By Sharad Gondaliya, CPA
“Should I incorporate federally in case I expand later?” I hear this question in almost every consultation with a foreign founder. The short answer is no. Expanding to another province is the same process for an Ontario corporation, a BC corporation and a federal corporation. Each one registers in the new province.
Open Corporation for $35 is a department of Gondaliya CPA.
The myth: federal means “operate everywhere”
Corporations Canada itself states that a federal corporation must register in each province or territory where it carries on business. Federal incorporation gives you the right to use your name across Canada. It does not replace provincial registration.
An example
Your company starts in Toronto. Two years later it opens an office in Vancouver and hires three people there.
| Your corporation | What it files to expand into BC |
|---|---|
| Ontario corporation | BC extra-provincial registration |
| Federal corporation | BC extra-provincial registration |
Same step, same province, same timing. A federal corporation operating in Ontario also files an Ontario Initial Return within 60 days, just as an Ontario corporation does after incorporation.
Registration by province
| Province you expand into | Ontario corporation | Federal corporation |
|---|---|---|
| Ontario | Home province | Initial Return within 60 days, $0 |
| British Columbia | $350 registration plus $30 name request | $350 registration |
| Alberta | Registry agent filing, Alberta agent for service, Alberta NUANS report for a named company | Registry agent filing, Alberta agent for service |
| Quebec | $397 registration, $106 annual update | $397 registration, $106 annual update |
The differences are small. A federal corporation skips the BC name request and the Alberta NUANS report. That small saving does not justify the federal requirement for resident Canadian directors.
When you need to register
You register when the corporation carries on business in the new province, for example:
- opening an office, store or warehouse there
- hiring employees who work there
- keeping inventory or property there
Selling online or invoicing customers in another province from your home province usually does not require registration. Sales tax rules can still apply, such as BC PST once BC sales pass $10,000.
Open Corporation for $35 is a department of Gondaliya CPA. We check both the corporate and the tax side before you expand.
Steps to expand
- Confirm your name is available in the new province.
- Appoint an agent for service if the province requires one, such as Alberta.
- File the extra-provincial registration.
- Register for provincial sales tax and payroll programs where needed.
- Tell CRA about the new location and update your minute book.
How we help
We handle Ontario and BC filings directly and coordinate other provinces with a local agent where the province requires one. Your CRA accounts and corporate tax filings stay with the same CPA team.
Open Corporation for $35 is a department of Gondaliya CPA. Questions? Please email info@opencorporationfor35.ca.
FAQs
Can an Ontario corporation hire employees in BC?
Yes. It registers in BC first, the same step a federal corporation takes.
Can I change my Ontario corporation to a federal one later?
Yes, through continuance. Remember that federal then requires resident Canadian directors.
Who is Open Corporation for $35?
Open Corporation for $35 is a department of Gondaliya CPA. Gondaliya CPA is a CPA Ontario firm in Toronto, led by Sharad Gondaliya, CPA.
Plan your expansion
Please email info@opencorporationfor35.ca or book a free consultation at gondaliyacpa.ca/consultation. Related reading: Ontario or BC corporation for non-residents. Open Corporation for $35 is a department of Gondaliya CPA.
