Doctor Incorporation · Ontario · From $35
Incorporation for Doctors in Ontario
We set up Medical Professional Corporations for Ontario physicians. CPSO compliance, OHIP billing through your corporation, salary vs. dividend optimization, the Small Business Deduction, creditor protection and physician-specific tax planning. Flat fee. No hourly billing. Done by a licensed CPA.
What Is Included in Our Doctor Incorporation Service
Everything you need to incorporate as a physician in Ontario. No hourly billing. No hidden fees.
| Included | What We Do |
|---|---|
| Medical Professional Corporation (MPC) setup | We incorporate your MPC under the Ontario Business Corporations Act with the share structure, restrictions and corporate name requirements specific to physician professional corporations. |
| CPSO Certificate of Authorization application | We prepare the application and supporting documents for the College of Physicians and Surgeons of Ontario (CPSO) Certificate of Authorization, which permits your corporation to practise medicine. |
| Articles of Incorporation with physician-specific restrictions | We draft Articles with the mandatory share ownership restrictions (only the physician can hold voting shares), activity restrictions (practice of medicine only) and corporate name format required by CPSO. |
| Corporate minute book | Complete minute book with bylaws, organizational resolutions, share certificates, director and officer appointments and registers of shareholders and directors. |
| Share structure design | We configure the optimal share structure: voting common shares (physician only), non-voting shares (spouse, family trust, holdco) for income splitting and estate planning. Multiple classes available. |
| CRA Business Number and program accounts | We register your BN and all required accounts: Corporate Tax (RC), Payroll (RP) and GST/HST (RT) if applicable. |
| OHIP billing number transfer guidance | We guide you through the process of billing OHIP through your professional corporation, including the MOHLTC notification and billing group/solo setup. |
| Salary vs. dividend optimization | We model the optimal mix of salary and dividends to minimize combined corporate and personal tax while maintaining CPP contributions, RRSP room and childcare benefit eligibility. |
| Fiscal year-end selection | We select the fiscal year-end that maximizes tax deferral based on your personal tax situation and income patterns. |
| Annual T2 corporate tax return | Filed FREE for every doctor bookkeeping client. No additional charge. |
Explore our full Incorporation Services or see our dedicated Accounting and Tax Services for Doctors.
How Doctor Incorporation Works
Four steps. We handle the paperwork. You focus on your patients.
1
Incorporate
We incorporate your Medical Professional Corporation with CPSO-compliant Articles, share structure and corporate name. Federal or Ontario.
2
CPSO Authorization
We prepare your CPSO Certificate of Authorization application. The certificate permits your corporation to practise medicine in Ontario.
3
CRA Registration
We register your Business Number, Corporate Tax, Payroll and HST accounts with CRA. OHIP billing transfer guidance included.
4
Tax Strategy
We configure salary vs. dividend, set the fiscal year-end, design the share structure for income splitting and project your first-year tax savings.
Medical Professional Corporation from $35
All-inclusive. CPSO-compliant Articles, minute book, CRA registration and salary vs. dividend analysis.
Why Doctors in Ontario Incorporate
| Benefit | How It Works for Doctors | Dollar Impact |
|---|---|---|
| Small Business Deduction (12.2% tax rate) | Your MPC pays 12.2% combined federal and Ontario tax on the first $500,000 of active business income vs. personal rates of 29% to 53.53%. | $400,000 net income, $200,000 retained in MPC: $61,330 annual tax deferral |
| Income splitting with family members | Issue non-voting shares to your spouse or a family trust. Pay dividends to family members in lower tax brackets. TOSI (Tax on Split Income) rules apply: your spouse must be over 18 and the shares must qualify under the excluded amount rules. | $50,000 in dividends to a spouse in a lower bracket: up to $12,000 in combined family tax savings per year |
| Creditor protection | Assets retained in the corporation (investments, retained earnings) are separate from your personal assets. Malpractice claims are covered by CMPA, but non-medical creditors (personal debts, guarantees) cannot access corporate assets. | $500,000 retained in the MPC is protected from personal creditors |
| LCGE (Lifetime Capital Gains Exemption) | On the future sale of qualifying MPC shares, each shareholder can claim up to $1,016,836 in capital gains tax-free. A physician and spouse can shelter up to $2,033,672. | $2,033,672 in tax-free capital gains on the sale of your medical practice |
| Retirement and estate planning | Retain earnings in the MPC at 12.2% and invest inside the corporation. Withdraw gradually over retirement years when personal income (and tax rate) is lower. Estate freeze to lock in current share value for the next generation. | $100,000/year retained over 20 years at 12.2% vs. 53.53% = $825,000+ in additional retained capital |
| RRSP room preservation | Pay yourself a salary (not just dividends) to create RRSP contribution room. 18% of employment income up to the annual maximum ($32,490 for 2026). RRSP room is lost if only dividends are paid. | $180,500 salary generates $32,490 in new RRSP room per year |
Real Physician Example: A family physician earning $350,000 in OHIP billings with $80,000 in practice expenses (net $270,000) incorporates as an MPC. They pay themselves a salary of $170,000 (generating RRSP room and CPP) and retain $100,000 in the corporation. Tax on the retained $100,000 at 12.2% is $12,200 vs. $46,370 at the top personal rate. Annual deferral: $34,170. Over 10 years, that is $341,700 working inside the MPC for investment, retirement or practice expansion. Incorporation cost: $35.
