Where Should I Incorporate My Business?
The answer to this question involves making the decision as to whether you should incorporate your business under Canada’s federal laws – for example, a federally chartered corporation – or under the laws of one of the country’s Provinces, for example a Provincially chartered corporation. There are pros and cons to both, with no specific best solution for all incorporators.
Choosing the jurisdiction in which to incorporate depends on your answers to the following questions:
- What are the fees associated with Provincial incorporation, compared to federal incorporation?
- Will your company conduct business in one Province or Territory, in multiple Provinces or Territories, or throughout Canada?
- Does the uniqueness of your corporate name justify the protection of federal incorporation?
- How important is federal name protection to your business? Will your corporate name be used in more than one Province or Territory?
If your intention is to conduct business in one Province only, you might decide to incorporate Provincially under the laws of that Province or, alternatively, to form a federal corporation.
In the case of a federal corporation, you will generally be permitted to conduct business anywhere in the country under your organization’s name, but you must register in every Province where the corporation carries on business. Other than in Ontario, Provincial registration fees generally apply over and above the federal incorporation filing fee.
At New Business Now.com in Ontario, we have more than 15 years of experience in providing cost-effective, professional business and incorporation services throughout Canada. Our skilled team is standing by to help you!
Articles on this blog are general in nature and are provided for informational purposes only. Use of this blog does not provide or replace individualized legal advice and does not create a solicitor-client relationship with our firm. Users who require legal advice on a particular matter should consult directly with Mr. Eric Cohen, Barrister & Solicitor, an Ontario lawyer or a competent lawyer in their Province or State.