When incorporating a business in Canada, one of the first decisions you'll face is whether to incorporate federally — through Corporations Canada — or provincially, in your home province or territory. Both create a valid Canadian corporation with limited liability protection, but they differ in cost, name protection scope, compliance obligations, and how you operate across provinces.
Key Differences at a Glance
| Factor | Federal | Provincial |
|---|---|---|
| Government fee | $200 CAD (online) | $262–$455 CAD (varies by province) |
| Name protection | All of Canada | One province or territory |
| Operate in other provinces | Must register extra-provincially | Must register extra-provincially |
| Annual filing | Annual Return to Corporations Canada + province(s) | Annual Return to province(s) only |
| Director residency | 25% Canadian residents required | Varies by province |
| Processing time | 1–5 business days (online) | 1–10 business days (varies) |
What Is Federal Incorporation?
A federal corporation is incorporated under the Canada Business Corporations Act (CBCA) through Corporations Canada, a federal government body. Federal corporations receive a unique corporate name protected across all of Canada — no other business in any province or territory can register a name that is confusingly similar.
The federal filing fee is $200 CAD for online submissions. Federal corporations must file an Annual Return with Corporations Canada each year, and they must also register extra-provincially in every province where they carry on business (each with its own fee and filing).
What Is Provincial Incorporation?
A provincial corporation is incorporated under the business corporations act of a specific province or territory (e.g., Ontario's Business Corporations Act, BC's Business Corporations Act). The corporation is a valid legal entity but its name is only protected within that province.
Provincial filing fees vary: Ontario charges $300 CAD, British Columbia $350 CAD, and Alberta $275 CAD. Annual compliance is simpler — you typically only file with one provincial registry rather than two. If you later expand to other provinces, you register extra-provincially at that point.
Name Protection: The Key Advantage of Federal
This is where federal incorporation has a clear edge. A federally incorporated company with the name "Maple Software Inc." prevents any other business in Canada from registering a confusingly similar name at the federal or provincial level.
A provincial corporation named "Maple Software Inc." only prevents name conflicts within that province. A competitor in Alberta could register "Maple Software Inc." provincially without issue.
If your brand is valuable and you plan to expand nationally, federal incorporation provides better protection from day one.
Cost Comparison (2026)
| Province | Provincial Gov't Fee | Federal Gov't Fee |
|---|---|---|
| Ontario | $300 CAD | $200 CAD (+ free Initial Notice in Ontario) |
| British Columbia | $350 CAD | $200 CAD + $350 extra-provincial = $550 total |
| Alberta | $275 CAD | $200 CAD + extra-provincial fee (via registry agent) |
| Quebec | $397 CAD | $200 CAD + extra-provincial registration fee |
| Federal (all provinces) | N/A | $200 CAD (+ extra-prov. per province where applicable) |
All government fees listed are approximate and subject to change without notice. Always verify the current fee directly with the relevant federal or provincial registry before filing. These fees are separate from SimplyfyBiz service fees. See our pricing →
For Ontario-based businesses, federal incorporation ($200) is actually cheaper than Ontario provincial ($300) since federal corporations only need to file a free Initial Notice in Ontario. In BC, an extra-provincial registration fee applies on top of the $200 federal fee. The right choice depends on your specific province and growth plans. Government fees change — always verify with the relevant registry before filing.
Annual Compliance: What You're Committing To
Federal corporations must:
- File an Annual Return with Corporations Canada each year ($12 CAD online)
- Register and file annual returns in each province where they carry on business
- Maintain a registered office address in a Canadian province
Provincial corporations must:
- File an Annual Return with their home province registry
- Register and file in additional provinces only if operating there
For a business operating in one province, a provincial corporation generally has lower ongoing administrative burden.
When to Choose Federal Incorporation
- You plan to operate in multiple provinces from the start
- Your business name is important to your brand and you want national protection
- You are raising investment and prefer the well-established CBCA framework
- You operate e-commerce or online services that customers access nationally
- You plan to expand internationally and want a "Canada" entity (rather than a province)
When to Choose Provincial Incorporation
- You operate primarily in one province and don't plan immediate national expansion
- You want to minimize upfront and annual compliance costs
- Your province has specific regulatory advantages for your industry
- You have no specific requirement for national name protection
Can I Change from Provincial to Federal Incorporation Later?
Yes, but it's not a simple amendment — it requires a continuance process (sometimes called "importing" the corporation federally), which involves government filings in your home province and with Corporations Canada. Fees apply. It's easier to make the right choice upfront. SimplyfyBiz handles both structures and can advise which is appropriate for your business.
Frequently Asked Questions
Does a federal corporation need to register in Ontario to operate there?
Yes. Even though a federal corporation is valid across Canada, it must register in each province where it carries on business. In Ontario, a federal corporation files a free Initial Notice under the Corporations Information Act — there is no government fee for this registration. Other provinces charge their own extra-provincial registration fees. SimplyfyBiz handles extra-provincial registrations as an optional add-on.
Is a federal corporation better for investors?
Many investors and venture capital firms are familiar with the CBCA framework and may prefer it. However, provincial corporations (especially BC and Ontario) are also routinely used for investment deals. The preference varies by investor, not a hard rule.
Which is faster — federal or provincial incorporation?
Both federal (online via Corporations Canada) and most provincial online filings process in 1–5 business days. Quebec can take longer (up to 10 business days). There is no consistent speed advantage for either route.
How do I incorporate in Canada?
SimplyfyBiz handles federal and provincial incorporation across all 13 Canadian jurisdictions. Our incorporation service starts at $499 CAD (plus government filing fees) and covers Articles of Incorporation, CRA Business Number, and HST/GST registration — completed in 3–7 business days.