In Canada, you can choose between a federal or provincial incorporation. Federal incorporation offers broader name protection and business recognition across the country, while provincial incorporation is simpler and often preferred for businesses that will operate primarily within one province. The first step is a mandatory NUANS name search to ensure your proposed name isn’t already in use.
A key requirement for federal incorporation is that at least 25% of the directors must be Canadian residents. If you have fewer than four directors, at least one of them must be a resident. After meeting this requirement, you prepare and file the Articles of Incorporation with the appropriate government body. This document includes details about your company name, share structure, and directors.
Once the company is officially incorporated, you must register with the Canada Revenue Agency (CRA) to obtain a Business Number (BN). The BN is a unique identifier used for all tax-related purposes, including corporate income tax and GST/HST. Other postincorporation steps include drafting corporate bylaws, opening a corporate bank account, and securing any required business licenses from provincial or municipal authorities.
- Choose federal or provincial incorporation. Decide whether to incorporate federally (for a national presence) or provincially (for a local focus). This choice impacts your name rights and ongoing compliance requirements.
- Conduct a name search. Perform a mandatory NUANS (Named Unique and Affiliated) search to ensure your proposed company name is not already in use. This protects your brand identity.
- Appoint directors and a registered office. You must have a director who is a resident of Canada, and a registered office address in the province of incorporation.
- File the Articles of Incorporation. Prepare the Articles of Incorporation and any supporting documents. File them with either the federal government or the relevant provincial government body.
- Obtain business numbers and tax IDs. After incorporation, register the company with the Canada Revenue Agency (CRA) to obtain a Business Number and register for all necessary federal and provincial tax accounts.
- Fulfill post-incorporation tasks. Open a corporate bank account and secure any specific business licenses or permits required by your industry or municipality before commencing operations legally.