How Much Does It Cost to Set Up a PREC in Ontario? (2026)
What it actually costs to set up and run a Personal Real Estate Corporation in Ontario, beyond the $300 government filing fee.
The fixed government cost to incorporate a Personal Real Estate Corporation (PREC) in Ontario is $300 when the Articles of Incorporation are filed online. If you choose a named corporation instead of a numbered corporation, you will also need an Ontario-biased or weighted Nuans® name search report from a private provider. Beyond those costs, the total price depends on whether you incorporate yourself or use a PREC-specific service to prepare the corporation’s share structure, minute book, and other setup documents.
The $300 incorporation fee is only the starting point. A PREC has specific requirements that a standard Ontario corporation does not necessarily address, including rules for its controlling shareholder, voting shares, director and officer positions, and the written agreement involving the PREC, controlling shareholder, and brokerage. After incorporation, ongoing costs include corporate tax preparation, bookkeeping, corporate records, and annual compliance.
MD Legals provides Personal Real Estate Corporation incorporation for Ontario real estate professionals who want to structure their PREC correctly from the start.
PREC Ontario Cost at a Glance
| Cost Item | Typical Cost | What to Know |
|---|---|---|
| Ontario incorporation fee | $300 | Government fee for online incorporation |
| Nuans® name search | Varies by provider | Required for a named Ontario corporation |
| Numbered corporation | No Nuans® required | Avoids the name-search cost |
| PREC setup/service fee | Varies by provider and package | May include document preparation and PREC-specific structuring |
| Minute book | Varies by format/provider | Contains key corporate records and organizational documents |
| Ontario annual return | $0 government filing fee online | Must still be filed even though there is no government filing charge |
| T2 corporate tax return | Varies by accountant and complexity | Separate from the controlling shareholder’s personal tax return |
| Bookkeeping | Varies | Depends on transaction volume and level of service |
The key distinction is between fixed government fees and provider-dependent professional costs.
Ontario sets the $300 incorporation fee. Fees for Nuans® reports, PREC preparation services, accounting, bookkeeping, and corporate record maintenance depend on the provider and services selected.
What Is the Government Fee to Incorporate a PREC in Ontario?
A PREC is incorporated as an Ontario business corporation under the Business Corporations Act. There is no separate government incorporation fee specifically for PRECs.
The Ontario government fee for incorporating a Business Corporation online is $300.
That means the government’s incorporation charge is the same whether the corporation operates as a PREC or another type of Ontario business corporation.
However, paying the $300 fee and receiving Articles of Incorporation does not automatically mean the corporation satisfies the requirements to operate as a PREC.
The corporation must also meet the applicable PREC requirements before the brokerage can pay it remuneration.
Does a PREC Need a Nuans® Report?
It depends on whether you choose a named or numbered corporation.
If you want a named corporation, such as Smith Real Estate Professional Corporation, you will need an Ontario-biased or weighted Nuans® name search report as part of the Ontario incorporation process.
The Ontario government does not set the price of the Nuans® report. Private name-search providers provide reports, so the cost can vary.
If you use a numbered corporation, such as 1234567 Ontario Inc., you do not need a Nuans® report for the corporate name.
MD Legals provides Nuans® and corporate search reports for businesses that require a name search before incorporation.
Is a Numbered PREC Cheaper?
A numbered corporation can slightly reduce initial setup costs because it eliminates the need to purchase a Nuans® report.
The important point, however, is that choosing a numbered corporation does not remove the PREC-specific structural requirements.
Whether named or numbered, the corporation must still satisfy the requirements applicable to a Personal Real Estate Corporation.
Why PREC Setup Is Different From Standard Incorporation
A PREC is not simply a standard Ontario corporation used by a real estate agent.
RECO’s PREC requirements include a specific corporate structure.
The corporation must have one controlling shareholder who:
- Is registered as a real estate broker or salesperson
- Owns all equity shares, which are the voting shares
- Is the president of the corporation
- Is the sole director
- Is the sole officer
Non-equity, non-voting shares may be held by the controlling shareholder or certain eligible family members.
