Federal vs provincial incorporation: which one suits your business
Incorporate for $35.00, HST included, with the government fee shown separately at cost. A CPA checks your share structure before anything is filed. Open Corporation for $35 is a department of Gondaliya CPA. Questions first? Call 647-212-9559, 9:00 AM to 8:30 PM, Monday to Sunday.
We prepare and file your Articles of Incorporation either federally under the Canada Business Corporations Act or provincially under the Business Corporations Act (Ontario), for $35.00, HST included. Open Corporation for $35 is a department of Gondaliya CPA. The government fee is separate and charged at cost because we do not mark it up: $200.00 to Corporations Canada for a standard online federal filing, or $300.00 to the Ontario Business Registry. No HST is added to registry fees in either jurisdiction. This page sets the two structures out line by line, including where federal is the wrong answer.
The short answer
Federal incorporation under the Canada Business Corporations Act suits a business that will carry on business in more than one province, wants its corporate name protected across Canada, and can meet the requirement that at least 25 percent of its directors are resident Canadians. Ontario incorporation under the Business Corporations Act (Ontario) suits a business that will operate only in Ontario, or whose board has no resident Canadian director at all, because Ontario removed its director residency requirement on 5 July 2021.
The government fee is $200.00 federally and $300.00 in Ontario, and our fee is $35.00, HST included, either way. Federal incorporation does not exempt you from provincial obligations: a federal corporation must still register in every province where it carries on business, which in Ontario means a $0.00 Initial Return. For a business that will only ever trade in one province, the provincial statute is usually the simpler answer, and the $100.00 federal saving is not the deciding factor.
Price, line by line
Option A is federal incorporation under the CBCA. Option B is Ontario incorporation under the OBCA. Both are prepared and filed by us for the same fee.
| Item | Option A: federal (CBCA) | Option B: Ontario (OBCA) | Difference |
|---|---|---|---|
| Our fee to prepare and file the articles | $35.00, HST included | $35.00, HST included | $0.00. Identical |
| Government fee, Articles of Incorporation, filed online | $200.00 to Corporations Canada, at cost. No HST on registry fees | $300.00 to the Ontario Business Registry, at cost. No HST on registry fees | $100.00 in favour of federal |
| Express filing | $300.00 in total, being $200.00 plus a $100.00 express fee | Not needed, because online filings are processed immediately | Ontario gives free what Corporations Canada charges $100.00 for |
| Name search, named corporation | $0.00. The name search is built into the federal online application | Ontario-biased NUANS report, $25.00 with HST included when ordered through us | $25.00 in favour of federal |
| Name search, numbered corporation | $0.00 | $0.00 | $0.00. Identical |
| Total, numbered corporation | $235.00 | $335.00 | $100.00 in favour of federal |
| Total, named corporation | $235.00 | $360.00 | $125.00 in favour of federal |
| Ontario Extra-Provincial Licence | $0.00. A federal corporation is exempt | Not applicable | $0.00. The $330.00 licence applies to corporations formed outside Canada |
| First Ontario filing after incorporation | Ontario Initial Return, $0.00, within 60 days after it begins carrying on business in Ontario | Ontario Initial Return, $0.00, within 60 days after incorporation | $0.00. Same fee, different trigger date |
| Annual return, a corporate law filing and not a tax return | $12.00 each year to Corporations Canada, within 60 days after the anniversary date | $0.00 to the Ontario Business Registry, within six months after the fiscal year end | $12.00 a year in favour of Ontario |
| Certificate of status, compliance or existence | $10.00 online, $20.00 by email or mail | $26.00 online | $16.00 in favour of federal online |
| Articles of Amendment | $200.00 online, $250.00 by email or mail. Free online where the only change is the number of directors or the province of the registered office | $150.00 | $50.00 in favour of Ontario online |
| Registration in a second province | Required, at that province’s fee | Required, at that province’s fee | Neither statute avoids it |
| Minute book, first-year bookkeeping, first T2 | Quoted on request | Quoted on request | Same service, same fee, whichever statute you choose |
| Ongoing subscription | $0.00. None | $0.00. None | $0.00. Identical |
Government fees read from Corporations Canada and the Ontario Business Registry, last checked on 22 October 2026. Registry fees change, and we re-check this table every quarter.
Every figure above also appears on our pricing page and on Gondaliya CPA’s incorporation cost page, with the government fee on its own line at cost.
