In Canada, you can incorporate a Canadian business as a Federal Corporation or a Provincial Corporation.
A Federal Corporation can carry out its operation using the same name anywhere in Canada. However, it may still have to register itself separately in the province from where it operates its business. This process is called Extra-Provincial registration.
A Provincial Corporation is a company which can carry out its business in the province where it is incorporated. It can also carry out business in other provinces, but will need to obtain the autorisation from the provinces in question.
Ownr allows you to incorporate a business without leaving your seat through their easy to fill form. They will then fill out the Articles of Incorporation and file all the required documents with the proper government authorities on your behalf.
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Additional Canadian Incorporation Information
- What’s a Federal Corporation or Provincial Company, and What Are the Differences Between the Two?
- What Does Incorporating Means?
- What Does An Incorporation Online Service Do?
What’s a Federal Corporation or Provincial Company, and What Are the Differences Between the Two?
A Federal Corporation or company is a legal person under the Canada Business Corporations Act (CBCA). While a Provincial Corporation or company is a legal person under the provincial law of the province in question. For example, a company incorporated under Quebec laws is governed by the Business Corporations Act.
A corporation is a legal entity with its own patrimony and that basically accomplishes legal acts under its own name. Under Canadian laws, a corporation or company has the same rights and obligations than a natural person.
A corporation can acquire its own goods, have debts, enter in contracts, appear in court, etc. The patrimony of a corporation, the whole of its goods, belongs to the corporation and not to its shareholders (owners).
In Canada, it is possible to incorporate a federal or a provincial corporation. Some of the differences between a federal corporation and a provincial corporation include;
- A federal corporation is governed by the CBCA, while a provincial company is governed by the applicable provincial act.
- A federal corporation can do business under its corporate name everywhere in Canada, but must pay the registration fees of the province they do business in.
- A provincial corporation can do business under its corporate name in its province of incorporation, but can also do business in other provinces by obtaining the province authorization (paying a fee).
- Start-up costs of a provincial corporation are usually lower.
- A federal corporation must register in all the provinces it plans to do business in.
- The registered office of a provincial corporation must be located in its province of incorporation. A federal corporate can have its registered office anywhere in Canada.
There are other differences between the two; difference that may play a role in deciding whether to incorporate a federal corporation or a provincial corporation. Furthermore, since they are governed by different laws, these corporations will have to follow and respect the rules and regulations of their respective laws.
What Does Incorporating Means?
The incorporation step is the step during which a corporation or company is legally created under government laws.
For a federal corporation, this is done by filing the articles of incorporation to Corporations Canada. The process is usually very similar for a provincial corporation where the articles of incorporation and other mandatory documents must by filled to the provincial entity in charge, like, for example, the Registraire des enterprises in Quebec.
What Does An Incorporation Online Service Do?
An incorporation online provider offer a service of assistance to incorporate a business / company. You fill up a secure form on their website – all the information you submit on the website is sent to them through a secure and encrypted connexion. Once the form has been submitted, the provider (i.e. Ownr) verifies that all the required information are present and does not contain any procedural defects, drafts the incorporating documents required by law, and finally file these legal documents to the concerned government entities.
Once the corporation has been approved and created, they send you all the legal documents pertinent to your new corporation.
