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Ontario PREC

Home / Incorporation / Professional Corporation / Ontario PREC

Step 1 of 14 - Package

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  • Ontario Personal Real Estate Corporation (PREC) Package at $899

  • Incorporate Ontario is a registered member of Corporations Canada. We have prepared this simple and easy form in a very step by step method to make it easy for you to incorporate a personal real estate corporation online. Since October 1, 2020, we have incorporated many personal real estate corporations in Ontario and hence, we can assure you, your corporation would be set up correctly by us.
  • Help and Support

  • How fast can I get docs?
    We offer regular, express and urgent queue. In an urgent queue, corporation is filed two business hours, in express queue in one business day and regular queue in ten business days.
  • What documents I get?
    You will get corporation's certificate and article in email. If you include the by-laws and minutebook, you will receive these in email as well. These documents are sufficient to open bank account.
  • Who prepares it?
    Our agency is backed by law firm. We prepare the articles of corporation, by laws and other documents. Our team incorporate personal real estate corporations everyday.
  • Is there any hidden costs?
    Absolutely no hidden costs. When you set up a corporation, there are many filings needed to be done. We offer all filing into a single place. Therefore, in next steps, we will offer those services. You have option to choose or not to choose. If you do not choose anything else, your price will remain as you see in the first page.
  • What other services offered?
    Being a OneStop shop, we offer pretty much all corporation related services. We are backed by lawyers and accountants. In Next steps, you will find options to choose NUANS report (for named corporation), CRA business number, corporate tax ID, GST account, payroll account, export-import account, WCB account, minutebook, share certificates, corporate seal, domain name reservation and one year service support.
  • PREC: Articles of Incorporation
    PREC: Certificate of Incorporation
    PREC: Minutebook
  • Corporation Name

  • Accepted file types: jpg, gif, png, pdf, doc, docx, Max. file size: 8 MB.
  • Help and Support

  • How fast can I get docs?
    We offer regular, express and urgent queue. In an urgent queue, corporation is filed two business hours, in express queue in one business day and regular queue in ten business days.
  • How to choose a valid name?
    The legal name of a personal real estate corporation, whose controlling individual is Robert Smith, can be one of the following: Robert Smith Personal Real Estate Corporation (legal name + the term “personal real estate corporation”); Rob Smith Personal Real Estate Corporation (recognizable short form + the term “personal real estate corporation”); Bob Smith Personal Real Estate Corporation (licensee name of the controlling individual as registered with RECBC + the term “personal real estate corporation”).
  • How about legal suffix?
    A personal real estate corporation name must end with the legal suffix "personal real estate corporation". You can include it in the proposed name. If you do not include it, we will include this phrase after the name of corporation.
  • How name approval works?
    We are a member of Corporations Canada. We first pre-search into Corporations Canada system and provincial name database. If the name gets conflict or high chance of being rejected, we will advise you to submit new names.
  • Corporation's Address

  • To register a corporation in this province, a local provincial physical address is required where the government will send documents. If you do not have a physical address in this province, our agency provides address and mail scanning service.
  • Help and Support

  • What is corporation's address?
    It is the location where business is located. It can be a commercial rented place or home address. It can't be a P.O Box, must be a physical address. CRA documents will go to this address.
  • Can I change this address later?
    Yes, these address can be changed later. In many cases when commercial place is not rented yet, residential address is given.
  • Do you provide address service?
    If you do not have a local provincial address, we provide registered address and mail scanning service. Please click, on the form where says, "If you don't have address in this province, click here"
  • Is the address service renewable?
    Yes, you have the choice to renew it on an annual basis. Normally, the price remains same.
  • Director: Single Controlling Director

  • 3.1. Single Controlling Director: the real estate agent and the overall head of the corporation
  • Help and Support

  • Who is the Controlling Director?
    The Controlling Director is the the real estate agent and overall head of the corporation. You cannot add more than one director . Please note that the Controlling Director must be either Canadian citizen or Permanent Resident.
  • How about doing for a client?
    If you are doing corporation for a client, please do not write here your name. This place is the name of the primary owner (the real estate agent) of the corporation. We don't contact this person, rather we contact the person mentioned in billing address. You can write your details in the billing address during checkout.
  • Incorporator

  • Help and Support

  • Who is an incorporator?
    Incorporator is the person(s), under whose authority this corporation is being created. Typically, the Controlling Director is the incorporator (recommended). However, another corporation can be the incorporator (not recommended).
  • How about doing for a client?
    If you are doing for a client, you may choose 'The Controlling Director is the Incorporator'. We do not contact your client, rather we contact the person in the billing address. You may write your details in billing address.
  • Minutebook (by-laws & share structure prepared by lawyer)

  • Why Minute Book Matters?

