Ontario vs. federal incorporation

Once you've decided to incorporate rather than operate as a sole proprietorship, the next choice is where: incorporate in Ontario, or incorporate federally through Corporations Canada. Both create a legal corporation — the difference is mainly about scope and where you plan to operate.

An Ontario incorporation registers your corporation provincially. It's generally the simpler and more common choice for businesses that plan to operate primarily within Ontario, and it typically costs less upfront than federal incorporation.

A federal incorporation registers your corporation under the Canada Business Corporations Act, giving it the right to operate under its name across every province and territory, with somewhat stronger name protection nationally. If you plan to operate or expand outside Ontario, this broader scope is usually the deciding factor. Federal corporations still need to register (extra-provincially) in each province where they actually do business, and still file a separate annual return with Corporations Canada.

Neither option is a substitute for legal advice if your situation involves multiple shareholders, unusual share structures, or specific tax planning goals — that's a conversation for a lawyer or accountant before you file. What Verluma can help with is the paperwork itself: filing a standard, straightforward incorporation — Ontario or federal — once you know which one fits.

One practical note for named (as opposed to numbered) corporations: a name search report (NUANS) is generally required, and is a separate third-party cost from the incorporation filing fee itself. Verluma's fixed incorporation pricing currently covers numbered corporations; named incorporations are reviewed individually so we can quote the NUANS cost accurately rather than guess at it.