Is it more expensive to incorporate federally than provincially in Ontario?

The government filing fees for federal and Ontario incorporation are broadly comparable for a basic incorporation, though the amounts differ and both can change over time. Check the current fee schedules directly — Corporations Canada for federal filings, and ServiceOntario for Ontario provincial filings.

Where the federal route becomes more expensive for a business operating in Ontario is the extra-provincial registration requirement. Because a federal corporation conducting business in Ontario must also register with the Ontario government, you pay two registration fees instead of one. You also have two sets of annual filings to maintain — one with Corporations Canada and one with the Ontario Business Registry — effectively doubling that administrative burden.

Legal fees for the two types of incorporation are typically similar for a basic structure; the extra-provincial registration just adds a modest incremental amount. For a business that genuinely operates across multiple provinces, the additional cost is usually justified. For a business that will only operate in Ontario, it represents extra cost with no corresponding benefit.

Over the life of the corporation, the ongoing dual-filing costs can be more significant than the initial difference in incorporation fees. Factor both the startup costs and the annual maintenance costs into your decision.