The Launch of ONCA and the Ontario Business Registry
The launch of ONCA was closely tied to the introduction of the Ontario Business Registry (OBR), which also became operational on October 19, 2021. This registry significantly enhances the efficiency of transactions for non-profits, allowing qualified professionals to conduct over 90 transactions online, 24/7. This shift from in-person and paper-based filing to digital processes is expected to save non-profits time and resources.
What is ONCA?
The Ontario Not-for-Profit Corporations Act (ONCA) provides a modern legal framework for not-for-profit organizations in Ontario, including charities. This legislation aims to address the needs of today’s not-for-profit sector by simplifying and clarifying processes related to incorporation, governance, and dissolution of non-profit corporations.
Organizations previously governed by the Ontario Corporations Act were granted a three-year transition period to adapt their governing documents to comply with ONCA. This transition was an opportunity for non-profits to embrace flexibility and modern governance practices.
By taking proactive steps now, your organization can maximize the benefits offered by ONCA and position itself for future success.
Notable Features of ONCA
Since its implementation, ONCA has introduced several important changes. The most notable of which are:
Incorporation Documents: Letters patent from the previous Corporations Act have been replaced with articles of incorporation under ONCA.
Governance Improvements: The incorporation process has been streamlined, and certain policies have been modernized.
Annual Assurance Requirements: Have been updated and include the option for organizations to conduct a review engagement instead of a full audit.
A key feature of ONCA is the ability for eligible non-profit corporations to choose between a review engagement and an audit. Each year, during their annual meeting, organizations must decide, via an ordinary resolution, whether to appoint an auditor or someone to perform a review engagement. The requirement for a review versus an audit depends on:
- Annual Revenue: The revenue generated in a financial year.
- Public Benefit Corporation Status: Whether the organization serves a public benefit.
Additional Resources
For more information on ONCA, the Ontario Business Registry, and transition considerations, please refer to the following resources:
