Canada · Cost Breakdown
What a Federal Canadian Corporation Actually Costs
Every fee itemised for 2026 — government filings, provincial registration, CRA accounts, banking, card processing, and the accounting you cannot skip. Three worked budgets, from bare minimum to comfortable.
- Minimum year 1
- CAD 200
- Realistic year 1
- CAD 1,900
- Year 2 onward
- CAD 1,400+
- Via an agent
- CAD 3,000+
Government fees
These are the only genuinely unavoidable costs. Everything else on this page is a service you can buy or perform yourself.
| Filing | Authority | Fee | When |
|---|---|---|---|
| Articles of Incorporation — online | Corporations Canada | CAD 200 | Once, at formation |
| Articles of Incorporation — paper | Corporations Canada | CAD 250 | Avoid — no benefit |
| Nuans name search report | Search house | ≈ CAD 13.80 | Optional for online filings |
| Numbered corporation (no name search) | Corporations Canada | CAD 0 extra | Alternative to a name |
| ISC information filing | Corporations Canada | CAD 0 | At formation, then annually |
| Annual return | Corporations Canada | CAD 12 | Within 60 days of anniversary |
| Articles of Amendment | Corporations Canada | CAD 200 | Only if you change name/shares |
| Business Number + all program accounts | CRA | CAD 0 | After incorporation |
| GST/HST registration | CRA | CAD 0 | At CAD 30,000, or voluntarily |
| Payroll account | CRA | CAD 0 | Before the first paycheque |
Corporations Canada now runs the corporate name search inside most online incorporation applications, so a separate Nuans report is optional rather than mandatory. It remains useful if you want to review the conflict list before committing to a name.
The CAD 200 vs CAD 250 decision is not a decision
Paper filing costs CAD 50 more and takes days longer. There is no scenario in which it is preferable for a standard incorporation.
Province-by-province registration
A federal corporation still has to appear on the register of every province where it carries on business. The spread between provinces is wide enough to matter.
| Province | Filing required | Government fee | Recurring |
|---|---|---|---|
| Ontario | Initial Return (Corporations Information Act) | CAD 0 | CAD 0 |
| British Columbia | Extraprovincial registration + name approval | CAD 380 | CAD 43.39/yr |
| Alberta | Extra-provincial registration via registry agent | ≈ CAD 275 + agent | Annual return fee |
| Quebec | Immatriculation — Registraire des entreprises | Tariff-based | Annual registration fee |
| Nova Scotia | Registration (by mail) | CAD 274.10 | Annual renewal |
| Newfoundland & Labrador | Registration (by mail) | CAD 560 | Annual renewal |
| Saskatchewan / Manitoba / Maritimes | Registration via provincial registry | CAD 100–350 | Varies |
Ontario, Nova Scotia and Newfoundland & Labrador registrations can be completed inside the federal online incorporation flow. Alberta uses private registry agents who add their own service charge on top of the government fee.
Ontario is free — and often misreported
You will see CAD 330 quoted for “Ontario extra-provincial registration” on many incorporation sites. That fee is for the Extra-Provincial Licence, which applies only to corporations formed outside Canada. A federal CBCA corporation files an Initial Return under the Corporations Information Act, and there is no fee for it.
Quebec deserves a separate line in the budget
Beyond registration with the Registraire des entreprises, Quebec imposes French-language obligations on business names, contracts, websites, and customer-facing materials under the Charter of the French Language. For a design studio serving Quebec clients, budget for translation as a real recurring cost, not a formality.
Three year-one budgets
Budget A — Bare minimum, Ontario, fully DIY
| Item | Cost |
|---|---|
| Federal incorporation, numbered, online | CAD 200 |
| Ontario Initial Return | CAD 0 |
| CRA business number and accounts | CAD 0 |
| Minute book from templates | CAD 0 |
| Registered office (home address) | CAD 0 |
| Bank account (fee-free provider) | CAD 0 |
| Annual return (falls due in month 12) | CAD 12 |
| Total | CAD 212 |
Budget B — Realistic, Ontario, DIY filing with professional review
| Item | Cost |
|---|---|
| Federal incorporation, named, online | CAD 200 |
| Nuans report | CAD 14 |
| Ontario Initial Return + operating name registration | CAD 60 |
| CPA session — share structure, year-end, salary/dividend plan | CAD 500–1,000 |
| Accounting software (12 months) | CAD 300–840 |
| Business bank account (CAD 15/mo) | CAD 180 |
| Contract templates — MSA, IP assignment, licence terms | CAD 200–600 |
| First T2 corporate return | CAD 900–2,500 |
| Annual return | CAD 12 |
| Total | CAD 2,366–5,406 |
The T2 fee typically falls due in the second calendar year, since the return is not filed until after the first fiscal year-end.
