Professional Corporations

Under the Chartered Accountants Act, 2008 a Chartered Accountant cannot provide his or her services by or through a corporation unless it is a professional corporation registered and licensed with the Institute of Chartered Accountants of Newfoundland and Labrador (ICANL).

For the purposes of the Act, providing services as a Chartered Accountant is consistent with providing services to the public as is outlined in Regulation 18 of the Chartered Accountants Regulations.

Under a professional corporation, Chartered Accountants have the same legal and ethical responsibilities to the clients as an unincorporated practioner or an unincorporated partner in a firm.  They remain personally liable for the duties and responsibilities they provide to clients and also remain accountable to the Institute for their conduct.

In addition to the initial registration, all professional corporations must be renewed annually.

Please be advised that ICANL cannot provide legal advice, interpret the law or conduct research.  It may be advisable to consult legal counsel in this process.

Insurance requirements for professional corporations

  • For an existing partnership or proprietorship, please contact your insurance provider. The professional liability insurance policy will need to be modified to show the name(s) of the professional corporation(s).
  • For a newly registered professional corporation, professional liability insurance must be obtained prior to the commencement of the practice of public accounting and proof of coverage must be provided within 2 months of the commencement date and annually thereafter.
  • New minimum insurance coverage amounts to be maintained by a professional corporation went into effect on January 1st, 2008, as per the Regulations to the By-laws.

Further information on professional corporations can be found as follows:

Professional Corporations – Board Policy approved June 2010
Professional Corporations – Application Guidelines
Professional Corporations – Application
Professional Corporations – Notice of Change Form

For further details please contact Keith Minaker, CA at  (709) 753-7566 or kminaker@icanl.ca