Incorporation
Conducting Public Practice Activities through a Corporation
The Chartered Professional Accountants Act and CPABC’s Code of Professional Conduct, Bylaws and Bylaw Regulations permit flexibility in corporate organization. Subject to applicable requirements under the Act, Code, Bylaws and Bylaw Regulations, a corporation may hold a member's interest in a public practice firm (e.g. John A Smith, Inc., Partner, X, Y and Z, Chartered Professional Accountants), or a public practice firm may itself be organized in corporate form (e.g. X, Y and Z Inc, Chartered Professional Accountants).
In general, an incorporation permit is required from CPABC in any of the following circumstances:
- Incorporated Public Practice Firm. If a corporation itself is a public practice firm, the corporation requires an incorporation permit.
- Incorporated Partner in an LLP. If a corporation holds or will hold a direct partnership interest in an LLP that provides public practice services, the corporation is required to either have an incorporation permit from CPABC, or be recognized and approved for the practice of public accounting by another Provincial CPA body.
- Incorporated Partner in a CPA Firm other than an LLP. If a corporation holds or will hold a direct partnership interest in any partnership that provides public practice services or that represents itself as a CPA firm in BC, the corporation is required to either have an incorporation permit or (if the corporation is not resident in BC) be recognized and approved for the practice of public accounting by another Provincial CPA body.
- Corporation Providing Public Accounting Services to a Member or Licensed Firm. Where a member through a professional accounting corporation provides services included in the definition of “public practice” only to another registered firm, the professional accounting corporation requires a permit.
In these circumstances, the corporation is also required to obtain CPABC’s approval for its corporate name (see Permissible Names for Incorporations).
Members are also permitted to use multi-tiered corporations (holding companies) to hold their shares in an incorporated public practice firm, or in a corporation holding the member's partnership interest in a public practice firm. These holding companies are also subject to certain applicable requirements under Section 39 of the Chartered Professional Accountants Act.
Please also note that an incorporation permit is not a licence to practice public accounting. A practice licence (or extra-provincial licence) must be applied for separately, and must be obtained prior to the commencement of public practice activities through your corporation. If you would like to apply for a public practice licence, visit Process of Applying for a Public Practice Licence.
Cost of an Incorporation Permit
The current costs associated with an incorporation permit include:
- One-time application fee of $315 ($300 plus GST); and
- Annual incorporation permit fee of $110.25 ($105 plus GST).
Permissible Names for Incorporations
Rules governing permissible corporate names are the same as those for permissible practice names as set out in CPABC Code of Professional Conduct Rule 401. Essentially, the corporate name must be an approved name followed by "Ltd.", "Limited" or "Inc.", "Incorporated" or "Corp.", "Corporation."
While CPABC may consent to a specific corporate name, the BC Registrar of Companies must also approve the name. The Organization’s approval indicates only that the Organization does not object to the proposed corporate name, but it does not reserve the name with the Registrar or imply that the Registrar has approved the name, or otherwise constitute approval of the corporate name under the Business Corporations Act. Please note that the Registrar may refuse to approve a proposed corporate name that is similar to existing corporate names previously approved by the Registrar, and that your firm might not be permitted by the Registrar's guidelines to simply add the suffix "Ltd.", "Limited", or "Inc.", "Incorporated", or "Corp.", "Corporation" to your existing firm name.
Applying for a Professional Accounting Corporation Permit
To be eligible to apply for a professional accounting corporation permit, the applicant must be a member in good standing of CPABC with a direct or indirect proprietary interest in shares of the corporation.
To apply for an incorporation permit, you will be required to complete (in full) the following forms:
Steps for applying for a professional accounting corporation permit
- The applicant must complete Form 1A: Application for Consent to Corporation Name and submit to publicpractice@bccpa.ca or fax to 604-732-9439 or by mail to:
Public Practice Division
Chartered Professional Accountants of British Columbia
#800-555 West Hastings Street, Vancouver, BC V6B 4N6
- The Director, Public Practice Licencing will review the submitted Form 1A and, if satisfactory, will grant approval in writing to the use of the corporate name.
- The applicant may then proceed with registering their corporation with the Registrar of Companies.
- Once the registration is complete, the applicant must complete Form 4: Application for Professional Corporation Permit and pay the application fee. The application fee can be paid online in the LOGIN at the top right hand corner of the www.bccpa.ca website. Once application fee has been paid, please email the receipt along with the forms package to publicpractice@bccpa.ca.
- The applicant must also request his/her solicitor to review the requirements of Sections 39,40, and 41 of the Chartered Professional Accountants Act and Bylaws 800 and 801 to ensure the corporation is in compliance with all applicable requirements, and complete Form 4A: Certificate of Solicitor.
- Sign and submit the completed application forms along with the application fee receipt of $315 ($300 plus GST) to:
Public Practice Division
Chartered Professional Accountants of British Columbia
#800-555 West Hastings Street, Vancouver, BC V6B 4N6
Please email the application package to publicpracticelicensing@bccpa.ca.
- Once your application has been received and it is determined to be complete, it will be processed and a confirmation will be sent to you in writing.