Budget C — Same business, British Columbia
| Item | Cost |
|---|---|
| Federal incorporation, online | CAD 200 |
| BC extraprovincial registration | CAD 350 |
| BC name approval | CAD 30 |
| BC annual report | CAD 43.39 |
| BC PST registration (if selling software/digital products in BC) | CAD 0 |
| Everything else as Budget B | CAD 2,152–5,192 |
| Total | CAD 2,775–5,815 |
The number that should drive the decision
Across all three budgets, government fees are between CAD 212 and CAD 623. Professional services are between CAD 1,600 and CAD 5,200. The incorporation fee is noise. Where your money actually goes is accounting and legal — which is exactly where DIY should be applied most carefully.
Year two and beyond
| Item | Frequency | Lean | Typical |
|---|---|---|---|
| Corporations Canada annual return | Annual | CAD 12 | CAD 12 |
| Provincial annual filing | Annual | CAD 0 (ON) | CAD 43+ (BC) |
| T2 corporate return | Annual | CAD 900 | CAD 1,500–2,500 |
| Bookkeeping | Monthly | CAD 0 (self) | CAD 1,800–6,000/yr |
| Accounting software | Monthly | CAD 300/yr | CAD 600–840/yr |
| Business bank account | Monthly | CAD 0 | CAD 180–360/yr |
| Payroll processing (if on salary) | Monthly | CAD 0 (manual) | CAD 300–700/yr |
| Registered office service | Annual | CAD 0 | CAD 150–300 |
| Corporate minute book maintenance | Annual | CAD 0 | CAD 300–600 |
| Realistic annual total | — | CAD 1,212 | CAD 3,900–11,000 |
Professional services — what each thing is worth
Not all professional spend is equal. Ranked by return on the money, for a two-person digital studio:
- CAD 500–1,000 — CPA review of share structure and compensation strategy before year-end. Highest return of anything on this list. It is the one decision that is expensive to reverse.
- CAD 900–2,500 — T2 corporate return preparation. Effectively mandatory; the return is not a form a non-specialist should be filing.
- CAD 200–600 — Contract templates with a proper IP assignment and moral rights waiver. Cheap insurance against the single most common dispute in design work.
- CAD 500–1,200 — Lawyer-prepared minute book. Worth it if you expect investors or a sale; templates are adequate otherwise.
- CAD 1,000–3,000 — Full incorporation package. Lowest return. It buys convenience on the one task that is genuinely straightforward.
Banking and payment processing
| Cost | Rate | Notes |
|---|---|---|
| Business chequing (Big Six) | CAD 6–30/mo | Limited transaction counts; unlimited plans CAD 100+ |
| Business chequing (fee-free providers) | CAD 0/mo | Confirm Stripe payout compatibility first |
| Stripe — domestic card | 2.9% + CAD 0.30 | Standard Canadian rate |
| Stripe — international card | +0.8% | Applies to most US and overseas customers |
| Stripe — currency conversion | +2% | Avoidable with a USD payout account |
| Stripe — chargeback | CAD 15 | Non-refundable, even if you win |
| Stripe Billing (subscriptions) | ≈ +0.7% | Only if you run recurring plans |
| Stripe Tax | ≈ +0.5% | Automatic tax calculation per transaction |
| Wire transfer in (USD) | CAD 10–30 | Per incoming wire, varies by bank |
Processing fees dwarf your incorporation cost within weeks
At CAD 10,000 per month of card revenue, Stripe fees are roughly CAD 3,500 per year at the domestic rate — and closer to CAD 4,500 once international cards and conversion are included. That is more than every government and accounting fee on this page combined. Holding a USD payout account and invoicing larger B2B clients by bank transfer are the two highest-value optimisations available to you.
