One of the first questions every Canadian founder faces is deceptively simple: should I incorporate federally under the Canada Business Corporations Act (CBCA) or provincially under my home province's corporate legislation?
The short answer: it depends on where you do business, how important your brand name is to you, and how much administrative overhead you want. Here's everything you need to make an informed decision.
What's the Actual Difference?
A federal corporation is incorporated under Canada's federal legislation and can operate in any province without needing to re-incorporate. A provincial corporation is incorporated under one province's law and is, technically, a "foreign" corporation when it operates in another province — meaning it may need to register as an extra-provincial corporation in each additional province where it does business.
Federal Incorporation: The Case For It
- Name protection across Canada. Your corporation name is protected nationally, not just in one province. This matters if your brand or business name is core to your identity.
- Operate anywhere without extra steps. No extra-provincial registrations required simply because you're doing business in another province (though you may still need a local registered office).
- Prestige and familiarity. Many investors, banks, and enterprise clients are more familiar with federally incorporated entities.
- Lower government fee: $200 CAD — the cheapest registration fee in Canada.
One catch: Federal corporations must maintain a registered office in a Canadian province and must also register as an extra-provincial corporation in their home province if they have a local physical presence. In Ontario, for example, this is an additional $60 fee. Factor this into your cost comparison.
Provincial Incorporation: The Case For It
- Simpler if you're operating in one province. One registration, one set of annual filings, one registry to deal with.
- No federal extra-provincial requirement. You don't need to register federally to operate locally.
- Some provinces have very efficient online registries (BC's registry is notably fast and digital-friendly).
Cost Comparison by Province
| Jurisdiction | Incorporation Fee | Scope of Name Protection |
|---|---|---|
| Federal (CBCA) | $200 | National |
| Ontario | $300 | Ontario only |
| British Columbia | $350 | BC only |
| Alberta | $275 | Alberta only |
| Quebec | $310 | Quebec only |
| Nova Scotia | $200 | NS only |
The NUANS Name Search Requirement
Both federal and most provincial incorporations require a NUANS (Newly Upgraded Automated Name Search) report to confirm your proposed name isn't already taken. The exception is BC, which uses its own name registry system, and numbered corporations (e.g., 1234567 Ontario Inc.), which skip the NUANS entirely.
Residency Requirements for Directors
Federal corporations under the CBCA require that at least 25% of directors be Canadian residents. Some provinces (like BC and Quebec) have eliminated director residency requirements entirely — a meaningful factor if your founding team is internationally distributed.
CPA Tip: If you're a solo founder operating primarily in one province with no immediate plans to expand nationally, provincial incorporation is usually simpler and sufficient. If your brand name matters, you're building something you plan to scale across provinces, or you have international founders on your cap table, federal incorporation is worth the small extra step.
Our Recommendation
Most early-stage founders operating in Ontario, BC, or Alberta are well-served by provincial incorporation. If you're in Quebec, note that Quebec has additional French language requirements and its own NUANS system — something Startcorp flags clearly during the intake process.
Not sure which is right for you? The CPA Launch package includes a 30-minute call with one of our CPAs where we'll walk through this decision based on your specific situation.
Ready to put this into action?
Startcorp makes Canadian incorporation simple, fast, and CPA-backed — from $99.
Start My Incorporation →