Registration Of Personal Real Estate Corporation in Ontario

 

At SR Law Firm, we specialize in helping real estate professionals navigate the complexities of incorporating their personal real estate corporation (PRECs) in Ontario. With an in-depth understanding of Ontario’s legal landscape and a commitment to exceptional client service, we ensure your business is set up for long-term success.

What Is a Personal Real Estate Corporation (PREC)?

A Personal Real Estate Corporation (PREC) is a special type of corporate structure available to real estate professionals in Ontario. It allows licensed realtors to incorporate their business and operate as a corporate entity rather than as an individual.

This corporate model offers significant financial and operational benefits, including tax planning advantages, income splitting opportunities, and the ability to reinvest profits within the corporation. However, incorporating a PREC involves meeting specific legal requirements outlined by the Real Estate Council of Ontario (RECO) and adhering to the Ontario Business Corporations Act (OBCA).

Personal Real Estate Corporation

 

Why Choose SR Law Firm Professional Corporation?

 
Proven Expertise

With years of experience in corporate law and real estate, we’ve assisted numerous clients in successfully establishing their PRECs. Our team stays updated on changes in legislation to provide accurate and reliable legal advice.

Client-Centric Approach

We prioritize your success by delivering tailored solutions and exceptional service. From consultation to registration and beyond, we’re with you every step of the way.

Commitment to Excellence

Our focus on diligence, transparency, and compliance ensures your personal real estate corporation is registered efficiently and without complications.

Testimonials from Satisfied Clients

“SR Law Firm made the incorporation process seamless. They handled every detail with professionalism and care. Highly recommended!”
– John D., Realtor, Toronto

“I was overwhelmed with the legal requirements for setting up my PREC, but this team took the stress off my shoulders. Their expertise is unmatched!”
– Sarah L., Real Estate Broker, Mississauga

“Exceptional service! Shireen Saleem (principal lawyer) helped me incorporate my PREC quickly and ensured everything was compliant with Ontario laws.”
– Alex P., Real Estate Agent, Ottawa

FAQs about PRECs

  1. What are the tax benefits of real estate incorporation Ontario?

Incorporating a PREC allows you to defer taxes on income retained within the corporation, enjoy lower corporate tax rates, and split income among family members.

  1. Can I incorporate my PREC if I’m not a licensed realtor?

No. Only licensed real estate professionals can establish a personal real estate corporation Ontario.

  1. How long does it take to register a PREC?

The process typically takes 2–4 weeks, depending on the completeness of documentation and RECO’s processing time.

Get Started Today!

Don’t let the complexities of PREC registration hold you back from realizing the full potential of your real estate career. Let SR Law Firm – Professional Corporation handle the legalities while you focus on growing your business.

Contact us today!
📞 Call us at: [+1 905-805-5327]
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Schedule Your Consultation and take the first step towards incorporating your PREC with confidence.

Legal Requirements for Registering a PREC in Ontario

In Ontario, registering a Personal Real Estate Corporation Ontario requires strict compliance with RECO and provincial regulations. Below are the key requirements for incorporating a PREC:

  1. Licensed Real Estate Professional: The individual establishing the PREC must hold a valid real estate license in Ontario.
  2. Ownership and Control:
    • The corporation must be wholly owned, controlled, and managed by the licensed realtor.
    • Non-voting shares may be issued to family members, but voting shares must remain with the realtor.
  3. Director Requirements: The licensed realtor must be the sole director and officer of the corporation.
  4. Corporate Name:
    • The PREC’s name must clearly indicate it is a personal real estate corporation.
    • It must also comply with the naming conventions established under the OBCA.
  5. Compliance with the Real Estate and Business Brokers Act (REBBA):
    • The PREC must adhere to REBBA regulations, ensuring all business activities align with the act’s provisions.
  6. Registration with RECO: The PREC must be registered with RECO to legally trade in real estate in Ontario.
  7. Tax and Financial Reporting: The PREC must comply with Canadian tax laws, including filing corporate tax returns and maintaining financial records.
 

How We Assist You in Real Estate Incorporation Ontario

Incorporating a PREC can be a complex process, but our team of legal experts simplifies it for you. Here’s how we help:

  1. Personalized Legal Consultation

We begin by understanding your specific needs and objectives. Whether you’re a new realtor or an experienced professional, our legal team tailors the incorporation process to align with your business goals.

  1. Preparation of Legal Documents

We ensure all necessary documents are prepared with precision, including:

  • Articles of Incorporation
  • Shareholder Agreements
  • Corporate Bylaws
  • Applications for RECO registration
  1. Compliance with Regulations

We guide you through every legal requirement, ensuring your PREC meets the standards set by RECO, OBCA, and REBBA. Our thorough review process minimizes the risk of errors or omissions.

  1. Tax and Financial Planning Support

Collaborating with tax professionals, we help you maximize the financial benefits of your PREC while ensuring full compliance with Canadian tax laws.

  1. Ongoing Support and Maintenance

After real estate incorporation Ontario, we offer continued support to help you manage annual filings, renewals, and any changes in corporate structure or operations.

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