Incorporate a Manufacturing Company for $35
Start your manufacturing corporation for $35, HST included. Government fees are separate. Complete the intake form and a CPA checks your sales mix, capital plan and SR&ED position first.
Manufacturing carries the richest credits in the system and the strictest evidence rules. A qualifying Canadian-controlled private corporation earns a 35% refundable SR&ED investment tax credit on qualified expenditures up to $3 million, and 15% above that. We prepare and file your corporation for $35.00, HST included, and pass the registry charge on at the government figure. Open Corporation for $35 is a department of Gondaliya CPA.
Ontario’s reduced manufacturing rate is claimed on Schedule 27 and does not cover resale or service revenue. A Chartered Professional Accountant reviews your costing, your capital cost allowance classes and your claim file.
AFFORDABLE Incorporation for Manufacturing Companies
Active business income inside the $500,000 federal business limit is taxed at 9% federally and 3.2% in Ontario, a combined 12.2%.
Above that limit Ontario taxes manufacturing and processing income at 10% against an 11.5% general rate, so a manufacturer pays 25% combined rather than 26.5%.
Two credits are corporate only. The Ontario Made Manufacturing Investment Tax Credit is closed to a proprietor, and the enhanced 35% refundable SR&ED rate is a Canadian-controlled private corporation rate.
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Rules That Apply to a Manufacturing Corporation
Manufacturing does not use a professional corporation. There is no college, no certificate of authorization, no share ownership restriction and no annual licence renewal. You incorporate under the Business Corporations Act (Ontario) or the Canada Business Corporations Act. Five other rules apply.
Typical Share Structure for a Manufacturing Corporation
| Share class | Who holds it | Voting | Dividend entitlement | Why it is there |
|---|---|---|---|---|
| Class A common | The working owner | Yes | Discretionary | Control and growth |
| Class B common | A spouse running purchasing | Yes | Discretionary | Splitting, if TOSI allows |
| Class C non-voting common | An adult child or plant manager | No | Discretionary | Profit share, no control |
| Class D preferred | The working owner | No | Fixed, redeemable | Freezes value for a successor |
| Class E preferred | The working owner | No | Fixed, redeemable | Section 85 rollover consideration |
Section 120.4 of the Income Tax Act decides whether the Class B share ever pays. Manufacturers sit better than most, because the excluded shares exception protects a holder of at least 10% of the votes and value and fails only where more than 90% of business income comes from services, and a company selling goods it made is not a service business.
It is lost inside a holding company, so a CPA tests each shareholder before a dividend.
HST for Manufacturers
Manufactured goods are taxable. Nothing you sell to a distributor or another plant is exempt under Schedule V to the Excise Tax Act, so an Ontario sale carries 13%.
Common CRA Issues for Manufacturers
SR&ED reduced or denied
Triggered by claiming routine engineering or a first production run as experimental development, with no record of the hypothesis, test and result.
Inventory understated
Triggered by costing finished goods at material only, leaving direct labour and factory overhead in expenses.
Manufacturing income overstated
Triggered by putting resale or service revenue into Schedule 27 and claiming Ontario’s 10% rate on income that does not qualify.
Capital cost deducted as repairs
Triggered by expensing a rebuild that extends a machine’s life instead of adding it to the Class 53 pool.
Zero-rating disallowed
Triggered by charging 0% to a United States buyer while the goods are collected in Ontario and no export evidence is held.
First-Year Compliance Calendar
| When | What is due | Who files it | What happens if it is late |
|---|---|---|---|
| Week 1 to 2 | Business number and RC0001 account | Your CPA, with the CRA | Nothing to file the T2 against |
| Before the first machine | HST registration past $30,000 | Your CPA, with the CRA | Tax on machinery is unrecoverable |
| Within 60 days | Initial Return, Corporations Information Act | Us, with the registry | Non-compliance. No fee |
| Within 10 days of hiring | WSIB registration | The corporation, with the WSIB | Coverage gap, reassessed premiums |
| 15th of the following month | Payroll source deductions | The corporation, to the CRA | Penalty of 3% to 10% |
| Within 53 weeks | First fiscal year end chosen | Your CPA | Hard to change after the first T2 |
| One month after period one | First HST return | Your CPA, with the CRA | Late filing and interest |
| 6 months after year end | T2, Schedule 27, Form T661, Annual Return | Your CPA, and us | Late penalty, then cancellation |
| First tax year | No instalments | Nothing to file | Instalments start in year two past $3,000 |
We check nine things before a manufacturing company is filed.
SR&ED work now
If you are developing a process, a formulation or a tool, the record starts on day one, because the credit is earned on documented experiments, not on a story told eighteen months later.
Your sales mix
The split between goods you manufacture and anything you resell or service decides the Schedule 27 calculation, whether the Ontario Made Manufacturing Investment Tax Credit is available, and whether the TOSI excluded shares exception survives the 90% services test.
