Ontario vs Federal Incorporation: Which is Right for Your Business?
The short answer: most small businesses should incorporate provincially in Ontario. Federal incorporation is better if you need national name protection, operate in multiple provinces, or have investors requiring a CBCA structure.
The core difference
Ontario incorporation is governed by the Ontario Business Corporations Act (OBCA) and administered through the Ontario Business Registry. Your corporation is a legal entity in Ontario.
Federal incorporation is governed by the Canada Business Corporations Act (CBCA) and administered through Corporations Canada. Your corporation is a legal entity across Canada — but you still need to register extra-provincially in each province where you operate (including Ontario).
Side-by-side comparison
| Feature | Ontario (OBCA) | Federal (CBCA) |
|---|---|---|
| Governing act | OBCA | CBCA |
| Government filing fee | $300 | $200 |
| Processing time | 2–5 days | 1–5 days |
| Business name protection | Ontario only | National (all provinces) |
| Canadian director residency | Not required (2021) | 25% must be Canadian |
| Extra-provincial registration needed in ON? | No | Yes — $330 extra fee |
| NUANS name search required | Yes (named corps) | Yes (named corps) |
| Annual return filing | Yes (OBR) — within 60 days of anniversary | Yes (Corps Canada) — within 60 days, $20 online |
| Ideal for... | Ontario-only businesses | Multi-province or investor-backed |
Cost comparison (2026)
Federal incorporation is actually cheaper on paper ($200 vs $300 filing fee), but most founders forget the extra-provincial registration cost:
Ontario Total (operating in ON only)
Federal Total (operating in ON)
When to choose federal incorporation
- You operate (or plan to operate) in multiple provinces
- You want national name protection (no one in Canada can use your corp name)
- Your investors or VCs require a CBCA structure
- You're building a franchise or national brand
- You have non-Canadian directors and want the most flexible director rules across provinces
When to choose Ontario incorporation
- Your business operates only in Ontario
- You want the simplest, fastest, lowest-cost path
- You don't have investors requiring CBCA
- You're a freelancer, consultant, or service business
- You're incorporating a non-profit under ONCA