CPSO Requirements for Medical Professional Corporations
| Requirement | Details |
|---|---|
| Certificate of Authorization | Every MPC must hold a valid Certificate of Authorization issued by the CPSO before it can practise medicine in Ontario. The application is submitted to CPSO after incorporation. |
| Corporate name format | The corporate name must include the physician's surname and the words "Medicine Professional Corporation" or an approved abbreviation. Example: "Dr. Smith Medicine Professional Corporation" or "Smith Medicine Prof. Corp." |
| Voting share ownership | All voting shares must be held by the physician who holds the Certificate of Authorization. No other person, corporation or trust can hold voting shares. |
| Non-voting share holders | Non-voting shares can be held by the physician's spouse, children (over 18), parents, a family trust or a holding company owned by the physician and/or family members. No non-family shareholders. |
| Activity restrictions | The MPC can only carry on the practice of medicine and activities related to or ancillary to the practice. It cannot carry on an unrelated business (e.g., real estate investment, retail). A separate holding company is used for non-medical investments. |
| Annual CPSO renewal | The Certificate of Authorization must be renewed annually with the CPSO. The physician must confirm that all conditions (share ownership, activity restrictions, good standing) continue to be met. |
| Professional liability | Incorporation does NOT protect the physician from personal liability for medical malpractice or professional misconduct. CMPA coverage continues to apply personally. The corporation protects against non-medical liability (commercial debts, lease defaults). |
Incorporation Does Not Protect Against Malpractice: A Medical Professional Corporation protects your personal assets from business creditors (suppliers, landlords, lenders). It does NOT protect you from personal liability for medical malpractice, negligence or professional misconduct. CMPA coverage applies to the physician personally, not to the corporation. The corporation's protection is from commercial and non-medical liabilities only.
HST Rules for Incorporated Doctors
| Revenue Type | HST Status | Key Rule |
|---|---|---|
| OHIP-insured medical services | Exempt | Medically necessary services billed through OHIP are exempt from GST/HST. No HST charged. No ITCs on related expenses. |
| Non-insured medical services (cosmetic procedures, independent medical exams, third-party reports) | Taxable at 13% | Services not covered by OHIP are taxable. The MPC must register for HST if taxable revenue exceeds $30,000 and charge 13% on these services. |
| Consultations billed to insurance companies or employers | Taxable at 13% | Third-party reports, disability assessments, pre-employment medicals and insurer-requested examinations are taxable supplies. |
| Walk-in clinic or group practice admin fees | Depends on structure | Admin fees charged to physicians by a clinic may be taxable or exempt depending on whether the clinic is a cost-sharing arrangement or a service provider. Structure matters. |
| Equipment and office expenses (for the MPC) | Full ITCs if registered for HST | If your MPC is HST-registered (because taxable revenue exceeds $30K), you claim ITCs on office equipment, supplies, professional fees and non-medical expenses. No ITCs on expenses related to exempt OHIP revenue. |
Most Family Physicians Do Not Need to Register for HST: If your MPC earns revenue only from OHIP-insured services, your taxable revenue is $0 and HST registration is not required. You do not charge HST and cannot claim ITCs. However, specialists and physicians with significant non-insured revenue (cosmetic, medico-legal, third-party reports) often exceed the $30,000 threshold and must register. We assess HST registration status for every physician client at incorporation.
