Corporation in Canada. Provincial vs Federal

In Canada, the process of incorporation becomes even more complicated due to coexistence of Provincial and Federal corporations. Although similar, two of these systems contain certain differences and benefits that will be relevant for different types of businesses. The costs and administrative burden of each of the systems are different.
We provide a detailed comparison between provincial and federal incorporation - the process, the resulting benefits and how to choose between the two. Incorporating federal corporation will still require its provincial registration, while Provincial corporation will provide less flexibility to operate Canada-wide.
Our website - cbes.ca/
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All information provided in this video is for informational and reference purpose only. Nothing contained herein shall be considered as a legal advice or instructions to be acted upon. CBES - Canadian Business and Enterprise Services does not offer legal advice online or on its KZbin channel. Please consult a professional before you act in reliance on the information contained in our videos.
#corporationcanada #provincialandfederalincorporation #companyregistrationcanada

[@ulrikmagana]

Such a great channel and content, I'm currently binge watching the whole Corporation mix playlist

[@andrepastor520]

Well that saved me 5 hours. Thanks.

[@janicemeighan1847]

This was extremely helpful! We have both kinds of corporations for our two companies and have never really understood the difference. So, again, this was very helpful!

[@mdrifatrohman825]

How are you sir

[@HarmelJohal1]

Thanks for explaining it in detail. Really helpful.

[@justinmanning]

Thank you, Eugene.

[@davidregan8029]

Thank you for the great content!

[@sadaly4676]

Thank you for your service.

[@ronzeta1497]

Thank you for these helpful videos!

[@supersasquatch]

Thank you so much!

[@canindia]

Thanks for information :)This was very helpful!

[@kirkrintoul328]

The Constitution Act, 1867 is the reason why there are both federal and provincial corporations. Division of powers allows for both.

[@businessincanada-doitright1822]

KIrk, You are correct, but being a very formal response it does not answer all those oddities that the duality has created. I would not be exaggerating by saying that i have to deal with these issues almost daily. "Which company should I incorporate", "Can I move from one to another" are only a small example of issues. My goal is to show the duality and help navigating it in the most preferable and efficient way.

[@masstrepidations7902]

Great video, thank you.

[@presentowner3198]

Mindbuildingsolutions approved! Excellent video and content.

[@HardwoodFloorRefinishing101]

Excellent information thank you.

[@wincityrealestate]

Nice and easy explanation 👍

[@craigturner4694]

Corporation seems like the clear choice. I don't even know why anyone would pick the other choices.

[@vergaoneverga]

provincial or federal?>

[@brandonfedorick8106]

Good video, just wanted to say that here in Alberta it's definitely more expensive to register federally

[@innakushnar6811]

Thanks for the video, in case of QC, it's more expensive to register federally.

[@businessincanada-doitright1822]

Inna, that is correct. It is also more complicated. But I am not operating in QC, and there are other reasons to consider.

[@only5911]

Really helpful video and saved my 💰

[@benribo66]

i have seen your video its interesting am desirous of registering corporation/company for house renovation and cleaning s

[@Lulu-dp4bt]

Super informative thank you

[@businessincanada-doitright1822]

Thank you Lulu, means a lot to me.

[@yush.youtube]

If a corporation is federally registered incorporated, does it also requires to register provincially to the province where the corporation formed? For example, If ABC Inc. is federally registered and their Registered office is in Alberta, does it also requires to have provincial registration in Alberta? As the business actually first formed within Alberta!

[@alr492]

Great video!

[@sarbjeet7]

I had lots of questions. it gets resolved by reading all the comments (y).

[@nattemurdoch4504]

Great video. Our company currently is incorporated in BC only and we'd like to expand to other provinces, should we be retroactively incorporating federally now? Thank you!

[@vikas2557]

Thank you for the video.... My question : I have plans to incorporate IT services online business and my client will be in USA. I will run this business from home and I'm a resident of BC, should i incorporate federal or provisional or both ?

[@HardwoodFloorRefinishing101]

Great video I subscribed to your channel. Question: I incorporated my business 12 January 2022 will I need to submit my 2021 tax return under the corporation or does my corporate tax return start in 2022? Thank you.

[@YOYK666]

Awesome...

