Federal incorporation in Canada costs $200 CAD to file online through Corporations Canada and completes in about one business day. Your first decision is federal versus provincial. Federal incorporation gives Canada-wide name protection and national scope. Provincial incorporation suits a business that operates in a single jurisdiction.
This guide covers the costs, timelines, tax rates, and director-residency rules you need before you file. All fees are in Canadian dollars (CAD). Non-residents can incorporate too, without residency or a visa.
What Are the Benefits of Incorporating in Canada?
Incorporating in Canada gives you limited liability, Canada-wide name rights, lower corporate tax rates, and better access to capital and grants, according to Corporations Canada. A corporation is a separate legal entity with the same rights as a person. It can outlive its owners and raise capital more easily than an unincorporated business.
Canada also opens markets. Canadian businesses get preferential access to 1.5 billion consumers in 51 countries through 15 free trade agreements, per Invest in Canada. That reach is a core reason founders choose Canada over other North American bases.
What Types of Business Entities Exist in Canada?
Canada has four main business structures. Only corporations and co-operatives are incorporated entities. Sole proprietorships and partnerships are registered, not incorporated. Canada has no LLC (limited liability company), so the US-style LLC does not exist here and US founders use a corporation instead.
| Structure | Liability | Legal status | Tax treatment |
|---|---|---|---|
| Sole proprietorship | Unlimited personal | Not separate | Taxed as personal income |
| Partnership (GP, LP, LLP) | Unlimited (GP); limited for LP/LLP partners | Not separate | Income flows to partners |
| Corporation (private, public, CCPC) | Limited to capital contributed | Separate legal entity | Corporate tax; CCPC small business rate |
| Co-operative | Limited | Separate legal entity | Corporate tax |
GP is a general partnership, LP a limited partnership, and LLP a limited liability partnership (often for professionals). A CCPC is a Canadian-Controlled Private Corporation, which unlocks the small business tax rate covered below.
Should You Incorporate Federally or Provincially?
Incorporate federally if you plan multi-province or national operations and want Canada-wide name protection. Incorporate provincially if you operate in one province or territory. Federal incorporation still requires extra-provincial registration in each province where you do business. Base the choice on geography, name protection, budget, director residency, and expansion plans.
| Factor | Federal (CBCA) | Provincial |
|---|---|---|
| Scope | All of Canada | One province or territory |
| Name protection | Canada-wide exclusive | That province only |
| Filing body | Corporations Canada | Provincial registry |
| Director residency | 25% resident Canadians | Varies (0% in ON, BC, AB) |
| Online filing fee | $200 CAD | $300 (ON), $350 (BC), $275 (AB), $397 (QC) |
CBCA is the Canada Business Corporations Act, the federal statute for business corporations. For a deeper comparison, read Commenda’s guide to federal and provincial business incorporation in Canada.
How Do You Choose and Register a Business Name in Canada?
You can pick a word name (like Maple Leaf Consulting Inc.) or a numbered name (like 1234567 Canada Inc.). Word names need a name search. Numbered names are assigned by the registry. The name on your articles of incorporation is your legal name, so search existing names before you file.
What Is a NUANS Name Search Report?
A NUANS (Newly Upgraded Automated Name Search) report compares your proposed name against existing corporate names and trademarks. A federal NUANS report costs $13.80 CAD through Corporations Canada and stays valid for 90 days. Ontario and Alberta require NUANS for word names; British Columbia and Quebec use their own name-request systems.
For standard federal incorporation, the name search is built into the online application, so a separate pre-filed NUANS report is needed only for revival, amalgamation, continuance, and cooperative filings. A NUANS report identifies conflicts. It is not a name approval and gives no trademark protection.
Should You Pick a Word Name or a Numbered Name?
Choose a numbered name for speed and a word name for branding. Numbered names are assigned by the registry, need no NUANS report, and incorporate instantly. Word names are brandable and searchable but require a name search, which adds cost and a step. A numbered company can still operate under a registered trade name.
What’s the Difference Between a Legal Name and a Trade Name?
Your legal name is the name on your articles of incorporation. A trade name (operating name) is registered separately, usually provincially, and carries no name protection by itself. Provincial name registration does not give you Canada-wide exclusive rights. Many numbered companies register a trade name for customer-facing branding.
How Do You Incorporate in Canada Step by Step?
Incorporating in Canada takes eight steps: choose a structure and jurisdiction, clear a name, file articles, file control information, register with the tax authority, register extra-provincially, get permits, and open program accounts. Directors must be 18 or older and not bankrupt.
- Choose your structure and jurisdiction. Decide the entity type and federal versus provincial before anything else.
- Clear your name. Run a name search for a word name, or take a numbered name for instant assignment.
