Incorporation Cost Ontario: Complete Fee Breakdown
How much does it actually cost to incorporate in Ontario? This guide breaks down every fee: federal vs. provincial government costs, NUANS name search, Articles of Incorporation, minute book, CRA registration, annual ongoing costs and the hidden fees most providers charge but do not disclose upfront. Written by a licensed Ontario CPA.
Government Filing Fees: Federal vs. Ontario Provincial
There are two ways to incorporate in Ontario: federally (through Corporations Canada) or provincially (through the Ontario Ministry of Public and Business Service Delivery). Both create a legally valid Ontario corporation. The government filing fee is different for each.
| Fee Component | Federal Incorporation | Ontario Provincial Incorporation |
|---|---|---|
| Government filing fee | $200 | $300 (online or by mail) |
| NUANS name search report | $13.80 (required for named corporations) | $60 (Ontario-Enhanced Search) |
| Numbered company (no NUANS required) | $200 (no name search needed) | $300 (no name search needed) |
| Extra-provincial registration (Ontario) | $80 (required to operate in Ontario after federal incorporation) | $0 (already registered in Ontario) |
| Total government cost (named corporation) | $293.80 | $360 |
| Total government cost (numbered corporation) | $280 | $300 |
Federal Incorporation Is Almost Always Cheaper: Federal incorporation costs $293.80 for a named corporation (including the $80 Ontario extra-provincial registration) vs. $360 for Ontario provincial. For a numbered company, federal is $280 vs. $300 provincial. Federal also provides nationwide name protection and the right to operate in every province without additional registration fees. We recommend federal incorporation for most Ontario businesses.
Complete Incorporation Cost Breakdown: What You Actually Pay
The government filing fee is only part of the total cost. A complete incorporation includes the NUANS search, Articles of Incorporation, corporate minute book, organizational resolutions, share issuance, CRA registration and initial corporate setup. Here is what each component costs and what it covers.
| Component | What It Is | Typical Cost (Other Providers) | Cost Through Gondaliya CPA |
|---|---|---|---|
| Government filing fee (federal) | The fee paid to Corporations Canada to file your Articles of Incorporation and create the corporation | $200 | Included in $35 |
| NUANS name search report | A search of existing business names across Canada to confirm your proposed corporate name is available. Valid for 90 days. | $14 to $75 | Included in $35 |
| Articles of Incorporation | The legal document that creates your corporation. Specifies the corporate name, share structure, registered office address and restrictions. | $300 to $1,000 (lawyer or online provider) | Included in $35 |
| Corporate minute book | The official record book containing the Articles, bylaws, organizational resolutions, share certificates, director/officer appointments and registers. | $200 to $500 (physical binder or digital) | Included in $35 |
| Organizational resolutions | Board resolutions appointing directors and officers, adopting bylaws, authorizing banking, issuing shares and setting the fiscal year-end. | $150 to $500 (lawyer or service provider) | Included in $35 |
| Share certificates | Certificates issued to the founding shareholders confirming their ownership. Required by the CBCA. | $50 to $200 | Included in $35 |
| CRA Business Number registration | Registration of your BN and program accounts: Corporate Tax (RC), Payroll (RP) and GST/HST (RT) as required. | $0 to $200 (some providers charge for this) | Included in $35 |
| Ontario extra-provincial registration | Registration to operate in Ontario (required for federal corporations) | $80 | Included in $335 Ontario package |
| Registered office address setup | Your corporation must have a registered office address in the jurisdiction of incorporation for service of legal documents. | $200 to $600/year (if using a virtual address) | Your business address used. No extra fee. |
| Package | Total Cost Through Gondaliya CPA | Typical Cost (Lawyer) | Typical Cost (Online Provider) |
|---|---|---|---|
| Federal incorporation (all-inclusive) | $35 | $1,500 to $3,000 | $500 to $1,200 |
| Ontario provincial incorporation (all-inclusive) | $335 | $1,800 to $3,500 | $600 to $1,500 |
All-Inclusive Ontario Incorporation for $35
Government fee, NUANS, Articles, minute book, organizational resolutions, share certificates and CRA registration. Nothing extra.