[@akumabear]

after reviewing both provincial and federal it seems to me theres not really a point in going federal unless its in Ontario where extra provincial registration is free..? Correct me if I'm missing something but the main benefits for federal is just name protection across Canada, but this could be done better with trademarks, so a provincial company can also protect its name across Canada using trademarks and get better protection than federal. Then why would a business other than Ontario spend extra money on federal + extra provincial costs when it can register at lower cost provincially and later if want to expand can also extra provincial register to operate in other provinces? Seems to me like theres almost no benefit going federal unless its Ontario.

[@ktownedd]

Ive spent last week trying to decide whether or not i wanted to incorporate my business federally or provincially. TY going with federally. IDUMP INC is born.

[@businessincanada-doitright1822]

Good luck Edward. Be in touch if you need any assistance with your company.

[@ktownedd]

@@businessincanada-doitright1822 That is a very kind offer, ty i will keep that in mind absolutely.

[@vgaming114]

I heard if you are in Quebec and register federally you have to pay a certain registration in quebec . means you will pay double.

[@businessincanada-doitright1822]

VGAMING, that is correct - you pay for the federal incorporation and then provincial registration. In Ontario the second part is free, so it's easier to justify. In other provinces its might cost up to $600 CAD. But, except for the $$$, there are other, more important considerations, which might justify this additional investment.

[@satyasibadas]

Please let me know what it mean

[@trevorAlan204]

I incorporated federally thinking I could do business in any province or territory in Canada. If my business is in Manitoba would I have to incorporate in the province as well? If so that's another $495 and it begs the question what's even the point of incorporating federally? If you have to incorporate provincially anyways? Or is there a difference incorporation vs registering the business?

[@businessincanada-doitright1822]

Trevor, While overall what you say is correct, there are some points to be taken into consideration: a. After a Federal incorporation you have to do what is called "extra-provincial" registration in your province - this is not a new incorporation but might cost more. In Ontario for example it is FREE. this is why I think it makes sense to incorporate federally in Ontario. b. For businesses operating internationally or across Canada (with the plans of having offices and locations in other provinces) - it also makes sense to pay more for the convenience and reputation gains of the "Canada Corporation" as an opposite from "Manitoba Corporation". c. Name protection - while incorporation does not protect your business name too much, incorporating federally will prevent other incorporators from using your name across Canada. Incorporating provincially will not prevent me from naming my company the same in other provinces. So bottom line - each should investigate all the options and make the decision that is right for each particular case in each separate province.... And as usual - good luck with your business.

[@Help-me-get-10k-subs-no-videos]

Thank you for great Video. I live in BC and one of my friend have told me that they need Federal Incorp to register again in BC and needs to spend around 380 for that above 200 for federal registration fees. Is this correct?

[@businessincanada-doitright1822]

Hi don, that is indeed correct. What happens with the federal incorporation, is that following the initial incorporation process, you have to register your federal corporation in the province where its head office and the main place of business are located. And while in some provinces like Ontario the registration of a federal corporation is free other provinces like BC demand close to $400 of additional fees. Please also keep in mind that in case you're incorporation grows and you start operating in other provinces, meaning having their actual business operations with staff working and office location, you will have also to register the corporation there.

[@roxumedia]

Thanks for the videos. Im registering federally as a numbered company. However, I plan to use two trade names for two business activities (contracting, and web development) for the same company. How my question relates to your video is... if I register federally as a numbered company, then would I have to register two trade names in Ontario in order to do business?

[@businessincanada-doitright1822]

Hi Roxumedia, In general, the answer is YES. By the law, if your business operates under a name that is different from its registered one, you have to register your business name. In Ontario the system is Master Business License under which you register the name. The problem arises with two different names, which the law is confusing whether you can or cannot operate. I would register both MBL's just in case. Good luck with your business.

[@roxumedia]

@@businessincanada-doitright1822 Awesome answer, thank you very much!

[@stevenjones4046]

Thank you so much for such an informative video. I am planning to start a new business in Canada. It's an eCommerce business. My target is to sell good Canada wide. Now from your video, I learned that its better to incorporate federal that's what I am going to do. I am located in Saskatchewan and my question is during the federal registration online it also asks me to register Extra provincially too, So if I want to sell Canada wide online from my website and my office is located in Saskatchewan only. Is it enough to register it federally and extra-provincial registration in Saskatchewan or do I have to register the business in all provinces where the customers are located? Thank you

[@businessincanada-doitright1822]

Hi Steven, The extra provincial registration is required only for the provinces where your business has actual business operations - it would imply having office, employees and more. Merely selling your products to another province does not require such registration. I hope this helps, and good luck with your new business.

