Ontario Incorporation


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Federal and Ontario Incorporations

The merits of incorporation vary by province, and a proper comparison can only be made province by province. In this section, we are comparing Ontario and Federal incorporations, from the perspective of an Ontario business. We begin with a brief overview, then go into greater detail on selected topics.

Factor	Ontario	Federal
Name Selection	Almost any name, except an exact match, will be registered.	Has the most stringent test before granting the right to use a name.
Name Protection	Very little name protection provided.	There is very little name protection, but more than a provincial incorporation.
Name Use	You have the right to carry on business in Ontario under your corporate name. You can also apply to carry on business in other provinces under your corporate name.	You have the right to carry on business anywhere in Canada under your own corporate name (although registration of the name may be required for each province and/or territory).
Registered Office	Must be in Ontario	Must be in Canada
Business Number/ GST	Must be applied for separately after incorporation.	Automically assigned upon incorporation.
Initial Cost	Government charge of $325 for efiling of incorporation.	Government charge of $200 for efiling of incorporation.

Annual Filing Fee	No charge for annual filings.	There is a charge of $20 for the online filing, and $40 if filed through other means.
Prestige		Some people think that being 'federally incorporated' is more prestigious.

Extra-Provincial Licences & Name Registration - Federal Corporations

In general, a federal corporation is entitled to carry on business anywhere in Canada under its name, subject only to the licensing and registration requirements (if any) of the province where business is carried on. However, if the federal corporation has its registered office in Ontario or if it carries on business in Ontario, then it must file certain corporate information with the Ontario government regularly. If the corporation uses a name other than its corporate name, this must be registered as well, under the Business Names Act. The Ontario government charges $60-80 for a five-year registration.

Extra-Provincial Licences & Name Registration - Ontario Corporations

In general, an Ontario corporation is entitled to carry on business in Ontario under its corporate name. An Ontario corporation doing business in another province generally requires an extra-provincial licence. Ontario and Quebec have a special arrangement whereby Ontario corporations are not required to apply for an extra-provincial licence to do business in Quebec. If doing business in another province, business name registration is also usually required.

If the corporation uses a name other than its corporate name, this name must be registered under the Business Names Act. The Ontario government charges $60-80 for a five year registration.

Use of Corporate Name

If you are an Ontario corporation, you are entitled to carry on business under your corporate name in Ontario without registering that name. If you do business outside Ontario, you are generally required to register your name in that province. Please note that your request to do business under that name may be refused.

If you are a federal corporation, you are entitled to use your corporate name in any province in Canada. However, you may still be required to meet other provincial requirements, dealing with such matters as registration, taxation and reporting.

Annual Filings

An Ontario corporation is required to file a combined Corporation Tax and Annual Return every year. This includes the corporate information on directors, officers, etc. There is no charge for this filing. A federal corporation must annually file a Corporation Tax Return and a Corporate Information Return -- two separate documents. The fee for the Corporate Information Return is $20 if filed online and $40 if filed through other means. A federal corporation based in Ontario must also annually file with the Ontario government. For most small businesses, this filing is very simple. There is no charge for this Ontario filing.

Changing an Ontario Corporation into a Federal Incorporation & Vice Versa

You must apply to both the federal and provincial governments for approvals, in what is often a long and expensive process. Together, the two levels of government charge around $600 for fees alone. If you are considering this possibility, please contact us for a better idea of the money and time involved.

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