logo.gif (9683 bytes)

Why should I incorporate Federally?

 

Incorporating federally, rather than in the province where your head office will be located, offers a number of advantages over provincial incorporation.

For businesses in Ontario it is actually less expensive to incorporate federally. The fee charged by Industry Canada is considerably lower than what the Ontario Ministry of Consumer and Business Services charges. (incorporation fees vary widely by province).

A federally incorporated company can carry on business anywhere in Canada under the name approved by Industry Canada. Name protection for a federally incorporated business is second only to a registered trademark.

Incorporating federally also offers flexibility not available under other jurisdictions. For instance, the Canada Business Corporations Act does not set restrictions regarding the province or territory where your head office is located, your corporate records are maintained and your annual general meetings are held.

Federal incorporation offers a degree of mobility not afforded to provincial corporations. If, for example you have a BC corporation and want to move your head office to Ontario you either have to dissolve the existing corporation and start afresh in Ontario - or - apply for discontinuance in the original province of incorporation and apply for continuance in the new province, a potentially expensive and complicated transaction. A federal corporation would simply notify Industry Canada of the change in head office, notify the province it's leaving, file Articles of Amendment changing the province of head office and register an extra-provincial corporation in its new home province - for the example above a small amount of paperwork and nominal government fees.

Incorporating federally is not, however, the best choice for all businesses. Every province requires the registration of extra-provincial companies. Presently the only province that does not charge a fee to register an extra-provincial corporation is Ontario. If your business is located in any province, other than Ontario, and you incorporate federally you will be required to pay a fee to register your extra-provincial corporation. In most provinces this fee is equal to the one levied to incorporate federally.


For more information please call (613) 727-3845 or email us at info@corpcanada.ca.

CorpCanada Services Inc., 2-200 Colonnade Road South, Ottawa, Ontario K2E 7M1