--- title: "Federal or Provincial Incorporation: Which to Choose" url: https://www.everstonecpa.com/blog/incorporating-federally-vs-provincially-canada description: "What differs between federal and provincial incorporation: name protection, where you may operate, extra-provincial registration and filings. Choose one." type: guide updated: 2026-10-12 summary: "Federal incorporation under the CBCA gives name protection across Canada and the right to carry on business in any province, for a $200 online fee. Provincial incorporation is simpler if you operate in one province. Either way, a company working outside its home province registers there too. If the prior question is still open, incorporating versus staying a sole proprietor covers it." faq_count: 6 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [Blog](https://www.everstonecpa.com/blog) Incorporating Federally vs Provincially in Canada Incorporation # Federal or provincial incorporation: *which one fits your business* By EverStone CPA · Updated August 2026 · 7 min read **Quick answer:** Federal incorporation under the CBCA gives name protection across Canada and the right to carry on business in any province, for a $200 online fee. Provincial incorporation is simpler if you operate in one province. Either way, a company working outside its home province registers there too. If the prior question is still open, [incorporating versus staying a sole proprietor](https://www.everstonecpa.com/blog/incorporate-vs-sole-proprietor-canada) covers it. Either route still needs extra-provincial registration. **Rather have a CPA handle this?** A CPA at EverStone replies with a straight answer and a fixed fee for your situation. [Get My Fixed Quote →](https://www.everstonecpa.com/book-online?service=planning#enquiry-form) ## Key takeaways - Federal incorporation costs $200 online, with the certificate issued within one business day. - A federally approved corporate name is protected across the country, a status Corporations Canada describes as second only to trade-mark protection. - A federal corporation can carry on business anywhere in Canada, with no restriction on where its head office or records sit. - Federal incorporation does not remove provincial registration: you still register extra-provincially where you carry on business. - Each route carries its own annual registry filing — $12 federally within 60 days of the anniversary date, $43.39 in BC within two months. Most owners face this choice once. They decide it in about ten minutes, then live with it for years. It is worth the extra half hour. The two routes cost about the same. They differ in name protection, in where you can work without extra paperwork, and in how much annual filing you carry. ## What federal incorporation gives you Corporations Canada sets out four advantages of incorporating under the *Canada Business Corporations Act*: - **Heightened name protection.** Corporations Canada applies tough tests before granting the right to use a particular name, and once approved, the name is protected across the country, a status it describes as second only to trade-mark protection. - **The right to carry on business anywhere in Canada**, with no restrictions on where the head office is located, where corporate records are maintained, or where annual general meetings are held. - **Recognition** — companies incorporated federally receive global recognition as Canadian companies. - **Online services** allowing you to send documents, pay fees and receive acknowledgements without an intermediary. The federal filing fee is **$200 online**, with the certificate available within one business day. **Choosing where to incorporate?** We set up the books and CRA accounts for either route and prepare the first T2, at a fee quoted in writing. [Get a quote](https://www.everstonecpa.com/book-online?service=planning#enquiry-form). [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=planning#enquiry-form) ## What provincial incorporation gives you Incorporating in your own province means one registry, one set of forms and one annual filing; in British Columbia, that is BC Registries under the provincial *Business Corporations Act*. If your customers, staff and premises are in one province, that settles it, and provincial name protection is what a local business needs. Relocating a company from elsewhere is covered in [moving a corporation to BC](https://www.everstonecpa.com/moving-corporation-to-bc). A province can also offer company forms the federal route does not. BC alone provides for benefit companies, community contribution companies and unlimited liability companies, as well as ordinary limited ones. **Neither route changes your tax outcome.** A federal corporation and a BC corporation with identical operations pay the same corporate tax. Income tax is levied under the *Income Tax Act* and provincial tax statutes according to where income is earned, not according to which registry issued the certificate. Choose on name, geography and administration, not on tax. ## Extra-provincial registration: the part people miss Federal incorporation gives you the *right* to do business in every province, not an exemption from registering. A company formed outside a province usually must register there before working. British Columbia registers federal or foreign corporations as extraprovincial companies. So a federal company working only in BC carries a federal annual return *and* a BC extraprovincial registration with its own annual report: two registries instead of one. For a single-province business, that overhead buys little. A business that expects to open in Alberta and Ontario within a few years may find the federal route cleaner. The corporation itself never has to be continued into a new jurisdiction. Not sure how this applies to you? Every corporation is different. Send an enquiry for a straight answer and a fixed quote. [Send an Enquiry →](https://www.everstonecpa.com/book-online?service=planning#enquiry-form) [See fixed fees](https://www.everstonecpa.com/pricing) ## Ongoing filings compared | | Federal (CBCA) | British Columbia | | Incorporation fee | $200 online | Set by BC Registries | | Annual registry filing | Annual return, $12 online | Annual report, $43.39 | | Deadline | Within 60 days following the anniversary date | Within two months of the anniversary date | | Name protection | Across Canada | Within the province | | Operating in another province | Register extra-provincially | Register extra-provincially | Both filings are registry filings, not tax returns, and both carry dissolution risk if ignored. The distinction is important enough to have its own guide: [the corporate annual return, BC versus federal](https://www.everstonecpa.com/blog/corporate-annual-return-bc-vs-federal). ## How to choose A