What is the difference between federal and Ontario incorporation?

Federal incorporation allows your business to operate across Canada under the same name, while Ontario incorporation limits your legal jurisdiction to Ontario but may have simpler registration requirements.

Which type of incorporation is better for a business operating in multiple provinces?

Federal incorporation is often better for businesses operating nationally, as it provides name protection across all provinces and territories.

How much does it cost to incorporate federally versus in Ontario?

Federal incorporation fees are typically higher than provincial fees, but the exact cost depends on filing options and additional services such as name searches.

Do I need a NUANS name search for federal and Ontario incorporation?

Yes. Federal incorporation requires a NUANS name search to ensure uniqueness nationwide. Ontario incorporation may require a provincial name search depending on the business type.

Can I change my business structure after incorporating in Ontario or federally?

Yes. You can reorganize, convert, or amalgamate corporations, but the process differs between federal and provincial jurisdictions.

Which incorporation option offers better name protection?

Federal incorporation offers stronger name protection across all provinces, whereas Ontario incorporation protects the name only within the province.

How long does it take to incorporate federally versus in Ontario?

Federal incorporations can often be completed online within a few days, while Ontario provincial incorporations may take a similar or slightly shorter timeframe depending on the registry.

Do federal corporations have to register in each province they operate in?

Yes. While federally incorporated businesses have national recognition, they must extra-provincially register in each province where they operate.

Are tax obligations different for federal and Ontario corporations?

No. Tax obligations are primarily determined by your business location and operations. Both federal and Ontario corporations follow Canadian federal and provincial tax rules.

Can I incorporate online for both federal and Ontario options?

Yes. Both federal and Ontario incorporations can be completed online through their respective registries, often with step-by-step guidance.

Which incorporation option is more suitable for a startup?

It depends on your growth plans. Ontario incorporation may be simpler and cheaper for a local startup, while federal incorporation is better if you plan to expand across Canada.

Do I need a lawyer to incorporate federally or in Ontario?

You don’t need a lawyer, but professional guidance can ensure your incorporation is done correctly, help with name searches, and maintain compliance.

What documents are required for federal versus Ontario incorporation?

Required documents typically include Articles of Incorporation, a NUANS name search (federal), and information about directors and share structure. Ontario may have slightly different forms and fees.

Can Launch a Business help me choose between federal and Ontario incorporation?

Yes. Launch a Business provides guidance on federal vs provincial incorporation, helping you select the best option for your business goals and ensuring a smooth registration process.

Federal vs Ontario Incorporation: Which Option Makes More Sense for You?

Natalie Paquette
Jan 19
2 min read

Updated: Jan 22

When it comes to incorporating a business in Canada, one of the first big decisions you’ll face is: federal vs Ontario incorporation?

It sounds straightforward, but the answer depends on your business goals, where you plan to operate, and how you want to structure things. At Launch a Business, we help entrepreneurs figure this out without the headache or guesswork. Here’s a friendly guide to help you make the right choice for your business.

What’s the Difference Between Federal vs Ontario Incorporation?

Ontario Incorporation

This means your corporation is registered only in Ontario.

You can operate in Ontario under your corporate name.
You’ll follow Ontario corporate laws and reporting requirements.
You’ll need to register with each province you set up a location in (called extra-provincial registrations).

Start an Ontario Corporation

Federal Incorporation

A federal corporation is registered with the Canadian government and can operate across Canada.

Offers name protection across the entire country.
Allows you to do business anywhere in Canada without extra provincial filings.
Requires federal annual filings in addition to any provincial registrations if you have a physical presence elsewhere.
You’ll need to register with each province you set up a location in (called extra-provincial registrations).

Start a Federal Corporation

How to Decide Which Option Fits Your Business

1. Where Will You Operate?

Mostly Ontario: Provincial incorporation might be simpler.
Across Canada: Federal incorporation gives you broader name protection and flexibility.

2. Name Protection Matters

Federal: Your corporate name is protected nationally.
Ontario: Protection is only within Ontario.

If you dream of expanding your brand nationwide, federal can save future headaches.

3. Cost Considerations

Ontario incorporation: $300 government filing fee.
Federal incorporation: $200 government filing fee, plus possibly additional fees for extra-provincial registrations.

4. Future Growth Plans

Planning to franchise, attract investors, or sell across multiple provinces? Federal incorporation can make these moves easier.
If your focus is local, provincial incorporation is often sufficient.

5. Compliance and Reporting

Ontario: Annual returns filed with the province.
Federal: Annual returns filed federally, plus any extra-provincial filings depending on which provinces you’re registered with.

Federal requires a little more admin, but nothing unmanageable—especially with Launch a Business helping handle filings.

The Bottom Line

There’s no one-size-fits-all answer. The best choice depends on:

Where you operate
How far you plan to grow
How much admin you’re ready to handle
How important national name protection is for your brand

Many small businesses start with Ontario incorporation because it’s straightforward. Others start federal because they’re already thinking nationwide. Either way, making an informed choice upfront saves a lot of headaches later.