The Hidden Costs Other Providers Do Not Tell You Upfront
Many online incorporation services advertise a low base price but add fees at each step. Here are the most common add-on charges we see when clients come to us after starting with another provider.
| Hidden Fee | Typical Charge | Charged by Gondaliya CPA? |
|---|---|---|
| Rush processing fee | $50 to $200 | No. Standard processing is same-day or next business day. |
| Minute book preparation fee | $150 to $500 | No. Included in $35. |
| Corporate bylaws drafting fee | $100 to $300 | No. Included in $35. |
| Share certificate issuance fee | $50 to $200 | No. Included in $35. |
| CRA Business Number registration fee | $50 to $200 | No. Included in $35. |
| First-year registered agent fee | $200 to $600/year | No. We use your business address. No annual agent fee. |
| Name search and reservation fee | $25 to $75 | No. Included in $35. |
| Ontario extra-provincial registration fee (for federal) | $80 to $150 (some providers add a service fee on top) | Included in all-inclusive pricing. No markup. |
| Annual maintenance or platform subscription | $100 to $400/year | No. No annual platform fee. No recurring charge. |
| Consultation or advice fee | $100 to $300/hour | No. Free consultation with every incorporation. |
Always Ask for the All-Inclusive Price: A provider advertising "$49 incorporation" often charges $49 for the Articles filing only. By the time you add the NUANS report ($25), minute book ($200), bylaws ($150), share certificates ($100), CRA registration ($100) and Ontario registration ($80), the total is $704 or more. Our $35 federal incorporation includes every component listed in the table above. No additional fees. No annual subscription. No platform charge.
Federal vs. Ontario Provincial Incorporation: Which to Choose
| Factor | Federal (CBCA) | Ontario Provincial (OBCA) |
|---|---|---|
| Government fee | $200 | $300 |
| Name protection | Canada-wide name protection. No other federal or provincial corporation can use your exact name. | Ontario only. Another business in another province could register the same name. |
| Right to operate nationally | Automatic right to carry on business in every province and territory (must extra-provincially register in each province where you operate) | Ontario only by default. Must extra-provincially register in every other province. |
| Ontario extra-provincial registration | Required ($80) to operate in Ontario | Not required (already registered) |
| Total cost through Gondaliya CPA | $35 (all-inclusive) | $335 (all-inclusive) |
| Director residency requirement | 25% of directors must be Canadian residents | No residency requirement (since April 2021) |
| Annual filing | Annual Return to Corporations Canada ($12 online) + Ontario Annual Return (currently $0 through Ontario Business Registry) | Ontario Annual Return only (currently $0) |
| Best for | Most Ontario businesses. Lower cost, nationwide protection, easier to expand to other provinces. | Businesses that need zero Canadian resident directors (e.g., 100% non-resident ownership). |
We Recommend Federal for Most Ontario Businesses: Federal incorporation is $100 cheaper on the government fee alone ($200 vs. $300). You get nationwide name protection and the right to operate in every province. The extra-provincial Ontario registration ($80) is a one-time cost we include in our $35 package. The only scenario where Ontario provincial is better is when you need zero Canadian-resident directors (100% non-resident ownership has been allowed in Ontario since April 2021).
Annual Ongoing Costs After Incorporation
Incorporation is not a one-time event. A corporation has annual filing obligations, tax returns and compliance requirements. Here is what your corporation costs each year after the initial incorporation.
