How to Incorporate Federally vs Provincially in Canada

Every founder hits this fork: incorporate federally under the Canada Business Corporations Act, or provincially — usually in the province where you live. The guides that rank for this question mostly get one thing wrong: they frame it as "federal = operate anywhere, provincial = stuck in one province." That is not how it works. A federal corporation must still register in every province where it does business. The real decision turns on three things: whose name protection you need, whether your directors are Canadian, and how many provinces you will actually operate in.

This guide walks both routes with the current fees and the rules that actually decide it, using Ontario as the worked provincial example (it is where most first-time incorporations happen) with notes on BC, Alberta, and Quebec.

The comparison in one table

The federal route, step by step

1. Settle the name. If you want a named corporation, the name search is built into Corporations Canada's online filing — do not order a separate NUANS report before filing. A standalone federal NUANS report costs $13.80, but it is only needed for transactions such as a revival or amalgamation, not for an online incorporation. Federal name scrutiny is stricter than provincial: because the approval carries national weight, a proposed name that closely matches an existing corporate name or trademark can be blocked. Numbered companies (e.g., 9999999 Canada Inc.) skip the search entirely.

2. File online with Corporations Canada. The articles of incorporation, the initial registered office address and first board of directors, plus the Individuals with Significant Control register (filing required since January 2024, at no extra cost). Fee: $200 online, $250 by mail. Online filings carry a one-business-day service standard; express processing costs another $100 for a four-business-hour standard.

3. Register in every province where you operate. This is the step people skip in their planning. A federal charter does not exempt you from provincial registration — it adds to it. In Ontario, a federal corporation files an initial return in the Ontario Business Registry within 60 days of starting to carry on business here; there is no fee and no extra-provincial licence needed. Other provinces charge their own fees, typically a few hundred dollars each. Budget them before you file, not after.

4. Keep it alive. File the $12 annual return with Corporations Canada every year and update the ISC register within 15 days of any change. The annual return is the one most DIY incorporators forget — and the one that can get the corporation dissolved if it lapses for years.

The provincial route, step by step (Ontario example)

1. Get an Ontario-biased NUANS report. Required for a named corporation, valid 90 days, bought from a NUANS provider for roughly $13.80–$75 depending on the provider. Numbered companies skip it.

2. File in the Ontario Business Registry. $300, filed online with an Ontario.ca login, processed immediately. Your articles need the share structure, registered office (must be an Ontario address), and directors — minimum one for a private corporation. Since July 5, 2021 there is no director-residency requirement at all, which makes Ontario the simplest route for a founder with no Canadian-resident directors.

3. File the initial return within 60 days of incorporation. No fee. Then file the annual return each year within six months of your fiscal year-end — also no fee. Report any changes (directors, address) within 15 days.

Want the full Ontario walkthrough — NUANS ordering, the articles anatomy, the minute book, and the post-incorporation checklist? See How to Incorporate in Ontario.

Other provinces, briefly: British Columbia charges $350 plus a $30 name request through Corporate Online, with a $43.39 annual report due within two months of the incorporation anniversary. Alberta charges a government fee plus a registry agent's service fee (agents set their own fees), with an Alberta NUANS for named companies. Quebec charges $397 with a $27 name reservation and a $106 annual update. The pattern is the same everywhere: named companies need a name search, numbered companies do not, and the annual filing is where provinces quietly differ.

The true cost: two realistic scenarios

Ontario-only consultant, DIY. Ontario incorporation: $300 government fee. Ontario-biased NUANS if named: ~$14–$75. First-year government cost: roughly $314–$375. Annual cost after that: $0 to the registry.

Federal corporation operating in Ontario and BC, DIY. Federal filing: $200 (name search included — no separate NUANS fee when you file online). Ontario initial return: $0. BC extra-provincial registration: a few hundred dollars. Annual: $12 to Corporations Canada plus BC's annual report fee. The federal base fee is the cheapest in the country — the footprint is what costs.

Add professional help and the numbers rise on both routes: incorporation services typically run $500–$3,000+ for articles, bylaws, organizing resolutions, share issuance, and the minute book. Government fees are the small part of a first-year corporate budget; accounting for the T2 return ($1,500–$3,000 a year is typical) dwarfs them.

