Published 29 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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There is no private school licence to buy in Ontario. The Ministry of Education says it “does not regulate, licence, accredit or otherwise oversee the day-to-day operation of private schools.” What exists is a duty under section 16 of the Education Act to file a Notice of Intention to operate by 1 September every year, and a Board School Identification number (BSID) issued once the Ministry validates the school. When a private school changes ownership, the Ministry must be told immediately, asks for signed documents from the old and new owners, closes the old BSID and creates a new one. If the principal also changes, the Ministry decides whether a secondary school needs a new inspection, because authority to grant OSSD credits is given to the principal. No source publishes sale multiples.
What you are really buying
A private school in Ontario is a business or non-profit that the province does not fund. The Education Act defines one as an institution providing instruction between 9 a.m. and 4 p.m. on a school day to five or more pupils of compulsory school age or older in elementary or secondary subjects. When you buy one, you are buying:
- Enrolment and reputation. Families who have enrolled, and the waiting list, if any.
- Staff and the principal. The principal matters more than anyone, for reasons below.
- The Ministry standing. A validated school with a BSID, and for secondary schools, possibly an inspection record that lets the principal grant OSSD credits.
- Contracts and records. Enrolment contracts, tuition already collected, and student records.
- Premises. Usually a lease; sometimes the building. See my companion post on private school premises.
No licence, but a Notice of Intention every year
Section 16 of the Education Act says no private school may operate unless a Notice of Intention (NOI) has been submitted, and every private school must submit one annually on or before 1 September. Penalties are modest but real: up to $50 a day for every person concerned in the management of a school operating without one, up to $200 for failing to file a statistical return, and up to $500 for obstructing an inspection or making a false statement.
New schools request access to the Ontario School Information System (OnSIS), file the NOI there and pay a non-refundable $300 fee in the first year only. The Ministry then validates the school and issues a BSID. The Ministry’s manual is clear on advertising: a school may not say or imply that the Ministry has approved or accredited its program, or that it is licensed by or registered with the Ministry. If you see that language in the marketing of a school you are buying, fix it.
What happens when ownership changes
The Ministry’s Private Schools Policy and Procedures Manual has a section headed Change in School Ownership. It says:
- The change “must be communicated to the Ministry immediately.”
- The Private Schools and Attendance Unit asks for signed, written documentation from both the previous and the new owners.
- Once verified, a new BSID is created in OnSIS and the existing BSID is closed.
- If the principal also changes, the Regional Office decides whether the school needs a new inspection; if one is done and a report prepared, the school is charged an inspection fee.
- The school must create a new OnSIS account, and data submissions under the old BSID must be up to date.
Your agreement of purchase and sale should make the seller responsible for signing the Ministry documents and bringing OnSIS submissions current before closing.
Why the principal matters for OSSD credits
Secondary schools that want to grant credits toward the Ontario Secondary School Diploma must be inspected. The Ministry says “the authority to grant credits is given to the principal of the school and may only granted to students of that school.” The inspection relates to the standard of instruction; the Ministry does not inspect health equipment or safety and staffing practices.
For a buyer that means the principal is part of what you are buying. If the principal leaves at closing, a new inspection may be required, with a fee the manual describes as “significantly higher” than the $300 NOI fee (no dollar figure is published). Tie the principal into the deal with an employment agreement, and ask for every inspection report and any notice about credit-granting authority.
Teachers, staff and student records
Private school teachers do not have to be members of the Ontario College of Teachers, and principals do not need Ontario principal’s qualifications, according to the Ministry’s manual. That gives flexibility, but it also means credentials vary: ask for each teacher’s qualifications, contract and start date. Under section 9 of the Employment Standards Act, staff you keep carry their service with them unless you hire them more than 13 weeks after the earlier of their last day with the seller and the sale date.
Student records matter too. If a school’s BSID is removed, the manual requires Ontario Student Records in its possession to go to the Ministry or another school on request, with a complete transcript for each student. Confirm the records are complete and properly kept before you close; you inherit the problem otherwise.
Tuition, deposits and deal structure
Private schools typically collect deposits and tuition ahead of the school year. Those payments are obligations to deliver a year of teaching, so the agreement must say who holds them and how they are adjusted on closing. Time the closing around the school calendar and the 1 September NOI deadline.
