Registration

Medical Corporations

Physicians who wish to practice medicine through a corporation in Prince Edward Island are required to establish a Medical Professional Corporation (MPC) and obtain the appropriate authorization from the College of Physicians and Surgeons of Prince Edward Island, in addition to meeting all applicable provincial corporate registration requirements.

A Medical Professional Corporation allows a physician to carry on the practice of medicine through a corporate entity. While the corporation may receive practice income and operate as a separate legal entity, physicians remain personally accountable for the professional services they provide and continue to be subject to all regulatory, ethical, and professional obligations established by CPSPEI.

Before incorporating, physicians are strongly encouraged to obtain independent legal, accounting, and tax advice. Incorporation may offer financial or business advantages for some physicians; however, it also introduces additional regulatory, administrative, legal, and accounting responsibilities that should be carefully considered.

Corporation Requirements

To operate as a Medical Professional Corporation, the physician must hold active registration in PEI and submit the following requirements:

  • Corporation application;
  • The corporation must be in good standing;
  • The letters patent or articles of incorporation of the corporation permit the corporation to carry on the practice of medicine;
  • Each issued voting share of the corporation is legally and beneficially owned by a member;
  • Each non-voting share of the corporation is legally and beneficially owned by a member, a health profession corporation,
  • All of the officers and directors of the corporation are members;
  • The persons who practice on behalf of the corporation are members who hold valid certificates of registration;
  • The corporation holds or is covered by professional liability insurance or protection as required by the regulations;
  • The corporation has paid the fees established by the bylaws.

Professional Responsibilities

Incorporation does not alter a physician’s professional obligations. Physicians practicing through a corporation remain responsible for:

  • Meeting all standards of practice, professional conduct, and ethical requirements.
  • Maintaining patient confidentiality and privacy obligations.
  • Ensuring continuity and quality of patient care.
  • Complying with all applicable legislation, College bylaws, standards, and policies.
  • Maintaining appropriate professional liability protection.

The relationship between a physician and their patients remains unchanged by incorporation. Physicians remain personally responsible for clinical decision-making and patient care, and incorporation does not limit professional accountability to CPSPEI.

Extra-Provincial Corporation

If you are applying for a permit to operate an extra-provincial corporation as a Health Profession Corporation, you are required to register the corporation under the Extra-provincial Corporations Registration Act before or within 30 days after the corporation commences carrying on business in the province. Please contact Corporate Business Registry Services with the Province of PEI for further information.

Permit Renewal and Ongoing Compliance

Where a corporate permit is required, it must generally be renewed annually and maintained in good standing. Corporate permit renewals are separate from physician licence renewals and require submission of declarations, supporting documentation, and applicable fees.

Failure to maintain a valid corporate permit or comply with regulatory requirements may result in the corporation losing authorization to operate as a Medical Professional Corporation. This could affect billing arrangements, business operations, and other administrative processes associated with the corporation.

Physicians are responsible for ensuring that all renewal requirements, filing deadlines, and reporting obligations are met on an ongoing basis.

Considerations Before Incorporating

Before establishing a Medical Professional Corporation, physicians should carefully evaluate:

  • Initial and ongoing legal, accounting, and administrative costs.
  • Annual registration, permit, and renewal requirements.
  • Corporate governance and ownership restrictions.
  • Record-keeping and reporting obligations.
  • Potential liability implications for shareholders, directors, and the corporation itself.
  • The need to remain current with all applicable legislation, regulations, and College requirements.

Physicians considering incorporation are encouraged to review all relevant legislative and regulatory requirements and seek professional advice to determine whether incorporation is appropriate for their individual practice circumstances.

Fees for Medical Corporations

Initial Registration$500
Annual Renewal$250