[@stevenjones4046]

@@businessincanada-doitright1822 Thank you so much, Eugene for replying so fast. I was stressing out thinking that I will have to register for all those provinces. I subscribed to your channel as you have alot of useful content :) . Keep up the good work. and Thank you again.

[@ahmaddaboul2681]

@@businessincanada-doitright1822 Hi Steven, how about if the business doesn't have any physical presence but it derives all of it's revenue from another province (this is common in the IT industry) you will find ON IT incorporated consultant providing software service to two or three QC client who are keeping him busy from taking any other ON clients. do you still believe physical presence is the determining factor to extra register in QC? or QC may argue the ON corporation having ongoing active business with QC and therefore should register to pay income tax there?

[@satyasibadas]

Alberta job offers must be from an Alberta employer: that is incorporated or registered by or under an act of the legislature of a province, territory or the Parliament of Canada and that is operating an established production capacity, plant or a place of business in Alberta, and

[@sohaibsiddiqui9434]

Thanks for this video. I am looking to start a tech business with my friends in Canada. Do you recommend me going ahead with federal?

[@businessincanada-doitright1822]

Sohaib, if you are (or anyone of you) located in Canada, then a federal corporation is probably the most fit for a tech business. But overall, it doesnt really matter and you can operate your business anywhere and do anything whether you are a federal or a provincial corporation.

[@judithsarazin6102]

Eugene, I live in Ontario and will open a incorporated business. The business will provide consulting IT services with 1 client. The client is in Quebec. Do I incorporate federally and register my business in Quebec? Or does it suffice for me to incorporate in Ontario and register my business in Quebec? What are the additional expenses of Federal Incorporation?

[@businessincanada-doitright1822]

Judith, depending on how comfortable you feel with dealing with Quebec laws and French, I would suggest to avoid registering there. In case your business is located in Ontario, And you will provide your services here, I would consider it as the main location of your business in Ontario,and avoid registering in Quebec. With regards to the federal expanses, except for $13 annual report fee, there are no additional cost of maintenance. Of course keep in mind the costs of tax reporting . Additionally, incorporating federally with Ontario registration will save you $200 compared to Ontario incorporation...

[@chiefskarz7140]

Hi there, I wanted to incorporate the company in Ontario and operate from India, its a job consulting firm that meets the gap between job aspirants in Canada n the companies hiring

[@BangladeshiCanadianLife]

Hi ! I am from Saskatchewan, preparing to open an incorporation very soon. My question is can I secure my business name only for me if I open Provincial Company? And another question is we have a company in Bangladesh with same name but the owners will be added more here. Is there any problem to keep the same company name both place with some uncommon directors? Thanks in advance 🙂.

[@businessincanada-doitright1822]

Hi, with regards to your name protection question, it is mostly correct. Incorporating a SC provincial corporation will not prevent me from incorporating with the same name elsewhere (except for Federal). The only proper protection of a name is through trademark anyway... But a federal corporation will prevent anyone else incorporating with the same name across Canada. To Your second question - there are no limitations on the naming a corporation after an existing one from overseas. We even do not have to mention it in our application. The consistency of the BoD does not matter.

[@umrashrf]

Where is it cheaper to incorporate in terms of corporate taxes between Quebec and Ontario? I am a resident of Quebec but I don't mind moving if I have to but I prefer to live in Quebec but prefer to do business in Canada where taxes are cheaper.

[@businessincanada-doitright1822]

Umair. I am not a tax specialist, so I would not know the complete answer to your question. I do know that operating a business in QC is a bit more complex than elsewhere in Canada, but not by much. Additionally, keep in mind that you can incorporate in Ottawa, in which case you might still continue living in QC and then crossing a street to Ottawa for the business... Bottom line, if you are comfortable living in QC and speaking french, I would not move to another province just for the sake of slightly lower taxes.

[@umrashrf]

@@businessincanada-doitright1822 Thanks

[@jagdeepsingh9597]

My question is if a person who work as a Uber eats, registered in BC and he works in other provinces as well where visiting there, he go often, so does he need to register himself in that province too and my second question is the base of provincial registration is to bear the tax liability of that province if I am not wrong?