The PREC must also have a written agreement with the controlling shareholder and the brokerage governing their relationship.
These requirements are why comparing the PREC setup solely on the $300 government filing fee can be misleading.
DIY vs. PREC-Specific Incorporation: What Are You Paying For?
There are two main ways to approach the initial incorporation cost.
DIY PREC Incorporation
Someone filing directly through the Ontario Business Registry pays the government incorporation fee and, if using a named corporation, obtains the required Nuans® report separately.
The direct filing cost can therefore be relatively low.
The challenge is not submitting the Articles of Incorporation. It is making sure the corporation is structured to meet PREC requirements.
A standard incorporation setup may not automatically address:
- The controlling shareholder requirement
- Ownership of all equity/voting shares
- Sole-director requirements
- Sole-officer requirements
- Permitted non-equity shareholders
- Corporate records and resolutions
- The brokerage/PREC/controlling-shareholder agreement requirements
Correcting a corporation after incorporation can also involve additional filings, professional assistance, and changes to corporate records.
PREC-Specific Incorporation Service
A PREC-specific incorporation service costs more than the government filing fee because the service involves more than submitting Articles of Incorporation.
Depending on the package, the service may include:
- Preparing the Articles of Incorporation
- Structuring the corporation around PREC requirements
- Establishing the appropriate share structure
- Preparing organizational resolutions
- Preparing share certificates
- Preparing corporate bylaws
- Setting up the corporate minute book
- Providing the completed incorporation documents
The exact price depends on what the provider includes.
For MD Legals customers, the relevant comparison is therefore not simply DIY vs. paying someone to click submit. It is DIY incorporation versus having the corporation prepared specifically for its intended use as a PREC.
What Does a PREC Minute Book Cost?
A PREC needs proper corporate records just like other Ontario corporations.
A minute book generally organizes important records such as:
- Articles of Incorporation
- Corporate bylaws
- Director and shareholder resolutions
- Share information
- Share certificates
- Director and officer records
- Other corporate documents
The cost depends on whether the minute book is prepared electronically, physically, or as part of a larger incorporation package.
MD Legals offers corporation minute book and bylaws services separately for corporations that need their organizational records prepared or maintained.
If a minute book is already included in the PREC incorporation package you’re considering, don’t count it twice when comparing setup costs.
Ongoing Costs of Running a PREC
The initial incorporation expense is only one part of the total PREC cost.
Once established, a PREC is a corporation with its own tax and corporate compliance obligations.
T2 Corporate Tax Return
A PREC generally must file a T2 Corporation Income Tax Return each tax year.
This is separate from the controlling shareholder’s personal income tax return.
The amount charged by an accountant for preparing the T2 varies based on factors such as:
- Complexity of the corporation
- Quality of bookkeeping records
- Number of transactions
- Compensation strategy
- Shareholder transactions
- Other tax planning requirements
Rather than assuming a fixed annual accounting cost, ask the accountant what the quoted fee includes.
Ontario Annual Return
An Ontario corporation must also file its corporate annual return.
The current Ontario government filing fee for an online annual return is $0.
There may be no government filing charge, but the filing itself is still an ongoing compliance obligation.
Bookkeeping
Bookkeeping costs vary significantly.
A PREC with relatively straightforward commission income and limited expenses may require less bookkeeping than a corporation with employees, numerous expense categories, investments, or more complicated transactions.
The cost therefore depends primarily on transaction volume and the bookkeeping arrangement.
Corporate Record Maintenance
Corporate records must also stay current.
Changes to directors, officers, addresses, shareholdings, resolutions, or other corporate matters may require updating records.
Some PREC owners handle routine corporate recordkeeping themselves, while others use a corporate service provider, accountant, or lawyer depending on what needs to be updated.
What Is the Real Annual Cost of a PREC?
No single annual cost applies to every Ontario PREC.
The recurring cost generally consists of some combination of:
| Annual Expense | Cost |
|---|---|
| Ontario annual return government fee | $0 online |
| T2 corporate tax preparation | Varies |
| Bookkeeping | Varies |
| Corporate record maintenance | Varies |
| Tax/accounting advice | Depends on services required |
For many real estate professionals, accounting is likely to represent a larger recurring expense than provincial corporate filing fees.