Salary vs. Dividend for Incorporated Doctors
| Factor | Salary | Dividend |
|---|---|---|
| Tax treatment | Deductible to the corporation. Taxable as employment income to the physician. CPP contributions required (employee and employer share). | Paid from after-tax corporate income. Eligible dividend tax credit reduces personal tax. No CPP contribution generated. |
| RRSP room | Generates RRSP room (18% of employment income, max $32,490 for 2026). Essential for long-term retirement savings. | Does NOT generate RRSP room. A dividend-only strategy forfeits RRSP contribution room permanently. |
| CPP contributions | Yes. Employee and employer contributions required. Maximum combined: $8,068.20 for 2026. Builds CPP retirement pension. | No CPP. Saves $8,068.20 per year in combined contributions but forfeits CPP retirement benefits. |
| Childcare benefits (CCB) | Counts as net income. Higher salary reduces CCB eligibility. | Grossed-up dividend amount counts as net income. Impact on CCB depends on the gross-up. |
| EI | Shareholder-employees controlling more than 40% of voting shares are generally not eligible for EI. Contributions may still be required depending on structure. | No EI on dividends. |
| Optimal strategy for most physicians | A combination of salary (to generate RRSP room and CPP) and dividends (for remaining personal cash needs) produces the lowest combined tax. The optimal split depends on your net income, family situation and retirement goals. We model this for every physician client annually. | |
We Model the Optimal Salary vs. Dividend Split for Every Physician
The right mix saves $5,000 to $15,000 per year in combined family tax. We recalculate annually as your income and situation change.
The 10 Incorporation Errors We Prevent for Doctor Clients
| # | Error | What It Costs | How We Prevent It |
|---|---|---|---|
| 1 | Wrong share structure (single class common only) | Cannot income split with spouse or family trust. Cannot implement estate freeze. Restructuring later costs $2,000 to $5,000. | Multi-class share structure designed at incorporation: voting common, non-voting preferred, family trust eligible. |
| 2 | Non-voting shares held by ineligible persons | CPSO can revoke the Certificate of Authorization. Corporation cannot practise medicine. | Share register verified against CPSO eligible holder list: physician, spouse, children 18+, parents, family trust, holdco. |
| 3 | Corporate name does not meet CPSO format | CPSO rejects the Certificate of Authorization application. Incorporation must be amended ($200 fee + professional time). | Name formatted per CPSO guidelines before filing. "Dr. [Surname] Medicine Professional Corporation" or approved variant. |
| 4 | Not selecting the optimal fiscal year-end | December 31 year-end limits tax deferral to 3 months. A strategic year-end can defer 11+ months of salary tax. | Fiscal year-end selected based on personal tax situation and income patterns. |
| 5 | Paying only dividends (no salary) | Zero RRSP room generated. Forfeits $32,490/year in RRSP contribution room permanently. No CPP pension accumulation. | Salary/dividend mix modelled annually. Salary set to generate maximum RRSP room and CPP benefits. |
| 6 | Not transferring OHIP billing to the MPC | OHIP payments go to the physician personally, not the MPC. No corporate tax deferral. The entire purpose of incorporating is lost. | OHIP billing transfer process initiated at incorporation. MOHLTC notified. |
| 7 | Running non-medical investments inside the MPC | Passive investment income above $50,000 claws back the SBD. CPSO restricts MPC to medical practice only. | Holdco setup recommended for investment assets. MPC limited to medical practice revenue and working capital. |
| 8 | Not filing the annual CPSO renewal | Certificate of Authorization lapses. Corporation cannot legally practise medicine. Revenue earned during lapse may be uninsurable. | CPSO renewal deadline tracked and completed annually for every physician client. |
| 9 | Not registering for HST when non-insured revenue exceeds $30,000 | Retroactive HST liability on all non-insured revenue from the date the threshold was exceeded, plus penalties and interest. | Non-insured revenue monitored quarterly. HST registration triggered before the $30,000 threshold is crossed. |
| 10 | No bookkeeping system from day one | $3,000+ year-end cleanup, incorrect T2, missed deductions and late filing penalties. | QBO or Xero configured for physician practice at incorporation. Chart of accounts set for OHIP vs. non-insured revenue, practice expenses and salary/dividend tracking. |
Transparent Flat-Fee Pricing for Doctor Incorporation
No hourly billing. No hidden fees. Every component included.