Your 24-month capital plan
Which machines are coming, when they will be available for use, and which class they fall in. A purchase landing on the wrong side of a year end costs real money.
Work in process costing
An overhead method chosen at the start is cheaper than one reconstructed under audit.
Your year end
Set after the slow season so the count is small.
WSIB and HST frequency
Your WSIB classification, and monthly HST filing where you export.
A section 85 rollover
Whether machines and inventory move in under section 85, and at what elected amounts.
A holding company
Whether one belongs in the structure now, because plant and land should not sit with the supply contracts.
Associated corporations
Whether you are associated with another corporation, since associated companies share one $500,000 business limit.
AFFORDABLE Incorporation Pricing for Manufacturers
Our fee is $35.00 with HST included. Government filing fees are passed through at cost with no mark-up, and every total below is final.
Ontario Provincial Incorporation
| Service | Final Fee | Frequency |
|---|---|---|
| Ontario named corporation – Government filing CAD 300 + NUANS CAD 25 + our incorporation fee CAD 35 | CAD 360 | One-time |
| Ontario numbered corporation – Government filing CAD 300 + our incorporation fee CAD 35 | CAD 335 | One-time |
| Our professional incorporation fee component | CAD 35 | One-time |
| NUANS name search | CAD 25 | One-time |
| Annual Virtual Registered Address Service Package | CAD 900 | Annual |
Federal Incorporation – Based in Ontario
| Service | Final Fee | Frequency |
|---|---|---|
| Federal named corporation based in Ontario – Government filing CAD 200 + NUANS CAD 38 + our incorporation fee CAD 35 | CAD 273 | One-time |
| Federal numbered corporation based in Ontario – Government filing CAD 200 + our incorporation fee CAD 35 | CAD 235 | One-time |
| Our professional incorporation fee component | CAD 35 | One-time |
| Federal NUANS name search based in Ontario | CAD 38 | One-time |
| Annual Virtual Registered Address Service Package | CAD 900 | Annual |
Our Services for Manufacturing Companies
Our professional fees include HST. Government fees are separate, itemised and charged at cost with no mark-up.
NUANS Report for Manufacturers
The name search a named manufacturing company needs, with your choices screened before one is bought. Buyers see the corporate name on every purchase order and vendor form, so it is worth settling first.
Incorporation Service for Manufacturers
Articles drafted for the owners, the successor and the holding company you expect, with the corporation in place before the first machine, the plant lease or the first supply contract.
Address Service for Manufacturers
A registered office address in downtown Toronto, so your home address stays off the public register and corporate mail is handled away from the shop floor.
Payroll Service for Manufacturers
The payroll account opened before the first hire, source deductions for production staff, overtime and shift premiums worked out each pay run, and T4 slips filed before the February deadline.
One Window Service for Manufacturers
The articles, the business number, the HST, payroll and import accounts, and the first year of filings handled through one person, so nothing waits between offices.
Corporate Annual Filing for Manufacturers
The Ontario Annual Return or the federal annual return filed on time, with director, officer and address changes reported, so the corporation stays in good standing for buyers’ vendor audits and lenders.
Corporate Tax Filing for Manufacturers
The T2 with Schedule 27 for the manufacturing rate, the capital cost allowance schedules and GIFI statements, prepared from books where work in process is costed properly.
Federal Incorporation for Manufacturers
A federal corporation for a manufacturer selling across Canada, with the name protected nationally and the director residency rule checked before filing.
Holding Company Setup for Manufacturers
A holding company for the plant, the land or surplus cash, kept away from the operating company’s supply contracts and product liability, with the $500,000 limit shared deliberately.
The Bundle for Manufacturing Companies
After incorporation the ongoing work moves to the parent firm. Gondaliya CPA opens the business number and the HST and payroll accounts, registers the corporation with the WSIB, sets up a costing method for work in process, runs payroll and HST returns, maintains the capital cost allowance schedules, and prepares the Schedule 27 calculation, the SR&ED claim, the T2 and the Annual Return.
Why Manufacturers Use Us
Gondaliya CPA Professional Corporation is registered with CPA Ontario under firm registration number 61330051. Open Corporation for $35 is a department of Gondaliya CPA.
- CPA Ontario firm registration number 61330051
- 1,300+ five-star Google reviews
- 13 Ontario offices
- Open 9:00 AM to 8:30 PM, Monday to Sunday
- 30-day money-back guarantee
- 60-day fee-matching policy
- Xero Partner Award Winner 2026
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Free CPA Consultation for Manufacturers
Case Studies: Manufacturing Company Incorporation
Three Ontario manufacturing files, each showing where the owner started and what changed before anything went to the registry.
Vaughan Metal Fabricator – Nine Years of Machines Owned Personally
The problem: A welder in Concord had run his fabrication shop as a sole proprietor for nine years. The press brake, the CNC plasma table and a year’s steel inventory were all in his own name, and a large customer now wanted to deal only with a corporation. Selling the equipment to a new company at market value would have triggered recapture on machines he had already written down.
