How to Incorporate a Business in Ontario (2026 Guide)

Incorporating a business in Ontario feels more complicated than it needs to be. There are two different systems (federal and provincial), several ways to file, and enough official-sounding terminology to make most people put it off for months.

This guide cuts through it. By the end, you'll know exactly which option makes sense for your situation and what the process actually looks like.

Federal vs. provincial incorporation: which one do you need?

This is the first question most people get stuck on. Here's the honest version:

Provincial incorporation (Ontario)

• Costs $300 online via the Ontario Business Registry
• Takes 1–5 business days
• Lets you operate in Ontario without any extra steps
• Name protection only applies in Ontario
• Requires registration in each other province if you expand outside Ontario

Federal incorporation (Canada Business Corporations Act)

• Costs $200 online via Corporations Canada
• Takes 1–5 business days for the federal part
• Also requires extra-provincial registration in Ontario (add $210 + time)
• Name protection applies Canada-wide
• Required if you want to operate under the same name across multiple provinces from day one

For most solo founders and small Toronto businesses: provincial is the right call. You can always convert or re-register federally later if you need Canada-wide name protection. Don't complicate it before you have to.

How to incorporate provincially in Ontario (step by step)

Step 1: Choose a name (or use a number company)

You have two options:

• Named corporation — e.g., "Sunrise Consulting Inc." You'll need a NUANS report to check if the name is available (costs ~$26 through a provider like OnCorp).
• Number company — e.g., "1234567 Ontario Inc." No name search required. Many businesses start as a number company and change the name later.

Starting with a number company is faster and cheaper if you're in a hurry to get incorporated. You can always add a trade name (doing-business-as) separately.

Step 2: Prepare your incorporation documents

You'll need:

• Articles of Incorporation — the core document that describes your company structure, share classes, and restrictions
• A registered Ontario address for the company
• Director information (you can be the sole director)

The Ontario Business Registry has a simplified online form that walks you through this. For straightforward structures (one class of shares, one or two directors), you don't need a lawyer to file. For complex share structures or specific shareholder rights, it's worth getting legal advice.

Step 3: File through the Ontario Business Registry

Go to the Ontario Business Registry. You'll need a ServiceOntario account. The filing fee is $300, payable by credit card online.

Processing typically takes 1–5 business days. You'll receive a Certificate of Incorporation by email.

Step 4: Set up after incorporation

After you're incorporated, you'll want to:

• Get a Business Number from the CRA — needed to open a business bank account and remit taxes
• Register for HST — required once you expect to earn more than $30,000/year
• Open a business bank account — keep personal and business finances separate from day one
• Get a minute book — a binder (physical or digital) where you keep your incorporation documents, resolutions, and shareholder records

How to incorporate federally in Canada

If you want federal incorporation, the process is similar but has one extra required step:

1. File Articles of Incorporation with Corporations Canada ($200 online)
2. Register the federal corporation in Ontario via the Ontario Business Registry ($210)
3. Obtain a Business Number from the CRA
4. Set up post-incorporation steps as above

Note: Step 2 is not optional. A federally incorporated company cannot operate in Ontario without being registered as an extra-provincial corporation in the province.

What does incorporation actually cost (total)?

Do you need a lawyer to incorporate?

For a simple structure — one share class, one or two directors, standard restrictions — you can file online yourself without a lawyer. The Ontario Business Registry makes this accessible.

You might want legal advice if:

• You're incorporating with business partners and want a shareholder agreement
• You need specific share classes (e.g., for income splitting or future fundraising)
• You're in a regulated industry with specific requirements
• You're not sure about personal liability considerations for your business type

What about sole proprietorship vs. incorporation?

Incorporation isn't always the right first step. A sole proprietorship (or general partnership) is simpler and cheaper — you just register a business name and start working.

Incorporation makes more sense when:

• You want to limit personal liability (a corporation is a separate legal entity)
• Your income is high enough that the corporate tax rate saves you money
• You want to build a company you can eventually sell or bring investors into
• You're working with clients who require it (some larger companies won't contract with sole proprietors)

If you're just testing an idea, a sole proprietorship is completely reasonable as a starting point.

Getting help with incorporation

At Igloo Interactive, we help founders navigate incorporation and the basics that come after it — CRA setup, business number, a simple website, and the pieces that make you look ready to take on clients.

Our business setup service starts at $300 flat. We handle the paperwork, walk you through the steps, and make sure you don't miss anything important. Send us a note with what you're trying to set up and we'll give you a clear reply.