How to Incorporate a Business in Canada

Deciding to register a corporation is a major step in your business journey. For many entrepreneurs in Canada, it marks the moment your business becomes official. But with so much information out there, it can feel overwhelming.

Many small business owners in Canada face the same challenge. A study by Innovation, Science, and Economic Development Canada found that only about 70% of small businesses survive more than five years. That means nearly one-third don’t make it past that point.

This is why understanding the business incorporation process in Canada is so important. When you know how to do it right, you protect your business and your future. Incorporation helps you lower your risks, improve your tax situation, and prepare your company for growth.

In this guide, we’ll explain every step of how to register a corporation in Canada in simple language. 

When Should You Incorporate?

It depends on two main things: legal protection and tax benefits.

Limited Liability

One major reason to register a corporation is limited liability. When you incorporate, you create a separate legal entity. This means your money and belongings are not tied to your business debts.

But be aware, there are a few exceptions. Directors can still be held responsible in some cases. Here are some examples:

• Unpaid employee wages and vacation pay
  
• Employee tax deductions (like CPP and EI)
  
• GST/HST you collected but didn’t send to the government

So, incorporating adds protection, but there are still responsibilities you must meet.

Tax Advantages of Incorporating

Another key reason to start a corporation is taxes. A Canadian corporation pays a lower tax rate than an individual. If you leave some money in the company and don’t take it all out, you can save on taxes.

You can also choose how to pay yourself, through salary, dividends, or both. Picking the right option can reduce your total tax bill.

In Ontario, for example, a Canadian-controlled private Corporation pays just 12.2% on the first $500,000 of income. That’s lower than most personal tax rates.

So, by incorporating a company in Canada, you keep more money in your business. You can reinvest it in marketing, equipment, inventory, or staff.

Steps to Incorporate a Business in Canada

Ready to begin? Let’s break down the steps to incorporate a business in Canada into simple steps:

1: Choose a Name

Picking a name is one of the first things to do. Some people go with a numbered company, like 12345678 Canada Inc. Others prefer to name their business right away.

If you want a name, you’ll need three parts:

• Distinctive (what makes your name unique)
  
• Descriptive (what your business does)
  
• Legal ending (like Inc., Ltd., or Corp.)

You’ll also need a NUANS report in most provinces (except Quebec and BC, which do things differently) to make sure your name is unique and available. This costs about $13-$20, but it’s worth it to avoid conflicts. 

2: Pick a Jurisdiction

Next, choose where to incorporate, federally or provincially. This affects where your company is registered and how your name is protected.

Federal incorporation gives you name protection across Canada. But you’ll still need to register in each province where you do business.

Provincial incorporation is simpler if you plan to operate mainly in one province. Both options let you do business anywhere in Canada.

3: File Articles of Incorporation

This is the legal paperwork to set up your business. You’ll provide:

• Your business name
  
• Your share structure
  
• Names of the directors

This is a key legal step. Make sure everything is correct before you submit the forms.

4: Pay Incorporation Fees

Each province charges a fee to incorporate. Fees vary depending on where you live.
Here is the latest breakdown (as of May 2025):

• Federal: $200 (online) or $250 (paper) + $60 for a NUANS name search
• Ontario: $360 ($300 government fee + $60 NUANS name search)
• British Columbia: $351.50 ($350 incorporation fee + $1.50 name approval, online)
• Alberta: ~$500 ($450 government fee + ~$50 NUANS or service fee)
• Quebec: $392 ($367 incorporation fee + $25 name search)
• Nova Scotia: ~$344.60 ($274.60 incorporation fee + $70 NUANS)
• Saskatchewan: $325 ($265 incorporation fee + $60 NUANS)

Plan for $200-$800 in total costs, depending on where you incorporate and whether you hire a pro to help.

5: Prepare Company Documents

Filing is only half the work. You also need to create formation documents. These include:

• Corporate bylaws
  
• Shareholder and director resolutions
  
• Director consents
  
• Share subscriptions and issuances
  

These may sound complex, but they are necessary. Without them, your company might not be legally complete. Missing these steps could make it hard to get investors or legally prove ownership later.

6: Get a Business Number (BN)

Once your company is registered, you’ll need a business number. This is a nine-digit number from the Canada Revenue Agency (CRA). It identifies your business for taxes and other government programs.

You can register for this number online using Business Registration Online (BRO). It’s fast and simple.

You’ll also need to register for other CRA program accounts like:

• GST/HST
  
• Payroll
  
• Corporate income tax
  
• Information returns
  
• Luxury or underused housing tax (if applicable)
  

For businesses in Quebec, you’ll register through Revenu Québec instead of the CRA.

More About Business Registration Online (BRO)

Once your company is legally incorporated, the next key step is registering with the Canada Revenue Agency (CRA). This gives your business a unique number called the Business Number (BN). It’s used for all interactions with the government, including taxes.

The easiest way to do this is through Business Registration Online (BRO). It’s a digital tool offered by the CRA that lets you register your business number and open key program accounts.

It’s fast, secure, and you can do it from anywhere. You don’t need to print or mail any forms. The whole process is done online in one sitting.

However, there are a few things to keep in mind:

• If you stop using the form for more than 30 minutes, it will time out.
  
• You can’t save progress, so gather your info before you start.
  
• If your SIN starts with a 9, use BRO to register as a non-resident or temporary resident.

If you’re outside of Canada and need to register a corporation, there are specific web forms for non-resident business registration, digital services tax accounts, and digital economy businesses. 

These forms are also available on the CRA website.

Why Choose Bestax for Canada Corporation Registration?

When you decide to incorporate a company in Canada, it’s smart to get help from people who know the process inside and out. That’s where Bestax comes in.

At Bestax, we don’t just fill out forms. We help you build your business from day one.
We Make It Simple

Our goal is to remove confusion. Whether you’re new to business or already operating, we guide you step by step. We explain the legal steps in clear, everyday language.

From choosing a business structure to filing the paperwork, we handle it all. You can register a corporation in Canada without stress.

Full Legal and Tax Support

Starting a business isn’t just about forms. It involves tax registration, compliance, and ongoing paperwork.

We make sure you meet all Canadian business registration requirements, including CRA accounts and corporate documents. 

Ready for Growth

Whether you want to operate in one province or across Canada, we’re ready to support you. We know the details of corporate structure in Canada, and we prepare your business for investors, taxes, and expansion.

You don’t just get a business number. You get a real support system.

Transparent Costs

Unlike doing it all yourself, where hidden costs can pile up, Bestax gives you a clear, fixed price. Our incorporation packages include everything, government fees, name search, and full company formation documents.

With Bestax, you can set up your company the right way from day one.

Quick FAQs

Disclaimer: The information provided in this blog is for general informational purposes only. For professional assistance and advice, please contact experts.