Ontario Personal Real Estate Corporation
Class B Non-Voting Shares for Second Shareholder
Class B Non-Voting Shares for 5th shareholder
- Note: If you want to add more additional shareholders, you may need to place a customized order. For now, you can place an order with these shareholders, and afterward, give us a call to convert it into a customized order.
Class B Non-Voting Shares for Director
Though in most PREC cases, class B non-voting shares are not issued, yet as per PREC rules, the corporation has choice to issue class B non-equity (non-voting) shares. The controlling shareholder and/or family member (minimum age 18) can hold non-equity class B (non-voting) share.
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Corporation's Registered Address
- To register a corporation in your designated province in Canada, a local provincial physical address is required, where the government will send documents. It must be in the specific province that you are registering with. If you do not have a physical address, our agency provides an address and mail scanning service.
Skipped As No Minute Book Selected
Why Minute Book Matters?
A Minute book is a corporate legal document prepared by our legal and accounting team. As per the corporation act, a Minute book is MANDATORY. The minute book consists of by-laws, share structure & other legal sections. It's REQUIRED to open a bank account. Without it, a corporation is not complete. A Minute book must be presented when a corporation is audited. The next page will skip if you do not choose Minute Book. We left here as optional because many law firms incorporate with us who prepare their own Minute Book.
Class A Voting Share
Only Director can be Shareholder
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What is Ontario Ontario Personal Real Estate Corporation (PREC):
Ontario Personal Real Estate Corporation (PREC) is a corporation that allows real estate agents and brokers to incorporate a Corporation.
As of October 1st, 2020, Ontario Business Corporation Act allows real estate agents in Ontario to form Personal Real Estate Corporations.
To register for an Ontario Personal Real Estate Corporation (PREC) in Ontario, you must inform to Real Estate Council of Ontario (RECO). You also must approve your Personal Real Estate Corporation (PREC)’s name and address from RECO.
To be eligible for forming a PREC, the controlling registrant must be an existing member of the Real Estate Council of Ontario (RECO).
Requirements of Ontario Personal Real Estate Corporations (PREC):
- PREC is incorporated or continued (if incorporated outside Ontario) under the Business Corporations Act.
- Controlling shareholder Own all equity and voting shares directly or indirectly.
- Controlling shareholder sole director of the corporation
- Controlling shareholder is being the sole officer of the corporation
Naming Requirements for Ontario Personal Real Estate Corporations (PREC):
Real Estate Services Regulation requires that the legal name of a personal real estate corporation must be follow the following rules:
-The legal name, or the licensee name of the controlling individual; and
-The legal suffix “personal real estate corporation”.
For example: Joseph Deen Personal Real Estate Corporation (legal name + the legal suffix “personal real estate corporation”
Steps to Incorporate Ontario Personal Real Estate Corporation (PREC) :
- Take permission from brokerage to incorporate a PREC.
- Formulate an agreement between yourself (the registrant) and the Brokerage.
- File articles of incorporation and register PREC
- Inform details of PREC to RECO. You can email to PREC@reco.on.ca
- You also need to submit banking and HST account to the brokerage
How long does it take to receive an Ontario PREC document?
Business Ontario Corporate Services offers one of the fastest and easiest ways to incorporate Ontario Personal Real Estate Corporation for real estate professionals. You can receive your Ontario Personal Real Estate Corporation documents in less than 1 Hour with our superfast Service with additional cost. That is enough to open a Business bank account.
Here are some key details about Ontario Personal Real Estate Corporations:
Purpose: The primary purpose of an Ontario Personal Real Estate Corporation is to provide real estate brokerage services. It allows real estate professionals to establish a separate legal entity for conducting their real estate business.
Limited Liability: One of the main benefits of operating as an Ontario Personal Real Estate Corporation is the limited liability protection it provides. This means that the corporation‘s shareholders are generally not personally liable for the corporation’s debts or liabilities arising from real estate transactions.