Feature by feature
| Feature | Option A: federal (CBCA), filed by us | Option B: Ontario (OBCA), filed by us |
|---|---|---|
| Price of the service | $35.00, HST included | $35.00, HST included |
| Government fee handling | Own line at cost, $200.00, no mark-up | Own line at cost, $300.00, no mark-up |
| Name search | Included at $0.00 in the federal online incorporation | Ontario-biased NUANS report for a named corporation, $25.00 through us |
| Articles filed | With Corporations Canada online | With the Ontario Business Registry |
| Share structure advice | Yes. A CPA reviews classes and holders before filing | Yes. A CPA reviews classes and holders before filing |
| CRA business number, HST and payroll accounts | Yes, quoted on request | Yes, quoted on request |
| First-year bookkeeping and first T2 | Yes, quoted on request | Yes, quoted on request |
| Annual return | $12.00, within 60 days after the anniversary date | $0.00, within six months after the fiscal year end |
| A CPA licence accountable | Gondaliya CPA, CPA Ontario firm registration 61330051 | Gondaliya CPA, CPA Ontario firm registration 61330051 |
| Statute and registry | Canada Business Corporations Act, R.S.C. 1985, c. C-44. Corporations Canada | Business Corporations Act, R.S.O. 1990, c. B.16. Ontario Business Registry |
| Director residency | At least 25 percent resident Canadians, and at least one where there are fewer than four directors, under CBCA section 105(3) | None. Ontario removed the 25 percent requirement on 5 July 2021 |
| Name protection | Across Canada | Ontario only |
| Registered office | In the province named in the articles. Moving to another province needs articles of amendment. Changes reported within 15 days | A physical address in Ontario. A post office box alone is not accepted |
| Registry processing time | One business day online, four business hours with the $100.00 express fee, about ten business days by email or mail | Immediate online, with the certificate issued the same day. About 15 business days by mail |
| Registration in other provinces | Required wherever you carry on business, including Ontario | Required wherever you carry on business outside Ontario |
| Register of individuals with significant control | Kept under CBCA section 21.1 and filed with Corporations Canada, which publishes part of it | Kept since 1 January 2023. Not public, but produced on request to regulators, police and tax authorities |
| Support | 9:00 AM to 8:30 PM, seven days, 647-212-9559 | 9:00 AM to 8:30 PM, seven days, 647-212-9559 |
| Money-back guarantee and fee matching | 30 days, and a 60-day fee-matching policy | 30 days, and a 60-day fee-matching policy |
Government fees read from Corporations Canada and the Ontario Business Registry, last checked on 22 October 2026. Registry fees change, and we re-check this table every quarter.
Where each option wins
The registry fee. $200.00 against $300.00 for the same articles on the same day.
The name search. It is included at $0.00 in the federal online application, while a named Ontario corporation needs an Ontario-biased NUANS report.
Name protection across Canada rather than in one province, which matters if you expect to trade in Alberta or British Columbia soon.
No director residency requirement. Since 5 July 2021 an Ontario board may be entirely non-resident, while CBCA section 105(3) still requires at least 25 percent resident Canadians. For a newcomer or a foreign-owned business, that row alone decides the question.
Staying in good standing costs nothing. The Annual Return is $0.00 against $12.00 federally, online filing is immediate with no express fee, and one registry watches the corporation instead of two.
Where we add value either way
The government fee row. We show $200.00 or $300.00 on its own line at cost and never mark it up, so the jurisdiction is decided on the registry’s number, not ours.
The share structure row. Neither registry asks who should hold the shares or how many classes you need, and the answer does not change with the statute. A CPA settles it before either set of articles is filed.
The annual return row. Federal is $12.00 within 60 days after the anniversary date, and a corporation that stops filing can be dissolved. Ontario is $0.00 within six months after the fiscal year end, filed in the Ontario Business Registry, because the Canada Revenue Agency stopped accepting Ontario annual returns with the T2 on 15 May 2021. We file both alongside your year-end work.
The accountability row. CPA Ontario firm registration number 61330051, 13 Ontario offices and a phone answered until 8:30 PM, seven days, on either side of the table.
Who should choose which
| Situation | Best choice | Why |
|---|---|---|
| A business that will trade only in Ontario, one shareholder, one location | Ontario (OBCA) | The $0.00 annual return, immediate online processing and a single registry outweigh the $100.00 federal saving on day one |
| Trucking, e-commerce or consulting with customers, an address or staff in more than one province | Federal (CBCA) | One name is protected across Canada, though you still register in every province where you carry on business. See incorporating by province |
| A board with no resident Canadian director, including newcomers and foreign owners | Ontario (OBCA) | Ontario removed the residency requirement on 5 July 2021. CBCA section 105(3) would refuse the same board |
| A named corporation where the budget is tight | Federal (CBCA) | The federal name search is included at $0.00, while Ontario needs a NUANS report |
| A professional corporation for a doctor, dentist, lawyer or engineer practising in Ontario | Ontario (OBCA) | The governing college issues its certificate of authorization to an Ontario corporation. See professional corporation incorporation |
| A business that expects investors or a head office outside Ontario within two years | Federal (CBCA) | The corporation keeps one name and one statute as it moves, where a provincial corporation would have to continue into a new jurisdiction |
| Two or more shareholders, or shares already promised to an investor or a family member | A lawyer first, then either jurisdiction | A shareholder agreement is a legal instrument. We are a CPA firm and we do not draft one |
| The lowest total cost today for a numbered corporation | Federal (CBCA) | $235.00 against $335.00. The whole $100.00 gap is the registry fee, because our fee is $35.00 on both sides |
What a CPA checks before you incorporate
This comparison turns on two things: who sits on your board, and how many registries you will be filing with every year afterwards.