  • As per PREC rules, a personal real estate corporation must have by-laws and share structure where the the Controlling Director MUST hold the equity voting share. The Controlling Director or family members can also hold non-equity non-voting shares. The minutebook is the legal document prepared by lawyer which consists of the by-laws and share structure, shareholders, and officers (president) prepared as per PREC rules. Therefore, either you include it with your order or else, you need to get it done after your corporation registered. It's REQUIRED to register with your brokerage and to open bank account.
  • Help and Support

  • Is minutebook required?
    Yes, it's mandatory as per corporation act and PREC rules. The controlling shareholder, share structure, share class, number of shares are defined in minutebook.
  • Any advantage of doing in package?
    Yes. Package price is cheaper than buying it later, because preparing it separately is a manual process which cost more and takes longer time. Besides, when you incorporate a new corporation, the expenses are called business development expense which is tax creditable. Any spending you do after corporation exists, is considered as operating expense which are not tax creditable.
  • Corporation Officer: President

  • Help and Support

  • What designation to choose?
    As per PREC rules, the Controlling Director must be the one and only officer and hold designation as "president"
  • Will the Controlling Director hold all positions?
    Yes, in personal real estate corporation, the same person can be director, incorporator, officer and shareholder. The only option that PREC allows, is your immediate family members (minimum age 18) can be added as of shareholder for non-equity non-voting shares (in next section).
  • Class A Equity (Voting) Share: For Controlling Shareholder

  • As per PREC rules, the controlling director must be the 'controlling shareholder'. you can't add anyone else for in class A equity voting share.
  • Help and Support

  • What price and number to put?
    Share price and share number can be changed any time. Now you are setting up just initial price and share number. Most people starts with $1 as share price and 1 as share number.
  • Optional class B non-equity (non-voting) share

  • 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.
  • Class B: First Additional Shareholder

  • Class B: 2nd Additional Shareholder

  • Class B: 3rd Additional Shareholder

  • Class B: 4th Additional Shareholder

  • Class B: 5th Additional Shareholder

  • Note: If you want to add more additional shareholders, you may need to place a customized order. For now, you can place order with these shareholders and afterwards, give us a call to convert it into a customized order.
  • Help and Support

  • What is class B shares?
    These are non-equity non-voting shares (weaker than class A). Most people PREC corporation don't issue it in the beginning.
  • What price and number to put?
    Share price and share number can be changed any time. Now you are setting up just initial price and share number. Most people starts with $1 as share price and 1 as share number.
  • How to put share in percentage?
    Total share is calculated by adding up each shareholder's share number. Example: your share is 60, your spouse's share is 40. Then total shares = 60 + 40 = 100. In this case, you hold 60% and spouse holds 40%. If more than one shareholder and you want to assign in percentage, make total share number as 100.
  • CRA Account Registrations

  • Help and Support

  • Why need HST account?
    It's the initial set up for a HST account with CRA. Every corporation should have a HST account to collect HST. To claim your HST paid amount on your office supplies purchases, you also need this account.
  • What is payroll account?
    Payroll account applicable in all cases. Even if you do not have employee, your own salary to be processed through payroll account. Please note, this is not payroll service, but the initial set up of payroll account with CRA.
  • What is import export account?
    If your business involves in importing or exporting physical goods, it is required. The government uses this account to process the customs clearance.
  • Other Registrations

  • Help and Support

  • What is domain name?
    We are an agent of global domain registration. After your company name gets approved, we can instantly reserve a domain in your company name (example: www.companyname.com)
  • What is WSIB registration?
    It's workers' compensation board (safety and injury board). If your corporation plan to have employees now or in future, it MUST register with WSIB. We register and give you the account number and hook you with WSIB authority. Please note, it does not cost monthly premium fees, rather WSIB authority will advise on your eligibility of free program or fees.
  • What is initial returns?
    The government of Ontario has made mandatory to file the notice of initial returns within 60 days of incorporation. Failing to file initial returns may cause your corporation to be null and void. We advise you include in the package in case you forget to file later.
  • Corporate Supplies & Support

