Back in October 2021, Ontario launched a new requirement called the Ontario Annual Return as part of updating their business registration system.
The filing is completely separate from any filing obligations business owners may have with the Canada Revenue Agency (CRA). All types of Ontario businesses must file this annual return.
This includes regular businesses, professional companies, non-profit organizations, and charities. The law requires this under several different acts that govern corporations in Ontario.
The purpose of an Ontario Annual Return is to notify the province that they have the most up-to-date information about all registered businesses operating within Ontario.
At Canada Incorporation Agency, we’ve helped thousands of businesses across Canada understand and complete their Annual Returns filings.
We know the stress this requirement can cause, which is why we’ve created this comprehensive guide to walk you through everything you need to know about the Annual Return process
Email: info@incorporationagency.ca
Phone: +1 647.945.8893
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So, What Exactly Is the Ontario Annual Return?
An Ontario Annual Return is a legal filing requirement that must be completed by every corporation incorporated in the province of Ontario to the government. The Corporations Information Act requires each corporation to deliver an Annual Returns within six months from the end date of the corporation’s fiscal year.
Your first Annual Return validates all the essential information for your corporation, such as registered office address, directors, officers, main business activity, and designated email address. It’s not paperwork; it’s how the government is able to have accurate records for corporations in operation in Ontario.
Every Corporation Is Required to File an Ontario Annual Return, Which Includes:
- Active companies engaged in usual business activities.
- Dormant or inactive corporations that haven’t closed down.
- Professional Corporations.
- Holding companies that are inactive.
- Non-profit corporations registered under Ontario’s laws.
Even if your corporation has no revenue or engaged in business activities in the fiscal year, you must file your Annual Returns regardless.
When is the Ontario Annual Returns Filing Deadline?
Corporations need to file their Annual Return within six months from the end date of their fiscal year, not from the date they were incorporated.
As you generally can control your fiscal year-end upon incorporation (which is not necessarily December 31st), the due date also adjusts. For example, if your fiscal year ends April 31st, you must file your Annual Return by August 30th.
Knowing The Fiscal Year-End vs. The Incorporation Date
This can be confusing for business owners. Your date of incorporation is the date that your corporation was legally created, and your fiscal year-end is the date that your corporation’s accounting year ends.
The deadline for the Ontario Annual Return is determined from your fiscal year-end, not your year of incorporation.
In other words, if you had incorporated on February 15 but had April 31st as the fiscal year-end, your annual return for Ontario, would be due by the 30th of August.
What Corporate Information Is Required for the Ontario Annual Return?
The required information provided for your Annual Returns must be precise! So whether your corporation address just changes, directors changes, and more recently, you must make sure it’s all updated within your Annual Return.
Here’s what you’ll need to provide:
- Corporate name.
- Company Key (necessary for businesses incorporated after October 19th, 2021, or those who have previously obtained one).
Filing year. - NAICS industry code.
- Business activity description.
- Current registered office address (update if changed).
- Current director and officer details (update if changed).
- Contact email address.
- Name of the person submitting the return.
- Role of the submitting person (such as a current director, officer, or other authorized individual).
To avoid future issues or conflicts, always double check before sending off your Ontario annual return and submitting it!
Step-by-Step Filing Process
Step 1: Accessing the Ontario Business Registry
Corporations must file their Ontario Annual Return directly through the Ontario Business Registry. This is the official online portal where you’ll complete and submit your Annual Returns.
To access the registry, you’ll need to create an account using your corporation’s Ontario Corporation Number and other identifying information. We always advise clients to keep their corporation’s founding documents easily accessible.
Step 2: Gathering Required Information
Take time to collect all information required to prepare your Ontario Annual Return filing prior to filing. This ensures that you complete your filing efficiently and reduces the chances of mistakes being made.
The essential info for your Annual Return is current registered office address, list of directors, current officers with positions, business description for the primary activity, and your corporation email address.
Step 3: Completing the Online Form
The Ontario Annual Return form is designed to be user-friendly, but we recommend taking your time to ensure accuracy. Each section requires specific information, and errors can delay processing or result in rejection.
