Federal and Provincial Registration Comparison
Incorporation in Federal
- 1. When a company's name is approved, it's protected across the country.
- 2. Federally incorporated companies can carry on business anywhere in Canada.
- 3. Federal incorporation received global recognition as Canadian companies. We recommend that incorporate federally if you are planning to sell your products or services outside of Canada. Such as some online businesses may want to take this into consideration, as their target customers may be located all across the world.
- 4. In Ontario, incorporation federally can save you a few hundred dollars than incorporation provincially. It takes roughly $250 for Federal incorporation.
- 5. The business number will be assigned to you automatically by the Canadian Revenue Agency, which saves you a step compared to the provincial incorporation process.
- 6. Federal incorporation offers clients an online service that allows you to send documents, pay fees, and receive documents and acknowledgments information, via the Internet. It provides more Convenience and faster services, such as immediate acknowledgement of filing and prompt articles processing.
- 1. It takes extra work and money. Federal incorporation will involve more paperwork every year, as you will need to comply with the corporate filings, which cost $20 per year.
Incorporation in Provincial
- 1. The business can only operate in the specific province.
- 2. No need for annual filings or annual fee.
- 3. You can always use provincial incorporation now and then change to federal incorporation later, although there's no guarantee that you would be able to get or keep the same name for your federally incorporated company.
- 4. The website provides more protection for the information of the Provincial incorporation than the Federal incorporation.
- 1. When you incorporate your business in a particular province or territory.
- 2. The process for incorporating provincially can be more complicated compared to the processing for incorporating federally. Federal incorporation will often include the automatic filing of any additional forms.
- 3. It takes more money for register a Provincial corporate, which costs roughly $380 to $400 in Ontario.
For More Information on business incorporation, you may visit the following official websites:
Federal Incorporation Website: http://www.ic.gc.ca/eic/site/icgc.nsf/eng/h_07102.html?Open&src=mm2#ic-sub- menu
Ontario Incorporation Website: https://www.ontario.ca/page/start-dissolve- and-change- corporation#section-1
Ontario Business Name Registration: https://www.ontario.ca/page/business-name- registration
Ontario Service Website: https://www.ontario.ca/page/services