Physician Incorporation in Quebec: CMQ Rules and Steps (2026)
A physician can practise medicine in Quebec through a corporation, subject to three main conditions: all of the corporation's voting rights must be held by one or more physicians (or by entities controlled by physicians, in the cases provided for in the regulation), the corporation must carry compliant liability insurance, and the physician must obtain authorization from the Collège des médecins du Québec — the CMQ — ($500) before practising through the corporation.
This guide summarizes the rules of the Regulation respecting the practice of the medical profession within a partnership or a company (Règlement sur l'exercice de la profession médicale en société), the steps in the right order — incorporate the company, file with the Collège, then the RAMQ — the tax rules specific to incorporated physicians, and the most common mistakes, with 2026 figures.
Each order has its own rules for practising through a corporation. See our guides for the incorporated nurse and for dentists, pharmacists, psychologists and optometrists.
Does a physician have the right to incorporate? The exact CMQ conditions
Yes — and it is the Regulation respecting the practice of the medical profession within a partnership or a company that governs who may own the corporation: all of the voting rights must belong to one or more physicians (or to entities controlled by physicians, in the cases provided for in the regulation), the board of directors must be made up exclusively of physicians, and the corporation must maintain compliant professional liability coverage. The physician must be authorized by the Collège before practising within the corporation.
| Requirement | What the regulation provides |
|---|---|
| Voting rights | 100% of the voting rights attached to the shares held by one or more physicians (or by entities themselves controlled by physicians, in the cases provided for in the regulation) |
| Non-voting shares | May generally be held by the shareholder physician's spouse and relatives by blood or marriage (parents et alliés), or entities they control |
| Board of directors | Directors: physicians only |
| Company name | Compliant ("inc.", "ltée" or "s.a."), not misleading and registered with the REQ |
| Liability insurance | Coverage of at least $5 million per claim and $10 million for all claims per one-year coverage period; for CMPA members, eligibility for its protection generally satisfies this requirement |
| CMQ authorization | Declaration through the secure section of the Collège's website — $500 per physician, then an annual update ($120 under the fee schedule in effect) |
These conditions must be reflected in the articles of incorporation and in the actual shareholding — not just on paper. A corporation in which a non-physician holds voting shares does not comply with the regulation. If you have any doubt about a family structure or a trust, consult the Collège and a legal advisor before incorporating.
Why do physicians incorporate?
Physicians incorporate mainly to defer tax: income left inside the corporation is generally taxed at a rate of about 20%, compared with a personal marginal rate that can exceed 53%. That gap frees up cash to invest or save within the corporation. The real benefit, however, depends on your ability to leave money in it.
Tax deferral, the main driver
If you spend every dollar you earn, incorporation generally does little for you on the tax side. If, on the other hand, your practice income comfortably exceeds your cost of living, every dollar kept in the corporation is taxed at the corporate rate rather than your personal rate — and the difference can be reinvested and grow sheltered from personal tax until you pay yourself a salary or dividends. It is a deferral, not a permanent saving. In Quebec, however, access to the reduced rate is subject to the 5,500-hour rule, detailed in the tax section below.
What incorporation does not change
The corporation does not erase your professional liability: in the event of professional fault, the physician remains personally liable to the patient, and all ethical obligations remain intact. Incorporation also adds recurring costs — corporate accounting, the annual update with the Collège, annual rights payable to the Registrar — which belong on the other side of the scale.
How to incorporate as a physician, step by step: corporation, Collège, then RAMQ
The order matters: first incorporate the corporation and obtain its NEQ, then file the authorization declaration with the CMQ ($500, processed in about 14 business days), and finally have your administrative account adjusted with the RAMQ so that payments flow to the corporation. Filing with the Collège before the corporation exists is simply impossible.
Step 1 — Incorporate the corporation with the Registrar
The corporation is created with the Quebec Registrar of Enterprises: articles of incorporation, share capital structure, directors, initial declaration and NEQ. The 2026 government fees are $397 ($595.50 for priority processing), plus $27 if you reserve a name. This step — creating a complete Quebec corporation — is what our $497 all-in incorporation service covers, government fees included.
Step 2 — Verify your liability insurance
Before filing with the Collège, the corporation must be covered: for members of the CMPA (Canadian Medical Protective Association), eligibility for its protection generally satisfies the requirement for practising within a corporation; non-members must obtain compliant private coverage and provide proof of it. Confirm your situation with the CMPA or your insurer.
