In Canada, you can choose between a federal or provincial incorporation. Federal incorporation offers broader name protection and business recognition across the country, while provincial incorporation is simpler and often preferred for businesses that will operate primarily within one province. The first step is a mandatory NUANS name search to ensure your proposed name isn’t already in use.
A key requirement for federal incorporation is that at least 25% of the directors must be Canadian residents. If you have fewer than four directors, at least one of them must be a resident. After meeting this requirement, you prepare and file the Articles of Incorporation with the appropriate government body. This document includes details about your company name, share structure, and directors.
Once the company is officially incorporated, you must register with the Canada Revenue Agency (CRA) to obtain a Business Number (BN). The BN is a unique identifier used for all tax-related purposes, including corporate income tax and GST/HST. Other postincorporation steps include drafting corporate bylaws, opening a corporate bank account, and securing any required business licenses from provincial or municipal authorities.