What we did: We incorporated a numbered Ontario company and moved the equipment, inventory and goodwill in under section 85 at elected amounts, taking preferred shares as consideration. The joint election went in on Form T2057, and HST on the transfer was covered by the section 167 election.
The result:
- Numbered Ontario corporation filed at $335.00
- Machines and inventory rolled in without a taxable gain
- Customer’s vendor file updated with the new business number
Mississauga Food Processor – An Export Line Bought Before HST Registration
The problem: Two partners were starting a sauce and condiment plant in Mississauga, with most of the output going to United States distributors. They were about to buy a kettle line and a bottling machine before the corporation, the business number or the HST account existed, which would have left the tax on the equipment unrecoverable.
What we did: We incorporated first, registered the corporation for HST before the purchase, and set it up as a monthly filer because zero-rated exports put it in a refund position. We set out the export evidence the CRA expects for each shipment and authorised separate share classes for the two partners.
The result:
- HST on the equipment claimed as input tax credits
- Monthly refunds instead of quarterly
- Export documentation in place from the first shipment
Hamilton Plastics Start-Up – An Investor Who Would Have Cost the SR&ED Rate
The problem: A Hamilton engineer was developing a recycled resin compound and had agreed in principle to give a United States investor half of the voting shares. Control by a non-resident would have stopped the company being a Canadian-controlled private corporation, taking the enhanced 35% refundable SR&ED rate and the small business rate with it.
What we did: We drafted the share structure so voting control stayed with Canadian residents, with the investor holding non-voting participating shares. We also opened an SR&ED record from the first week, logging the hypothesis, trials and results for each formulation.
The result:
- CCPC status protected at incorporation
- Investor brought in without giving up control
- SR&ED evidence kept from day one
Six steps from the intake form to a corporation that can sign the plant lease, buy machinery with recoverable HST and open its supplier accounts. You always know what is with us, what is with the registry and what comes next.
Send the intake form
Owners, shares, what you make and where it is sold, the machines you are buying, and whether an existing proprietorship is moving in. It takes about ten minutes.
A CPA reviews the file
Your sales mix, your 24-month capital plan, any SR&ED work, a section 85 rollover, and where the year end should fall. Questions come back the same working day.
Numbered or named
A numbered company needs no search. A named one needs a NUANS report, $25 for Ontario or $38 federally, and we screen your choices before paying for one.
You approve the draft
You see the articles, the share classes, the directors and the registered office before anything is submitted. Changes cost nothing at this stage.
Filed online
Ontario articles go through the Ontario Business Registry and federal articles through Corporations Canada. An online filing is processed on submission and the certificate is emailed to you.
Set up to produce
The Initial Return within 60 days, the business number, the HST and payroll accounts, WSIB registration, an import account if you bring in material, and the minute book.
Meet the Lead CPAs Behind Your Manufacturing Corporation
A Chartered Professional Accountant checks your sales mix, capital plan and SR&ED position before anything is filed.
What Our Clients Say
These Google reviews belong to Gondaliya CPA Professional Corporation and cover every service the firm provides. See all reviews.
Incorporating a Manufacturing Company Anywhere in Canada
We incorporate manufacturers from thirteen Ontario offices and remotely across Canada. The filing is electronic, so no visit is needed. The Ontario manufacturing rate and the Ontario Made credit apply to Ontario plants. A plant elsewhere is filed federally or in its own province, and we confirm that registry’s fee in writing first.
Manufacturing Incorporation FAQs
How much does it cost to incorporate a manufacturing company in Ontario?
Do manufacturers need a professional corporation in Ontario?
What is the SR&ED tax credit worth to a small manufacturer?
What tax rate does a manufacturing corporation pay in Ontario?
What is the Ontario Made Manufacturing Investment Tax Credit?
What capital cost allowance class does manufacturing equipment go in?
How do I value inventory and work in process at year end?
Do I have to register with the WSIB for a factory?
Do I charge HST on goods my plant ships outside Canada?
Should I register for HST before buying my first machine?
Can I move my sole proprietorship’s equipment into the new corporation?
Can I pay my spouse or children dividends from a manufacturing corporation?
Should I incorporate my manufacturing company in Ontario or federally?
Related Industries We Serve
Machine Shops and Metal Fabricators
- Class 53 and Class 43 equipment
- Job costing and work in process
- SR&ED on tooling
Food Processors
- Zero-rated basic groceries
- Batch costing and spoilage
- Ontario manufacturing rate
Importers and Exporters
- Imported raw material and duty
- Zero-rated export evidence
- CARM and the RM account
Grocery and Convenience Stores
- Selling into retail shelves
- 0% and 13% product lines
- Supplier and vendor setup
Set Up Your Manufacturing Corporation
One form stands between you and a corporation set up properly. Pay $35 including HST, and a CPA checks the shares, year end, inventory basis and equipment classes.
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.
