The jurisdiction you incorporate within, is based on where your business will operate. If you operate your business in Alberta, you have two choices to either incorporate in the Province of Alberta or Incorporate a Federal incorporation and register the physical address within the Province of Alberta. The same thing can be said for any Province or Territory in Canada. If your business is within Ontario, your options are to incorporate in Ontario or complete a Federal incorporation and register the corporation within Ontario.
Whether to incorporate in the Province/Territory or Canada
There are a few determining factors when choosing to either Provincially or Federally incorporate. Typically, it is easier to gain name approval for a Provincial incorporation versus a Federal incorporation. The Federal incorporation business name has much more competition as your business name is being screened against a larger portion of business names from across most of Canada. However, if you gain name approval with a Federal incorporation, that business name has the highest name protection available in Canada outside of trademarking the business name for branding.
If you wish to operate in multiple Provinces or Territories where your business will reside in more than one jurisdiction, a Federal incorporation provides better name protection. There are no absolutes, where you have exclusive rights to a business name however a Federal incorporation overall is paid more attention within any Province or Territory.
Some Provincial incorporations require you to file what is usually called an Annual Return each year to update your corporate records as to the head office address for the corporation, the current listing of directors, officers and addresses of these individuals. This is a mandatory filing every year with a Federal incorporation and often fees are required for the updates even if nothing changes.
The corporate tax is based in part with your Provincial and in part with the Federal government. There are corporate tax differences Province to Province but whether you choose to Provincial incorporate or to Federally incorporate where you register within the Province the business resides in, the tax base will be the same.
If your business activity is to either import or export, the Federal government holds the licensing to operate this kind of business after incorporation. We commonly see individuals Incorporate Federally in this circumstance.
Does it matter where I live?
When incorporating a business in Canada, your personal address is not reflective of where you operate the business. Your personal address can be outside of the Province or Territory where your business operates. The registration of the incorporation is solely based on where the physical address of the business is.
Can I incorporate if I am not a Canadian Citizen or Permanent Resident?
Yes, you can incorporate. With most incorporations across Canada, there is a minimum requirement of 25% directors who are Canadian citizens or Permanent Residents. In the Province of British Columbia, you may incorporate as a foreign individual without having personal residency in Canada. To complete a British Columbia incorporation, you will be required to have a physical address for the business within this Province.
How to complete an Incorporation?
The process of incorporating in Canada is very easy. Almost all jurisdictions have the availability to incorporate online by providing the details within a few minutes.
Ontario Business Central has been assisting individuals to complete incorporations for the last 25 years. We offer incorporation processing in
At Ontario Business Central, we are always looking for useful opportunities and tools to help entrepreneurs in Canada to start and grow their business. Please feel free to reach out to our staff for any clarification or assistance you may require.
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Ontario Business Central Inc. is not a law firm and cannot provide a legal opinion or advice. This information is to assist you in understanding the requirements of registration within the chosen jurisdiction. It is always recommended, when you have legal or accounting questions that you speak to a qualified professional.