| Annual Obligation | Cost | Deadline |
|---|---|---|
| T2 corporate tax return | $500 to $2,000 (CPA prepared). FREE for Gondaliya CPA bookkeeping and GST/HST clients. | 6 months after fiscal year-end |
| Corporate annual return (federal) | $12 (online through Corporations Canada) | Within 60 days of the anniversary of incorporation |
| Ontario annual return | $0 (currently no fee through Ontario Business Registry) | Within 6 months of fiscal year-end |
| Bookkeeping | $100 to $300/month (CPA or bookkeeper) | Ongoing |
| GST/HST filing (if registered) | From $150 per filing (quarterly or annual) | 1 to 3 months after the reporting period |
| Payroll processing (if you have employees) | From $125/month (full-service through Gondaliya CPA) | Every pay period + CRA remittance deadlines |
| WSIB (if you have employees in Ontario) | $1.50 to $4.00 per $100 insurable earnings | Quarterly or annual premiums |
| Corporate minute book maintenance | $0 to $300/year (depends on changes) | After any change to directors, officers, shares or registered office |
| Business insurance (CGL minimum) | $500 to $5,000/year (depends on industry and coverage) | Annual renewal |
| Total minimum annual cost (no employees, basic operations) | $612 to $2,312 | Various deadlines |
The T2 Is the Biggest Annual Cost: Every corporation must file a T2 corporate tax return, even if it had no revenue. CPA-prepared T2 returns typically cost $500 to $2,000 depending on complexity. Through Gondaliya CPA, the T2 is filed FREE for every bookkeeping and GST/HST filing client. If you use our bookkeeping services ($100/month), your total annual cost including T2 is $1,200 per year with nothing extra for the tax return.
Incorporate for $35. T2 Filed FREE with Bookkeeping.
We incorporate your business, register with CRA, set up QBO or Xero and file your T2 every year at no additional charge.
How Much Tax Does Incorporation Save in Ontario?
The primary financial reason to incorporate is the Small Business Deduction (SBD). A CCPC pays 12.2% combined federal and Ontario tax on the first $500,000 of active business income vs. personal rates of 20% to 53.53%. The difference is your tax deferral.
| Net Business Income | Tax as Sole Prop (Ontario, approximate) | Tax as Corporation (12.2%) | Annual Tax Deferral |
|---|---|---|---|
| $50,000 | $9,820 | $6,100 | $3,720 |
| $75,000 | $16,545 | $9,150 | $7,395 |
| $100,000 | $24,068 | $12,200 | $11,868 |
| $150,000 | $40,618 | $18,300 | $22,318 |
| $200,000 | $57,868 | $24,400 | $33,468 |
| $300,000 | $93,368 | $36,600 | $56,768 |
| $500,000 | $166,368 | $61,000 | $105,368 |
The Deferral Pays for Incorporation in the First Month: At $100,000 net income, the annual tax deferral is $11,868. Our incorporation costs $35. The tax savings in the first month alone ($989) are 28 times the incorporation cost. Even at $50,000 net income, the $3,720 annual deferral makes the $35 incorporation fee irrelevant. The only scenario where incorporation does not make financial sense is if you need to withdraw every dollar of business income personally and have no retained earnings.
When Should You Incorporate in Ontario?
| Scenario | Incorporate? | Why |
|---|---|---|
| Net income consistently over $60,000 and you can retain some in the business | Yes | SBD at 12.2% vs. personal rates saves $5,000+ per year. The deferral compounds annually. |
| You need liability protection (construction, food service, childcare, professional services) | Yes | Corporation separates business liability from personal assets. One lawsuit can exceed your net worth. |
| Commercial landlord or franchise requires incorporation | Yes | Most commercial leases and all franchise agreements require a corporate tenant. Cannot sign without a Certificate of Incorporation. |
| You plan to sell the business in the future | Yes | LCGE of up to $1,016,836 per shareholder on qualifying CCPC shares. Not available for sole props. |
| You have or plan to hire employees | Yes | Director liability for payroll is manageable with due diligence. Personal liability for employee claims without incorporation is unlimited. |
| Net income under $40,000 and you withdraw everything personally | Maybe not yet | Annual compliance costs ($500+ T2) may offset the small tax deferral. Sole prop is simpler. Revisit when income grows. |
| Side business with minimal revenue and no employees | Not yet | Sole prop with T2125 business schedule is sufficient. Incorporate when revenue justifies the annual compliance cost. |
