When starting a business, there are many things to consider, such as what type of company to form and where to register it. In Canada, there are two types of businesses: federally incorporated and provincially incorporated.
Federally incorporated businesses are registered with the federal government under the Corporations Act and have nationwide jurisdiction. This type of company is best for large companies with multiple business lines across Canada or those doing business in regulated industries such as banking, telecommunications, and air transportation.
Provincially incorporated businesses are registered with the provincial government under provincial legislation and have limited jurisdiction over one or a few provinces. This type of company is best for small businesses that will be operating only in one province or a few provinces.
To register a company in Canada, you must file certain documents with the appropriate government authorities. Today we are going to dive deep in on the costs of setting up or registering a company in Canada.
How Much Does It Cost To Incorporate In Canada?
Since a lot of people commonly believe that the cheapest means to incorporate your business is to go to the government option, it’s not quite that simple. In reality, the government option is only 50% of the way there, and you’ll likely still be obliged to hire someone to complete the paperwork necessary for you to bring the business to completion and stay compliant.
There are two ways to register your company, provincially or federally, here is the cost breakdown for provincial registration:
Alberta incorporation is $ 450 plus another $30 for name registration/approval.
Ontario incorporation is $300 plus another $60 to register your business name.
British Columbia incorporation is $350 plus another $30 for name registration/approval.
Manitoba incorporation fee is $300, plus another $49 for name registration/approval.
Saskatchewan’s incorporation fee is $265 plus another $60 for name registration/approval.
Quebec incorporation fee is $356, with an additional $50 for name registration/approval.
New Brunswick’s incorporation fee is $290 CAD to incorporate, which includes a government fee of $260 plus a name search report fee of $30.
Nova Scotia’s incorporation fee is $200, plus a $70 fee for name registration/approval.
PEI Prince Edward Island’s incorporation fee is $255, which covers the government fee and the name search report fee.
Newfoundland incorporation fee is $300 plus a $300 charge for a name registration/approval.
Yukon’s incorporation fee is $345, which covers a basic government fee and a corporation name registration/approval.
The Cost Of Incorporating Federally
Business owners are also able to incorporate federally, thus enabling enterprises with a broader scope of operation and many nationwide protections. In the event you incorporate provincially, your enterprise name is restricted to that province, although affording you more protection across the country.
Incorporated by the federal government authorizes your company to do business anywhere in Canada, and as a result, your main office can be anywhere in the country. Remember that, if you incorporate federally, you’ll also have to register your business in whatever region you happen to be in.
At least Twenty-five percent of your business directors have to be located in Canada and Canadian citizens or permanent residents. The basic fee for federal incorporation is $200 CAD, making it a cheaper alternative than provincial incorporation.