A significant number of pharmacists choose to operate their practice through a professional corporation (“PPC”) under the Ontario Business Corporations Act and the Regulated Health Professions Act. Once incorporated, a Certificate of Authorization from the Ontario College of Pharmacists (OCP) is required for the professional corporation to practice pharmacy in Ontario. We routinely advise pharmacists on matters involving the incorporation, creation and maintenance of a professional corporation, to ensure regulatory compliance with the OCP, laws and regulations. The professional’s relationship with his or her professional corporation will be as an employee. We assist in preparing an employment agreement that will provide flexibility on choosing compensation arrangements. However, the pharmacist still has personal professional responsibility to his or her clients.
Incorporating a PPC can bring significant advantages, including being taxed at a lower corporate tax rate compared to a personal tax rate, the payment of dividends to shareholders, and tax deferral strategies. We routinely provide advice to pharmacists about what types of shares may be issued to shareholders. Only individuals who are members of the OCP may hold shares in a PPC. We work directly with tax advisors and accountants to ensure that the most appropriate corporate structure is established in order to achieve long term goals.
Renewal Process for Pharmacy Professional Corporations
The OCP requires that the Certificate of Authorization held by each PPC be renewed annually. The process to renew the Certificate of Authorization must be completed on or before March 10. In January of each year, the OCP will notify the directors of PPCs of the requirement to renew the Certificate of Authorization. The process to renew the Certificate of Authorization requires the PPC to complete the annual renewal form as well as provide the required documentation requested by the OCP including a Corporation Profile Report. Once the application is submitted to the OCP, the OCP will renew the application and determine whether the PPC continues to be eligible for a Certificate of Authorization. If the OCP determines that the corporation is no longer eligible for a Certificate of Authorization based on the information provided in the renewal application, the Certificate of Authorization will not be renewed.
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Incorporation to Retirement
A multi-disciplinary suite of services tailored to assist pharmacists
Purchase and Sale of a Practice
A pharmacy practice is one of the most valuable assets a pharmacist may own and the decision to sell or purchase a practice is significant. There are many considerations that should be made with respect to the sale or purchase of a practice and we work closely with clients and their advisors to identify the most appropriate strategies to achieve the goals of our client.
Estate Planning for Professionals
As you progress in your career, your estate plan may become more complex. Dual Wills may be used to protect certain eligible assets from estate and administration tax.
Retirement and Succession Planning
The development of an effective succession plan for your medical practice is a key part of ensuring a smooth transition into retirement.