Corporation Attributes:

• The controlling shareholder is registered as a broker or salesperson
• The corporation has one single controlling shareholder (a broker or salesperson who owns ALL the equity shares, which are the voting shares)
• The controlling shareholder is the president and sole director and officer of the corporation
• PREC Must be incorporated under the Ontario Business Corporations Act
• Any non-equity shares (non-voting) must be owned directly or indirectly by the family members (spouse, children, parents, trust for minor child) of the controlling shareholder or by the controlling shareholder
• There is no written agreement or other arrangement that restricts or transfers the powers of the sole director and officer to manage or supervise the management of the business and affairs of the corporation
• The PREC cannot carry on a business of trading in real estate other than providing the services of its controlling shareholder to the brokerage.
• The PREC cannot carry on business as a brokerage or hold any money or property of a client in connection with trading in real estate.
• The PREC cannot receive remuneration from trading in real estate from any person other than the brokerage.
• The PREC should register for an HST account with CRA after it’s formed. The salesperson’s current HST account does not transfer.