How to Incorporate a Business in Canada

To put it simply, incorporation is the process by which your business becomes its own legal entity, separate from you. That separation is what protects your personal assets, helps with tax planning, and gives your business a stronger footing as it grows.

Many entrepreneurs picture incorporation as something only large companies do, but that’s not true. Solo founders, small teams, and businesses preparing to raise funding can all benefit from having a formally registered corporation. It can secure your business name, help your business access financing, apply for government grants, and open business bank accounts.

If you’re unsure where to begin, you’re not alone. Incorporation has a few moving parts, but once you understand the steps, it becomes far easier to navigate. This guide walks you through how it works: requirements, timelines, costs, and what to expect with federal vs. provincial registration.

Key takeaways

• Incorporating creates a separate legal entity that protects your personal assets, enhances credibility, and may offer tax advantages and better access to funding.
• To incorporate in Canada, you’ll choose a structure, select a name, file Articles of Incorporation, appoint directors, pay government fees, and keep ongoing corporate records compliant.
• Federal and provincial incorporation both work for most businesses, but each comes with different naming rules, fees, and administrative requirements.
• Staying compliant after incorporation now includes new federal requirements like the Individuals with Significant Control register.

How to incorporate your business in Canada

Incorporation involves choosing a business structure (corporation, partnership, or sole proprietorship), naming your company, filing your Articles of Incorporation, appointing directors, and registering at the federal or provincial level. You’ll also need to set up your corporate records and meet ongoing compliance requirements. 

Below, we’ll walk you through what each step means, what forms you’ll need, and how to stay compliant once your corporation is officially set up.

1. Choosing a business name

Choosing a name for your business can be stressful, but ultimately, it’s a fun exercise. Keep in mind, you can always incorporate as a numbered company (ex. 12345678 Canada Inc). Then you can choose a name at a later date, or if you don’t have a public-facing business, operate without a legal name. But most entrepreneurs are excited to give their business a name and have it legally registered.

First, decide on what you would like to call your business. Remember that this is your formal legal name. It’s not necessarily the same as your brand name.

If you’d rather operate under a name different from your legal corporate name, you’ll need to register that trade name separately. In Ontario, for example, this is done through a Master Business Licence.

Next, make sure your business name satisfies three legal requirements. It must have (1) a distinctive element, (2) a descriptive element, and (3) a legal ending:

[Distinctive] + [Descriptive] + [Legal Ending]

For example: Rhino Ice Cream Inc.

Bonus step: trademark search. Incorporation also provides access to intellectual property protection (patents, trademarks) under Canadian law. Have a look through Canadian trademarks to see if anyone else has registered a trademark on your desired name. You can conduct a free search with the Canadian Intellectual Property Office.

One final note about trademarks: they are tied to specific goods or services. This means that you may still be able to use a registered trademark if that’s your desired name, so long as your intended use is in a different industry.

If you’re incorporating federally, note that Corporations Canada now runs the NUANS-style name search directly inside its Online Filing Centre, so a separately ordered NUANS report isn’t required to complete a named federal incorporation.

If you incorporate through Ownr, we handle all required NUANS searches so you don’t have to worry about conducting your own business name search in advance.

2. Choose your incorporation jurisdiction

You can incorporate your business at the federal level (Corporations Canada) or in the province (e.g., Ontario, BC). We’ll provide more detail about the differences below, but for most entrepreneurs, both jurisdictions are appropriate.

Federal versus provincial incorporation

You have the option of incorporating provincially or federally. Your choice will also determine the jurisdiction of legal recourse and taxation your business falls under. Here’s how the two compare on the factors that matter most:

If you incorporate federally, you’ll also need to register the company in the province where it operates. For the full comparison, see Ownr’s Federal vs. provincial incorporation guide.

3. Filing Articles of Incorporation with the government

After you’ve decided on your name, you’ll need to submit Articles of Incorporation to the appropriate provincial or federal body. For this step, you’ll need to determine your share class structure, along with deciding on the company’s initial directors.

With Ownr, we automatically file your initial registration documents with the government by collecting all required information during your onboarding. Learn everything you need to know about articles of incorporation.

If you’re incorporating specifically in Ontario, see Ownr’s guide to registering your business in Ontario for the province’s exact filing steps.

4. Pay incorporation fees

The federal and provincial governments charge a fee for incorporation, so be prepared to pay this when you file your Articles of Incorporation.

5. Company formation documents

Filing your Articles of Incorporation is only half the job. You also need to create and sign your company formation documents: Corporate Bylaws, Shareholder and Director Resolutions, Director Consents, Share Subscriptions, and Share Issuances.

