Starting a church in Canada involves more than gathering a congregation and holding services. To operate legally and access benefits such as tax exemptions and issuing tax receipts to donors, your church needs proper registration. But how do you register a church in Canada, and is it considered a charity? This guide will walk you through the steps to establish and register a church in compliance with Canadian laws.
Churches in Canada generally fall under the category of nonprofit organizations. Many churches also apply for charitable status with the Canada Revenue Agency (CRA) to receive tax-exempt benefits and issue donation receipts. However, registering a church requires meeting specific legal requirements.
A church can be incorporated as a nonprofit religious corporation under the Ontario Not-for-Profit Corporations Act (ONCA) for those in Ontario or the Canada Not-for-Profit Corporations Act (CNCA) for those operating across multiple provinces. This incorporation provides the church with legal recognition, limited liability protection, and a formal governance structure.
Before registering, it’s essential to determine:
Creating a clear structure helps ensure your church operates effectively and meets incorporation requirements.
Your church’s name must be unique and comply with government regulations. In Canada:
If your name is available, you can reserve it before proceeding with incorporation.
Incorporating your church as a nonprofit provides legal recognition and limited liability protection. You have two options:
If your church primarily operates in Ontario, you can incorporate under ONCA by filing:
For other provinces, similar processes exist under respective provincial nonprofit legislation.
If your church will operate across multiple provinces, federal incorporation under CNCA may be better. You’ll need to file:
Once incorporated, your church exists as a legal entity.
After incorporation, your church needs a Business Number (BN) from the CRA for tax-related matters. You can apply online through the CRA’s Business Registration system.
Not all churches automatically qualify as charities. However, obtaining charitable status allows the church to issue donation receipts and receive tax-exempt status. To apply:
The CRA reviews applications to ensure the organization meets the requirements for religious charities.
Once approved as a charity, your church can apply for:
Maintaining tax-exempt status requires compliance with CRA regulations, such as annual reporting and proper financial management.
Churches in Canada are generally nonprofits, but not all qualify as registered charities. A nonprofit church can operate legally but won’t receive charitable tax benefits unless it registers with the CRA. To be recognized as a charity, a church must prove its activities advance religion and benefit the public.
The costs vary depending on the registration process:
While DIY registration is possible, hiring an experienced charity lawyer ensures compliance, provides for ideal membership structure, and increases approval chances.
Planning ahead helps avoid delays and ensures smooth registration.
Registering a church as a nonprofit provides legal protection and structure, while obtaining charitable status offers tax benefits and donation advantages. If your church relies on donations, charitable registration is highly recommended.
For expert guidance on church registration in Canada, consider consulting a charity lawyer to ensure compliance with all legal requirements. Have more questions about registering your Canadian church? Call our charity lawyers at 416-488-5888, email us at ask@charitylawgroup.ca, or schedule a free consultation at the link above.