a site vehicle are depreciated inside the corporation, and the borrowing is repaid with dollars taxed at 11.2%.

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Two-owner firms

A second engineer or an operations partner can buy in through their own class of shares, which a proprietorship cannot offer.

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Selling the firm

Shares of a qualified small business corporation may qualify for the lifetime capital gains exemption on a sale, which a proprietorship’s goodwill does not.

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Liability is narrower than it sounds

Limited liability covers the lease and the equipment loan, not a negligence claim. The engineer who seals a drawing remains personally accountable.

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Professional Corporation Rules for Engineers

Engineering in Ontario does not use a professional corporation. The Professional Engineers Act, R.S.O. 1990, c. P.28 regulates firms through a Certificate of Authorization instead, so we file an ordinary corporation under the Business Corporations Act (Ontario). Section 12(2) of the Act requires every sole proprietorship, partnership or corporation that offers or provides professional engineering services to the public to hold one.

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The Certificate of Authorization

The certificate is held by the business, not by you, so your P.Eng. licence does not authorize the company. Professional Engineers Ontario charges $452 to apply and $452 for the first annual fee, both inclusive of taxes, and $452 a year to renew.

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The responsible engineer

Under section 47 of Regulation 941, the company must designate a licence holder with at least five years of professional engineering experience to take responsibility for and supervise the services it provides.

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Insurance or disclosure

Section 74 of Regulation 941 requires the certificate holder to carry professional liability insurance that meets the regulation, or to disclose to clients that it is not insured.

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The name

Where “engineer” or “engineering” in a corporate name suggests the practice of professional engineering, Ontario’s name rules require written consent from Professional Engineers Ontario. A named corporation also needs an Ontario-biased NUANS report dated within 90 days, which we order for $25.00.

Share ownership is not restricted to licence holders. That is the practical difference from medicine, dentistry and law, where every shareholder must be a member of the profession. Section 120.4 of the Income Tax Act still decides whether dividends to family shareholders are taxed at the top rate.

Typical Share Structure for an Engineering Company

Share class Who holds it Voting Dividend entitlement Why it is there
Class A common The professional engineer Yes Discretionary Control, and the seal behind the work
Class B common A second engineer or an operations partner Yes Discretionary A two-owner firm or a later buy-in
Class C non-voting common A spouse or adult family member No Discretionary Dividend flexibility where the tax on split income tests are met
Class D preferred A holding company No Fixed, redeemable Moves surplus up under section 112, away from project risk
Class E preferred The engineer No Fixed, redeemable Consideration on a section 85 rollover from a proprietorship

Section 120.4 of the Income Tax Act is less restrictive here than for doctors and lawyers, because an engineering company is not a professional corporation as defined in subsection 248(1). The excluded shares exception can be available, but it needs the shareholder to be 25 or older, to hold at least 10% of the votes and value, and the corporation to earn less than 90% of its business income from services. A practice selling only hours fails that test.

Where it fails, a reasonable salary for work actually done is the usual route, and a CPA records the work before it is paid.

HST for Engineers

Engineering services are taxable. Nothing an engineer supplies is exempt under Schedule V to the Excise Tax Act, so fees carry 13% HST to Ontario clients once the corporation is registered. The Canada Revenue Agency’s small supplier threshold is $30,000 in taxable supplies in a single calendar quarter or over four consecutive calendar quarters. Our GST/HST registration guide explains when that clock starts.

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Register before the first contract

Most independent engineers cross $30,000 on the first contract. Registering voluntarily before the first assignment lets the corporation recover the tax on software, instruments and a vehicle.

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Work for non-residents

Services exported to a non-resident may be zero-rated, but services relating to real property situated in Canada are not. A CPA checks each contract before the first invoice.

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The quick method

Engineers are not on the Canada Revenue Agency’s excluded list in guide RC4058, which names legal, accounting, actuarial, bookkeeping, financial consulting and tax services. A firm under the $400,000 ceiling should model the election.

