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Incorporation in Canada FAQs

Your Questions About Incorporation in Canada Answered


Incorporation in Canada FAQs.

A corporate board meeting.

Image (c) Nick White/ Getty Images

Wonder if you can set up an LLC (Limited Liability Corporation) in Canada? What the difference is between provincial and federal incorporation? Or how to incorporate your business in a particular province or territory? These incorporation in Canada FAQs will answer your questions.

Click on the appropriate question listed below to be taken to the answer.

Questions on the Incorporation in Canada Process

How do I incorporate my business in Canada?
This article explains the steps to incorporation in Canada, from choosing your corporate name through the different incorporation documents you need to prepare to file for incorporation.

What are the different types of corporations in Canada?
Not all corporations in Canada are created equal when it comes to corporate taxes; Canadian-controlled private corporations enjoy corporate tax advantages the other types of Canadian corporations don't. Read all about it here.

What is the difference between federal and provincial incorporation?
Once you've decided to incorporate in Canada, this is the first decision you have to make; whether to incorporate federally or set up your corporation in a particular province or territory. This explanation of the advantages and disadvantages of both federal and provincial incorporation will help you decide.

How much does it cost to incorporate?
The answer to this question depends on where you choose to set up your new corporation as the cost of federal incorporation and the cost of incorporation in each province or territory is different. Here’s a comparison of the different incorporation in Canada fees you can expect.

What is a NUANS search and why is it necessary?
No matter where you incorporate your new company, you will have to get at least one of these done as part of the incorporation process, because one of the characteristics of incorporation is the business name protection it provides. Here are the details.

Can I set up an LLC in Canada?
I suppose I get asked this question a lot because LLCs are popular types of incorporation in the U.S., but as you'll see in this article, Canada and the U.S. have different corporate structures.

What is extra-provincial incorporation?
Unfortunately, having a corporation doesn’t mean you can just go and do business as a corporation wherever. In fact, the different provinces and territories demand, in most cases, that corporations that have been incorporated elsewhere (other provinces, the U.S., etc.) register with them (and often pay a fee) before they can do business in their borders. Here are the details.

If I incorporate in one province can I do business in other provinces?
Of course you can – although it may involve undergoing another corporate registration and paying a fee. On the bright side, what you want to do in another province may not constitute “doing business”... as this article explains.

How do I set up shares for my new corporation?
One person I was explaining this to said, "So I just make them up?" Well, yes, but you have to do it in a particular way and some ways are better than others. Here’s what you need to know about setting up shares, something you need to do even if you’re setting up a corporation of one.

Salary or dividends - How do I pay myself?
There’s no short and simple answer to this question, but it’s really important to get it right because of the potential tax repercussions. Here are the pros and cons of each of the ways you can take profits out of your corporation and some suggestions for creating the best tax scenario for yourself.

How to Incorporate in Various Canadian Provinces & Territories

Incorporation in BC

Incorporation in Alberta

Incorporation in Saskatchewan

Incorporation in Manitoba

Incorporation in Ontario

Incorporation in Quebec

Incorporation in New Brunswick

Incorporation in Nova Scotia

Incorporation in Prince Edward Island

Incorporation in Newfoundland and Labrador

Incorporation in the Northwest Territories

Incorporation in Nunavut

Incorporation in the Yukon

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