Canada, being an investor-friendly country, provides excellent opportunities to potential investors. A decision on the corporate structure is one the first consideration for any investor. A strategic direction derives an investor from setting up business either at a federal or provincial level.

An investor need to decide whether he or she wants to incorporate business federally or provincial after looking at make factor some are, strategic direction, tax, corporate office location, future expansion, and initial set up cost.

What is required to incorporate your business federal.

1. Name or numbered company. For numbered company, the federal government will provide seven-digit number and for named incorporation NUANS name search is required and also legal ending for example Ltd, Inc, Limited, Corporation.
2. Head office address this is compulsory
3. Legal names of directors
4. Share structure.

Things you will get:

1. Federal business number
2. Federal corporation income tax program account
3. Option to register for other federal tax accounts, such as GST/HST, payroll, import/export
4. Option for extra-provincial or extra-territorial corporation registration
5. Stationery

Permits and licences

You may also need permits and licenses from the federal, provincial/territorial and municipal governments.

Advantages and Disadvantages of Federal Incorporation

Name Protection: With federal incorporation, you get more name protection because federal incorporation covers across Canada whereas provisional only cover province.

Extra-Provincial Registration: In the future, if you want to register your company as an extra-provincial corporation in another province, it will be easier.

Transferability: With federal incorporation, it is easy to transfer office, in-case you want to move out from Ontario you can easily file for extra-provincial registration and change the registered office address.

Recognized by foreign Jurisdictions: Federal incorporation is more recognized by foreign jurisdiction if you are planning to do import or export business.

More Paperwork: One of the disadvantages of federal incorporation is more paperwork every year you need to comply with corporate filings by the federal director of the corporation and also filings required by provinces that your corporation is registered in.

Cost: Although the initial cost of incorporating federal is lower than provincial, however, due to the filing requirement, it may cost you more.

We at Business Incorporation Online provide assistance at your doorstep and arrange hassles free federal incorporation. All you have to do is to select your options, fill the necessary forms, and get registered company’s documents as soon as practicable.