Canada Corporation Registry

Federal or provincial: where to incorporate

A corporation can be formed under federal law or under a province's. The choice affects your name, your filings, your costs and what the public can see. Here is how they compare, with Ontario as the example.

Checked Oct 25, 2026 4 minute read

In short

  • A federal word name, once approved, can be used across Canada.
  • A federal corporation can carry on business anywhere in Canada, but still registers in each province or territory where it does.
  • Online, incorporating federally costs $200 and in Ontario $300; the federal corporation then files a $12 annual return each year.
  • Federally, at least 25% of directors must be resident Canadians; Ontario dropped its rule in 2021.
  • A federal corporation's directors and, since 2024, its controlling owners are public.

Your name

Once Corporations Canada approves a federal word name, the corporation has the right to use it across Canada.

Approval is not a guarantee against similar corporate names, business names or trademarks, so many owners also register a trademark. A corporation that only needs a numbered name gains little from the federal name rule.

Doing business in more than one province

The Act says a federal corporation may carry on business throughout Canada (section 15(2)), but provincial and territorial laws still require it to register in each province or territory where it does business. Carrying on business usually includes having an address, a post office box or a phone number in the province, or offering goods or services there.

In Ontario, registering is simple for a federal corporation: no licence is needed, it files a free Initial Return within 60 days of starting business, and it files no Ontario annual return, only a notice within 15 days of any change. Other provinces may charge fees and set their own rules. Corporations Canada works with several provinces to make registering easier, at the time of incorporation or soon after; its page on registering in a province lists the current options.

A provincial corporation that expands into another province registers there in the same way, so if you will only ever work in one province, a provincial corporation keeps things simplest.

What it costs

  • Federal incorporation: $200 online, usually processed in a day, or $100 more for express service within four business hours. No Nuans name search is needed before an online incorporation; the name search is part of the application.
  • Federal annual return: $12 a year online, filed within 60 days after each anniversary, starting the year after incorporation.
  • Ontario incorporation: $300 online. A word name needs a name search report first, ordered from one of Ontario's authorized providers.
  • Ontario annual return: free, filed each year within six months after the year end.
  • Registering elsewhere: each province where the corporation does business may charge its own fee; Ontario charges nothing for a federal corporation's Initial Return.

See how to incorporate federally for the steps.

Directors who live in Canada

The federal Act still requires at least 25% of the directors to be resident Canadians, and at least one if the board has fewer than four directors (section 105(3)). Corporations in some sectors with Canadian ownership rules, such as airlines and telecommunications, need a majority. Ontario removed its own resident director rule on July 5, 2021, so an Ontario corporation can have a board that lives entirely outside Canada.

What becomes public

For a federal corporation, anyone can see the registered office, the directors' names and addresses, and, since January 22, 2024, basic information about its individuals with significant control: anyone holding or controlling 25% or more. That means their name, an address, the dates and the kind of control; their date of birth, citizenship and tax residence stay private. Directors and controlling individuals can give an address for service instead of a home address.

Ontario corporations also keep a register of individuals with significant control, but Ontario has no rule that files it with the province or makes it public. For owners who value privacy, that is a real difference.

How to choose

  • Federal suits a business that wants its name across Canada, plans to work in several provinces, or wants the federal name as part of its brand.
  • Provincial suits a business that works in one province, wants the simplest filings, or has directors who all live outside Canada.

An existing corporation can later move between the two by continuance, so the choice is not permanent. Your accountant or lawyer can weigh it against your plans.

Frequently asked questions

If I incorporate federally, do I still have to register in Ontario?

Yes, if the corporation carries on business in Ontario. It files an Initial Return within 60 days of starting there, which costs nothing and gives it an Ontario Corporation Number.

Which costs more, federal or Ontario?

Online, federal incorporation is $200 and Ontario is $300. A federal corporation then files a $12 federal annual return each year and registers in each province where it does business; it does not file an Ontario annual return.

Do I need a Canadian resident director?

Federally, yes: at least 25% of directors must be resident Canadians, or at least one if there are fewer than four. Ontario dropped its rule on July 5, 2021.

Does a federal name protect my name everywhere?

It gives the right to use the approved name across Canada. It is not a guarantee against similar names or trademarks, so many owners also register a trademark.

Do I need a Nuans report to incorporate federally?

Not for an online federal incorporation: the name search is part of the application. An Ontario incorporation with a word name still needs a name search report.

Official sources

This guide explains the general rules for federal corporations. It is not legal or tax advice for a particular situation: for that, speak to a lawyer or an accountant. It was last checked against the Act and Corporations Canada's own pages on Oct 25, 2026.