Types of Corporations

Canadian-controlled private corporation (CCPC)

For your corporation to be considered a CCPC, it has to meet all of the following requirements at the end of the tax year:

• it is a private corporation;
• it is a corporation that is resident in Canada and was either incorporated in Canada or resident in Canada from June 18, 1971, to the end of the tax year;
• it is not controlled directly or indirectly by one or more non-resident persons;
• it is not controlled directly or indirectly by one or more public corporations (other than a prescribed venture capital corporation, as defined in Regulation 6700 of the the Income Tax Regulations);
• it is not controlled by a Canadian resident corporation that lists its shares on a prescribed stock exchange outside of Canada;
• it is not controlled directly or indirectly by any combination of persons described in the three preceding conditions;
• if all of its shares that are owned by a non-resident person, by a public corporation (other than a prescribed venture capital corporation), or by a corporation with a class of shares listed on a prescribed stock exchange were owned by one person, that person would not own sufficient shares to control the corporation; and
• no class of its shares of capital stock is listed on a prescribed stock exchange.

Other private corporation

To be considered an other private corporation, the corporation has to meet all of the following requirements at the end of the tax year:

• it is resident in Canada;
• it is not a public corporation;
• it is not controlled by one or more public corporations (other than a prescribed venture capital corporation, as defined in Regulation 6700 of the Income Tax Regulations);
• it is not controlled by one or more prescribed federal Crown corporations (as defined in Regulation 7100); and
• it is not controlled by any combination of corporations described in the two previous conditions.

Public corporation

Your corporation is a public corporation if it is resident in Canada and meets either of the following requirements at the end of the tax year:

• it has a class of shares listed on a prescribed Canadian stock exchange; or
• it has elected, or the Minister of National Revenue has designated it, to be a public corporation and the corporation has complied with prescribed conditions, under Regulation 4800(1) of the Income Tax Regulations, on the number of its shareholders, the dispersing of the ownership of its shares, the public trading of its shares, and the size of the corporation.

If a public corporation has complied with certain prescribed conditions under Regulation 4800(2), it can elect, or the Minister of National Revenue can designate it, not to be a public corporation.

Corporation controlled by a public corporation

If your corporation is a Canadian subsidiary of a public corporation, it does not qualify as a public corporation for the purpose of determining the type of corporation when completing your T2 Corporation Income Tax Return.

This is a corporation which is not a:

• Canadian-controlled private corporation (CCPC);
• Other private corporation;
• Public corporation; or
• Corporation controlled by a public corporation.

Examples include credit unions, cooperative corporations, general insurers and Crown corporations.