Incorporating an RMT Practice in Ontario: What You Need to Know
- Delta Law
- 19 hours ago
- 3 min read
For many Registered Massage Therapists (RMTs) in Ontario, incorporation is a key step toward building a sustainable and professional practice. Incorporating allows you to separate your personal assets from your business liabilities, create a more structured operation, and take advantage of potential tax planning opportunities.
However, RMTs are regulated under the College of Massage Therapists of Ontario (CMTO), which has specific requirements for forming a Professional Corporation (PC). Before you move forward, it is important to understand what incorporation means, what steps you must take, and how to stay compliant with CMTO regulations.
Step 1: Incorporate Under the Ontario Business Corporations Act
The first step is to create a corporation under the Ontario Business Corporations Act (OBCA). Your corporation must comply with professional naming rules and include the phrase “Professional Corporation” in its legal name. The CMTO allows RMTs to use their own name or a descriptive name, provided it clearly identifies the profession and follows the College’s naming guidelines.
When you incorporate, you will file Articles of Incorporation through the Ontario Business Registry and obtain a corporation number. At this stage, the corporation exists legally, but it cannot yet begin providing massage therapy services until the next step is complete.
Step 2: Apply for a Certificate of Authorization from the CMTO
To legally practice through your new corporation, you must obtain a Certificate of Authorization (COA) from the CMTO. Without this certificate, your corporation cannot offer or bill for massage therapy services.
The COA confirms that your professional corporation is owned and managed entirely by RMTs in good standing.
CMTO requirements include:
The corporation must hold a valid Ontario Certificate of Incorporation.
The applicant must be a registered RMT and a director of the corporation.
All shareholders, directors, and officers must be registered RMTs.
Each shareholder must sign a CMTO undertaking form.
The Certificate of Authorization must be renewed annually, usually by March 31.
The application involves submitting a completed form, supporting documents such as your Articles of Incorporation, and payment of the CMTO application fee.
Step 3: Maintain Compliance and Good Standing
Once your professional corporation is authorized, ongoing compliance is essential.
You must:
Renew your CMTO Certificate of Authorization each year.
File annual returns with the Ontario Business Registry.
Maintain up-to-date corporate minute books, director and shareholder resolutions, and records of any share transfers.
Keep your professional liability insurance active and in the corporation’s name.
Failing to maintain compliance can result in suspension or revocation of your Certificate of Authorization.
Step 4: Understand Share Ownership Rules
Only RMTs registered with the CMTO may own voting shares in a professional corporation. Unlike physicians or dentists, RMTs cannot issue shares to family members or holding companies.
This rule ensures that professional control remains with individuals who are accountable to the CMTO’s regulatory framework.
If you plan to operate a multi-therapist clinic, you can still have non-RMT employees or contractors working under your corporation, but ownership must remain fully compliant with CMTO rules.
Step 5: Ensure Privacy and Recordkeeping Compliance
Whether you operate as a sole proprietor or through a professional corporation, you must comply with the Personal Health Information Protection Act (PHIPA).
Your corporation must:
Maintain secure records for at least ten years after the last client interaction (or ten years after a minor turns 18).
Have written privacy and consent policies.
Respond appropriately to client requests for access, correction, or transfer of health records.
Protect electronic and physical client information against unauthorized access.
If you store client data electronically or use shared administrative systems, make sure your software and vendors also meet Ontario’s privacy standards.
Step 6: Use Properly Drafted Legal Documents
A professional corporation changes your legal structure, so your contracts and business documents should reflect that.
Typical agreements include:
Clinic or space rental agreements
Independent contractor agreements for therapists working within your clinic
Client service agreements with clear consent and confidentiality clauses
Supplier and equipment leases in the corporation’s name
Well-written contracts clarify responsibilities, reduce liability, and demonstrate professionalism to clients and collaborators.
Common Mistakes to Avoid
Incorporating before confirming eligibility with the CMTO.
Forgetting to apply for the Certificate of Authorization.
Issuing shares to non-RMTs.
Mixing unrelated business activities (for example, retail or non-therapeutic services) in the same corporation.
Failing to keep corporate records and CMTO renewals up to date.
Building a Compliant and Sustainable Practice
Incorporation can be an excellent step toward long-term business success for RMTs, but it must be done correctly. By aligning your corporate structure with CMTO regulations, maintaining accurate documentation, and ensuring compliance with privacy and insurance standards, you can operate with confidence and protect both your clients and your career.