[@timarve]

From what he said yes, even if you register in ontario for exemple you can do business in quebec in sais it in the video

[@businessincanada-doitright1822]

Correct, the tax system is based on a provincial application, so it matters where you generate your income. If you travel to another province frequently and your income there is a common and regular thing - then yes, you should register your busienss in that province as well.

[@testgmail445]

Hi, do I need, or there is any by law federally or in NB province, to register in the province after I register federally and get incorporated federally?

[@businessincanada-doitright1822]

Dear Amir, Yes, the requirement in each province is to register your business in every province where it has effective operations - usually would mean office and/or staff working for you. When you incorporate federally, the last step in incorporation is a provincial registration of your business - some provinces are for free, others for pay, If your only "presence" there is that you sell your products into that province, but physically you are located elsewhere - I would not suggest registering.

[@defezaottawa9796]

should i corporate my business in provincial and federal ou federal is enough for an online store located in ontario but dealing in all canada ? thank you

[@businessincanada-doitright1822]

De Fez, while incorporating Federally, you will need to register your corporation in Ontario (or anywhere else where it has its established business operations). The good thing is that extra-provincial registration in Ontario is free and is done as a part of the Federal incorporation. I hope this clarifies.

[@nanoroungee7767]

Thank you for the video! I have a question: if I incorporate provincially can I provide my consulting services internationally?

[@businessincanada-doitright1822]

Yes. The type of incorporation does not affect legal authorities of a corporation. You can operate a business internationally and across Canada.. The only difference between federal and provincial corporations is in the name protection and visuals...

[@nanoroungee7767]

@@businessincanada-doitright1822 Thank you so much!

[@gabrielnguyen8037]

very good insight xD

[@businessincanada-doitright1822]

In Canada, the process of incorporation becomes even more complicated due to coexistence of Provincial and Federal corporations. Although similar, two of these systems contain certain differences and benefits that will be relevant for different types of businesses. The costs and administrative burden of each of the systems are different. We provide a detailed comparison between provincial and federal incorporation - the process, the resulting benefits and how to choose between the two. Incorporating federal corporation will still require its provincial registration, while Provincial corporation will provide less flexibility to operate Canada-wide.

[@Javssoccer]

Business in Canada - Do it Right! If I’m starting a holding company for stock investment and real estate, should it be federally incorporated or provincially?

[@QStudent]

My Question can you do multiple Business activities under single incorporation?

[@businessincanada-doitright1822]

Yes, you can even have multiple name registrations under one corporation and operate completely unrelated businesses under it. Just make sure that when incorporating you did not limit the business operations of a corporaiton to only one type... :-)

[@gamatoutsikos]

If I am in Ontario, only looking to operate in Ontario and I want a specific name and it is taken from a company in BC.... I assume I do not have the option of going Federal but Provincial registration in Ontario would work, correct?

[@businessincanada-doitright1822]

Yes, to the best of my understanding, while running an Ontario NUANS search you should be okay to register an Ontario corporation with the same name. that is specifically why I suggest for people planning to operate across Canada to register federally in order to prevent this kind of situations. but in your case I think that the Ontario registration should be possible.

[@gamatoutsikos]

@@businessincanada-doitright1822 thanks 👍👍

[@liqingqing8875]

What is the difference between corporation and incorporation ?

[@businessincanada-doitright1822]

Hi Li, I would say that "incorporation" is a verb relating to the process of creating a "corporation", which is a separate legal entity that allows you to operate your business. So, if I understand your question properly - no difference at all.

[@Planet_knowledge]

Corporate tax implications are same for both? In Ontario

[@businessincanada-doitright1822]

Yes, the corporate income tax is based on the combination of a federal and provincial components and applies based on the provincial residency of the busienss (or where the income was created in a case of multi-provincial operations). The bottom line income tax for let's say Ontario provincial corporation and a Federal corporation registered in Ontario would be identical - 25.5%.

[@danteventura713]

Hi, I want to register my company but i'm stuck on whether i want to do it as sole proprietary buisness or corperated. The business i'm trying to start is a home improvements construction business and home owners sue companies like this all the time. So what's the safest bet!

