A significant number of physicians choose to operate their practice through a professional corporation under the Ontario Business Corporations Act and the Regulated Health Professions Act. Once incorporated, a Certificate of Authorization from the College of Physicians and Surgeons of Ontario (CPSO) is required for the professional corporation to practice medicine in Ontario. We routinely advise physicians on matters involving the incorporation, creation, and maintenance of a professional corporation, to ensure regulatory compliance with the CPSO, laws, and regulations. The professional’s relationship with his or her professional corporation will be as an employee. We assist in preparing an employment agreement that will provide flexibility in choosing compensation arrangements. However, the physician still has a personal professional responsibility to his or her patients.
Incorporating a medicine professional corporation can bring significant advantages, including being taxed at a lower corporate tax rate compared to a personal tax rate, the payment of dividends to shareholders, and tax deferral strategies. We routinely provide advice to physicians about who may own shares of a medicine professional corporation and what types of shares may be issued to shareholders. We work directly with tax advisors and accountants to ensure that the most appropriate corporate structure is established in order to achieve long term goals.
The renewal process for medicine professional corporations
In order to comply with the Ministry of Health, the CPSO requires that the Certificate of Authorization held by each medicine professional corporation be renewed annually. The renewal process must be completed prior to the date of issue of the certificate. The process to renew the Certificate of Authorization requires the physician to complete the annual renewal application from the CPSO website and provide the required documentation requested by the CPSO including a Corporation Profile Report. The application contains questions that the physician must answer with respect to their corporation in order for the CPSO to determine whether the corporation continues to be eligible for a Certificate of Authorization. If the CPSO determines that the corporation is no longer eligible for a Certificate of Authorization based on the information provided in the physician’s renewal application, the CPSO will not renew the Certificate of Authorization.
We routinely assist our busy physician clients with this process. We maintain a tickler system and annually reach out to our clients so they may authorize us to assist, should they wish.
If you would like more information on our services or how we can help, please feel free to contact us.
Incorporation to Retirement
A multi-disciplinary suite of services tailored to assist physicians
Estate Planning for Professionals
As you progress in your career, your estate plan may become more complex. Dual Wills may be used to protect certain eligible assets from estate and administration tax.