Step 3 — File the declaration with the CMQ
The physician completes the online declaration in the secure section of the Collège's website (under the practice-within-an-organization tab), attaches the corporation's certificate of existence (attestation d'existence) and pays the $500 fee. The Collège generally processes a complete file in about 14 business days and issues an authorization letter. You must not practise through the corporation before this authorization is granted.
Step 4 — Connect the corporation with the RAMQ
Once the authorization is granted, the Collège forwards the information to the RAMQ. The physician then has their administrative account (compte administratif) adjusted with the Régie so that remuneration is paid to the corporation's account. The rates under the agreements do not change: it is the payment routing that changes, not the amounts.
Step 5 — Stay compliant every year
Each year: an update of the corporation's information with the Collège ($120 under the fee schedule in effect, billed with your annual declaration), the annual updating declaration (déclaration de mise à jour annuelle) with the REQ along with the $106 annual rights, plus the corporation's tax return prepared by your accountant.
Step 1, prepared and filed for $497 all-in
Incorp-Québec prepares your articles of incorporation and your initial declaration, files everything with the Registrar and pays the $397 government fee. The CMQ-specific requirements — shareholding, insurance, authorization — remain your professional responsibility: have your structure validated by your order and your accountant before practising within the corporation.
How much does physician incorporation cost in 2026?
Plan on $897 to $1,200 for the first year in unavoidable fees: $397 to incorporate with the Registrar, $500 for the CMQ authorization, plus document preparation ($497 all-in with Incorp-Québec, government fees included) or a professional's fees. Recurring annual fees then follow.
| Item (2026) | Amount |
|---|---|
| Certificate of incorporation (Quebec inc.) | $397 ($595.50 priority) — included in our packages |
| Name reservation (optional) | $27 |
| Authorization to practise within a company — CMQ | $500 per physician (payable to the Collège) |
| File preparation — Incorp-Québec | $497 all-in (Essential) or $697 (Complete: official name, GST/QST, source deductions, express) |
| Annual update — CMQ (recurring) | $120 under the fee schedule in effect |
| Annual rights — REQ (recurring) | $106 per year |
For the full breakdown of government fees and a comparison of the methods (do it yourself, online service, lawyer), see our guide to the cost of incorporating in Quebec in 2026. For a family shareholding structure, a trust or a shareholder agreement, budget additional legal and tax fees, depending on complexity.
RAMQ billing: what changes and what does not?
After incorporation, the RAMQ can pay the physician's remuneration to the corporation's account, once the administrative account has been adjusted. The rates set out in the agreements (FMOQ, FMSQ) remain identical: incorporation changes neither fee-for-service billing, nor lump-sum payments, nor your obligations to the Régie.
In concrete terms: the physician remains the professional registered with the RAMQ and remains responsible for their own billing; the corporation is the vehicle that collects the income. Certain amounts of a personal nature may continue to be paid to your personal account under the Régie's rules. Your billing agency or your accountant can confirm the exact mechanics that apply to your mode of remuneration.
What taxes once incorporated? Salary, dividends and the 5,500-hour rule
Once incorporated, a physician draws remuneration as salary, as dividends, or as a mix of both. Salary creates RRSP contribution room and contributes to the QPP; dividends avoid certain payroll charges but do not create those entitlements. The right mix depends entirely on your situation — it is a decision to revisit each year with your accountant.
Two general reference points, and no more:
- Income splitting has limits. Even though the CMQ regulation allows a spouse or close relatives to hold non-voting shares, the federal tax on split income (TOSI) rules strictly limit dividends paid to family members. Do not build your structure on that premise without tax advice.
- Tax deferral assumes money stays in the corporation. If all the remuneration comes out every year, the net tax advantage is generally thin once the recurring costs are counted. For the next step — where to house the surpluses that accumulate — see our guide Setting up a holding (management) company in Quebec.
The nuance to know: Quebec's SBD and the 5,500-hour rule
Federally, the reduced small business rate (about 9% on the first $500,000 of eligible income) generally remains available to physician corporations. Quebec is different: the small business deduction (SBD, déduction pour petite entreprise) generally requires that at least 5,500 paid hours be worked in the corporation during the fiscal year (with a phase-out between 5,000 and 5,500 hours). A physician incorporated alone, with no employees, generally does not reach that threshold: the corporation then pays Quebec's general rate rather than the reduced rate. Since 2016, federal rules have also limited the multiplication of the SBD among the corporations of physicians who are partners in the same partnership. Incorporation often remains worthwhile — but the advantage is smaller than many assume, so have your accountant run the numbers for your situation.
