Federal Corporation vs. Provincial Corporation

Thinking about registering a Corporation in Canada? If you are unsure about whether to register a Provincial or Federal Corporation we can assist you. Both types of corporations are allowed to sell products and provide services to individuals and businesses located within Canada and outside of Canada.

The following important differences should be taken into account:

Federal Incorporation

Should be unique in order to be accepted by the government

Ontario Corporation

Acceptable if no exact matches with existing names

Federal Incorporation

Name is protected all across Canada

Ontario Corporation

Name is protected in Ontario only

Federal Incorporation

Can be located in any Canadian province, you just need to register your Federal Corporation extra provincially in that province

Ontario Corporation

Can only be located in Ontario

Federal Incorporation

$250

Ontario Corporation

$360

Federal Incorporation

$40

Ontario Corporation

No annual filing fee

Federal Incorporation

Any individual over the age of 18 may be appointed as a director. Twenty-Five percent of the directors must be Canadian residents.

Ontario Corporation

Any individual over the age of 18 may be appointed as a director. There are no restrictions on the residency of a director.

Federal Incorporation

Any individual over the age of 18 may be appointed as a officer. There is no restrictions on the residency.

Ontario Corporation

Any individual over the age of 18 may be appointed as a officer. There is no restrictions on the residency.

Federal Incorporation

May be a resident of any country and any age. Please note that if more than 50% of shares are owned by a non-resident there is a higher corporate income tax rate.

Ontario Corporation

May be a resident of any country and any age. Please note that if more than 50% of shares are owned by a non-resident there is a higher corporate income tax rate.

Federal Incorporation

Considered a Canadian legal entity

Ontario Corporation

Considered a provincial legal entity

Federal Incorporation

When you have international customers and would like to open offices, stores, warehouses, etc. in more than one province.

Ontario Corporation

When you plan to have offices, stores, warehouses, etc. located in Ontario only