  • Help and Support

  • What is legal acknowledgement letter?
    A legal letter prepared and signed by an Ontario solicitor or corporate lawyer that re-confirms the corporation's article and by-laws are prepared as per PREC regulations.
  • What is share certificate?
    Share certificates is the legal and official proof of ownership of corporation. You need it to show in any official purpose such as bank, contracts, mortgage etc. It's an absolute recommended items if you have more than one shareholder. We will send some blanks certificates as well which could be used in future in case you add any other person (such as spouse, child, friend) as shareholder.
  • What is corporate seal?
    Seal is a protection against fraudulent activity. It has legal value (by default defends) in case anybody create false docs or make false loan in your company name. It's highly recommended if your company has frequent transactions or provide receipt, invoices. It's also needed if you go for loan, mortgage, employment contract, service contract or any sub-contract.
  • What does service support include?
    It includes legal, accounting and corporation update services. Every new corporation receives notices from CRA, federal & provincial government, competitor business etc. As a small company, if you do not have your own lawyer and accountant, then our lawyer, accountant and corporation specialist here for you. It's a $399 dollar service, but only $99 with package.
  • How supplies will be shipped?
    Supplies (physical minute book, share certificate, corporate seal) will be shipped by Canada Post (expedited) and you will receive a tracking number in your email. Please note, this address is for shipping of supplies only. Government documents always go to corporation's address.
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  • Final Check: Please Review Carefully

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Why should I choose Incorporate Ontario?

🔍 Trusted & Experienced
We pride ourselves on our thorough and compliant review process, ensuring your business formation is precise and error-free.

🌟 Empowering Entrepreneurship
By opting for our company, you’re not just choosing a service—you’re embracing a hybrid approach that combines the best of both worlds. Enjoy the flexibility and control of a ‘do it yourself’ strategy, while also benefiting from the expertise and peace of mind that comes with professional assistance. It’s the perfect balance for the modern entrepreneur—affordable, comprehensive, and human-centered.

👥 Personalized Attention
Every client at Incorporate Ontario receives personalized attention. Our specialists treat your business with utmost care and professionalism, available to provide support via phone, live chat, or email. At the end of the day, your success is our business.

⚡ Super Express Service
Experience our super express incorporation services designed for fast processing. Our specialists work diligently to complete your filing within 2 business hours of order placement, delivering your incorporation documents in record time.

💲 Affordable Pricing
Understanding the financial challenges of new entrepreneurs, Incorporate Ontario offers an affordable pricing structure. We believe that cost should not be a barrier to your business aspirations, providing a cost-effective solution for your incorporation needs.

What are Personal Real Estate Corporations (PREC)?

A Personal Real Estate Corporation (PREC) is a corporation that real estate professionals in Ontario can form to conduct their business. In this arrangement, the real estate professional becomes the “controlling shareholder” of the corporation, giving them control over the corporation and its activities.

Benefits of Forming a PREC: Forming a PREC can offer financial benefits to a real estate professional. It provides more flexibility in income management, which could potentially lead to tax savings. However, the specific benefits can vary depending on the individual’s business situation.

Function of a PREC: The primary function of a PREC is to provide the services of the real estate professional, who is the main shareholder, on behalf of the brokerage they work for. It’s crucial to note that a PREC cannot operate independently like a brokerage.

What are the steps to incorporating an Ontario PREC?
  1. Consult with Professionals: Before proceeding with the incorporation process, it’s highly recommended to consult with financial advisors, tax professionals, and PREC lawyers. They can provide guidance tailored to your specific situation.
  2. Confirm with Your Brokerage: You should speak to the broker of record to inquire whether the brokerage is willing to enter an agreement with the PREC.
  3. Comply with Legislative Criteria and Conditions: The corporation must meet the criteria and conditions set out in the legislation. This includes rules about who can be a shareholder of a PREC and how the corporation must be structured. Refer to the official Real Estate Council of Ontario (RECO) PREC Checklist.
  4. Create an Agreement: An agreement between the registrant, the PREC, and the brokerage must be created. This agreement should include the required content set out in the legislation.
  5. Incorporate the PREC: This is where we come in! We will help you draft your articles of incorporation that you will need to take to the RECO and have your PREC’s name and address approved by them. PRECs in Ontario are required to have a business head office address in Ontario. Once approval is given we can complete the incorporation.
  6. Provide the Required Information to RECO: After the PREC is incorporated, you must provide the legal name of the PREC and its address for service by email to [email protected].
What is required to incorporate my Ontario PREC?
  1. Choose a Business Name: Your business name must be unique and distinguishable from other registered business names in Ontario. You have the option to choose your own name or have the government assign you a numbered name. If you are registering a named corporation, you will need a NUANS report (Purchasable through our incorporation packages). If we find any issues with the proposed name we will guide you and suggest possible names that would be viable for the incorporation.
  2. Incorporators, Directors, Officers, and Shareholders: In the process of incorporation, you must determine the directors, officers and their respective roles, and the shareholders of the corporation. At least one person is required to serve as an incorporator, director, and shareholder, and it’s possible for a single individual to occupy all three positions. Officers are viewed as employees within the corporation.
  3. Registered Office Address: Every business is required to have a registered office address, which could be either a commercial or a residential location. If you do not have an accessible address in Ontario, our Address & Mail Forwarding Service is available for purchase (Only available for registration purposes).
  4. Initial Return Filing: All corporations in Ontario are required to submit their initial return within 60 days following their incorporation. If this return is not filed, the corporation will be deemed non-compliant with the corporate registry. This non-compliance could lead to the government dissolving the corporation.
What should I be aware of when incorporating an Ontario PREC?
  • Ownership: The real estate agent establishing the corporation must own all equity and voting shares.
  • Directorship and Presidency: The real estate agent must be the sole director and president of the PREC.
  • Income Splitting: The PREC regulations allow family members to own non-voting, non-equity shares of the PREC. The PREC can allocate its business income to employees as salary and issue dividends to any shareholder of the PREC.
  • Insurance: The PREC is an additional separate entity and can be sued. Therefore, appropriate insurance coverage for the PREC should be considered.
  • Registration with RECO: The PREC may not receive any compensation from a trade in real estate unless its controlling shareholder is a Registrant with the Real Estate Council of Ontario (RECO) under the Trust and Real Estate Services Act (TRESA).
How quickly can my business be incorporated?