Common CRA Issues for Engineering Corporations

1

Personal services business

Triggered by an incorporated engineer working set hours for one client through one agency, with no staff and no business risk. The corporation loses the small business deduction and almost every deduction other than salary. Our personal services business guide sets out the tests.

2

SR&ED claims reversed

Triggered by claiming routine design or code compliance work as experimental development. The CRA tests each claim against the definition in subsection 248(1) of the Income Tax Act.

3

Work in progress left out of income

Triggered by billing on milestones and reporting only what was invoiced. Unbilled work at year end generally belongs in income.

4

Subcontractors reassessed as employees

Triggered by using contract drafters with no written agreement, firm-supplied tools and set hours. CPP and EI are then assessed against the corporation.

5

Shareholder benefits under subsection 15(1)

Triggered by the vehicle, the home office or site travel claimed with no logbook and no charge-back.

6

One business limit shared by associated corporations

Triggered by a rental company or a second consulting company under common control. The $500,000 limit is shared between them.

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
Week 1 to 2 Business number and RC0001 corporate tax account Your CPA No account for the T2 to be filed against
Before offering engineering services to the public Certificate of Authorization The corporation, to Professional Engineers Ontario The corporation may not offer or provide engineering services
Before the first invoice HST registration and RT account Your CPA Unremitted tax on billed fees plus interest
Before the first pay run RP payroll account Your CPA Source deductions cannot be remitted on time
Within 15 days of a change Notice of change for directors, officers or registered office Us or your CPA Non-compliance under the Corporations Information Act
Within 53 weeks of incorporation First fiscal year end chosen Your CPA Difficult to change afterwards
15th of the following month Payroll source deductions The corporation Penalty of 3% to 10%, 20% on a repeat
Last day of February T4 and T5 slips for the prior calendar year Your CPA Penalty per slip
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 Us or your CPA Non-compliance under the Corporations Information Act
Each year Certificate of Authorization renewal, $452 The corporation, to Professional Engineers Ontario The certificate closes if renewal is not paid
Second tax year onward Instalments where tax exceeds $3,000 The corporation Instalment interest at the prescribed rate

Before Anything Is Filed

What a CPA Checks Before You Incorporate

Start Your Intake Form

Eight checks, most of them expensive to fix afterwards.

The Certificate of Authorization comes from the firm, not your licence.
Check 1

Are you really independent

If the plan is one agency, one client and forty hours a week, we test the arrangement against the personal services business rules before the articles are drawn, because the tax result changes completely.

Check 2

Who holds the shares

Engineering is one of the few licensed fields where a non-licensee may hold shares, so we decide whether a spouse or a holding company belongs on the register now or after the first profitable year.

Check 3

The split income test

We measure how much of your income comes from selling hours, because that decides whether the excluded shares exception is open to family shareholders at all.

Check 4

Year end and HST

December is the default and is often wrong for a firm whose contracts run on a client’s calendar. We set the HST registration date, model the quick method against the $400,000 ceiling, and check how much of your work is exported.

Check 5

Pay, associated companies and the conversion

Salary against dividends, with RRSP room and CPP treated as a cost. Whether a rental or second consulting company shares the $500,000 limit. And where a proprietorship is rolled in, a section 85 election so the equipment, work in progress and goodwill move in without tax.

AFFORDABLE Incorporation Pricing for Engineers

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 government incorporation fee, filed online $300.00 Not applicable $300.00 Ontario Business Registry
Initial return and annual return $0.00 Not applicable $0.00 Ontario Business Registry
Ontario NUANS name search report, named company only $25.00 Included $25.00 Ordered through us
Certificate of Status, if a client or bank asks $26.00 Not applicable $26.00 Ontario Business Registry
Certificate of Authorization, application $452.00 Included $452.00 Professional Engineers Ontario
Certificate of Authorization, first annual fee and each renewal $452.00 Included $452.00 Professional Engineers Ontario

The Professional Engineers Ontario amounts are those published on its Certificate of Authorization page. We confirm the current fee before you apply. Minute book, bookkeeping, payroll, HST returns and the T2 are quoted on request.

