Corporate & commercial · Professional incorporation

Professional corporations, set up to satisfy both the College and the CRA.

Professional corporations are regular BC corporations layered with regulator-specific rules. The legal work is the same incorporation work plus the regulator approval — and the post-incorporation discipline of staying compliant with both regimes.

What we cover

Five professional corporation frameworks.

Each regulator's rules are slightly different — different naming conventions, different share-ownership restrictions, different application processes — but the structure of the work is the same: a BC company set up to satisfy both the regulator and the CRA, with ongoing minute-book and annual-filing discipline.

What makes a PC different

Three rules that make the structure unusual.

Voting shares are restricted to the licensed professional.

Only the regulated professional (the physician, the dentist, etc.) can hold voting shares. This is the structural rule that gives the regulator confidence that the corporation is, at heart, the practitioner. Family-member share ownership is generally limited to non-voting shares, where it is permitted at all.

The corporate name has to follow the regulator's rules.

Most colleges require the corporate name to include the practitioner's surname and a designation (e.g., "Dr. Jane Smith Inc." or a similar formulation). The name can also be required to indicate the profession. Marketing names that do not meet the rules can be used as registered trade names, separate from the legal corporate name.

Ongoing reporting to the regulator.

Most regulators require annual confirmation that the professional corporation continues to meet the rules — share ownership, naming, services provided. Failures to file the annual confirmation can result in the regulator revoking the corporation's approval to practise.

Frequently asked

Common questions on professional corporations.

What is a professional corporation?

A professional corporation is a regular BC corporation that has been approved by the relevant professional regulatory body (the College for medical and dental practitioners, the Law Society for lawyers, CPABC for accountants, etc.) to provide regulated professional services. The corporate structure looks like a normal BC company but adds layers of restriction: who can hold voting shares, what the corporate name must be, what services the corporation can provide, and what ongoing reporting is required to the regulator.

Why do professionals incorporate?

Four primary reasons: tax planning (deferring tax on income that stays in the corporation, where the rules allow), retirement planning (using the corporation as a long-term savings vehicle), limited income-splitting opportunities depending on the regulator and the federal tax rules, and limited liability — the corporation is a separate legal person, which can shield personal assets from business obligations (subject to the limits the regulator imposes on professional liability for the practitioner personally). The math works for most established professionals earning above their personal living costs. The decision should be made with your accountant.

Which professionals can incorporate in BC?

Several regulated professions in BC have approval frameworks for professional corporations: physicians and surgeons (CPSBC), dentists (CDSBC), lawyers (Law Society), chartered professional accountants (CPABC), engineers and geoscientists (EGBC), pharmacists (College of Pharmacists), optometrists, chiropractors, and others. Each regulator has its own rules; the structures vary in detail but share the same core: the corporation needs regulator approval before it can practise.

How long does a professional incorporation take?

Longer than a standard incorporation because of the regulator's approval step. The BC company can be incorporated in 1 to 3 business days; the regulator's approval as a professional corporation typically takes another 2 to 6 weeks. The professional cannot bill through the corporation until the regulator's approval is granted. We coordinate the timing — usually the BC company is filed first and the regulator's application is submitted promptly after.

Can family members hold shares in my professional corporation?

It depends on the regulator. Some regulators allow non-voting shares to be held by family members (sometimes including spouses, children, or family trusts) for income-splitting purposes; others restrict ownership entirely to the licensed professional. The specifics affect both the share structure at incorporation and the tax planning available afterward. We confirm the current rules with your regulator at intake.

Setting up a professional corporation?

Tell us the profession, the regulator, and your timeline. We'll come back with a quote that covers the BC company, the College application, and the minute book set-up.