That is why the decision to establish a PREC should consider both the initial incorporation cost and the annual cost of operating the corporation.
Is a PREC Worth the Cost?
The answer depends less on the $300 incorporation fee and more on whether the financial and tax benefits available in the individual’s circumstances justify the ongoing cost and administration of maintaining a corporation.
A PREC may allow you to retain income in the corporation rather than receiving all eligible remuneration personally. However, incorporating does not automatically create tax savings.
The outcome depends on factors such as:
- Annual commission income
- Personal cash-flow needs
- How much income can remain inside the corporation
- Salary or dividend strategy
- Other sources of personal income
- Family circumstances
- Accounting and administrative costs
- Longer-term financial objectives
This is where advice from an accountant familiar with PRECs matters most.
The incorporation decision and the tax-planning decision are related, but not the same.
Common PREC Setup Costs People Overlook
When comparing PREC incorporation prices, look beyond the headline service fee.
Costs or services worth checking include:
- Ontario’s $300 incorporation fee
- Nuans® report for a named corporation
- Articles of Incorporation preparation
- PREC-specific share structure
- Corporate bylaws
- Organizational resolutions
- Share certificates
- Minute book
- Brokerage agreement requirements
- Annual T2 preparation
- Bookkeeping
- Future corporate changes and record maintenance
A package that appears more expensive may include items that another provider charges for separately.
The most useful comparison is therefore the total set of documents and services included, not just the advertised incorporation price.
Frequently Asked Questions
How much does it cost to set up a PREC in Ontario?
The fixed Ontario government fee to incorporate a business corporation online is $300. The total PREC setup cost can be higher if you choose a named corporation requiring a Nuans® report or use a service provider to prepare the PREC-specific share structure, corporate records, minute book, and other setup documents.
Is the $300 incorporation fee the same for every PREC?
Yes. Ontario does not charge a separate incorporation fee specifically for a PREC. A PREC is incorporated under Ontario’s Business Corporations Act, so the standard online business corporation incorporation fee applies.
Do I need a lawyer to set up a PREC?
Not necessarily. A PREC can be incorporated through the Ontario Business Registry or with assistance from a corporate filing service. Accountants can advise on tax and financial considerations, while legal advice may be appropriate for agreements, share arrangements, or circumstances requiring legal interpretation.
Does a PREC need a Nuans® report?
A named Ontario corporation requires an Ontario-biased or weighted Nuans® name search report. A numbered Ontario corporation does not require a Nuans® report for its corporate name.
Is a numbered PREC cheaper than a named PREC?
It can be slightly cheaper to establish because a numbered corporation does not require a Nuans® name search report. The PREC-specific corporate structure and compliance requirements still apply.
Why does PREC-specific incorporation cost more than DIY incorporation?
DIY incorporation primarily involves paying the government fee and submitting the incorporation filing yourself. A PREC-specific service may also prepare the appropriate share structure, bylaws, resolutions, share certificates, minute book, and other documents needed to properly establish and organize the corporation.
What is the highest ongoing cost of a PREC?
For many PREC owners, accounting and tax preparation are likely to cost more than Ontario’s corporate registry filings. A PREC generally requires its own T2 corporate tax return, and bookkeeping, tax planning, and corporate record maintenance can add additional costs.
Does Ontario charge a fee for a PREC annual return?
The current Ontario government fee for filing a corporate annual return online is $0. The corporation still needs to complete the required filing even though there is no government filing fee.
Ready to Set Up Your PREC?
The government incorporation fee is only one part of setting up a Personal Real Estate Corporation. The corporation also needs to be structured appropriately for Ontario’s PREC requirements. MD Legals prepares Personal Real Estate Corporation incorporation documents for Ontario real estate professionals, including the corporate structure and organizational documents needed to establish the corporation.
This guide provides general information only and is not a substitute for legal, accounting, or tax advice. PREC requirements, government fees, and tax rules can change, and individual financial circumstances differ.
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