Canadian Business Registration: Federal & Provincial Incorporation
Establishing a commercial enterprise in Canada involves choosing between federal and provincial incorporation.
Entrepreneurs launching a business in Canada choose between sole proprietorships, partnerships, and incorporated corporations. Federal incorporation under the Canada Business Corporations Act provides corporate name protection nationwide, while provincial incorporation registers the company specifically in your home province. Once registered, corporations must obtain a 9-digit Business Number (BN) from the CRA to handle corporate income tax, GST/HST remittances, and payroll deductions. Our step-by-step guides cover name reservation (NUANS), corporate bylaws, GST/HST registration, and commercial loans.
All Business Guides (CAN)
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Registering a business in Canada is fast. First, choose your structure: sole proprietorship, partnership, or corporation. Next, pick federal or provincial registration. Federal protects your name across Canada. Provincial is cheaper and faster. Then reserve a name and file online. The CRA then gives you a business number. You add GST/HST and payroll accounts to it.
7 steps · 1–5 business days for registration · $60–$300 registration; $200 federal incorporation (2026 fees)2025-Latest
In Canada, the standard home equity product is the HELOC. It is a revolving line of credit, secured by your home. You can repay it and draw from it again, like a credit card. Federal rules cap the HELOC itself at 65% of your home's value. Total mortgage-plus-HELOC borrowing is capped at 80%.
6 steps · 2–4 weeks from application to funds · HELOC rates are typically prime + 0.5–2%; setup and appraisal fees apply2025-Latest
A personal loan in Canada is usually unsecured. It has a fixed rate and a fixed payment. The term is 1–5 years, up to 7. Banks and credit unions serve people with strong credit. Online lenders approve a wider range of people, at higher rates. Newcomers can qualify by building Canadian credit history first. Or they can use newcomer banking programs, which lend based on foreign credit references.
6 steps · Same-day to one week from application to deposit · Rates commonly range from ~7% to 35% APR depending on credit (35% is the federal criminal cap since Jan 1, 2025)2025-Latest
Canada's flagship small-business loan is the CSBFP. The federal government guarantees up to 85% of a loan made by a bank. The limit is up to $500,000 for most uses, and $1M for real estate. This lets banks finance startups and small businesses they would otherwise decline. Established businesses add BDC and bank term financing.
6 steps · 2–6 weeks for most business loans · CSBFP registration fee ~2% of the loan; interest capped at prime + 3% for variable term loans (fixed-rate loans capped at the lender's mortgage rate + 3%)2025-Latest
FAQ
Frequently Asked Questions
Common questions and essential rules for business in Canada.
What is the difference between federal and provincial incorporation in Canada?
Federal incorporation provides nationwide name protection and allows you to conduct business across Canada under the same corporate name. Provincial incorporation only protects your business name and registers you in that specific province.
When must a Canadian business register for a GST/HST account?
You must register for a GST/HST account if your total taxable worldwide gross revenues exceed $30,000 across any single calendar quarter or over four consecutive calendar quarters.
What is a NUANS report in Canadian business incorporation?
A NUANS (Newly Updated Automated Name Search) report compares your proposed corporate name against existing trademarks, business names, and corporations in Canada. Its purpose is to ensure your proposed name is distinct and legally acceptable.