To compare the benefits of federal incorporation to provincial incorporation, you can view the following information on provincial incorporation here before creating a final decision.
Pros:
- When a company’s name is approved, it’s protected across the country.
- Federally incorporated companies can carry on business anywhere in Canada.
- Federal incorporation receives global recognition as Canadian companies.
We recommend that you incorporate federally if you are planning to sell your products or services outside of Canada. For example, some online businesses may want to take this into consideration as their target customers may be located all across the world.
- In Ontario, federal incorporation can save you a few hundred dollars than provincial incorporation. It takes roughly $250 to incorporate federally.
- The business number will be assigned to you automatically by the Canada Revenue Agency (CRA) which saves you a step compared to the provincial incorporation process.
- Federal incorporation offers clients an online service that allows you to send documents, pay fees, and receive documents and acknowledgements information, via the Internet. It provides more convenience and faster services, such as intermediate acknowledgement of filing and prompt articles processing.
Cons:
It takes extra work and money. Federal incorporations will involve more paperwork every year, as you will need to comply with the corporate filings, which cost $20 per year.