Many people considering starting a business in Canada struggle to decide whether to register as a sole proprietorship or a corporation. A corporation is often chosen due to liability protection, lower tax rates, and greater trust with business partners. We have summarized the basic procedures for incorporating a company in Ontario.
Ontario Company Incorporation Procedures
- Deciding on a company name — If it is a numbered corporation (e.g., 1234567 Ontario Inc.), a name search is not necessary. If you wish to be a named corporation, prepare a NUANS name search report based on Ontario standards (use a private search company, approx. $30~80).
- Submission of Articles of Incorporation — Apply online at the Ontario Business Registry for a government fee of $300. Upon approval, a Certificate of Incorporation will be issued.
- Initial Return — It is free of charge and submitted without delay after establishment.
- Secure CRA Business Number (BN) — GST/HST registration if necessary. GST/HST registration is mandatory if annual taxable sales exceed 1 TP 4 T 30,000.
Things to know
- The registered office must be an Ontario address (PO box not accepted).
- Ontario corporations do not have a residency requirement for directors (2021 amendment). You can become a director even if you reside outside of Canada.
- While it is possible to establish a federal corporation (Corporations Canada, online approx. $200), additional provincial registration is required to operate in Ontario. If you plan to operate only in Ontario, an Ontario corporation is sufficient.
- Small Business Corporate Tax Rates Reference: Federal 91 TP3T (up to the first $500,000), Ontario combined approximately 12.21 TP3T — General information; individual circumstances require expert consultation.
G-Kor ConsultingWe provide consulting services ranging from selecting the form of Canadian incorporation to the establishment process and initial administrative support. We recommend consulting with professional lawyers and accountants for specific legal and tax decisions.
G-Kor Consulting | Inquiries: korcanbiz@gmail.com | https://gkorcon.com
source: lexstart — Guide to Ontario Company Formation Costs and Procedures, 2727 Coworking — 2026 Canada Incorporation Cost Comparison
|