Without properly issued shares, your business may effectively have no legal owners and no ability to bring on investors. These issues get costlier to fix the longer they go unaddressed.

With Ownr, we prepare all company formation documents for you instantly, tailored to your business, send them for eSignature, and save them to your account once signed.

When are you ready to incorporate?

There are two main drivers when considering whether to incorporate your business: limited liability and taxes.

Limited liability

The benefits of limited liability cannot be overstated. By incorporating, you separate your personal and business obligations, reducing your personal financial risk if the business runs into debt, legal claims, or other liabilities.

If you don’t incorporate and instead operate as a sole proprietorship or a partnership, you remain personally responsible for the business’s debts, putting your personal property (like your home, car, and computers) at risk. Incorporating keeps those assets protected.

That is a real risk to weigh. Five years after starting up, about 70% of goods-producing businesses and 68% of services-producing businesses in Canada are still operating, according to ISED’s Key Small Business Statistics 2025.

NOTE: There are times when directors can remain personally liable for a business’s debts if certain preconditions are met. The most common examples include:

1. Unpaid employee wages and vacation pay: Up to six months’ wages and 12 months’ vacation pay.
2. Employee source deductions and remittances: Includes source deductions for employee income taxes, EI and CPP contributions.
3. GST/HST remittances: This includes GST/HST that has been collected by the corporation but was not remitted to the government.

Tax advantages

In Canada, corporations are taxed differently from individuals, and the structure offers potential tax advantages, including income splitting and limited liability for shareholders. Whenever you can leave some money in the corporation, rather than transferring it to your personal account, you can reduce the taxes you pay.

How you choose to pay yourself can also have tax advantages.. You can pay yourself in salary, dividends, or a combination of both depending on what will result in the lowest tax burden.

For example, in Ontario, a Canadian Controlled Private Corporation (a corporation owned primarily by Canadian residents) pays a combined federal and Ontario tax rate of 11.2% on the first $500,000 of income each year, and 26.5% for all income beyond that.

This reflects Ontario’s 2026 provincial rate cut. The small-business rate dropped from 3.2% to 2.2% effective July 1, 2026, bringing the combined rate down from 12.2%.

One note: if your corporation’s fiscal year straddles July 1, 2026, you’ll pay a prorated blended rate for that transition year, since part of the year falls under the old rate and part under the new one. Your accountant can calculate the exact figure for your fiscal year.

As a business owner, if you are able to leave money in the company and not take it all out for personal expenses, you can increase the value of your company’s assets and pay less in taxes.

That means the money you leave in your company can be used to invest in the business in various ways. For example, you could spend it on marketing, buy new equipment, purchase additional inventory, or hire new staff.

What are the benefits of incorporating?

On top of limited liability and tax advantages, incorporation provides official documentation that confirms your business is recognized as a corporation. Here are four other clear benefits of incorporating your business:

Raising capital

If you want investors to invest in your company, you’ll need to be incorporated. Without incorporation, you will not have shares to sell to investors. Incorporation can also open doors beyond private investment. Many federal government contracts and procurement opportunities are only open to incorporated businesses.

Your choice of jurisdiction matters here too. Incorporating provincially, for instance, may influence your eligibility for certain provincial small business grants.

Improving professional image

When working with clients, your business comes across as more professional when it is incorporated. Invoices are sent with your incorporated business name (ending in Inc., Ltd. or Corp.). This communicates to your clients that you have thought about the long-term viability of your business and take your obligations seriously.

Transferable shares

Another benefit of incorporation is that it simplifies ownership transfer through share sales. Corporations can be transferred among individuals by simply selling or transferring shares. This makes long-term succession planning considerably easier.

Continuous lifespan

Corporations are not limited to the lifespan of the owners. They can exist indefinitely.

How much does it cost to incorporate a business in Canada?

The cost to incorporate in Canada will vary according to your location. The total cost to incorporate with Ownr can be between $499 and $699, depending on your jurisdiction. This includes all government fees, name search fees, company formation documents as well as 12 months on the Ownr platform. Get started and incorporate in minutes with Ownr.

Another option for incorporation is to go directly to the government. It’s important to note that the prices listed here are highly unlikely to be the total cost of your incorporation. Completing government filings yourself may still incur paperwork and other legal costs, such as hiring a lawyer, to ensure compliance with provincial and federal labour laws, environmental regulations, and industry standards.

It’s also worth remembering that Ggovernment prices will vary based on your jurisdiction and type of incorporation:

*Alberta has no separate government-set name-approval fee for corporations. A named corporation requires a NUANS report, obtained from a private provider (typically $30–$75).