In a share purchase you inherit the company, its contracts and its history; in an asset purchase you pick assets and liabilities but must re-paper enrolment contracts, staff and the lease. On sales tax, section 167 of the Excise Tax Act lets the parties elect so no GST/HST is payable on most of a sale of substantially all of a business’s assets, if the buyer is a registrant; whether tuition is taxable at all is a question for your accountant.
What a private school is worth, and the documents to demand
No Canadian primary source publishes sale multiples for private schools. Ask for:
| Document | Why |
|---|---|
| NOIs for the last three years and the BSID letter | Confirms the school is validated and current |
| Inspection reports and credit-granting status | Whether the principal can grant OSSD credits |
| Enrolment by grade for five years, with re-enrolment rates | Stability of revenue |
| Tuition schedule, deposits held and refund policy | Obligations you take on |
| Financial statements and tax returns | Margins and owner pay |
| Staff list with qualifications and contracts | Who must stay |
| Lease, zoning confirmation, fire drill records | Whether you can keep operating where you are |
Similar questions come up in buying a daycare, and buying a driving school covers another education business where the regulator licenses the operator.
Where I fit
I work with buyers and sellers of commercial property across Toronto and the GTA. On a school I start with the building: zoning, occupancy and the lease, because a school that cannot stay in its premises is worth far less. The Ministry, legal and tax work belongs with your lawyer and accountant. Book a call or phone 833-330-1925.
Frequently asked questions
Do private schools need a licence in Ontario?
No. The Ministry of Education says it does not regulate, licence, accredit or oversee the day-to-day operation of private schools. A private school must file a Notice of Intention to operate with the Ministry by 1 September every year, and is issued a BSID once validated.
What happens to the BSID when a private school is sold?
Under the Ministry’s policy, the change must be reported immediately with signed documents from old and new owners. The Ministry closes the old BSID, creates a new one, and the school sets up a new OnSIS account. A new inspection may be needed if the principal also changes.
How much does it cost to register a private school in Ontario?
New private schools pay a non-refundable $300 fee with their first Notice of Intention, in the first year only. Schools seeking authority to grant OSSD credits also pay inspection fees, which the Ministry describes as significantly higher; no dollar figure is published.
Can a private school in Ontario grant OSSD credits?
Only if it has been inspected and the principal has been given authority to grant credits, and only to students of that school. The inspection covers the standard of instruction, not health equipment, safety or staffing. A change of principal after a sale can lead to a new inspection.
Do private school teachers in Ontario need OCT certification?
No. The Ministry’s manual says teachers in Ontario private schools are not required to be members of the Ontario College of Teachers, and principals are not required to hold Ontario principal’s qualifications. Credentials therefore vary from school to school, so a buyer should review each teacher’s qualifications and contract.
How are private schools valued in Canada?
No Canadian primary source publishes sale multiples. Buyers work from enrolment history, re-enrolment rates, tuition, financial statements, staff, the credit-granting status of a secondary school and the security of the premises. Ask for five years of enrolment by grade.
Sources
- Education Act — e-Laws — s. 1 definition; s. 16 private schools
- Government of Ontario — Notice of intention to operate a private school — due 1 September; $300 first-year fee
- Ontario Ministry of Education — Private Schools Policy and Procedures Manual — change in school ownership, BSID, advertising
- Employment Standards Act, 2000 — e-Laws — s. 9, sale of a business and continuity of employment
- Excise Tax Act, section 167 — Justice Laws Website — joint election on the sale of a business
- Canada Revenue Agency — Form GST44 — election concerning the acquisition of a business
Related reading
- Private school premises in Ontario
- Buying a driving school in Ontario
- Buying a retirement home in Ontario
- Buying a daycare in Ontario
- Child care centre premises
- Asset sale versus share sale
- Book a call with Jatin
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Toronto. I work with buyers and sellers across Toronto and the GTA and have helped more than 100 families sell. Four-plus years of active GTA transactions and over $100 million in sales volume. Every figure here comes from a published table, regulator or statute linked in the sources, so you can check all of it without asking me.
Reach me at connect@jatindua.com or 833-330-1925, or book a call.