[@businessincanada-doitright1822]

Hi Dante, you are technically answering your own question: one of the most important factors in the question of incorporation is the extent of legal liabilities that you and your business will be exposed to. In your case, I see the following: a. As you've mentioned - high potential for the future claims by your clients. b. Relatively high risks of injury to your employees c. Extensive compliance requirements in a construction industry. In my opinion, all these lead to a conclusion that incorporation is a better and more protected way to move. I hope this helps and good luck with your new business.

[@danteventura713]

@@businessincanada-doitright1822 Thanks so much!!

[@All_about_Trucking]

Hi sir. Currently i am living in Quebec but in next 2 to 3 months i will be moving to BC . Here for truck job what should i opt for corporation qc inc or federal

[@businessincanada-doitright1822]

Agyaat, in my experience, it's pretty hard to deal with QC system in general, so if you have an excuse not to register there, use it. For trucking company, it doesn't really matter provincial or federal incorporation. See which one is cheaper and do it.

[@jashangill8506]

Please provide steps for changing province on corporation canda account as i have corporation account with onatario and i need change nova scotia address on that, do need to make new account or can change address?

[@businessincanada-doitright1822]

Jashan, if I understand your question correctly, you can make the change to your office information here: www.ic.gc.ca/app/scr/cc/CorporationsCanada/bs/chngRgstrdcdrsWz.html; this is the same government portal where you incorporated your company.

[@uncleasshole3787]

Would it not be because each province is its own separate country in itself

[@businessincanada-doitright1822]

Theoretically, this will justify the differences between provinces, but then WHY do you need a federal incorporation? I think this is the result of an afterthought, lack of proper planning and lack of the federal govt will to provide this authority exclusively to provinces.

[@JoseMendez-el6nq]

I registered federally but now I heard that I have to register provincially too, is that correct? We are a software startup (in case that matters)

[@businessincanada-doitright1822]

Yes, that is correct. Every corporation must be registered in at least one province for tax purposes. You usually register in a place where your business/office is located.

[@alphabetsouptoday]

when REGISTERING a business, do I need to register my business or corporation in every province? Does registering a business in a province mean that you are working out of that province or that you intend to sell products there. For example, I have an online business based out of Ontario. My products might be sold to other provinces. Does that mean I need to register my business in all provinces that I sell to or just the province I work out of and am based?

[@businessincanada-doitright1822]

Hi alphabetsouptoday, The basic rule for the registration of a corporation in various provinces - extra-provincial registration, is that you must register in every province where your company has "actual effective operations" (my terms). Usually it implies having office, personnel and management in that province. So in your example, I would say that the only place you have to register is Ontario, other places are not actually the places where you have operations (hopefully not for long :-) )...

[@alphabetsouptoday]

@@businessincanada-doitright1822 Thank you SO MUCH for replying and for this information. I have just incorporated (based on your advice!) and am devouring all your videos at the moment. Hopefully I can utilize your services one day. Thank you for providing these videos. They are helping so many people including myself. Yes hopefully I can operate across Canada one day :)

[@alphabetsouptoday]

@@businessincanada-doitright1822 Sorry, I have a follow-up question I hope you don't mind answering! I have just submitted my application for a federal incorporation. I'm a little confused as to what is meant to happen next. Once approved, am I meant to REGISTER my corporation name within the province I operate out of (i.e., Ontario)? I read online that: "corporations carrying on business under a name other than their corporate name;" need to register their business name. My corporation name is the same as my business name except with "Inc." at the end of it. My business name (e.g., website, storefront etc) would not have Inc. at the end. Would this qualify me to also register my business name within Ontario?

[@businessincanada-doitright1822]

@@alphabetsouptoday HI, so while registering your Federal corporation, you were offered an option for extra-provincial registration (last step before the payment). If you used the option, then no further registrations are needed and you will receive your Ontario corporation number soon. With regards to the name - you need to register a new/alternative name for your business only in a case it is DIFFERENT from your corporation name. Inc., Corp., Ltd., are not considered a part of your name, so in your case no need to register anything else. If you decide to operate under a completely different name, then you need to register. Good luck.

[@alphabetsouptoday]

@@businessincanada-doitright1822 Thank you. Sorry for another comment...So when I completed the federal corporation application I DID NOT check the extra-provincial registration option for Ontario b/c of this line: "If your business commencement date is to be later than the incorporation date, you must register directly with the Ontario Government within 60 days after the corporation commences business in Ontario". I took this to mean that if I haven't actually started my business yet (which is the case, I will actually start selling products in 1-2 months) then I shouldn't select this option. Do you know how I can register the extra provincial registration for Ontario now online? I haven't seen anything online except a pdf form (Form 2) that I think I need to mail in!