See Full Pricing

Our Services for Engineers

Our professional fees include HST. Government fees are separate, itemised and charged at cost with no mark-up.

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NUANS Report for Engineers

The Ontario-biased name search for a named engineering company, with the consent Professional Engineers Ontario requires where the name suggests engineering practice.

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Incorporation Service for Engineers

Articles filed under the Business Corporations Act (Ontario) as an ordinary corporation, with share classes built for a spouse, a partner or a holding company.

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Address Service for Engineers

A registered office address in downtown Toronto for the public register and corporate mail, separate from your home address.

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Payroll Service for Engineers

Payroll for your own salary, drafters and staff, with source deductions remitted on time and T4 slips filed.

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One Window Service for Engineers

The articles, the business number, the payroll account, the HST account and the Initial Return set up in one engagement.

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Corporate Annual Filing for Engineers

The Ontario Annual Return filed in the Ontario Business Registry within six months of year end, with director and address changes kept current.

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Corporate Tax Filing for Engineers

The T2 with GIFI statements, prepared from books that track revenue, work in progress and subcontractor costs by project.

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Federal Incorporation for Engineers

A federal corporation suits an engineering firm working across provinces. Provincial registration and the Certificate of Authorization are still needed in Ontario.

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Holding Company Setup for Engineers

A holding company that takes surplus out of the operating company, away from project risk, as an intercorporate dividend.

The Bundle for Engineers

After the corporation exists, the work moves to the parent firm. Gondaliya CPA sets up the books for a project-based practice, so revenue, work in progress and subcontractor costs sit against the job they belong to. The firm runs payroll, files the HST returns, prepares the T2 and the slips, and keeps the records current for the Ontario Annual Return. Salary against dividends is reset each year, and the personal services business exposure of a single-client contract is reviewed.

Why Engineers Use Us

Gondaliya CPA engineering incorporation team

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

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Fully Licensed CPA Ontario
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Free CPA Consultation for Engineers

Case Studies: Engineering Companies

Three Ontario engineering files, each showing where the owner started and what changed before anything went to the registry or Professional Engineers Ontario.

Toronto Contract Engineer – One Agency, One Client

The problem: A structural engineer was offered a twelve-month contract through an agency, on the condition that the work be billed through a corporation.

What we did: We tested the arrangement against the personal services business rules, structured the contract terms with the engineer, and incorporated a numbered Ontario company with room for a spouse to hold shares later.

The result:

  • Ontario corporation filed at $335.00
  • Personal services business exposure set out in writing
  • HST registered before the first invoice

Mississauga Consulting Firm – Two Engineers Going Independent

The problem: Two mechanical engineers leaving a larger firm wanted equal control but expected different workloads in the first year.

What we did: We set up two classes of voting shares that can receive dividends separately, named one partner as the responsible engineer for the Certificate of Authorization, and pointed them to a lawyer for the shareholder agreement.

The result:

  • Named company filed at $360.00 with consent for the name
  • Certificate of Authorization application prepared
  • Dividends declared class by class

Ottawa Sole Proprietor – Equipment and Goodwill

The problem: A civil engineer had run a proprietorship for six years, with survey instruments, software licences and a steady client list.

What we did: We incorporated the company and prepared the section 85 election, so the equipment, work in progress and goodwill moved in at an elected amount without a taxable gain.

The result:

  • Assets transferred with no gain reported
  • Election filed on time
  • First T2 prepared by the same firm
Start Your Engineering Incorporation

Our Simple Process

How Your Engineering Incorporation Works

Start for $35

Six steps from the intake form to a company Professional Engineers Ontario will authorize and the CRA will recognise.

Nothing is filed until you approve the draft.
Step 1

Send the intake form

Your shareholders, your clients and contracts, and whether you are converting an existing proprietorship.

Step 2

A CPA reviews the file

The personal services business risk, the share classes and how you plan to pay yourself.