Your business can be incorporated within a span of just 2 BUSINESS HOURS, considering only the time we spend on filing and not including the approval processing time by RECO.

What do I need to know after incorporating?
  1. Initial Return Filing: All corporations in Ontario are required to submit their initial return within 60 days following their incorporation. If this return is not filed, the corporation will be deemed non-compliant with the corporate registry. This non-compliance could lead to the government dissolving the corporation.
  2. Minute Book: Keeping a minute book is mandatory for all corporations. This will keep records of corporate documents such as your corporation’s Certificate of Incorporation, Articles of Incorporation, General Corporate Bylaws, Banking Bylaws, Minutes of company meetings, agreements and resolutions, Copies of the forms filed with the Ministry, Ledgers and Registers, Share Certificates. A standard minute book (Includes corporate bylaws, register and ledger) is available for purchase through our incorporation packages.
  3. Business Number: After incorporation, a CRA business number is generated for the corporation. We can obtain the business number for you through the service purchasable in all incorporation packages.
  4. CRA Program Accounts: The Canada Revenue Agency (CRA) has several program accounts that businesses may need to register for, depending on their specific operations. Here are the six major CRA program accounts:
    • Corporate Income Tax (RC): This account is required if your business is incorporated.
    • Goods and Services Tax/Harmonized Sales Tax (RT): This account is needed if your business collects GST/HST.
    • Payroll Deductions (RP): If your business pays employees, you’ll need to register for this account.
    • Import-Export (RM): If your business imports goods or services abroad, you’ll need this account.
    • Import-Export (RX): If your business sells goods or services abroad, you’ll need this account.
    • Registered Charity (RR): If your business has intent to become a charity organization, you’ll need this account.
  5. Additional Permits & Licences: After incorporating your business, you may need to obtain additional permits and licenses based on the nature of your operations. These are typically obtained through your local city hall or municipal office.
What is required to maintain my corporation?
  • Minute Book & Corporate Records: It’s essential that your corporation’s minute book is consistently updated to reflect any amendments, resolutions, and filings that occur.
  • Annual Returns: An annual return needs to be filed with Service Ontario yearly, with the due date being the anniversary of the corporation’s incorporation. Additionally, if your corporation is registered in other provinces and/or territories, you are also required to submit annual returns for those jurisdictions. These filings are different from the filings that are needed to be done with the CRA.
  • Tax Filings: Financial tax filings must be completed for each financial period with the CRA. These filings are different from the filings that are needed to be done with Service Ontario.
  • Obtain & Renew Necessary Licenses and Permits: Obtain the renew necessary licenses and permits for your business operations.
  • Maintain Compliance with Employment Standards: If your corporation has employees it must maintain compliance with a wide range of ongoing obligations under accessibility, employment standards, health and safety, human rights, and pay equity laws.
Will I receive any post-incorporation support?

Yes, we offer 3 types of post-incorporation and maintenance services.

Start Your Ontario Business Journey Now!

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About company

Welcome to the Incorporate Ontario, where we empower your entrepreneurial journey with our comprehensive, secure, and user-friendly Incorporate Ontario and Incorporation Services.
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  • 1270 Central Pkwy W Unit 102, Mississauga, ON L5C 4P4, Canada

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  • Corporation
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