[@miguelc9272]

I want to do business selling products online in the states. I live here in BC and I was wondering if I have to do federal to sell products on amazon in the United States. PLEASE HELP!

[@businessincanada-doitright1822]

Miguel, doesn't really matter. I personally think that Federal sounds better - it is better to work with the documents stating "Canada" on them rather than "British Columbia", especially if you work with the US clients... but you still will have to register your federal corporation in BC as interprovincial registration (it does not create a new company, just registers your existing one to operate in BC). I hope this helps. Feel free to reach out, although I mostly operate in Ontario/Federally.

[@loliaimtonem_7472]

Hey contact jaylo_hacker on Instagram if need this help. you could reach out@[phone]. Or watsap ASAP and thank me later..

[@YOYK666]

I'm looking for incorporate company registration in Canada Non-Canadian from india so please help me...

[@escodey9867]

Hey brother quick question is it possible to change or edit corporation business name?

[@businessincanada-doitright1822]

Hi Esco, yes it is possible in two ways: a. You can file for amended articles of incorporation to change the name. The process is just like to incorporate a new company and the costs are the same. B. You can apply for a business name registration - Master Business License in Ontario, this will add another name to the existing one and will cost less.

[@jun9098]

Question 1. Incorporating federal corporation will still require its provincial registration. Is this mean if I want to register federal level, eventually I have to register both federal and provincial? If this is true, incorporating federal corporation costs more because I have to register in provincial also. Please tell me that I understood correctly. Thanks. Also I have one more question. Q 2. What is the difference between Sole proprietorship and individual doing business without registration? Both are not separate entity, so they are responsible for their personal liability. And they have to do tax report anyway. Thank you. subscribed and liked.

[@businessincanada-doitright1822]

Hi Jun, you did get the process right - when incorporating federally, you have to register your business in the province where its head office is located. BUT! - this is not another incorporation, the process here is different, and for Ontario costs $0! So, while you do have to register your office in Ontario it does not add to the costs of incorporation itself and is done as an integral part of the federal incorporation process. Your second question: Individual doing business without registration is considered a Sole Proprietorship (SP), that is why I always say that in order to be a SP you do not have to do anything at all. The "registration" that you might refer to is the Master Business License - an Ontario registry for SP's who want to operate under a name different from their own. But this is not a "mandatory" step in order to be a SP. I hope this clarifies the things for you a bit more...

[@jun9098]

@@businessincanada-doitright1822 Thank you very much for Q1 and Q2. I didn't know that Sole Proprietorship and Individual are same. I maybe register in federal level. Also, could you tell me or make a video about Ltd., Co., Inc. kind of company entities? I know those are incorporated entities, but I think there are three different entities under incorporation. I see not only Inc., but also many Ltd. companies around Canada.

[@businessincanada-doitright1822]

@@jun9098 Hi Jun, I definitely should make a video for this question. Overall though, there is absolutely no difference between those endings - Ltd., Limited, Corp., Corporation, Inc., Incorporated - all these represent the same thing and you are being offered which of the endings to chose from during the incorporation process. Good luck with your incorporation process. Let me know if you have any questions or face any issues with it.

[@jun9098]

@@businessincanada-doitright1822 thank you thank you thank you

[@SentientStone]

@@businessincanada-doitright1822 Hi, I have registered a federal corporation with a head office in BC. Will I need to pay a fee to register the corporation provincially in BC as well? Great tips by the way. Thank you. :)

[@yush.youtube]

For Online Service providers, Is it required to register provincial corporation if you already have federal corporation registration?

[@businessincanada-doitright1822]

Yusha, there is a confusion that many people face with this issue. While incorporating federally, you've created a new legal entity. This corporation has its federal corporation number abe business number that was assigned to it by the CRA. In addition, you must register your corporation in every province where you have material operations - usually would mean office, staff etc. BUT! this registration does not create a new corporate entity, only registers the existing one in the province(s) of its operations. It has nothing to do with the type of business - online or not, just with the actual physical location of the office and the workforce. You need this, among others, because many tax issues are based on the provincial rates (most of the corporate related taxes, including HST are dependant on the province of your location). I hope this clarifies the issue.

