What is an Ontario Annual Return?
Originally Published on Feb 28, 2023
The Ontario Annual Return was introduced in October of 2021 along with the updated Ontario Business Registry system for the Province of Ontario. Prior to May of 2021, updated corporate information was provided to the CRA as part of the yearly corporate tax submission. Let’s dive into what exactly an Ontario Annual Return entails and why it’s essential for your business.
Ontario Annual Returns are required for all profit, professional, not-for-profit corporations and charitable organizations, as specified by the Corporations Act, the Ontario Business Corporations Act, and the Not-For-Profit Corporations Act.
The Ontario Annual Return is a mandatory document filing that all Ontario corporations must file to update their corporate details with the province. Every corporation must submit this return filing annually, even if no changes have occurred since the last submission.
When is the Ontario Annual Return Due?
The Annual Return is required within six months of the corporation’s fiscal year end. This date is often determined by either the directors of the corporation or by the tax specialist overseeing the corporate tax filings.
As an example, if the corporation has determined its year end to be March 31st, the Annual Return is required by September 30th of the same year. The annual return is not connected to the date of incorporation at all. If you are not sure of your fiscal year end date, the Canada Revenue Agency should be able to assist you if they have a date on record.
What Corporate Information is Required For the Ontario Annual Return?
When completing the Ontario Annual Return, you’ll need to ensure accuracy when providing information such as the corporation name, address, and details for directors and officers. It’s important to review and update this information regularly to reflect any changes within your corporation.
The information required is as follows:
- Name of the Corporation
- Company Key (required if incorporated after October 19th 2021 or if you’ve previously requested one)
- Year of filing
- NAICS Code
- Description of business activity
- Updated registered office address (if applicable)
- Updated corporate director and officer information (if applicable)
- Email address
- Name of person authorizing submission
- Authorizing person’s position (eg. current director/officer or other another individual who is authorized to make the filing)
Why is the Annual Return Filing Mandatory?
Filing the Ontario Annual Return is not only a mandatory legal requirement, but also a way to maintain the active status of your corporation. Failure to submit this annual filing can lead to penalties, suspension of your corporation, or even its dissolution. By fulfilling this obligation on time, you demonstrate compliance with regulatory standards and uphold the accuracy of your corporate information. It is important to keep the records with the government up to date and accurate for a corporation.
Will I Be Notified to File the Annual Return Requirement?
The Province of Ontario does not maintain a record of a corporation’s fiscal year end, so there isn’t any support available for notifying or reminding you when the return is due to be filed.
Ontario Business Central, as an intermediary with the province of Ontario, also does not have access to the date your Annual Return is required, however if you choose to complete an Ontario Annual Return filing with us, we will maintain a record of the date of submission and provide an email notification when the Annual Return is due again. This support is provided as a free courtesy to any client who files an Annual Return with us.
Does This Replace the Corporate Tax Filing With Canada Revenue Agency?
No, prior to 2021, along with the corporate tax return submitted to the Canada Revenue Agency, you would also update the corporate records to include any changes that had happened since the previous tax season. This kept the tax records up to date with the federal government, however many corporations fell behind in maintaining their record keeping with the province.
In 2021, Ontario introduced the Annual Return requirement for all Ontario corporations in order to keep the information in the Ontario Business Registry up to date. You will need to file both an Ontario Annual Return, as well as your corporate taxes with the CRA.
Does the Annual Return Replace the Initial Notice?
The Initial Notice is due within 60 days from the Ontario incorporation date to confirm the details and update any changes to the address, directors or inclusion of officers to the corporate record. There is no change in the mandatory requirement to file the Initial Notice. The corporation risks a non-compliance status if not filed and may be canceled or dissolved by the province if the 60 day requirement is missed.
Does the Annual Return Replace the Need for a Notice of Change Filing?
The Ontario Notice of Change also known as the Form 1 or NOC is a separate filing from the Annual Return. The Notice of Change allows corporations to complete an update to their corporate record before their Annual Return is due.
If any corporate details need updating, you must file a Notice of Change to reflect that new information within 15 days of the change occurring. The Annual Return will still be required, even if you’ve previously updated the information with a Notice of Change.
What if the Corporation’s Home Jurisdiction is Outside of Ontario?
Corporations incorporated outside of Ontario do not need to file the Ontario Annual Return. This also applies to corporations with a home jurisdiction outside Ontario that have completed either a Form 2 Initial Notice (as a domestic foreign corporation) or have an Extra Provincial Licence (as a foreign corporation registered in Ontario). Only Ontario corporations need to file the Ontario Annual Return.
Is There One Place Where I Can File & Keep Track of All Change Filings?
Yes, Ontario Business Central offers easy access to update any of these corporate change records when required, all in one convenient place. We will also keep track of when you are required to complete the next Annual Return. Dealing with bills and obligations can be frustrating, so we strive to relieve you of the burden of managing your corporate record filings.
Ontario Business Central has been assisting those in the legal, accounting, entrepreneurial and start up communities for 30 years.
We assist firms and individuals to start, change, cancel and search any business in Ontario with the easiest online platform available. We also have the privilege of being an intermediary with the Province of Ontario. As an industry leader, you can depend on us to assist you with processing any filings you wish to do with the Province of Ontario. For any additional questions, we offer web chat and live phone support Monday To Friday 9 am to 5pm EST.
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Ontario Business Central Inc. is not a law firm and cannot provide a legal opinion or advice. This information is to assist you in understanding the requirements of registration within the chosen jurisdiction. It is always recommended, when you have legal or accounting questions that you speak to a qualified professional.