Step 3

The name

A numbered company, or a named one checked with a $25.00 NUANS report and the consent Professional Engineers Ontario requires where the name suggests engineering.

Step 4

You approve the draft

You see the articles, the share classes and the registered office before anything is filed.

Step 5

Filed online

The articles go through the Ontario Business Registry at $300.00, and you receive the certificate of incorporation.

Step 6

Certificate of Authorization

The company applies to Professional Engineers Ontario, naming the responsible engineer, before it offers engineering services to the public.

Meet the Lead CPAs Behind Your Engineering Company

A Chartered Professional Accountant checks the share structure and the personal services business risk before anything is filed.

Sharad Gondaliya CPA

Sharad Gondaliya, CPA

Principal

Bio

647-212-9559

Vandana Goel CPA

Vandana Goel, CPA

Accounting Specialist

Bio

647-250-0242

What Our Clients Say

These Google reviews belong to Gondaliya CPA Professional Corporation and cover every service the firm provides. See all reviews.

Engineering Incorporation FAQs

Do engineers in Ontario use a professional corporation?

No. Engineers in Ontario incorporate an ordinary business corporation under the Business Corporations Act (Ontario) and then obtain a Certificate of Authorization from Professional Engineers Ontario under the Professional Engineers Act. Sections 3.1 to 3.4 of the Business Corporations Act (Ontario) apply only to professions whose own statute provides for a professional corporation.

What is a Certificate of Authorization from Professional Engineers Ontario?

It is the document that permits a business to offer or provide professional engineering services to the public, required by section 12(2) of the Professional Engineers Act. It is held by the corporation, not the individual, so your P.Eng. licence does not authorize the company. The application is $452 and the annual fee $452, both inclusive of taxes.

Can someone who is not an engineer own shares in my corporation?

Yes. An Ontario engineering company is an ordinary business corporation, and no rule limits its shares to licence holders, unlike medicine and dentistry. Section 120.4 of the Income Tax Act still decides whether dividends to family shareholders are taxed at the top rate.

How much does it cost to incorporate an engineering company in Ontario?

The Ontario government fee for articles of incorporation filed online is $300.00, and our fee to prepare and file them is $35.00 with HST included, for $335.00 in total. Professional Engineers Ontario then charges $452 to apply for the Certificate of Authorization and $452 for the annual fee.

Do I charge HST on engineering services?

Yes. Engineering services are taxable, because no exemption in Schedule V to the Excise Tax Act applies to them, so Ontario clients are charged 13% HST once the corporation is registered.

When does an engineering corporation have to register for HST?

Once its taxable supplies exceed $30,000 in a single calendar quarter or over four consecutive calendar quarters. Most independent engineers cross that on the first contract, so registering before the first invoice is usual.

Can an engineering corporation use the quick method for HST?

Yes. Engineers are not on the excluded list in the Canada Revenue Agency’s guide RC4058, which names legal, accounting, actuarial, bookkeeping, financial consulting and tax services. Eligibility is capped at $400,000 in annual worldwide taxable supplies including GST/HST.

When is my engineering corporation’s Ontario annual return due?

Within six months of the fiscal year end, filed directly in the Ontario Business Registry under the Corporations Information Act, with no government fee. It is a separate deadline from the Certificate of Authorization renewal with Professional Engineers Ontario.

Related Industries We Serve

IT Consultants

  • Contract work through agencies
  • Personal services business risk
  • HST on consulting fees

Manufacturing

  • Equipment and capital cost allowance
  • SR&ED claims
  • Inventory and cost of sales

Physicians and Doctors

  • CPSO certificate of authorization
  • Family non-voting shares
  • OHIP payments and TOSI

Immigrants and Newcomers

  • Internationally trained professionals
  • Temporary SIN and business number
  • First-year tax residency

Read our Ontario incorporation service and the professional corporations guide for the wider rules.

Set Up Your Engineering Company Properly

A CPA reviews your share structure, your year end and your personal services business exposure before anything is filed. Our fee is $35, HST included.

Open Corporation for $35 is a department of Gondaliya CPA.