Incorporation
Ontario vs Federal Incorporation
Both are valid — each has trade-offs. Here's how they actually differ in practice.
| Consideration | Ontario Corporation | Federal Corporation |
|---|---|---|
| Jurisdiction | Ontario Business Corporations Act | Canada Business Corporations Act |
| Name protection | Protected in Ontario | Protected across Canada |
| Registration | Ontario Business Registry | Corporations Canada |
| Operating outside home jurisdiction | May need to register extra-provincially in other provinces | Typically requires extra-provincial registration in provinces where you operate |
| Government fees | Provincial filing fee applies | Federal filing fee applies — often lower for the initial filing |
| Ongoing filings | Annual return via OBR | Federal annual return + extra-provincial obligations |
| Director residency | No Canadian residency requirement for Ontario | No federal residency requirement for federal (as of recent changes — confirm current rules) |
| Typical fit | Businesses operating primarily in Ontario | Businesses operating in multiple provinces or wanting stronger national name rights |
Which one is right for you?
There is no universally better option. If you operate primarily in Ontario, an Ontario corporation is simple and effective. If you're planning multi-province operations or want stronger national name rights, federal incorporation is often the better starting point — but expect additional extra-provincial paperwork.