Legal information only, not legal advice. Every business is different; speak with a lawyer about your own situation.
Short answer: If your business will operate mainly in Ontario and you are not worried about someone in another province using a similar name, an Ontario (OBCA) corporation is usually the simpler choice. A federal (CBCA) corporation can make sense if you plan to operate in several provinces soon or want Canada-wide name protection, but it adds a second set of filings, because a federal corporation that carries on business in Ontario also has to report to Ontario.
The questions people actually ask
"Is it cheaper to incorporate federally?"
The government filing fee is lower federally ($200 online with Corporations Canada) than in Ontario ($300 through the Ontario Business Registry). But a federal corporation doing business in Ontario must also file an initial return in Ontario and keep both governments' records current, so the lower fee does not always mean lower overall cost or effort. Check each government's current fee schedule before you file, as fees change.
"Does a federal corporation protect my name across Canada?"
A federal name is reviewed against names across Canada and gives broader protection than a provincial name. An Ontario name is protected within Ontario. Neither replaces a trademark registration if your brand matters to you.
"Do I need Canadian-resident directors?"
Ontario removed its resident Canadian director requirement in July 2021. Federal rules are different, so check Corporations Canada's current director residency rules before choosing federal if any director lives outside Canada.
"What about the beneficial ownership register?"
Both Ontario and federal corporations must keep a private register of individuals with significant control. Federal corporations also file that information with Corporations Canada, and some of it is publicly searchable. If privacy matters to you, ask about this before you choose.
"What do I need to file every year?"
Ontario corporations file an annual return with the Ontario Business Registry. Federal corporations file an annual return with Corporations Canada, and a federal corporation operating in Ontario also keeps its Ontario information up to date. Missing annual filings can eventually lead to dissolution.
A simple way to decide
| If this describes you | Usually consider |
|---|---|
| Selling mainly in Ontario, local brand, want the simplest setup | Ontario (OBCA) |
| Opening offices or hiring in other provinces within a year or two | Federal (CBCA) |
| Brand name is central and you want Canada-wide name protection | Federal, plus a trademark |
| A director lives outside Canada | Check both sets of current residency rules first |
What the filing doesn't do for you
Whichever government you file with, the receipt only creates the corporation. You still need by-laws, organizational resolutions, share issuances, registers and a minute book, and if you have co-founders, a written agreement about shares, vesting and decisions.
How Astor Nobel Law can help
I prepare Ontario incorporations for a fixed fee: Essential Ontario Incorporation at $999 or Founder Plus Incorporation at $1,499, plus government filing disbursements and HST, under a written limited-scope retainer. If a federal corporation looks like a better fit for your plans, I'll tell you before anything is filed.
See what's included and start here: Fixed-Fee Incorporation & Contract Review
David J. Rose, Barrister & Solicitor, Astor Nobel Law, Toronto. Over 25 years in practice. 416-519-2543 · david.rose@roselawfirm.ca
Legal information only, not legal advice. Reading this page does not create a lawyer-client relationship. Government fees and rules referenced were current to our knowledge as of October 2026; confirm them with the Ontario Business Registry and Corporations Canada before filing.