Incorporation Fees by Province (Government Fees Only)
| Province | Government Filing Fee | Name Search Fee | Total (Named Corporation) |
|---|---|---|---|
| Federal (Corporations Canada) | $200 | $13.80 | $213.80 |
| Ontario | $300 | $60 | $360 |
| British Columbia | $350 | $30 | $380 |
| Alberta | $450 | $30 | $480 |
| Saskatchewan | $265 | $60 | $325 |
| Manitoba | $300 | $49 | $349 |
| Quebec | $356 | $50 | $406 |
| New Brunswick | $260 | $30 | $290 |
| Nova Scotia | $200 | $70 | $270 |
| Prince Edward Island | $230 | $25 | $255 |
| Newfoundland and Labrador | $300 | $300 | $600 |
10 Incorporation Mistakes Ontario Business Owners Make
| # | Mistake | Consequence |
|---|---|---|
| 1 | Choosing Ontario provincial when federal is cheaper and better | $100 more in government fees. No nationwide name protection. Must register extra-provincially in every other province. |
| 2 | Using an online provider that charges hidden fees for minute book, bylaws and CRA registration | "$49 incorporation" becomes $700+ after add-ons. No CPA advice included. Minute book often incomplete. |
| 3 | Wrong share structure (single class of common shares for multi-shareholder companies) | Cannot income split, cannot issue different dividend classes, cannot implement an estate freeze. Restructuring later costs $2,000 to $5,000 in legal fees. |
| 4 | Not setting the fiscal year-end strategically | A December 31 year-end gives only 3 months of tax deferral. A year-end close to your personal tax filing date (e.g., January 31) gives 11+ months of deferral on salary payments. |
| 5 | Not registering for HST before the first purchase | Lost ITCs on all pre-registration expenses. A $100,000 build-out = $13,000 in permanently lost ITCs. |
| 6 | Not opening a separate corporate bank account | CRA treats the corporation and the personal owner as one entity if funds are mixed. Pierces the corporate veil on audit. |
| 7 | Not issuing shares to the founding shareholders | Without share certificates and a register of shareholders, you have a corporation with no owners. Required for LCGE, dividend payments and corporate governance. |
| 8 | Not filing the annual return | Federal: $12 filing missed leads to non-compliance status and potential dissolution. Ontario: risk of cancellation after 2+ years of non-filing. |
| 9 | Not filing the T2 corporate tax return | T2 is required even if the corporation had zero revenue. Late T2 penalty: 5% of tax owing + 1% per month for up to 12 months. CRA may assess arbitrary income. |
| 10 | DIY incorporation without professional review of share structure, Articles and organizational resolutions | Incorrect Articles require an amendment ($200 government fee + professional time). Wrong share structure requires a reorganization. Both are more expensive to fix than to do correctly at incorporation. |
Ontario Incorporation Checklist
- Choose federal or Ontario provincial incorporation (federal recommended for most businesses)
- Choose a corporate name or incorporate as a numbered company
- Complete NUANS name search (required for named corporations)
- Determine share structure: single class (simple) or multiple classes (income splitting, estate planning)
- Set fiscal year-end strategically (not always December 31)
- File Articles of Incorporation with Corporations Canada or Ontario
- Prepare corporate minute book: bylaws, organizational resolutions, share certificates, director/officer appointments, registers
- Register extra-provincially in Ontario (federal corporations)
- Register CRA Business Number and applicable program accounts (Corporate Tax, HST, Payroll)
- Open a dedicated corporate bank account (separate from personal)
- Register for HST before your first business purchase (to claim ITCs from day one)
- Set up QBO or Xero with a corporate chart of accounts
- Obtain business insurance (CGL minimum $2M recommended)
- File annual returns and T2 corporate tax return on time every year
Ready to Incorporate? $35 All-Inclusive.
Government fee, NUANS, Articles, minute book, share certificates, CRA registration. Done by a licensed CPA. Same-day or next business day.
Frequently Asked Questions: Incorporation Cost in Ontario
Incorporate in Ontario for $35. All-Inclusive. No Hidden Fees.
Gondaliya CPA incorporates Ontario businesses for $35 federal or $335 provincial. Government fee, NUANS, Articles, minute book, CRA registration. Done by a licensed CPA. 900+ five-star reviews.