The first thing to know about incorporating in Canada: there's no LLC. Every limited-liability entity here is a corporation, and your first real decision isn't the entity type — it's whether to incorporate federally or provincially, because that choice determines whether you need a Canada-resident director at all.

The rule that decides everything: director residency

Federal incorporation under the Canada Business Corporations Act (CBCA) requires at least 25% of directors to be resident Canadians — or at least one, if your board has fewer than four directors. If you're a solo Indian founder incorporating without a Canadian co-founder, that means you either need a Canadian resident director on your board, or you need to incorporate somewhere the rule doesn't apply.

That somewhere is Ontario or British Columbia. Ontario repealed its resident-director requirement in 2021. BC has never had one. Alberta and Quebec also have no residency requirement. Federal CBCA's 25% rule, by contrast, remains in force in 2026 — so for a non-resident founder without a qualifying Canadian director already in place, provincial incorporation in Ontario or BC is usually the more direct route, without needing a nominee arrangement at all.

Federal vs provincial: what you're actually trading off

Federal incorporation gives you Canada-wide name protection and the ability to operate under the same name in every province. Provincial incorporation protects your name only in that province — fine for most founders operating a single online or single-market business, and not a meaningful constraint unless you have specific multi-province expansion plans that make national name protection worth the added director-residency requirement.

Federal (CBCA)OntarioBritish Columbia
Filing feeCAD $200CAD $300CAD ~$351.50
Resident director requiredYes — 25% (or 1 if <4 directors)NoNo
Name protectionCanada-wideProvincialProvincial
Typical processing1–2 business days1–3 business daysSame day – 1 day

The registration sequence

01

Choose federal or provincial

Ontario or BC if you don't have a qualifying Canadian resident director; federal if you do and want national name protection.

02

Run your name search, or go numbered

A numbered company skips the NUANS search fee and requirement entirely — the cheapest, fastest route if a specific trading name isn't essential at incorporation.

03

File your Articles of Incorporation

Online, clearing in 1–3 business days across all three jurisdictions covered above.

04

File the Individuals with Significant Control register (federal only)

Mandatory within 30 days of incorporation, identifying anyone owning or controlling 25%+ of shares.

05

Register for your CRA Business Number

Instant online — this 9-digit number becomes your account identifier for corporate tax, GST/HST and payroll going forward.

06

Register for GST/HST if revenue will exceed CAD $30,000

Mandatory once you cross the threshold; corporate income tax registration is required regardless of revenue level.

The step that actually takes time: your bank account

Incorporation is fast and fully online. Opening a Canadian business bank account as a non-resident is where the timeline usually stretches — many banks still expect in-person identity verification, which a founder based in India obviously can't do without travel. Plan for this as a separate, longer-lead item rather than assuming it closes out alongside the incorporation paperwork.

Tax filing applies even at zero revenue. Every Canadian corporation must file a corporate income tax return annually, regardless of activity — a dormant year still requires a nil return, not silence. Skipping this is a compliance gap, not a cost saving.

For the full entity comparison and current costs, see our Canada company registration guide.