[@yush.youtube]

@@businessincanada-doitright1822 Yes, Definitely, it does. Thank you. :)

[@vikas2557]

@@yush.youtube Did you incorporate federal or provisional or both ? I have plans to incorporate my IT services business with client in USA.

[@benribo66]

services what will be the requirements am in Kenya and intend to move to Canada.

[@businessincanada-doitright1822]

Dear Bernard, there are lots of questions included in your post. For the actual business, you will need to incorporate and have it registered with the local workers health and safety authority. You have to investigate which permits are required for the type of construction that you intend to offer (some do, some don't). Then there is the question of work permit for you to work in Canada - even as the business owner, you need proper visa to operate your business. You might want to take a look at the "owner operator" program. It will require an investment of close to $200K (including 30K - 50K for the immigration consultant's fees)... I hope this answers your questions and clarifies the situation. Good luck.

[@Daddychyll]

How much tax would my provincial corporation pay in Ontario? Really confused

[@businessincanada-doitright1822]

Abe, in case your corporation is owned by a Canadian resident, the corporate income tax is approx. 12.5% on the profits of the corporation. Please keep in mind that this is not relating to the HST, which is technically not paid by a corporation, but rather collected from its customers and transferred to the govt.

[@Daddychyll]

@@businessincanada-doitright1822 Okay thanks for the clarity. In my case, im a mortgage broker in Ontario, so I don't charge customers HST I just charge my broker fee, would I still need to pay HST in that case?

[@businessincanada-doitright1822]

@@Daddychyll no, you charge HST only if you're business is covered by HST. If you do not charge HST, you do not have to pay HST.

[@businessincanada-doitright1822]

@@Daddychyll no, you charge HST only if you're business is covered by HST. If you do not charge HST, you do not have to pay HST.

[@vincentserreti4198]

I have a federal numbered llc in Canada. Do I need a provincial llc to do business In manitoba ?

[@businessincanada-doitright1822]

Yes, every corporation in Canada must be registered in at least one province (there is no "strictly federal" corporation). So if you operate your business from MB, have a physical presence there, then yes - you must register your federal corporation there.

[@jestinjoy4349]

Thanks very informative; mine is number company registered in ALBERTA; Can I do my service in Saskatchewan with same Alberta Number Company?

[@estergomez8904]

I see it

[@litopabalan8639]

Thanh you for sharing the video Sir. I would like to ask, I registered my business federally as a corporation, do I have to register it again in my province ? my corporation name is ( number) Canada Inc., my question is can I use other name other than this in making a business proposal to a client? thank you and more power.

[@businessincanada-doitright1822]

Lito, There are two parts to your question: 1. Should you register your business in a province where it is located? The answer is YES, every business must be registered with the province where its head office located and then where it has major business presence (more than just sending products there or coming once in a while to provide services). Each province has its own rules of registration, but this is NOT a new incorporation. Usually the process is called inter-provincial registration. 2. Can you operate under a name other than your registered corporate name? The answer is YES, but you must register this name. For this, please see my video on Master Business License - this is the process of registering such name in Ontario and it is available for all local individuals, provincial and federal corporations. Different provinces will have different process of registrations, but most would have this option available. I hope this clarifies your situation.

[@litopabalan8639]

thank you, my thinking was if i register federally, like i have a business number already, i dont have to register provincially

[@businessincanada-doitright1822]

@@litopabalan8639 Lito, You still have to register in your province. And any other province where you have an actual office and operations of your business. The company's name/number will not change, but the registration is required.

[@gearedcorp]

​@@businessincanada-doitright1822 Can I piggyback on this thread to get a bit more clarification on the federal / provincial registration? Why register federally if you end up having to register in your local province as well. Isn't this twice the costs and twice the work for reporting on an ongoing basis? For context in my situation I am in BC and our tiny studio offers purely online services (niche web/app development) to a global client base. Thank you for your videos and hard work!

[@businessincanada-doitright1822]

@@gearedcorp Chris. your question combines various considerations, which might or might not work for other entrepreneurs. Federal incorporation is easier to manage if you expect your business to grow into other provinces, where you will have to register it as extra provincial registration. Federal is good for companies that plan to work internationally. Think about your own company - what would a potential client from Uzbekistan know and value better Canada Inc. or British Columbia Inc.? From the perspective of costs, it depends on your location - Ontario registration for extra provincial federal corp is free, and there are no additional reporting requirements. Other provinces could be different. Federal is almost twice cheaper than Ontario registration.

