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When incorporating a business in Canada, you can choose between federal incorporation or provincial incorporation. The choice between these two options depends on the level of protection you want for your corporation’s name, the geographic scope of your business, and the overall costs to incorporate.
Federal incorporation:
Gives the right to use the business name of the corporation across Canada;
Provides flexibility to the business to expand to multiple provinces or territories;
Requires at least twenty-five percent of the directors of a corporation to be resident Canadians;
May cost more money and time as it is required to be registered in the provinces where it desires to operate with a business location in that province.
Costs: The current filing fee for federal incorporation is $200. The fee for a NUANS Report for a named corporation is $13.80. There will be an additional fee for any provincial and territorial registration.
Provincial Incorporation
Protects the corporation’s name only in that province;
Can only operate the business in that province unless an extra-provincial registration is obtained in other provinces under their respective statutes;
No Canadian residency requirement for directors;
Costs: The current electronic filing fee for incorporation in Ontario is $300, plus an additional expense of ordering an Ontario-based NUANS Report. The filing fee for incorporation in British Columbia is $350, plus an additional expense of ordering a name reservation fee of $30.
If you need more information on incorporating your business or help in setting up one, please feel free to reach out to us.
To learn more about incorporation, please refer to the following sources:
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