The Step-by-Step Process of Incorporating Your Business in Canada

You've decided to incorporate — now what? The incorporation process in Canada is more straightforward than many people expect, but there are important decisions to make along the way that will have lasting implications for your business. This step-by-step guide walks you through the entire process, from choosing your jurisdiction to opening your corporate bank account.

Step 1: Choose Federal or Provincial Incorporation

The first major decision is whether to incorporate federally (under the Canada Business Corporations Act) or provincially (under your province's business corporations act).

Federal Incorporation

• Provides name protection across all provinces

• Allows the corporation to operate in any province (though you must still register extra-provincially in each province where you carry on business)

• Filing fee: $200 online through Corporations Canada

• Best for: Businesses that operate nationally or plan to expand beyond one province

Provincial Incorporation

• Typically simpler and lower cost

• Name protection within the province only

• Best for: Businesses that operate within a single province

• Filing fees vary by province (e.g., Ontario: $300 online)

Our Recommendation Most small businesses operating in a single province benefit from provincial incorporation. Federal incorporation is typically recommended when national branding, name protection, or multi-province operations are priorities.

Step 2: Choose Your Corporate Name (or Use a Number Company)

You can either choose a specific corporate name (e.g., "DCP Solutions Inc.") or use a numbered company (e.g., "1234567 Ontario Inc."). A numbered company is faster and cheaper to incorporate since it doesn't require a NUANS name search. Many entrepreneurs start with a numbered company and add a trade name later.

If you want a named corporation, you'll need a NUANS (Newly Upgraded Automated Name Search) report to confirm your desired name isn't already taken. NUANS reports typically cost around $30–$60.

Corporate Name Requirements

A valid corporate name in Canada must have three elements: a distinctive element (unique identifier), a descriptive element (what the business does), and a legal element (Inc., Ltd., Corp., etc.). For example: "Maple Ridge Construction Ltd."

Step 3: Prepare and File Articles of Incorporation

Articles of Incorporation are the foundational legal document of your corporation. They typically include:

• Corporate name

• Registered office address (must be within the province of incorporation)

• Number of directors (minimum and maximum)

• Share structure (classes of shares and their rights)

• Restrictions on business activities (if any)

• Restrictions on share transfers (if applicable)

The share structure is a particularly important element — getting it right from the start provides flexibility for future income splitting and tax planning. We recommend working with an accountant and/or lawyer to structure this properly.

Step 4: Create Your Corporate Minute Book

After incorporation, you're legally required to maintain a corporate minute book containing: the articles of incorporation, corporate bylaws, the register of shareholders, the register of directors and officers, and minutes from shareholders' and directors' meetings. Many incorporation services set up a basic minute book, but it requires annual updates to remain compliant.

Step 5: Register for a Business Number and CRA Accounts

Once incorporated, you'll need to register with the CRA for a Business Number (BN) — a 9-digit identifier for your corporation. From there, you register for the specific program accounts you need:

• Corporate income tax account (T2): Required for all corporations

• HST/GST account: Required if annual revenues exceed $30,000

• Payroll account (RP): Required if you pay employees or yourself a salary

• Import/export account (RM): If applicable

Step 6: Open a Corporate Bank Account

Your corporation is a separate legal entity and must have its own bank account. You'll need to bring your articles of incorporation, business number, and corporate resolutions authorizing the account opening. Most major Canadian banks offer small business accounts — compare monthly fees, transaction limits, and features before choosing.

Step 7: Register Provincially (If Federally Incorporated)

If you incorporated federally but carry on business in a province, you'll need to register in that province as an extra-provincial corporation. Each province has its own registration process and fee. This is often done within 60 days of beginning operations in the province.

Step 8: Set Up Your Accounting System

A corporation has more rigorous accounting and reporting requirements than a sole proprietorship. You'll need clean bookkeeping to prepare your annual corporate T2 return and financial statements. Set up cloud accounting software, establish a chart of accounts, and consider engaging a bookkeeper from day one.

Important: Corporate tax returns (T2) are due six months after your corporation's fiscal year-end, and any balance owing is due three months after year-end. Late filing penalties apply from the first day the return is late.

The Cost of Incorporating in Canada

Item Approximate Cost

Federal filing fee (Corporations Canada)$200 Provincial filing fee (Ontario example)$300 NUANS name search$30–$60 Lawyer fees (articles + shareholders' agreement)$1,000–$3,500+ Accountant setup (structure, CRA registration)$500–$1,500 Minute book setup$200–$600

Let DCP Accounting Handle It

While you can incorporate yourself online for a few hundred dollars, the decisions made during incorporation — particularly around share structure — have long-lasting tax implications. Working with a professional ensures it's done correctly from the start.

Ready to Incorporate? We Handle the Entire Process.

DCP Accounting manages the full incorporation process for Canadian entrepreneurs — from the initial strategy session to CRA registration. Let's get started.

Start Your Incorporation

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Ready to Get Started?

At DCP Accounting, we help Canadian businesses and individuals navigate the incorporation process from start to finish. Book a consultation today and let our expert team guide you toward financial success.

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