When incorporating your business in Canada, you have two main options:
- Federal Incorporation under Corporations Canada
- Provincial Incorporation under Ontario’s Ministry of Public and Business Service Delivery
Each option has its own legal, operational, and branding implications. Below is a detailed comparison to help you decide which structure fits your business goals best.
✅ Federal Incorporation (Canada-Wide)
✔️ Pros:
- Name Protection Across All Provinces and Territories
Your corporate name is protected Canada-wide, even if you only operate in Ontario initially. - National Business Image
A federal corporation is often seen as more prestigious and professional, especially if you’re planning to scale or work outside Ontario. - Easier Expansion Across Canada
If you plan to operate in multiple provinces, you’re already registered federally. You just need to file extra-provincial registrations in each province. - Online Filing and Support
The federal system is modernized, with a user-friendly online platform and digital filings.
❌ Cons:
- Must Register Separately in Ontario
Even if you’re federally incorporated, you must still register extra-provincially in Ontario to operate there — adding time and cost. - More Ongoing Maintenance
You must file an annual return with Corporations Canada and possibly with the province (depending on where you operate). - Slightly Higher Setup Costs
Total costs are generally higher when you factor in federal + provincial registration fees.
At MIMAKALI INC., we offer federal incorporation (with Ontario registration) for $650.
🏢 Ontario Incorporation (Provincial Only)
✔️ Pros:
- Simpler and Faster for Ontario-Based Businesses
If you plan to operate only within Ontario, this is the easiest and most cost-effective option. - Lower Initial Cost
At MIMAKALI INC., Ontario incorporation is $750, and everything is handled directly with the Ontario government — no federal steps required. - No Extra-Provincial Filing Needed (in Ontario)
You’re immediately authorized to operate within the province without any further steps. - Adequate for Most Local Small Businesses
If your clients, suppliers, and operations are based in Ontario, provincial incorporation covers all your legal needs.
❌ Cons:
- Name Protection Only in Ontario
Your corporate name is only protected within Ontario. Another business could register a similar name in another province. - Limited National Recognition
May appear more “local” or “regional” — which could be a disadvantage if you plan to expand or work with national clients or partners. - More Work Later if You Expand
If you move into another province, you’ll need to file extra-provincial registrations manually.
📊 Summary Table
| Feature | Federal Incorporation | Ontario Incorporation |
| Name Protection | Canada-wide | Ontario only |
| Cost | $650 (includes ON registration) | $750 |
| Prestige | Higher, national presence | Local, suitable for Ontario-based businesses |
| Setup Complexity | Moderate (dual registrations) | Simple (one jurisdiction) |
| Annual Filings | Federal + possible provincial | Provincial only |
| Best for | Expansion across Canada, e-commerce, national clients | Local small businesses operating solely in Ontario |
🧠 Which Should You Choose?
- ✅ Choose Federal Incorporation if:
- You plan to do business across multiple provinces
- You want Canada-wide name protection
- You’re building an online or national brand
- ✅ Choose Ontario Incorporation if:
- Your business will operate only in Ontario
- You want to start quickly and locally
- You prefer a simpler, lower-maintenance setup
👥 Need Help Deciding?
At MIMAKALI INC., we handle both federal and provincial incorporations, including:
- Name search & NUANS report
- Business number registration
- CRA account setup (HST, payroll, etc.)
- Filing and compliance guidance
📞 Contact us today to book a free consultation and get your business set up the right way.