{"id":53,"date":"2012-06-30T05:27:25","date_gmt":"2012-06-30T05:27:25","guid":{"rendered":"http:\/\/www.weblegal.ca\/incorporation\/"},"modified":"2017-03-29T00:06:46","modified_gmt":"2017-03-29T00:06:46","slug":"incorporation","status":"publish","type":"page","link":"https:\/\/www.weblegal.ca\/incorporation\/","title":{"rendered":"Incorporation – Incorporating a Business in Canada"},"content":{"rendered":"

In Canada, a business can incorporate federally (at the national level) or within a single province or territory. Choosing between incorporating a federal corporation or a provincial corporation<\/strong> depends on a number of factors, including how wide a net the corporation seeks to cast in getting business.<\/p>\n

When it comes to incorporating in the first place, businesses usually incorporate so their owners can avoid personal liability, to continue existing after a shareholder dies, and to raise capital more readily than having to rely primarily on debt.<\/p>\n

Nationwide and Flexible Business<\/h2>\n

Under the Canada Business Corporations Act<\/em><\/strong><\/a>, a federal corporation<\/strong> can conduct business anywhere in Canada. Its business is not limited where it maintains its head office, stores its records or conducts its annual general meetings \u2013 as is the case with provincial corporations.<\/p>\n

For example, a provincial corporation in British Columbia seeking to relocate in Manitoba must either (1) dissolve as a British Columbia corporation and reincorporate in Manitoba or (2) discontinued itself in British Columbia and continued itself in Manitoba. If the corporation were federal, it need only notify Innovation, Science and Economic Development Canada<\/strong><\/a> and British Columbia of its move.<\/p>\n

A federal corporation need incorporate only once, but it must register shortly thereafter with each province in which it will conduct business. The Joint Online Registration System<\/strong>, run by Corporation Canada, allows businesses to incorporate online and register the corporation online with selected provinces at one time.<\/p>\n

An entrepreneur more likely will choose provincial corporation<\/strong> if the business intends to operate in one province and will be owned only by a single shareholder or a small group.<\/p>\n

Business Name Protection<\/h2>\n

The name can play a significant role in the corporation’s advertising, branding and marketing. For a federal corporation<\/strong>, the Canadian Business Corporations Act<\/em> extends protection of that name and the marketing efforts with that name nationwide. That said, any corporation \u2013 whether federal or provincial \u2013 must verify the name is available before using it.<\/p>\n

Incorporating a Federal or Provincial Corporation in Canada<\/h2>\n

We’ve written specific how-to guides for incorporating in each Canadian province or federally:<\/p>\n