FAQs - Professional Accounting Corporations

FAQs - Professional Accounting Corporations

Disclaimer

These frequently asked questions (“FAQs”) provide general information only about CPABC’s processes and requirements relating to public practice.

The FAQs are not definitive advice, and are not intended to address every possible circumstance.

The FAQs do not and cannot change the meaning of the Chartered Professional Accountants Act, or the Organization’s Bylaws, Bylaw Regulations, and the CPA Code of Professional Conduct, (collectively, the “Regulations”).  In the case of any inconsistency between the FAQs and the Instruments, the Regulations will prevail and govern.

If you wish to discuss your particular situation, or if you have any questions, please contact CPABC Advisory Services or Public Practice for further information.

Professional Accounting Corporations

The questions below are discussed in the context of a corporation through which you practice public accounting.  Any corporation through which you practice public accounting must have a professional accounting corporation permit as well as each practising member must have a public practice licence.

The Chartered Professional Accountants Act 40(1) (c) specifies that all directors of the corporation must be members in good standing.  Therefore, your family member can only be a director of the corporation if they are a member of CPABC in good standing.

You can obtain a professional accounting corporation permit for an existing corporation, provided the corporation is structured in accordance with our bylaws and the name is acceptable to CPABC.  See our website to apply for a professional accounting corporation permit.  

The Chartered Professional Accountants Act Sections 39, 40 and 41 outlines how a corporation must be structured in order to obtain an incorporation permit.  All voting shares must be held by a member in good standing either directly or through a holding company.  Non-voting shares of the corporation (or a holding company) can only be held by a member in good standing who owns the voting shares of the corporation, or by a relative of that member, or a corporation, all the shares of which are beneficially owned by one or more of the persons referred to in Section 40 (1)(e) (i) or (iii) .