Medicine Professional Corporation in Ontario
What Ontario physicians need to know before incorporating their medical practice through a medicine professional corporation.
A medicine professional corporation lets an Ontario physician practise through a corporation once the College of Physicians and Surgeons of Ontario (CPSO) issues a certificate of authorization. Voting shares must be held by physicians; certain family members may hold non-voting shares. It offers tax planning benefits but not protection from your own malpractice liability.
Regulated by: College of Physicians and Surgeons of Ontario (CPSO)
Certificate of authorization is required
You cannot practise medicine through your corporation until the CPSO issues a certificate of authorization. After incorporating under Ontario's Business Corporations Act, you apply to the CPSO with your articles of incorporation, corporate profile and shareholder details, and pay the CPSO fee. The certificate must be kept current and renewed with the College.
Who can own shares
All voting shares must be legally and beneficially owned by members of the CPSO. Non-voting shares may be held by the physician, by family members of a voting shareholder (spouse, children and parents, including step-relations and common-law spouses), or in trust for the physician's minor children. The CPSO does not accept parents-in-law as family-member shareholders.
Naming the corporation
The corporate name must include the physician's surname as recorded with the CPSO, indicate the profession, and end with the words "Professional Corporation" — for example, "Jane Smith Medicine Professional Corporation." A numbered name is not permitted for a professional corporation.
What it does not protect
Incorporating does not shield you from personal liability for your own professional negligence. If a patient is harmed by your care, you remain personally accountable and your professional liability protection (for example, CMPA membership) still applies. The corporation changes taxation, not your clinical responsibility.
Tax and income planning
Income left in the corporation is generally taxed at the lower small business rate rather than your top personal rate, allowing tax deferral and smoother income across years. Whether incorporating pays off depends on your billings and how much you can retain in the company. An accountant should model your specific numbers before you decide.
Setup costs and steps
Expect to reserve a NUANS-cleared name, incorporate under Ontario's Business Corporations Act (government filing fee around $300), issue shares, then obtain the CPSO certificate of authorization before you bill through the corporation. Markham Office can prepare the incorporation and the CPSO application for you.
Frequently asked questions
- Do I need CPSO approval before practising through my corporation?
- Yes. You must hold a valid CPSO certificate of authorization before you provide or bill for medical services through the corporation.
- Can my spouse or children own shares?
- Family members such as a spouse, children and parents may hold non-voting shares. Voting shares must stay with physician members of the CPSO.
- Does incorporating protect me from malpractice claims?
- No. You remain personally liable for your own professional negligence, so appropriate liability protection is still essential.
- Is incorporating worth it for every physician?
- Not necessarily. The benefit depends on your income and how much you can leave in the corporation. It is worth running the numbers with an accountant first.
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