Federal Incorporation in Canada

Complete Federal company registration, CRA number, legal docs, and growth tools.

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Federal Incorporation vs Provincial Incorporation

Not sure whether to incorporate federally or provincially in Canada? Here’s a clear comparison of how each option works — including scope, name protection, costs, and ideal use cases to help you decide which structure fits your business best.

Federal Incorporation

Provincial Incorporation

Can operate across all provinces and territories
Operates within one province or territory
Slightly higher federal filing fees
Lower filing fees in most provinces
Registered through Corporations Canada
Registered through your province’s corporate registry
Business name protected nationwide
Business name protected only within the province
Requires extra provincial registration to operate in each province
Simpler setup and maintenance
Ideal for startups, national brands, or businesses planning to expand
Ideal for local or regional businesses

Federal Incorporation vs Sole Proprietorship

Not sure if you should incorporate or register as a sole proprietor?  Compare the benefits, costs, and legal protections of each to understand which structure fits your business needs.

Federal Incorporation

Sole Proptiorship

Costs more to start
Easiest to start and cheapest
Creates a separate legal entity (the corporation owns assets and signs contracts)
No separate legal entity — you = the business
Limited personal liability — protects your personal assets
Unlimited personal liability — you’re responsible for debts/lawsuits
Corporate Income taxed only
All profits taxed as personal income
Business name protected across Canada
Business name protected only in the province or territory you register in
Best for growing businesses or when risk/liability increases
Perfect for freelancers, consultants, small local businesses
Perceived as more professional and credible
Simpler structure with fewer legal and accounting requirements
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Frequently Asked Questions

Everything you need to know about incorporating your business federally, from costs and requirements to timelines and benefits.
What is Federal Incorporation in Canada?

Federal incorporation means registering your business through Corporations Canada, giving you the right to operate under the same corporate name across all provinces and territories. It offers nationwide name protection and a professional, credible structure for businesses planning to expand.

What are the benefits of incorporating federally in Canada?

Federal incorporation provides nationwide business name protection, brand credibility, and the ability to operate in multiple provinces without restrictions. It also offers limited personal liability and potential tax advantages compared to sole proprietorships or partnerships.

How is Federal Incorporation different from Provincial Incorporation?

Federal incorporation allows you to operate across Canada and protects your business name nationwide, while provincial incorporation limits operations and name protection to one province. However, federally incorporated companies must also register in each province they operate within.

How much does it cost to incorporate federally in Canada?

With Start Right Now, federal incorporation is affordable and transparent. Our service fee is just $99, plus the government filing fee. For a full breakdown, please see our Pricing Page.

How long does it take to incorporate federally in Canada?

If you file online with all documents prepared, federal incorporation can be completed in as little as one business day. Delays may occur if your chosen business name requires manual review or if additional provincial registrations are needed.

What are the tax advantages of federal incorporation?

Incorporated businesses benefit from lower corporate tax rates and can defer personal taxes by keeping profits within the corporation. This structure also allows for potential income splitting, dividend flexibility, and greater tax planning opportunities.

Does federal incorporation protect my business name across Canada?

Yes. One of the main advantages of federal incorporation is nationwide name protection. Once approved by Corporations Canada, your business name cannot be used by another corporation anywhere in the country.

Do I need to register provincially after incorporating federally?

Yes. Even though your business is federally incorporated, you must register as an extra-provincial corporation in every province or territory where you plan to conduct business or open offices.

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