Licensing Requirements: To operate as an Ontario Personal Real Estate Corporation in Ontario, the corporation and its shareholders must meet certain licensing requirements set by the Real Estate Council of Ontario (RECO). These requirements may include holding the appropriate real estate licenses, fulfilling educational criteria, and complying with RECO regulations.
Shareholder Eligibility: Only licensed real estate professionals can be shareholders of an Ontario Personal Real Estate Corporation. Each shareholder must maintain their individual license and remain in good standing with the licensing authority.
Income Tax Considerations: Ontario Personal Real Estate Corporation may have income tax implications. It is important to consult with an accountant or tax professional to understand the tax advantages and compliance requirements associated with this type of corporation.
Regulatory Compliance: Ontario Personal Real Estate Corporations are subject to the regulations and rules of the real estate industry, including those imposed by the Real Estate Council of Ontario (RECO). Compliance with professional and ethical standards, as well as reporting obligations, is essential for maintaining a valid license and conducting business lawfully.
Advantages and Considerations: Operating as a Personal Real Estate Corporation can offer benefits such as potential tax advantages, increased credibility, and the ability to build and protect personal assets. However, there may be additional administrative and compliance requirements compared to operating as an individual real estate professional.
What Activity and Type should I Write?
In this section, you should write your Ontario Personal Real Estate Corporation’s main activity. And types means your Ontario Corporation will offer only services or products or both.
Do you need Bylaws and a Minute Book?
A minute book is a detailed record & document of an incorporated company’s structure and activities. According to the Corporation Act Minute book is MANDATORY. If a Minute book is not selected, Officer, Share Price, and Shareholder cannot be added. If you want Business Ontario can prepare your Ontario Personal Real Estate Corporation’s Bylaws & minutes book at a time under one order. You do not need to go somewhere else for this document.
What is Ontario Company Key?
Ontario Company Key is a unique identifier used by corporations in Ontario. It functions similarly to a password. It is required when a corporation wishes to file online future transactions. Every Ontario Personal Real Estate Corporation must have an Ontario Company key for any kind of future update and to stay up-to-date.
Mandatory filing of CRA and WSIB Accounts:
Ontario Corporation Number: Ontario Corporation Number is a unique identifier assigned to each Ontario Personal Real Estate Corporation registered in the province of Ontario.
Ontario Business Number: A nine-digit number assigned by the Canada Revenue Agency (CRA) to businesses operating in Canada.
Corporate Tax ID (RC0001): Corporate Tax ID is a unique identifier assigned to corporations for tax purposes. It is a 9-digit unique number assigned by CRA.
GST/HST Account: GST (Goods and Services Tax) and HST (Harmonized Sales Tax) are taxes that businesses must collect from customers and remit to the government.
Payroll Account: If you have employee including you then you must need to Register this account. This account is used to manage the deduction and remittance of payroll taxes
Import Account: if you import goods into Canada you must register as an RM account number with the CRA.
Export Account: if you export goods outside Canada you must register as an RM account number with the CRA.
WSIB Account: A WSIB (Workplace Safety and Insurance Board) account is mandatory for most businesses in Ontario that employ workers. This is basically managing the insurance coverage provided to employees in case of workplace injuries or diseases.
What is Initial Return in Ontario?
𝐈𝐧𝐢𝐭𝐢𝐚𝐥 𝐑𝐞𝐭𝐮𝐫𝐧 must be filed within 60 days of the corporation’s incorporation or continuation. Failure to file an initial Return within the specified timeframe may result in penalties (Corporation Dissolution) or other consequences. So, every Ontario Personal Real Estate Corporation also must file it within the 60-day frame.
The initial return provides basic information about the corporation, such as its name, address, directors, and shareholders. An initial Return is not the same as a Tax Return. Both are completely different things.
Who is incorporator?
An incorporator is the responsible person for organizing and incorporating a corporate entity. An incorporator may be a director or not. Once the filing is complete the incorporator’s function is usually finished.
If you are doing corporation on behalf of a client, you may mention here the name. This is for government’s records. We only contact the billing person that is mentioned in our website form. We don’t contact your clients. You can write your details in the billing.