If your business/home office is located in Ontario, you could incorporate a Federal or Ontario corporation. Both corporations are allowed to sell products and services to individuals and businesses located in any province in Canada and outside of Canada.

However, some important differences should be taken into account, when you select the right type of legal entity suitable for your business needs.

Corporate Name

Federal Corporation

Must be very unique to be accepted by the government

Ontario Corporation

Usually acceptable if no exact matches with existing names

Name Protection

Federal Corporation

Name protected in Canada

Ontario Corporation

Name protected in Ontario

Registered Office

Federal Corporation

May be located in any Canadian province

Ontario Corporation

Must be in Ontario

Government Fee

Federal Corporation

$250

Ontario Corporation

$360

Annual Filing Fee

Federal Corporation

$40

Ontario Corporation

No charge

Directors

Federal Corporation

Only individuals may be appointed.
At least twenty-five per cent of the directors must be Canadian residents. However, if a corporation has less than four directors, at least one director must be a Canadian resident

Ontario Corporation

Only individuals may be appointed.
At least twenty-five per cent of the directors must be Canadian residents. However, if a corporation has less than four directors, at least one director must be a Canadian resident

Officers

Federal Corporation

No Canadian residency is required

Ontario Corporation

No Canadian residency is required

Shareholders

Federal Corporation

No Canadian residency is required

Ontario Corporation

No Canadian residency is required

Prestige

Federal Corporation

Considered more prestigious as Canadian federal legal entity

Ontario Corporation

Considered as local legal entity

Recommended

Federal Corporation

When you are planning to open permanent establishments, such as offices, stores, warehouses in more than one province or/and your business has international customers and suppliers

Ontario Corporation

When your offices, stores, warehouses are located in Ontario and you have no plans to open permanent establishments in other provinces, and have no international customers and suppliers

federal incorporation >>
ontario incorporation >>