Is compliance causing you stress, and are you looking for an easier way? Incorporate with Ownr and save additional fees for government filings. With our one-stop solution, you receive with your provincial incorporation:

• A full year of our Online Minute Book plan
• Company name registration
• Company organization documents & share issuances
• Access to Ownr Perks

After incorporation: ongoing obligations

After incorporation, your company will need to stay compliant with government requirements, which may include obtaining a Business Number (BN) from the Canada Revenue Agency (CRA) if you haven’t registered for one already.

Many business owners find that using an online platform for managing a corporation simplifies this ongoing compliance work, providing digital tools for record-keeping and automating annual filing reminders. There are three main things that every company is legally required to keep up-to-date:

Minute book and share records

You are required to keep your company documents in an organized manner. This can be in an old-fashioned paper binder, or, like we do at Ownr, through a secure online minute book.

Company updates

Any time your company details change (for example, when you want to add a new director or change your registered address), you are obligated to file forms with the government and prepare corporate resolutions which officially approve the company changes.

Ownr takes care of all this paperwork on an ongoing basis: automatically preparing and filing forms with the government, preparing the required corporate resolutions, gathering e-signatures, and securely storing all documents within your account.

Individuals with Significant Control (ISC) Register 

If you incorporate federally under the Canada Business Corporations Act (CBCA), you’re required to prepare and maintain a register of individuals with significant control, known as the ISC register. This register identifies who actually owns and controls your corporation, beyond just the names on your Articles of Incorporation.

An individual with significant control is generally someone who owns, controls, or directs 25% or more of your company’s shares, alone or together with others, or who has significant influence over the business without necessarily holding any shares.

Since January 2024, CBCA corporations must also file this information directly with Corporations Canada, not just keep it on file internally.

Registering for GST/HST 

Most corporations need to register for a GST/HST account with the CRA once their worldwide taxable revenue passes $30,000 over four consecutive calendar quarters, though you can register voluntarily before then if it makes sense for your business. 

If you’re getting close to that threshold, or want to claim input tax credits early, see Ownr’s guide to GST/HST registration for the details on how and when to apply.

Post-incorporation steps

Each year, your company is required to file annual returns and keep corporate records up to date in order to stay compliant. Associated fees for filing annual returns range from $12 for a federal corporation to $53.05 for an Alberta corporation.

You’ll also need to prepare annual shareholder and director resolutions, even if you’re a single-person corporation. These are all mandatory documents in order for your business to stay compliant. If you fail to file the annual return, the government can dissolve your company.

Ready to start your business? Ownr has helped over 270,000 entrepreneurs hit the ground running quickly—and affordably. If you have questions about how to register or incorporate your business, email us at support@ownr.co.

Frequently asked questions

How many shares should I issue when incorporating in Canada?

Most newly incorporated small businesses start with anywhere between 100 and 10 million shares, which they can issue to others in the future. There’s no hard rule about how many shares you should issue when incorporating in Canada, and you can technically issue just one share.

What’s the best way to incorporate a business?

The best way to incorporate a business is by filing with your local provincial government, the federal government, or a third party platform with extra benefits like Ownr.

What documents are needed to incorporate a company?

To incorporate your company, you will need your Articles of Incorporation, company formation documents, and in some cases, a NUANS report.

How long does it take to incorporate in Canada?

It depends on where and how you file. Federal incorporation through Corporations Canada’s online portal typically processes within 1 business day, with a same-day (4-hour) express option available for an extra fee. 

In Ontario, online filing through the Ontario Business Registry is processed immediately. Mail filings are slower across the board. Federal paper filings take about 10 business days, and Ontario’s take up to 15.

What’s the difference between corporation and incorporation?

A corporation is a business structure that creates a new legal entity for the business, while incorporation is the process of setting up a corporation.

What’s the difference between inc and ltd?

Both “inc” and “ltd” are corporate suffixes that are commonly used in the names of corporations. Inc stands for incorporated, while ltd stands for limited.

What’s the difference between incorporated and limited?

An incorporated business is a distinct legal entity, separate from its owners. A limited liability company is an American business structure that isn’t used in Canada, while the term “limited company” is rarely used to refer to corporations in some Canadian provinces.

What is the Individuals with Significant Control Register? 

The Individuals with Significant Control (ISC) register is a record that CBCA corporations must keep, identifying anyone who owns or controls 25% or more of the company’s shares, or who otherwise exercises significant influence. Since January 2024, CBCA corporations must also file this information directly with Corporations Canada, not just maintain it internally.