reasonable rule of thumb for a small Canadian business: - **One province, local customers, no plans to expand:** incorporate provincially. Fewer filings, lower ongoing administration, and the name protection covers your actual market. - **National ambitions, a brand worth defending, or operations already in more than one province:** incorporate federally and register extra-provincially where you operate. - **Not sure yet:** the decision is not permanent. A corporation can be continued from one jurisdiction into another later, though it is a formal process with its own cost. Whichever you choose, the first-year setup work is identical — business number, program accounts, share structure, minute book. Our [just-incorporated checklist](https://www.everstonecpa.com/blog/just-incorporated-now-what-canada-checklist) and the [Just incorporated — what now](https://www.everstonecpa.com/incorporation-checklist) cover what comes next, and [Should you incorporate in BC or stay a sole proprietor?](https://www.everstonecpa.com/blog/incorporate-vs-sole-proprietor-bc) covers whether to incorporate at all. ## The bottom line Federal incorporation buys national name protection and mobility. Provincial incorporation buys simplicity. For most owner-managed businesses working in one province, provincial is the lower-friction answer, but the choice should be made deliberately, not by whichever website loaded first. Sources - [Government of Canada — Choosing between federal and provincial/territorial incorporation](https://www.canada.ca/en/services/business/start/register-with-gov/register-corp/register-corp-fed-or-prov.html) - [Corporations Canada — Federal incorporation](https://ised-isde.canada.ca/site/corporations-canada/en/federal-incorporation) - [Province of British Columbia — Incorporated companies](https://www2.gov.bc.ca/gov/content/employment-business/business/managing-a-business/permits-licences/businesses-incorporated-companies/incorporated-companies) This article is general information for Canadian business owners, current as of July 2026, not tax, legal or accounting advice, and it creates no client relationship. Rules change and situations differ, so [speak with a CPA](https://www.everstonecpa.com/book-online?service=planning#enquiry-form) before acting. About this article **EverStone CPA** Prepared and reviewed by a CPA at EverStone CPA, serving businesses in BC, Alberta, Ontario and Manitoba. [About the firm →](https://www.everstonecpa.com/about) · [Send an enquiry →](https://www.everstonecpa.com/book-online?service=planning#enquiry-form) ### Keep reading [Corporate annual return: BC vs federal →](https://www.everstonecpa.com/blog/corporate-annual-return-bc-vs-federal) [Incorporate vs sole proprietor in BC →](https://www.everstonecpa.com/blog/incorporate-vs-sole-proprietor-bc) [Just incorporated? Checklist →](https://www.everstonecpa.com/blog/just-incorporated-now-what-canada-checklist) [Work out the full cost of incorporating →](https://www.everstonecpa.com/incorporation-cost-worksheet) FAQ ## Frequently asked questions **How much does federal incorporation cost?** Corporations Canada charges $200 to incorporate online, and the certificate is available within one business day. That fee covers the incorporation itself and does not include name searches, legal advice or any provincial registrations you may also need. **Does federal incorporation mean I do not have to register in my province?** No. Federal incorporation gives the right to carry on business anywhere in Canada, but a company incorporated outside a province generally still has to register extra-provincially before doing business there. British Columbia specifically provides for registering a federal corporation as an extraprovincial company. **Is my company name protected across Canada?** Only with federal incorporation. Corporations Canada applies tough tests before granting a name, and once approved the name is protected across the country, a status it describes as second only to trade-mark protection. A provincially incorporated name is protected within that province. **Does incorporating federally lower my taxes?** No. Corporate income tax depends on where income is earned and on the tax rules that apply to the corporation, not on which registry incorporated it. Two identical businesses, one federal and one provincial, face the same corporate tax outcome. **Which annual filings does each route require?** A federal corporation files an annual return with Corporations Canada within 60 days following its anniversary date, at $12 online. A BC company files an annual report within two months of its anniversary date, at $43.39. Both are registry filings and are separate from the T2 [corporate tax return](https://www.everstonecpa.com/corporate-tax-return-t2). **Can I change from provincial to federal later?** Yes. A corporation can be continued into another jurisdiction, but it is a formal process with its own filings and cost, so choose carefully at the start. ## Deciding where to incorporate? Tell us where you sell and where you work. A CPA replies by email within one business day with the route we would choose and a fixed fee. [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=planning#enquiry-form)[Book a Paid Advice Call](https://www.everstonecpa.com/advice-call) ## Have a question about this? Ask free through [the quick-question form](https://www.everstonecpa.com/quick-question); a CPA replies by email within one business day. A 45-minute **Advice Call** is $225 plus GST, paid by secure link and credited to your first invoice if you become a client within 60 days. Want us to take it on? [Send an enquiry](https://www.everstonecpa.com/book-online?service=planning#enquiry-form). [Ask a Free Question](https://www.everstonecpa.com/quick-question) [Book a Paid Advice Call](https://www.everstonecpa.com/advice-call) Email info@everstonecpa.com ★★★★★ “Personal. Professional. Responsive. Plus he saved me a bundle!” Corrin Skalbeck · Google Local Guide **Run your own numbers with the free calculators:** [Incorporation savings calculator](https://www.everstonecpa.com/incorporation-calculator) · [check a paycheque’s deductions](https://www.everstonecpa.com/payroll-deduction-calculator) · [check your GST/HST math](https://www.everstonecpa.com/gst-hst-calculator) [← Should you incorporate in BC or stay a sole proprietor?](https://www.everstonecpa.com/blog/incorporate-vs-sole-proprietor-bc) [Input tax credits (ITCs): claiming GST/HST back →](https://www.everstonecpa.com/blog/input-tax-credits-itc-canada-guide) More on this subject: [our guides for brand-new corporations](https://www.everstonecpa.com/starting-a-business-hub). --- Source: https://www.everstonecpa.com/blog/incorporating-federally-vs-provincially-canada Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online