The three decisions that actually matter

1. Name protection. If the brand will matter beyond one province — a product, a franchise, a name you would defend — federal approval gives you national standing for the name from day one. A provincial corporation that expands later has to register province by province and can find its name already taken elsewhere. Neither route replaces a trademark: if the name is the asset, register it with CIPO separately.

2. Director residency. This is the quiet dealbreaker. Federally you still need 25% resident Canadian directors (at least one on a small board). Ontario, BC, Alberta, and Quebec impose no such requirement. A solo founder living outside Canada with no Canadian to put on the board should incorporate provincially — Ontario is the usual pick — not federally.

3. Operating footprint. One province, now and for the foreseeable future: incorporate there. It is one filing, one annual return, no extra-provincial anything. Operating in two or more provinces from day one, with Canadian-resident directors and a national brand: federal starts to earn its keep. And remember the escape hatch — continuance lets a provincial corporation move under the federal act later without losing its history.

After you incorporate (either route)

Incorporation is the birth certificate, not the business. After the certificate arrives: adopt bylaws and pass organizing resolutions (the minute book — do not skip this, it is the first thing any buyer, lender, or CRA auditor asks for), issue the shares, get a CRA business number if you do not already have one, and open GST/HST and payroll accounts when you hit the thresholds. Our sole proprietorship and GST/HST guide covers the CRA accounts in detail, and the business bank account guide covers what the bank will ask for. If you are still deciding whether to incorporate at all, run the numbers first with the sole-prop vs incorporation tax calculator.

Related

• How to Incorporate in Ontario: the full Ontario walkthrough: named vs numbered companies, the Ontario-biased NUANS, articles requirements, and the post-incorporation steps the comparison only summarizes.
• How to Incorporate in British Columbia: the full BC walkthrough: the $30 name approval request (no NUANS in British Columbia), the articles and incorporation agreement, the $350 filing, and the $43.39 annual report.
• How to Incorporate in Alberta: the full Alberta walkthrough: the Alberta NUANS report, the agent-for-service notice, filing through an authorized registry agent, and the annual return due after the anniversary month.
• How to Register a Sole Proprietorship and Get a GST/HST Number in Canada: the simpler route, and the CRA mechanics (business number, GST/HST, payroll) that corporations use too.
• How to Open a Business Bank Account in Canada: what banks ask a new corporation for.
• How to Start Freelancing in Canada: when staying unincorporated is the right call, including the $30,000 GST/HST rule.
• How to Register a Charity in Canada: incorporating as a nonprofit is only stage one: the CRA's online Application to Register a Charity through My Business Account is what unlocks donation receipts.
• Sole-Prop vs Incorporation: Tax Calculator: interactive 2026 federal and Ontario figures for the incorporate-or-not decision.

Sources

• Corporations Canada, Services, fees and processing times: federal incorporation $200 online / $250 by mail, express service +$100 for four business hours, annual return $12 online.
• Corporations Canada, Federal incorporation: federal incorporation costs $200 online; federal incorporation carries the right to use your name across Canada.
• Corporations Canada, Register a federal corporation in a province or territory: provincial law requires a federal corporation to register in each province and territory where it carries on business.
• ISED, NUANS: Federal report — the name search is integrated into online CBCA applications, so no separate report should be ordered before filing; a standalone federal name search costs $13.80.
• Corporations Canada, Individuals with significant control: ISC information must be filed with Corporations Canada since January 22, 2024; the register is updated at least once a year and within 15 days of a change.
• Canada Business Corporations Act, s. 105: at least 25% of directors must be resident Canadians, or at least one director if the board has fewer than four.
• Ontario, Cost and time required to register, change or search for a business name, corporation or not-for-profit: Ontario incorporation $300, immediate online and 15 business days by mail; initial return and annual return $0; extra-provincial licence $330 (for corporations from outside Canada).
• British Columbia, Incorporated companies: name request $30 (7–14 days, reservation good for 56 days), incorporation $350 through Corporate Online, annual report $43.39 within two months of the anniversary.
• Registraire des entreprises, Fees and Terms of Payment (RE-101-T, September 2026): certificate of constitution $397 regular, name reservation $27, annual registration fee $106 as of 2026.
• LegalClarity, How to Incorporate in Ontario: Steps and Fees: Ontario's director-residency requirement was repealed July 5, 2021 (OBCA s. 118(3)).