Professional Corporation Rules for Psychotherapists in Ontario

Psychotherapists in Ontario who wish to practise through a corporation must comply with a specific set of legal and regulatory rules. These rules go beyond standard incorporation requirements and are enforced by the College of Registered Psychotherapists of Ontario.

Many psychotherapists incorporate without fully understanding these requirements. Others rely on general incorporation services or accounting advice that does not address CRPO specific obligations. Issues often surface later, during audits, complaints, or practice transitions.

Psychotherapists Can Only Practise Through a Professional Corporation

A psychotherapist may not practise psychotherapy through a regular business corporation.

If a psychotherapist wishes to practise through a corporation, that corporation must be a professional corporation specifically authorized by the CRPO.

A regular corporation may still be used for unrelated business activities, but not for the delivery of psychotherapy services.

CRPO Oversight Applies to the Corporation

When a psychotherapist practises through a professional corporation, regulatory oversight does not stop at the individual.

The CRPO extends its authority to the corporation itself. This means:

• The corporation must comply with CRPO rules

• The corporation must be authorized to practise

• Corporate structure and ownership must meet CRPO requirements

• Certain corporate changes require regulatory consideration

The professional corporation becomes part of the regulated practice environment.

Certificate of Authorization Is Mandatory

A psychotherapy professional corporation must obtain a Certificate of

Authorization from the CRPO.

This certificate confirms that:

• The corporation meets CRPO ownership and control requirements

• The corporate name complies with CRPO naming rules

• The corporation is permitted to practise psychotherapy

Incorporation alone does not authorize practice. Practising through a corporation without this certificate may constitute a regulatory breach.

Ownership and Share Restrictions for Psychotherapists

CRPO rules impose restrictions on who may own and control a psychotherapy professional corporation.

Key principles generally include:

• Voting shares must be owned by registered psychotherapists

• Control of the corporation must remain with CRPO members

• Non psychotherapists may only hold limited interests where permitted

• Share structures must align with regulatory requirements

Improper ownership is a common compliance issue and often requires restructuring to correct.

Naming Rules for Psychotherapy Professional Corporations

Psychotherapy professional corporations must follow strict naming conventions.

Typically:

• The legal name of the psychotherapist must appear in the corporate name

• The words Professional Corporation or PC must be included

• Trade names or clinic branding may be restricted or prohibited

• Names must comply with CRPO approval standards

Incorporating with a non compliant name often results in required amendments.

Scope of Practice Limitations

A psychotherapy professional corporation may only carry on activities related to the practice of psychotherapy and activities ancillary to that practice.

This means:

• The corporation should not be used for unrelated businesses

• Mixed business activities may raise compliance concerns

• Ancillary services must align with CRPO expectations

Using the corporation outside its permitted scope can create regulatory risk.

Professional Liability Remains Personal

Incorporation does not remove professional liability.

For psychotherapists:

• Personal liability for professional negligence remains

• Professional liability insurance is still required

• The corporation primarily affects business and contractual risk

This distinction is important and often misunderstood.

Common Professional Corporation Mistakes Psychotherapists Make

Some of the most common issues include:

• Incorporating without applying for a Certificate of Authorization

• Using an accountant or online service unfamiliar with CRPO rules

• Selecting a non compliant corporate name

• Improper share ownership or control

• Practising through the corporation before authorization is granted

These issues often surface unexpectedly and under time pressure.

What Happens If the Rules Are Not Followed

Non compliance can result in:

• Regulatory inquiries or audits

• Orders to cease practising through the corporation

• Required restructuring or amendments

• Increased stress during complaints or practice transitions

Most issues are fixable, but early intervention matters.

How to Ensure Your Psychotherapy Professional Corporation Is Compliant

Compliance requires:

• Proper professional corporation incorporation

• CRPO approved naming

• Correct ownership and control

• A valid Certificate of Authorization

• Ongoing alignment with CRPO rules

Legal review helps ensure these elements work together properly.

Book a Consultation

If you are a psychotherapist incorporating a professional corporation or are unsure whether your existing corporation complies with CRPO requirements, you can Book a Consultation to review your structure and ensure regulatory compliance.