Which province should I incorporate in?

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.

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Most owners should incorporate in the province where they actually live and run the business, or federally if they will trade across several provinces under one name. Incorporating somewhere else does not move your tax rate there: corporate income is taxed in the province where the corporation has its permanent establishment, wherever it was incorporated. We prepare and file your articles in any province for $35.00, HST included, with the government fee charged separately at cost. Open Corporation for $35 is a department of Gondaliya CPA.

The short answer

Incorporate in the province where your office, your staff and your customers are. If you will carry on business in several provinces, compare a federal corporation under the Canada Business Corporations Act, which protects the name across Canada, with a provincial one plus extra-provincial registration where you expand.

Do not pick a province for its tax rate or its filing fee alone. An Ontario owner who incorporates in Alberta still pays Ontario tax on income earned through an Ontario office, and then pays to register the Alberta corporation in Ontario as well. Our federal vs provincial comparison covers the federal choice in detail.

What each choice costs to file

Our fee is the same everywhere. The government fee differs by registry, and each is charged at cost.

Where you incorporate Government fee Our fee Name search for a named company
Federal, Canada Business Corporations Act $200.00 online $35.00, HST included Included in the online filing
Ontario $300.00 $35.00, HST included Ontario NUANS report, $25.00 through us
British Columbia $350.00 $35.00, HST included BC name request, $30.00
Alberta $291.75, plus the registry agent’s service fee $35.00, HST included Alberta NUANS report
Manitoba $350.00 $35.00, HST included Manitoba name reservation, $45.00
Saskatchewan $255.00 $35.00, HST included Saskatchewan name reservation, $50.00
Quebec and Atlantic Canada Set by each registry $35.00, HST included Set by each registry

Government fees and tax rates read from each registry and from our province pages, last checked on 23 October 2026. Fees change, and we re-check this table every quarter. Every province is on our government fees 2026 page.

Every province, with its forms and annual filings, is on our incorporate by province page.

What actually differs between provinces

Province Small business rate, provincial Combined with federal Resident Canadian directors
Federal corporation Set by the province where income is earned Depends on that province At least 25 percent, and one if fewer than four directors
Ontario 2.2% from 1 July 2026 11.2% None required since 5 July 2021
British Columbia 2% 11% None required
Alberta 2% 11% None required since 29 March 2021
Manitoba 0% on the first $500,000 9% At least 25 percent
Saskatchewan 1% on the first $600,000 10% on the first $500,000 None, but a director or officer with a Saskatchewan address, or a power of attorney

Government fees and tax rates read from each registry and from our province pages, last checked on 23 October 2026. Fees change, and we re-check this table every quarter. Every province is on our government fees 2026 page.

The rate that applies is the rate of the province where the income is earned, not the province of incorporation. A corporation with offices in two provinces allocates its income between them.

Four myths about choosing a province

Myth

Incorporate in the province with the lowest tax rate. Income is taxed where the corporation has its permanent establishment, so an Ontario office means Ontario tax, wherever the articles were filed.

Myth

The cheapest filing fee wins. A corporation from another province that carries on business in Ontario must still file an Initial Return there, and other provinces charge to register, so the saving usually disappears.

Myth

A federal corporation does not need to register in provinces. It registers in every province where it carries on business, just as a provincial one does.

Myth

It does not matter where the directors live. A federal or Manitoba corporation needs resident Canadian directors; Ontario, Alberta and British Columbia do not.

What actually decides the province

Decides it

Where you live and work. That is where the corporation has its permanent establishment and where it will be taxed.

Decides it

Where your customers, staff and premises will be in the next two years, which decides how many extra-provincial registrations follow.

Decides it

Who sits on the board. A board with no resident Canadian cannot file federally or in Manitoba.

Decides it

Regulators. A professional corporation for a doctor, dentist, lawyer or engineer is formed in the province where the college licenses you.

Which province suits your situation

Situation Best choice Why
You live and work in one province and sell mostly there That province One registry, one annual filing, and the tax follows the office anyway
You will sell across Canada under one protected name Federal The name is protected nationally; register where you open offices. See federal incorporation
Your board has no resident Canadian director Ontario, Alberta or British Columbia No residency requirement in those provinces
You are a regulated professional The province where your college licenses you See professional corporation incorporation
You live in Ontario but were told Alberta is cheaper Ontario Ontario tax applies to Ontario income, and an Alberta corporation would also file in Ontario
You are moving provinces within a year Usually the new province, or federal Avoids registering twice or continuing the corporation later
You sell online from home to customers everywhere Your home province Selling by website and mail alone is often not carrying on business elsewhere

What a CPA checks before you choose

The province is one line on the intake form, but it decides the registry, the annual filing, the tax rate on the first dollar of profit and the director rules. We settle it before anything is filed.

We start with where you live and where the work happens, because that is where the corporation will have its permanent establishment. Then where the business will be in two years, since every province you expand into adds a registration and an annual filing.

Then the board. A federal corporation needs at least 25 percent resident Canadian directors, and so does Manitoba; Ontario, Alberta and British Columbia need none. A founder with no Canadian director is answering this question, not choosing a brand.

Then the tax. The small business deduction, the split income rules for family shareholders, the year end and HST registration are the same questions in every province, and they are where the real money is. Our Ontario vs Alberta vs British Columbia comparison goes further on the three most common provinces.

Frequently asked questions

Which province should I incorporate in?

In most cases, the province where you live and run the business. If you will carry on business in several provinces under one name, consider a federal corporation instead. Picking another province for its tax rate does not work, because income is taxed where the corporation has its permanent establishment.

Can I incorporate in Alberta to pay Alberta tax if I live in Ontario?

No. A corporation pays provincial tax where it earns its income through a permanent establishment, so an Ontario office means Ontario tax. The Alberta corporation would also have to file an Initial Return in Ontario and keep up two sets of filings.

Is federal incorporation better than provincial?

It suits a business that will trade across provinces and wants its name protected nationally, at $200.00 online. It still registers in every province where it carries on business, and at least 25 percent of its directors must be resident Canadians.

Which province has the lowest small business tax rate?

Manitoba charges 0% provincially on the first $500,000, a combined 9%. Saskatchewan charges 1%, Alberta and British Columbia 2%, and Ontario 2.2% from 1 July 2026. The rate that applies is where the income is earned, not where the corporation was incorporated.

Which provinces do not require Canadian resident directors?

Ontario, Alberta and British Columbia have no residency requirement. A federal corporation and a Manitoba corporation need at least 25 percent resident Canadian directors. Saskatchewan has no Canadian residency rule but needs a director or officer with a Saskatchewan address, or a power of attorney.

What happens if I move to another province after incorporating?

The corporation can register extra-provincially in the new province, or be continued into it. For a corporation that has not started trading, it is often simpler to incorporate in the province you are moving to.

Do you incorporate in every province?

Yes. Ontario and federal filings are handled in-house, and every other province is filed remotely, for the same $35.00 fee with HST included. The government fee for each province is charged at cost.

Book a free consultation call

Still choosing a province? Bring your plans 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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Start your incorporation

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.