Personal Real Estate Corporation (PREC) In Canada


MD Legals provides reliable Personal Real Estate Corporation (PREC) registration in Canada, helping licensed real estate professionals establish compliant corporate structures for their business activities.

A Personal Real Estate Corporation (PREC) in Canada is a corporation designed specifically for licensed real estate professionals, such as real estate agents and brokers, to earn commission income through a corporate entity. PREC structures are regulated at the provincial level and must comply with both corporate legislation and real estate regulatory requirements. MD Legals prepares and files incorporation documents accurately to help ensure compliance with applicable rules and regulations.

MD Legals supports real estate professionals across Canada with accurate filings to help ensure compliance with corporate and regulatory requirements.

Our team supports professionals at every stage, from initial incorporation to ongoing filings and compliance.

Incorporate Your PREC Today
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Register Your PREC in 3 Simple Steps

Payment & Filing

Provide Your Professional and Business Details

Submit your real estate licence information, proposed corporation name, and business details through our secure online form.

Payment & Filing

Document Preparation and Regulatory Filing

We prepare your Articles of Incorporation and submit your application to the appropriate provincial registry, ensuring alignment with real estate regulatory requirements.

Corporate Documents

Receive Your Incorporation Documents

Once approved, you will receive your official incorporation documents, allowing you to begin operating your PREC in accordance with applicable regulations.

Build Your Personal Real Estate Corporation In Canada

A Personal Real Estate Corporation (PREC) in Canada allows licensed real estate professionals to structure their income through a corporation while complying with provincial regulatory requirements.

When setting up a PREC in Canada, it is important to consider:

  • Meeting real estate regulatory requirements PRECs must comply with rules set by provincial real estate regulatory authorities, which may include restrictions on ownership and control.
  • Understanding ownership restrictions In most cases, only licensed real estate professionals can hold voting shares in a PREC, while non-voting shares may be subject to specific rules depending on the province.
  • Complying with naming requirements PREC names often require approval and must follow specific formats set by both corporate registries and real estate regulators.
  • Maintaining compliance and filings Ongoing obligations include corporate annual filings and compliance with real estate licensing requirements.
  • Registering for tax accounts PRECs must obtain a CRA Business Number and register for applicable tax programs based on their activities.

With proper preparation and accurate filings, real estate professionals can establish a compliant PREC to support their business operations.

Start Your PREC Registration Today

Frequently Asked Questions About Personal Real Estate Corporation (PREC) in Canada

1. What is a Personal Real Estate Corporation (PREC)?
A PREC is a corporation that allows licensed real estate professionals to earn commission income through a corporate entity, subject to provincial regulations.

2. Who can set up a PREC in Canada?
Only licensed real estate professionals, such as agents or brokers, can establish a PREC, subject to provincial regulatory requirements.

3. Can a PREC be incorporated federally?
PRECs are typically incorporated provincially because they must comply with provincial real estate regulatory bodies.

4. What are the benefits of a PREC?
Potential benefits may include tax planning opportunities and structured income management, depending on individual circumstances and professional advice.

5. Are there ownership restrictions for a PREC?
Yes. Ownership rules vary by province, but typically only licensed individuals can hold voting shares.

6. Do I need approval from a real estate regulator?
Yes. Most provinces require approval or registration with a real estate regulatory authority before or after incorporation.

7. Do I need a Nuans® report for a PREC?
A Nuans® report may be required depending on the province and whether a custom corporate name is used.

8. How long does it take to register a PREC?
Processing times vary by province, but incorporation can often be completed within a few business days once all requirements are met.

9. Do PRECs need to file annual returns?
Yes. PRECs must comply with corporate filing requirements and maintain good standing with both corporate and regulatory authorities.

10. Do I need to register for taxes after setting up a PREC?
Yes. PRECs must obtain a CRA Business Number and register for applicable tax accounts based on their activities.