How to start a company in Canada
Last checked: November 2026 · Currency: CAD
In Canada you incorporate either federally (Canada Business Corporations Act, via Corporations Canada) or in one province (e.g. Ontario, British Columbia). Federal incorporation protects your name across Canada but you still have to register in each province where you operate; provincial incorporation is simpler if you only operate in one province. Most founder teams use a private corporation with a shareholders' agreement and founder share vesting.
General information, not legal or tax advice. Rules and fees change; always check the official source.
Company types
| Type | Minimum capital | Liability | Best for |
|---|---|---|---|
| Federal corporation (Inc. / Ltd. / Corp.) Corporation under the Canada Business Corporations Act (CBCA) | No minimum share capital | Limited | Teams planning to operate in several provinces or raise investment, who want name protection across Canada |
| Provincial corporation (Inc. / Ltd. / Corp.) Corporation under a provincial act (e.g. Ontario Business Corporations Act, BC Business Corporations Act) | No minimum share capital | Limited | Teams that will operate mainly in one province and want one set of filings |
| General partnership Partnership registered with the province | None | Unlimited (each partner is personally liable) | Testing an idea before taking money; not suitable for investors |
Registration, step by step
- 1Agree on equity, roles and vestingWrite down who owns what, who does what, and a vesting schedule (commonly 4 years with a 1-year cliff) before you file anything. Put it in a shareholders' agreement once the corporation exists.Corporations Canada: Start a business
- 2Choose federal or provincial incorporationFederal (CBCA) gives Canada-wide name protection but you must also register extra-provincially where you operate; provincial is one registration in one province. Note that the CBCA requires at least 25% of directors to be resident Canadians, while Ontario and BC have no director residency rule.Corporations Canada: Federal incorporation
- 3Pick a name (or go numbered)A named corporation needs a Nuans name search; for federal online filings the search is built into the application. A numbered company (e.g. 1234567 Canada Inc.) skips this step and can be renamed later.Nuans federal name search
- 4File articles of incorporationFile online with Corporations Canada (federal) or your provincial registry (e.g. Ontario Business Registry). List initial directors, registered office and share classes; then issue founder shares and adopt bylaws.Ontario: Register your business online
- 5Register in your operating province (federal only)A federal corporation must also register extra-provincially in each province where it carries on business (e.g. an initial return in Ontario). Fees and forms differ by province.Corporations Canada: Federal incorporation
- 6Get a Business Number and open a bank accountFederal and most provincial incorporations give you a CRA Business Number (BN) automatically. Open a business bank account with your articles and BN, and pay for founder shares into it.CRA: Program accounts you may need
- 7Register for GST/HST and payrollYou must register for GST/HST once taxable sales exceed $30,000 in a calendar quarter or over four consecutive quarters; you can register earlier to reclaim input tax credits. Add a payroll account before paying anyone.CRA: When to register for GST/HST
- 8File a trademarkA corporate name registration is not a trademark. File your brand name with CIPO (online fees are per Nice class); examination in Canada can take well over a year, so file early.CIPO: Fees for trademarks
Costs and time
| Item | Amount |
|---|---|
| Federal incorporation (online, Corporations Canada) | $200 |
| Federal Nuans name search (if ordered separately; built into most online federal applications) | $13.80 |
| Provincial incorporation instead (e.g. Ontario Business Corporation, online) | $300 in Ontario; other provinces roughly $200–$350 Check the official source |
| Extra-provincial registration of a federal corporation | Varies by province, roughly $0–$350+ Check the official source |
| Lawyer to draft shareholders' agreement (optional but recommended) | Roughly $1,500–$5,000 Check the official source |
| CIPO trademark application (online, 2026) | $491.06 first class + $149.04 each additional class (rises to $499.41 / $151.57 from 1 Jan 2027) |
How long it takes: Federal online incorporation is usually done within 1 business day; Ontario online approval is typically immediate. Allow 1–3 weeks in total for bank account, provincial registration and tax accounts.
Taxes
| Tax | Rate | Note |
|---|---|---|
| Federal corporate income tax (small business rate) | 9% | For Canadian-controlled private corporations on active business income up to the $500,000 business limit; provincial tax is added on top. |
| Federal corporate income tax (general rate) | 15% | On income above the small business limit; provincial tax is added on top. |
| Combined federal + provincial rate | Roughly 11–12% (small business) and 23–31% (general) | Depends on the province. Check the official source |
| GST/HST | 5% GST; 13–15% HST in harmonized provinces | Mandatory registration above $30,000 in taxable sales (small supplier threshold); some provinces also charge separate PST/QST. |
Protect your name
TrademarkCanadian Intellectual Property Office (CIPO)$491.06 for the first class + $149.04 per additional class (online, 2026); no separate registration fee for new applications Trademark officeTrademark basics →
PatentCanadian Intellectual Property Office (CIPO)Patent officePatent basics, and when not to bother →
Tips for co-founders
- If you incorporate federally, check the 25% resident-Canadian director rule before naming your board; Ontario and BC corporations have no residency requirement.
- Issue founder shares early at a nominal price and document vesting in the shareholders' agreement, so a departing co-founder does not keep a large unvested stake.
- Staying a Canadian-controlled private corporation (CCPC) keeps the 9% federal small business rate and enhanced SR&ED R&D tax credits, so check how foreign investors affect control.
- Assign any code, designs or domains created before incorporation to the corporation in writing.
Official links
General information, not legal or tax advice. Rules and fees change; always check the official source. Last checked: November 2026.