Can an Ontario physician incorporate as an MPC?
Yes. Under Business Corporations Act (Ontario) s. 3.2 and Ontario Medical Association Regulation 39/02, an Ontario physician licensed by the College of Physicians and Surgeons of Ontario (CPSO) can incorporate a Medical Professional Corporation after obtaining a Certificate of Authorization from CPSO. Voting shares must be held by the physician; non-voting shares can be held by a spouse, child, or trust for a minor child.
Steps to incorporate. (1) Incorporate the numbered corporation with the Ontario corporate registry using the required share structure (voting common held by the physician, non-voting family shares defined in articles). (2) File a name-reservation via NUANS if using a named MPC (name must include ‘Medicine Professional Corporation’). (3) Apply for CPSO Certificate of Authorization with the required declarations. (4) Once CPSO issues the Certificate, obtain a corporate GST/HST number if applicable, open a corporate bank account, transition billing to the MPC.
Tax benefits. Deferred tax on income retained inside the MPC: about $220,000 to $270,000 in annual tax deferral per $500,000 of net billing (Ontario combined rates 12.2% SBD vs top personal at 53.53%). Income splitting via non-voting family shares (TOSI-limited since 2018 but still possible for spouse dividends where the spouse is a genuine bona fide employee, and for non-active adult children in narrow cases).
Setup cost. Legal setup by counsel who does PCs regularly: typically $2,000 to $3,500 all-in including CPSO Certificate. Annual CPSO renewal fee applies. Retain a CPA who understands the PC-vs-individual tax integration.
Note: OHIP direct billing to the MPC is straightforward for most specialties; some FHT and academic-payment arrangements require additional documentation. Confirm your MOHLTC billing arrangement supports the MPC before flipping.
Source: cpso.on.ca â Medical Professional Corporations
— Bader A. Chowdry, CPA, CA, LPA — Insight Accounting CPA
Disclaimer: Bader A. Chowdry, CPA, CA, LPA is a Licensed Public Accountant regulated by CPA Ontario. Insight Accounting CPA Professional Corporation is a Chartered Professional Accountant firm. This content is general information only and does not constitute professional advice for your specific facts. Confirm current rules and figures with your own advisor before acting.