Begin with your corporation’s fundamental details, and proceed with each section step by step. You will be led through the update of director details, verification of your registered office address, a description of your main business activities, and contact details.
Step 4: Reviewing and Submitting
Carefully check through all information for accuracy prior to filing your Ontario Annual Return. Submissions that are later corrected can be cumbersome and involve subsequent filings. You’ll be assigned a confirmation number when you submit, so you’ll want to save a copy of your completed Annual Return for your corporation’s files.
Important Information and Documentation
Corporate Information Requirements
Your Annual Return for Ontario must provide detailed corporate information that is a fair representation of your corporation’s status. This includes your corporation’s name as stated in your Articles of Incorporation, your Ontario Corporation Number, and full registered office address.
Director and Officer Information
Your Ontario Annual Return confirms and updates basic information about the corporation, including directors and officers.
For each director, you must provide their full legal name, complete residential address, and confirmation of their current status.
Officer information is equally important for your Annual Return. You must list all current officers, their positions within the corporation, and their business addresses.
Common officer positions include President, Secretary, and Treasurer.
Business Activity Description & Details
Your corporation’s main business activities must be described clearly on your Ontario Annual Return.
This description must be specific in that it clearly states what your business does, but general enough to cover your different activities.
What's the difference between an Ontario Annual Return and Initial return?
An Annual Return is a provincial compliance filing that reports basic corporate details with the government of Ontario, on a yearly basis with the original return being provided once at the inception stage of the corporation. This merely informs and supplies the government with information at the formative stages of your corporation.
The Initial Return is to be filed within a span of 60 days from the time when the corporation is incorporated in order to enter the basic information of the corporation in the province.
Potential Penalties for Late or Non-Filing of Ontario Annual Return
Consequences of Late Filing
Delays in filing your Ontario Annual Return cause automatic increasing penalties, so timely filing is critical to keeping your corporation in good standing.
At Canada Incorporation Agency, we’ve had several clients who found that the dissolution proceedings against their corporation was due to them missing the deadline for filing the Annual Return.
We make sure to retain critical dates like your submissions, fiscal year details so that you can just check with us for your next critical dates in order to remind you to attend to your Annual Return and others.
Financial Penalties and Fines
Penalties for filing late for your Ontario Annual Return take effect as soon as the deadline has expired and continue to add up until you file. These can add up fast, particularly if several years of filings are in arrears.
In addition to monetary sanctions, late filing of the Annual Return can also impact your corporation’s business relations and rating. Most suppliers, lenders, and partners verify corporate compliance status.
What Is the Most Severe Consequence? Risk of Corporate Dissolution
The biggest penalty for failure to file your Ontario Annual Return is being involuntarily dissolved as a corporation. Upon being involuntarily dissolved, the corporation is deprived of corporate status, and the implications can be disastrous for business continuity, contracts, and protection for assets.
Navigating the Ontario Business Registry Portal
The Ontario Business Registry, which is the filing system for your Ontario Annual Return as well as for other corporation compliance obligations, is a user-friendly system, but it is best that first-time filers become familiar with the system before they even initiate a filing for their Annual Return.
Simply create your Ontario Business Registry account early in anticipation of your Annual Return deadline. It allows you time to fix account setup problems and ensures you can file without disruption.
Top 3 Common Mistakes to Avoid During Ontario Annual Return Filings
Information Accuracy Errors
One of the biggest pitfalls that we commonly observe with the filing of Annual Returns in Ontario is with inaccurate or outdated information. Inaccuracies as simple as misspelt names, postal codes, or addresses can lead to rejections and filing delays.
We recommend that clients double-check every item in their Ontario Annual Return before filing. Be extra careful with names, addresses, and dates, as they are the leading cause of filing mistakes.
Deadline Confusions
Numerous business owners get confused with other filing due dates, specifically corporate filing due dates, for their Annual Return. Your deadline for filing your Annual Return is determined by your fiscal year-end, not by your incorporation anniversary or due dates for filing taxes.
