Ontario Not-for-Profit Corporations Act, 2010 (ONCA) allows to create not-for-profit corporations including charitable corporations. As of October 19, 2021 ONCA is in force. Incorp Pro legal and accounting team has prepared this page step by step and made it easy to incorporate a not-for-profit corporationfor those who may not have not-for-profit experience. As per Corporations Act and ONCA, an Ontario not-for-profit corporations are classified into following three catagories.

Not-for-Profit: No Charity Intention

Speed: Can be ready in 2 hours in fastest queue
Method: Electronic and online. Do not require physically signed papers
Purpose: Activities are for purposes that do not include the financial gain of its members. It can earn a “profit”, but any profit must be used to further the purposes of the corporation rather than be paid to the members.
Examples: sporting and athletic organizations, social clubs, day cares, service clubs such as Rotary and Lions etc.

Not-for-Profit: Registered Charity

Speed: Not-for-profit in 6 business days, charity application usually in 8 months
Method: Online with electronic signature. Done in two steps. Not-for-profit is formed first, and then charity application submitted with CRA.
Purpose: Activities must be any one of these four classifications: the relief of poverty, the advancement of education, the advancement of religion and certain other purposes that benefit the community.
Examples: NGO, Food-bank, adult education organization, organization for homeless people, chrurch, mosque, temple, other mission organization etc.

Not-for-Profit: Future Charity Intention

Speed: Can be ready in 6 business day in fastest queue
Method: Electronic and online. Do not require physically signed papers
Purpose: Activities must be any one of these four classifications: the relief of poverty, the advancement of education, the advancement of religion and certain other purposes that benefit the community.
Examples: NGO, Food-bank, adult education organization, organization for homeless people, chrurch, mosque, temple, other mission organization etc.

Co-operative corporation (Co-op)

Speed: Articles prepared in 3 business days, registered in 30 Business
Days
Method: Online and physical submission. Physical signature may require. Articles prepared first, and then registered with Service Ontario.
Purpose: Under the CCA, there are 11 basic types of co-operatives: service, consumer, supply, worker, marketing, child care, housing, housing development, farming and supply, milk transport, renewable energy.
Examples:Guelph Campus Co-Operative, Eastview Co-Operative Apartment Limited, Thunder Bay Co-Operative Farm Supply etc.
A not-for-profit corporation:
  1. Is dedicated to purposes other than pursuing a profit.
  2. Is a corporation without share capital, which means that the corporation does not issue ownership shares.
  3. May not distribute any profits to its members, directors or officers (for more information, refer to section 89 of ONCA).
  4. Must use any profit exclusively for its not-for-profit purposes.
  5. Includes both charitable and non-charitable organizations.

Charitable Corporation
A charitable corporation is a type of not-for-profit corporation. Not all not-for-profit corporations are charitable corporations. To be a charitable corporation, a corporation must meet the requirements for not-for-profit corporations and some additional requirements that are explained further in the Charitable corporations section of this guide.

Co-operative corporation (Co-op)
A business organization owned by members who use its services and is controlled equally by the members. A co-op must carry on business on a co-operative basis. It is recommended that not-for-profit organizations get professional advice about the appropriate structure for the organization’s purposes.