Provincial vs Federal Incorporation, what’s the difference?

The decision to incorporate your business either federally or provincially depends on its nature and your future plans. If you have a smaller local business and don’t intend to expand beyond your province, incorporating within your province may be more suitable. However, keep in mind that if you only register in one province, your business is only protected in that specific location. If another business in a different province is already using your chosen name, you won’t be able to register there. It’s advisable to discuss your long-term plans with an accountant or lawyer for guidance.

On the other hand, if your company regularly engages in business with other Canadian or international partners and you plan to establish operations in multiple provinces, federal incorporation may be the better option. Federal incorporation grants you the right to use your business name across all of Canada, offering protection even if another business in a different province shares the same name. Additionally, you may still require a provincial registration alongside federal incorporation.