You will be required to both file your corporate taxes with the CRA, as well as file an Annual Return. These are two different requirements with different deadlines
Director and Officer Updates
Failure to update director and officer information is a common Annual Return error that can cause serious repercussions. If directors resign, are appointed, or move, this must be reflected in your Annual Return filing.
Professional Filing Services vs. DIY
Benefits of Professional Assistance For Ontario Annual Returns
Although you can file your Ontario annual return on your own, numerous business owners value professional help, particularly with intricate corporate frameworks.
Professional services can ensure accuracy, timeliness, and compliance with every requirement.
Through Canada Incorporation Agency, we’ve guided numerous clients through the requirements for filing their Ontario Annual Returns successfully. With experience, we can easily spot possible problems, provide correct information, and make efficient filings.
Choosing the Right Service Provider
If you opt for professional help with your Ontario Annual Return, select a provider that specializes in Ontario corporate compliance. Opt for those that comprehend the intricacies of the filing requirements.
Canada Incorporation Agency established itself on a foundation of timely, reputable, and accurate annual return services in Ontario. Every filing is given the respect it is due, and we realize the responsibility at stake.
Meeting Ongoing Compliance Requirements
One specific part of corporate compliance in Ontario is filing your Ontario Annual Return. Successful companies implement thorough compliance systems that cover all the ongoing compliance requirements, such as tax returns, corporate bylaw resolutions, and maintaining a minute book.
We collaborate with you to create comprehensive compliance programs that leave nothing to chance. Your Annual Return is a vital annual event, but it is just one part of a comprehensive compliance framework.
Frequently Asked Questions About The Ontario Annual Return
Does This Eliminate the Need for Corporate Tax Filing with the Canada Revenue Agency?
No. Prior to 2021, corporations updated their records with the federal government when filing corporate tax returns with the CRA. However, many fell behind on provincial record-keeping. In 2021, Ontario introduced the Annual Return requirement to keep the Ontario Business Registry current.
You must now file both your Ontario Annual Return and your corporate tax return with the CRA, they serve different purposes and both are required.
What is the NAICs Code in Canada?
Ontario adopted the North American Industry Classification System (NAICS) as of October 19, 2021, in place of the prior free-text activity descriptions. NAICS offers standardized six-digit codes for uniform industry classification in Canada, the U.S., and Mexico.
The system is straightforward: select the listed description that best represents your business activity and click to make the selection. If additional clarification is required, the system can email you for further specific options.
After your industry is determined, you’ll be given a six-digit NAICS code. In subsequent filings, you can simply provide this number as required.
What happens if I miss my Ontario Annual Return deadline?
Missing your Annual Return deadline triggers automatic penalties and late fees that continue accumulating until you file.
Can I file my Ontario Annual Return before my fiscal year-end?
No, you cannot file your Annual Return before your fiscal year-end date because the filing must reflect your corporation’s status as of the fiscal year-end. The earliest you can file is after your fiscal year-end date, and you have up to six months from that date to complete your filing.
Do I need to file an Ontario Annual Return if my corporation is dormant?
Yes, all Ontario corporations must file an Annual Return regardless of their activity level, including dormant or inactive corporations
Can I change my registered office address when filing my Ontario Annual Return?
Yes, you can update your registered office address as part of your Annual Return filing if your corporation has moved its registered office.
Conclusion
The Ontario Annual Return may seem like a simple task, but its importance cannot be overstated. This annual filing maintains your corporation’s legal status, keeps public records current, and ensures your business remains compliant with Ontario corporate law. Failure to file your Annual Return can result in penalties, dissolution, and serious complications for your business operations.
At Canada Incorporation Agency, we’re committed to helping Canadian businesses navigate the complexities of corporate compliance, including Ontario Annual Return requirements. Our experience with thousands of filings has taught us that success lies in understanding the requirements, maintaining accurate records, and filing promptly and accurately.
Don’t let compliance obligations become a source of stress or risk for your business.