[@mohamedelnomrosy4881]

I registered corporation in federal, but when I want to work in BC they ask me to register for the province BC. So now I have to pay 350$?

[@loliaimtonem_7472]

Hey contact jaylo_hacker on IG he could help you to reduce the your payment cost and you get approval ASAP I got his referral from a friend and he did a great job. you could reach out @[phone]. Or watsap and thank me later...

[@ThreeLions82]

If I register federally do I have to register provincially as well?

[@businessincanada-doitright1822]

Absolutely. You cannot file your annual tax report without a provincial registration, so you should register in at least the province where the head office of the corporation is located...

[@ThreeLions82]

@@businessincanada-doitright1822 Ok thank you sir.

[@waqarismail1838]

Hi , Want to start selling on amazon.ca and US both and live in Ontario which company and corporation is better for me to form , Thanks in advance.

[@businessincanada-doitright1822]

Hi Waqar, overall with the proposed type of operations it doesn't matter much. I personally prefer federal corporations - they are cheaper to register and a little bit better fit for international business. The point is that while working through Amazon, not many people pay attention to your corporate entity, they only see Amazon as the storefront of your products... Bottom line - up to you to decide. 200 for federal or 400 for Ontario. Good luck with your business.

[@asmrmannotalking4832]

If I have a service based business in quebec, is it still better to register federally as apposed to provincial? I'm english so really I just want to avoid the quebec government at all costs

[@businessincanada-doitright1822]

ASMR, unfortunately, even if incorporating federally, you won't be able to avoid your local government since the incorporation will require an extra provincial registration of your head office in Quebec. The main issue with the service based businesses is that you cannot register in another province since the heart of your operations is in Quebec, so eventually you will be forced to make the registration there, and it might also result in penalties from the local govt.

[@asmrmannotalking4832]

Business in Canada - Do it Right! So in this case, it would be better to register provincially instead of federally? It’s not that I’m trying to hide, I just want access to English forms

[@businessincanada-doitright1822]

@@asmrmannotalking4832 If your business is local in its nature and will not expand beyond Quebec - yes, I would suggest to incorporate provincially. If you plan to grow and expand cross-border, then federal would be a better vessel to do it. It will not save you from Quebec registration, but will make it easier to continue your business across Canada.

[@thatswhatshesaidbro]

I have a stock trading business can I have a CCPC ?

[@businessincanada-doitright1822]

Boi, stock trading by itself is not relevant for CCPC, you have to make sure that there are no special taxation rules applicable to your business operations. In case there is a regular business, which invests its excess cash, the proceeds of the investment may decrease the CCPC benefits. You should discuss it with an accountant who has specific experience in investment businesses, only they will know.

[@shawn8281]

I am number company small business auto shop i starting on my own after two years I had my girlfriend and I incorporated it to both of us now I need to take her name off the corporation any answer would be great its ont inc

[@businessincanada-doitright1822]

Shawn, as it is explained in my videos, there are three various roles that entrepreneurs play in their corporation: shareholders; directors and officers. To remove someone from shareholders you have to "buy" her shares out. To remove from director and/or officer - they should resign (sign a resignation letter), following which you should update the corporate registries.

[@momoney00can]

Hi sir I just registered federal, I live in Alberta, I will do my business in Alberta, do I also have too register for the Alberta one, I’m in import business.

[@mohamedelnomrosy4881]

Hello, I have the same question.

[@mohamedelnomrosy4881]

What did you do?

[@momoney00can]

Mohamed Elnomrosy you still need to register for Alberta one but for ask an “extra provincial business license” at the registers. If you don’t have a federal one already you don’t need it at all, the provincial is good on it own.

[@mohamedelnomrosy4881]

Thank you for your answer. I have registered in federal, but when I asked BC registry, they told me I have to register in BC and pay 350$. So I am thinking to make new registration in Bc because I want to Change the name of corporation. Do you think this is a good idea?

[@momoney00can]

You could go that way brother. Since you don’t like the name If you don’t need the federal dissolve it that way your not doing two corporate taxes but ask an account.