Federal vs. Provincial Incorporation: Which Is Right for Your Business?
What separates federal incorporation from provincial incorporation, and how to decide which structure fits your business. ● Quick Answer Federal incorporation creates a corporation under the Canada Business Corporations Act, while provincial incorporation creates one under a specific province’s laws. Federal incorporation offers heightened Canada-wide corporate-name protection but generally requires resident-Canadian directors. Provincial fees, director rules, naming requirements, and annual filings vary. Either structure may still require extra-provincial registration when the corporation carries on business elsewhere. Choosing between federal vs. provincial incorporation in Canada is less about which structure is universally better and more about where the business will operate, who will serve as directors, how important corporate-name protection is, and what ongoing compliance the owners are prepared to manage. Incorporate Federally With MD Legals → For founders consider...