Business Incorporation FAQ

1. What is the difference between incorporating provincially and federally in Canada?
Provincial incorporation limits your business to one province, while federal incorporation gives nationwide name protection.

2. How long does it take to incorporate a business in Ontario?
With online filing, incorporation can be completed in as little as one business day, provided all documents are accurate.

3. Do I need a lawyer to incorporate my company?
No, but legal guidance ensures your documents, share structure, and compliance are set up correctly from the start.

4. What are Articles of Incorporation?
Articles of Incorporation are the founding documents of your corporation that define its structure, purpose, and share classes.

5. What is a NUANS report and why is it required?
A NUANS report checks if your proposed business name is available and ensures it doesn’t conflict with existing corporations.

6. What is a minute book and do I need one?
Yes. A corporate minute book records resolutions, share issuances, and by-laws. It’s required for compliance and audits.

7. Can I incorporate a business if I am not a Canadian citizen?
Yes. Non-residents can own shares, but at least 25% of directors must usually be Canadian residents, unless exempt.

8. What is the difference between a sole proprietorship and a corporation?
A sole proprietorship is simple but exposes personal assets. A corporation offers limited liability and better tax planning.

9. Do corporations in Ontario need to file annual returns?
Yes. Every Ontario and federal corporation must file annual returns to maintain active and compliant status.

10. What are corporate bylaws?
Bylaws set out the rules for operating your corporation, covering meetings, director duties, and decision-making processes.

11. Can I change my corporation’s name after incorporation?
Yes. You can amend your Articles to adopt a new name, subject to NUANS name search and registry approval.

12. What is the role of shareholders vs. directors?
Shareholders own the corporation, while directors manage decisions, appoint officers, and oversee governance.

13. Do I need a business number (BN) after incorporation?
Yes. A BN is required for CRA filings, payroll, GST/HST, and other federal tax accounts linked to your corporation.

14. What are the tax advantages of incorporating in Canada?
Corporations may benefit from lower tax rates, income splitting, and deferral strategies compared to sole proprietors.

15. Can I issue different classes of shares in my corporation?
Yes. You can create multiple share classes with varying rights for voting, dividends, and equity distribution.

16. How much does a NUANS report cost in Ontario?
A NUANS report in Ontario typically costs around $80 (Full report) when ordered through a third party provider.

17. What is the price of a NUANS report for federal incorporation?
For federal incorporations, a NUANS report usually costs about $13.80, but service providers may charge higher administrative fees.

18. What are the government fees to incorporate in Ontario?
Ontario incorporation fees start at $360 when filing online through the Ontario Business Registry.

19. What are the federal government fees to incorporate in Canada?
Federal incorporation costs $200 when filed online through Corporations Canada. Paper filings cost slightly more.

20. Do I need a NUANS report if I use a numbered corporation in Ontario?
No. A NUANS report is not required for numbered corporations in Ontario. It’s only needed if you choose a custom name.

21. Do I need a NUANS report for a federal numbered corporation?
No. Like in Ontario, federal numbered corporations don’t require NUANS. NUANS applies only to made-up or custom business names.