Residency decides the first. CBCA section 105(3) requires at least 25 percent of directors to be resident Canadians, and at least one where the board has fewer than four. Ontario removed its equivalent rule on 5 July 2021, and British Columbia, Alberta, Quebec and Nova Scotia impose no residency test either. A founder with no Canadian director is answering this question, not choosing a brand. Our director residency guide covers every province.
Recurring cost decides the second. A federal corporation gives you the name nationally, then expects extra-provincial registration in each province where you actually carry on business, each with its own annual filing. One provincial incorporation with one annual return is cheaper to run when the business only operates in one place.
Everything else on the file is identical whichever you choose, and it is where the money is. The share classes fixed in the articles, and whether a spouse, a partner or a future holding company already has somewhere to sit. Family shareholdings tested under section 120.4 of the Income Tax Act on hours worked and on votes and value. A first fiscal year end, chosen within 53 weeks of the certificate date. HST once taxable supplies pass $30,000 over four consecutive calendar quarters. Salary against dividends, and the Canada Pension Plan contributions salary brings with it. Whether the $500,000 small business deduction has to be split with an associated corporation. A regulated owner’s college eligibility. And a section 85 election where a proprietorship is converting.
Frequently asked questions
Is it better to incorporate federally or provincially in Canada?
It is better to incorporate federally under the Canada Business Corporations Act if you will carry on business in more than one province and want your name protected nationally, and provincially if you will trade in one province only. Federal incorporation costs $200.00 at Corporations Canada against $300.00 at the Ontario Business Registry, but adds a $12.00 annual return and a 25 percent resident Canadian director requirement. Neither removes the obligation to register in each province where you carry on business.
How much does it cost to incorporate federally versus in Ontario?
A numbered federal corporation costs $235.00 in total and a numbered Ontario corporation $335.00, being the $200.00 or $300.00 government fee plus our $35.00 fee with HST included. No HST is added to registry fees in either jurisdiction. A named Ontario corporation also needs a NUANS report, $25.00 through us, so it comes to $360.00.
Does a federal corporation still have to register in Ontario?
Yes. A federal corporation carrying on business in Ontario must file an Initial Return under the Corporations Information Act within 60 days of starting, at a fee of $0.00. It does not need the $330.00 Extra-Provincial Licence, which applies to corporations formed outside Canada. Other provinces set their own registration fees.
Do I need a Canadian resident director to incorporate?
You need one federally and none in Ontario. CBCA section 105(3) requires at least 25 percent of directors to be resident Canadians, and at least one where there are fewer than four directors. Ontario eliminated its 25 percent requirement on 5 July 2021, so an Ontario board may be entirely non-resident.
Which is faster, federal or Ontario incorporation?
Ontario is faster at the standard price, because articles filed online through the Ontario Business Registry are processed immediately and the certificate is issued the same day. Corporations Canada publishes a service standard of one business day online, and four business hours for the express option, which costs $100.00 more. Our own preparation takes one business day after your intake form and share structure are settled.
Can I move an Ontario corporation to federal later?
Yes, by filing articles of continuance with Corporations Canada, which cost $200.00 online, $300.00 with express service or $250.00 by email or mail. The corporation keeps its history and continues under the Canada Business Corporations Act rather than the Business Corporations Act (Ontario). Choosing correctly at the start is cheaper, which is what the tables above are for.
Book a free consultation call
Still choosing a jurisdiction? Bring your questions to a free call, and a CPA will set out the full cost, HST and government fee included.
Why Gondaliya CPA
Gondaliya CPA Professional Corporation is registered with CPA Ontario under firm registration number 61330051. Our clients have left us 1,300+ five-star Google reviews, and we work from 13 Ontario offices, open 9:00 AM to 8:30 PM, Monday to Sunday. We back every filing with a 30-day money-back guarantee and a 60-day fee-matching policy, and we are a Xero Partner Award Winner 2026. Open Corporation for $35 is a department of Gondaliya CPA.
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Open Corporation for $35 is a department of Gondaliya CPA. Complete the incorporation intake form and a CPA reviews your share structure, directors and year-end before filing. Pay by Interac e-Transfer to info@gondaliyacpa.ca.
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No legal advice
Gondaliya CPA Professional Corporation is a firm of Chartered Professional Accountants licensed by CPA Ontario, firm registration number 61330051. It is not a law firm. We prepare and file corporate documents and we provide accounting and tax advice. Nothing on this page is legal advice, and reading it creates no solicitor and client relationship. For legal advice, including advice on a shareholder agreement before you sign it, consult a lawyer licensed in the province where your corporation carries on business.
Open Corporation for $35 is a department of Gondaliya CPA.
