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 over the age of 18 may be appointed.
No Canadian residency is required.
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