- File articles of incorporation. Pick basic or custom articles, in English or French.
- File ISC information. CBCA corporations must file individuals with significant control (ISC) data, mandatory since January 22, 2024.
- Get a business number and corporation income tax account from the Canada Revenue Agency (CRA). Some provinces streamline this into incorporation; others do not.
- Register extra-provincially in each province or territory where you do business.
- Apply for permits and licences through the federal BizPaL service.
- Open CRA program accounts for payroll and GST/HST (goods and services tax and harmonized sales tax).
How Much Does It Cost to Incorporate in Canada?
Federal online incorporation costs $200 CAD through Corporations Canada. Provincial fees run higher, from $275 in Alberta to $397 in Quebec. Add a NUANS report ($13.80 federally) for a word name, plus extra-provincial registration fees wherever you expand.
| Item | Fee (CAD) | Source |
|---|---|---|
| Federal online incorporation | $200 | Corporations Canada |
| Federal express service | +$100 | Corporations Canada |
| Federal NUANS report | $13.80 | ISED / Corporations Canada |
| Ontario incorporation (online) | $300 | Ontario Business Registry |
| BC incorporation plus name request | $380 ($350 + $30) | BC Corporate Online |
| Alberta incorporation (via registry agent) | $275 plus agent fee | Government of Alberta |
| Quebec incorporation (regular) | $397 | Registraire des entreprises |
| CBCA annual return | $12 | Corporations Canada |
Alberta has no direct government portal, so you file through an authorized registry agent who adds a market-set service fee on top of the $275 government fee.
How Long Does It Take to Incorporate in Canada?
Federal online incorporation typically completes within one business day, per Corporations Canada. Express service returns a decision in four business hours for an extra $100 CAD. Provincial timelines vary widely, from immediate online filing in Ontario to about 15 business days by mail.
| Jurisdiction and method | Processing time | Source |
|---|---|---|
| Federal online | About 1 business day | Corporations Canada |
| Federal express (+$100) | 4 business hours | Corporations Canada |
| Ontario online | Immediate | Ontario Business Registry |
| Ontario mail | About 15 business days | Ontario Business Registry |
| BC priority name request (+$100) | 1 to 2 business days | Government of BC |
What Is the Corporate Tax Rate in Canada?
The net federal general corporate tax rate is 15%, after the federal abatement and general reduction. Canadian-Controlled Private Corporations (CCPCs) pay 9% federally on the first $500,000 of active business income. Provincial rates stack on top, so combined rates depend on your province.
| Rate type | Rate | Source |
|---|---|---|
| Federal general | 15% | CRA / PwC Tax Summaries |
| Federal small business (CCPC, first $500,000) | 9% | CRA |
| Ontario general | 11.5% | Ontario Ministry of Finance |
| Ontario small business (first $500,000) | 2.2% (down from 3.2% on July 1, 2026) | Ontario Ministry of Finance |
Foreign-owned corporations doing research and development in Canada can claim the 15% non-refundable federal SR&ED (Scientific Research and Experimental Development) investment tax credit, per the CRA. CCPCs qualify for an enhanced refundable rate on qualifying expenditures. Confirm the current rate and expenditure limit with the CRA before you plan around it.
Can a Non-Resident Incorporate a Company in Canada?
Yes. Non-residents can incorporate federally without Canadian residency, permanent residence, or a visa. The main constraint is director residency. The CBCA requires 25% of directors to be resident Canadians, or at least one if the board has fewer than four. Ontario, British Columbia, Alberta, and Quebec require none.
| Jurisdiction | Resident-director requirement | Source |
|---|---|---|
| Federal (CBCA) | 25% resident Canadians (at least 1 if board under 4) | CBCA s.105(3), Library of Parliament |
| Ontario | 0% (since July 5, 2021) | Bill 213 |
| British Columbia | 0% | Government of BC |
| Alberta | 0% | Government of Alberta |
| Quebec | 0% | Registraire des entreprises |
The CBCA 25% rule remains in force in 2026. Ontario repealed its 25% resident-director requirement effective July 5, 2021. Every corporation still needs a registered office in Canada, so non-residents often choose British Columbia or Ontario for zero-residency boards.
How Commenda Helps You Incorporate in Canada
Commenda’s incorporation service handles Canadian entity formation end to end, federal or provincial, including non-resident setups with registered office and director support. Once you are formed, Commenda’s entity management platform tracks your annual returns, ISC filings, and CRA deadlines in one place, so nothing slips.
Check your word name before you file with Commenda’s company name checker, and keep every filing on schedule with the compliance calendar.
Book a demo for a free Canada incorporation consultation covering federal versus provincial fit, director residency, and your total cost.
