Should I incorporate provincially in Ontario or federally under the Canada Business Corporations Act?

This is one of the first decisions to make when incorporating, and the answer depends on your business plans. An Ontario provincial corporation is incorporated under the Ontario Business Corporations Act and has the right to operate in Ontario automatically. A federal corporation is incorporated under the Canada Business Corporations Act and can operate across Canada and use its name nationwide from the start.

If your business operates only in Ontario — a local service, a professional practice, a single-location retail shop — an Ontario provincial corporation is typically simpler and sufficient. The fees are similar, and you deal with one government (the Ontario Business Registry).

If your business operates in multiple provinces, if you want the broadest possible national name protection, or if you plan to raise capital from investors in different provinces, a federal corporation may make more sense. However, a federal corporation that carries on business in Ontario must also register in Ontario as an "extra-provincial corporation" — so you still deal with the Ontario government, adding a layer of administration.

Name protection is another consideration: a federal NUANS search covers the entire country, while an Ontario provincial NUANS only confirms your name in Ontario. Federally incorporated companies tend to have stronger name recognition across provinces.