| Service | Fee | Includes |
|---|---|---|
| Medical Professional Corporation incorporation (federal) | $35 | Government fee, NUANS, CPSO-compliant Articles, minute book, bylaws, share certificates, organizational resolutions, CRA registration (BN, RC, RP, RT) |
| Medical Professional Corporation incorporation (Ontario provincial) | $335 | Same as federal with Ontario-specific filing |
| CPSO Certificate of Authorization application preparation | FREE | Application forms, supporting documentation and submission guidance included with every physician incorporation |
| Salary vs. dividend optimization (first year) | FREE | Modelled at incorporation and recalculated annually for bookkeeping clients |
| Monthly bookkeeping for physician practice | From $150/month | Bank reconciliation, OHIP vs. non-insured revenue tracking, expense categorization, payroll processing, HST filing (if applicable) |
| Annual T2 corporate tax return | FREE | Included for every doctor bookkeeping client at no additional charge |
| Holdco setup (for investment assets) | $35 | Separate holding company for non-medical investments, inter-company dividends, creditor separation |
Know Your Exact Fee Before We Start
Flat fee, fixed in advance. 30-Day Money-Back Guarantee. 60-Day Fees-Matching Policy.
Doctor Incorporation: Cities We Serve
We incorporate physicians across every Ontario city and Canada. No distance limits, no extra fees.
Frequently Asked Questions: Doctor Incorporation
How much does it cost to incorporate as a doctor in Ontario?
$35 for federal incorporation through Gondaliya CPA. All-inclusive: government fee, NUANS, CPSO-compliant Articles, minute book, share certificates, CRA registration and CPSO Certificate of Authorization application preparation. No hidden fees. 60-Day Fees-Matching Policy applies. Incorporate for $35 →
What is a Medical Professional Corporation?
An MPC is a corporation authorized by the CPSO to practise medicine in Ontario. Only the physician can hold voting shares. Non-voting shares can be held by the physician's spouse, children (18+), parents, a family trust or a holding company. The MPC bills OHIP and pays the physician a salary and/or dividends.
Do I need a Certificate of Authorization from the CPSO?
Yes. Every MPC must hold a valid CPSO Certificate of Authorization before it can practise medicine. The application is submitted after incorporation. We prepare the application and supporting documents as part of our incorporation service. The certificate must be renewed annually.
How much tax does a doctor save by incorporating?
A physician earning $350,000 net who retains $100,000 in the MPC saves approximately $34,170 per year in tax deferral (12.2% corporate rate vs. 53.53% top personal rate). Over 10 years, that is $341,700 working inside the corporation. The $35 incorporation cost is recovered in the first day of operation. Get CPA Advice →
Should I pay myself salary or dividends?
A combination is optimal for most physicians. Salary generates RRSP room (up to $32,490/year) and CPP pension benefits. Dividends benefit from the eligible dividend tax credit and avoid CPP contributions. We model the optimal mix annually based on your income, family situation and retirement goals.
Can my spouse hold shares in my MPC?
Non-voting shares only. Your spouse can hold non-voting shares and receive dividends. TOSI (Tax on Split Income) rules may apply. We structure share classes and dividend payments to comply with TOSI excluded amount provisions where eligible. Voting shares must be held by the physician only.
Do I need to register for HST as a doctor?
Only if non-insured taxable revenue (cosmetic procedures, medico-legal reports, third-party assessments) exceeds $30,000 per year. OHIP-insured services are exempt. Most family physicians do not need HST registration. Specialists with significant non-insured revenue often do. We assess this at incorporation. GST/HST Filing Services →
Does incorporation protect me from malpractice claims?
No. Incorporation protects your personal assets from commercial and non-medical liabilities (lease defaults, supplier debts, employment claims). Medical malpractice and professional misconduct are personal liabilities covered by CMPA. The corporation does not shield you from professional negligence claims.
Should I set up a holding company as well?
If you plan to accumulate investment assets (over $50,000 in passive income), yes. The MPC is restricted to medical practice. Investment income inside the MPC can claw back the SBD. A holdco receives surplus cash from the MPC as tax-free inter-corporate dividends and invests it separately. Holdco incorporation is $35. Set Up a Holdco →
How long does doctor incorporation take?
The incorporation itself is completed in 1 to 3 business days. The CPSO Certificate of Authorization takes 4 to 8 weeks for processing after submission. We recommend starting 2 to 3 months before your desired go-live date for billing through the MPC.
Incorporate Your Medical Practice for $35. All-Inclusive.
Gondaliya CPA incorporates Medical Professional Corporations for Ontario physicians. CPSO-compliant Articles, minute book, CRA registration, salary vs. dividend strategy. From $35. 900+ five-star reviews.
Licensed CPA Ontario
900+ Five-Star Reviews
30-Day Money-Back Guarantee
Doctor Incorporation from $35