What are the common mistakes physicians make when incorporating?
The costliest mistakes: filing with the Collège before the corporation exists, articles whose shareholding does not comply with the regulation, forgetting the RAMQ administrative account, and incorporating prematurely when income does not yet justify the recurring costs. Every one of them is avoidable with the right order of execution.
- Doing the steps in the wrong order. The CMQ declaration requires an already-incorporated corporation, with its NEQ and its certificate of existence. Start with the incorporation.
- Non-compliant articles. Share classes that allow a non-physician to hold voting rights, a non-physician director on the board: the structure must comply with the regulation from day one — and at all times afterward.
- Practising within the corporation before authorization. The Collège's authorization comes before practising through the corporation, not the other way around.
- Forgetting the RAMQ. Without the administrative account adjustment, payments keep landing in your personal account — an accounting and tax headache to untangle later.
- Neglecting the annual obligations. The update with the Collège, the annual updating declaration and $106 annual rights with the REQ: repeated omissions can lead to penalties, or even the corporation being struck off the register.
- Incorporating too early. Given a corporation's recurring accounting costs, incorporation generally becomes worthwhile when you consistently leave significant amounts in the corporation — a threshold to have calculated, not guessed: our guide When should you incorporate in Quebec? shows the mechanism.
FAQ — Physician incorporation in Quebec
Is a physician allowed to incorporate in Quebec?
Yes. Since the Regulation respecting the practice of the medical profession within a partnership or a company came into force in 2007, a physician may practise through a corporation or a limited liability partnership (S.E.N.C.R.L.), provided the regulation's requirements are met and the physician obtains authorization from the Collège des médecins du Québec before practising within the entity.
Who can hold shares in a physician's corporation?
All of the voting rights must be held by one or more physicians (or by entities controlled by physicians, in the cases provided for in the regulation). Non-voting shares may generally be held by the shareholder physician's spouse and relatives by blood or marriage. The directors must be physicians.
How much does it cost for a physician to incorporate in 2026?
In unavoidable fees: $397 to incorporate with the Registrar and $500 for the CMQ authorization. With file preparation by Incorp-Québec ($497 all-in, government fees included), the total generally comes to around $997 for the first year, before accounting fees and, where applicable, legal fees.
At what income level does incorporation become worthwhile for a physician?
There is no universal threshold. Incorporation generally becomes relevant when your practice income consistently exceeds your personal needs, so that significant amounts can stay in the corporation and benefit from the tax deferral. It is a calculation to run with your accountant, factoring in the recurring costs.
Can the RAMQ pay my billings directly to my corporation?
Yes, generally. Once the Collège's authorization is granted and the administrative account is adjusted with the RAMQ, remuneration is paid to the corporation's account. The rates under the agreements do not change; the physician remains personally responsible for their billing and their professional obligations.
Does my medical corporation qualify for the reduced small business rate?
Federally, generally yes, on the first tranche of eligible income. In Quebec, the SBD generally requires 5,500 paid hours per fiscal year: a physician incorporated alone, with no employees, generally does not qualify and pays Quebec's general rate. Your accountant can quantify the net effect in your situation.
Does incorporating protect a physician from lawsuits?
Not for professional liability: in the event of professional fault, the physician remains personally liable to the patient, corporation or not. The corporation may provide a separation of assets for other debts (a lease or suppliers, for example), depending on the situation. The liability insurance requirements remain fully in force.
Can I choose a numbered company as a physician?
Yes, a numbered company is permitted, but the Collège specifies that activities must then be carried on under a name made up of letters, compliant and not misleading — in practice, another name declared with the REQ. If in doubt about a name, check with the Collège before incorporating.
Ready to incorporate your corporation?
A physician's incorporation plays out in two stages: a properly incorporated Quebec corporation first, then the steps specific to the Collège and the RAMQ. We handle the first stage — preparing the articles, the initial declaration, filing with the Registrar, the $397 government fee included — for $497 all-in.
Your corporation incorporated for $497, government fees included
A form of about 20 minutes, documents prepared and verified, filed directly with the Registrar of Enterprises. The CMQ requirements — the $500 authorization, insurance, compliant shareholding — remain your responsibility: validate your structure with your order and your accountant.