The tax rate you will actually pay
A Canadian-Controlled Private Corporation earning active business income gets the small business deduction on the first CAD 500,000 — 9% federally, plus the provincial small business rate.
| Province | Federal | Provincial SBD | Combined | Business limit |
|---|---|---|---|---|
| Manitoba | 9% | 0% | 9.0% | CAD 500,000 |
| Yukon | 9% | 0% | 9.0% | CAD 500,000 |
| Saskatchewan | 9% | 1% | 10.0% | CAD 600,000 |
| Prince Edward Island | 9% | 1% | 10.0% | CAD 600,000 |
| Nova Scotia | 9% | 1.5% | 10.5% | CAD 700,000 |
| Alberta | 9% | 2% | 11.0% | CAD 500,000 |
| British Columbia | 9% | 2% | 11.0% | CAD 500,000 |
| Ontario | 9% | 2.2% | 11.2% | CAD 500,000 |
| Quebec | 9% | 2.2% | 11.2% | CAD 500,000 |
| New Brunswick | 9% | 2.5% | 11.5% | CAD 500,000 |
2026 rates. Ontario's 2.2% rate applies from 1 July 2026 and Quebec's from 30 April 2026, so a fiscal year straddling those dates is blended. Income above the business limit is taxed at the general rate — roughly 23% in Alberta, 26.5% in Ontario, 27% in BC.
The rate that applies if you get classified as a personal services business
No small business deduction, a 33% federal rate plus the provincial general rate, and deductions limited to remuneration and legal collection costs. Effective burden well above 40%, with your software, equipment, and home office all disallowed. Multiple clients and genuine independence are what keep you out of it.
When DIY stops being cheaper
Do it yourself when the structure is simple: one or two shareholders, both individuals, one class of business, one province, no outside investment, no existing business being rolled in.
Pay for professional help when any of these are true:
- You are transferring an existing sole proprietorship, client contracts, or IP into the corporation — a section 85 rollover done wrong triggers immediate tax on the transfer.
- A shareholder is a non-resident, or may become one. CCPC status, withholding tax, and departure tax all turn on it.
- You want a holding company or a family trust above the operating company from the start.
- You expect outside investment within 24 months — the share structure needs to anticipate it.
- Revenue is concentrated in one client, putting personal services business classification in play.
- You are selling into the US or EU at volume, where sales tax nexus and VAT registration thresholds bite.
The pattern that works for most people in this position: file the incorporation yourself for CAD 200, then spend the money you saved on a CPA reviewing the structure before the first fiscal year closes. You get the cheap part cheap and the expensive part right.
Frequently asked questions
What is the absolute minimum to get a federal Canadian corporation legally in existence?
CAD 200. A numbered federal corporation filed online through the Corporations Canada Online Filing Centre, with a home address as registered office and a self-prepared minute book. If your registered office is in Ontario, the provincial Initial Return is free, so CAD 200 covers you until the CAD 12 annual return falls due a year later.
Why do incorporation services charge CAD 1,000–3,000 when the fee is CAD 200?
You are paying for form completion, a templated minute book and by-laws, a name search, provincial registration filing, and CRA account setup — plus a margin. None of it is work you are prohibited from doing yourself. The genuinely valuable professional spend is not the incorporation package; it is a CPA reviewing your share structure and first-year tax elections, which most incorporation packages do not include.
How much should I budget for accounting in year one?
CAD 1,500–3,500 all-in for a small digital services corporation: T2 corporate return preparation at CAD 900–2,500, bookkeeping at CAD 0 if you do it yourself in accounting software (CAD 25–70 per month for the software) or CAD 150–500 per month outsourced, plus GST/HST filings usually bundled. Budget at the higher end in year one because the setup work — chart of accounts, opening balances, payroll registration — only happens once.
Is it cheaper to stay a sole proprietor?
Cheaper to run, yes — a sole proprietorship has no incorporation fee, no annual return, and a much simpler tax filing. But it offers no liability separation, no ability to retain earnings at 11% instead of your personal marginal rate, no income splitting mechanism, and no lifetime capital gains exemption on sale. The usual crossover point is where business income meaningfully exceeds what you need to withdraw personally, or where client contracts start demanding a corporate counterparty.
What does it cost if we later move provinces?
This is where federal incorporation earns its keep. The corporation itself does not change — you file a free change of registered office with Corporations Canada, register extra-provincially in the new province, and withdraw from the old one. A provincially incorporated company would need a continuance into the new province, which is a substantially more expensive and involved process.
Primary sources
- Corporations Canada — Business corporations
- Corporations Canada — Annual return
- Corporations Canada — Provincial registration
- BC Corporate Registry fee schedule
- TaxTips.ca — 2026 corporate income tax rates
- Registraire des entreprises du Québec — fees
- BDO — Personal services business tax implications
Figures verified against government sources current to July 2026. Fees and tax rates change — confirm against the official source before filing. This guide is general information, not legal, tax, or accounting advice. Consult a qualified Canadian CPA or lawyer for your specific circumstances.
Not sure which line items you can safely skip?
We will map your specific structure against the filings that are genuinely mandatory and the ones that are optional — so you spend money where it changes the outcome.
Talk to a formation specialist