Cheapest Province to Incorporate Calculator
The government fees differ by a few hundred dollars over five years. Extra-provincial registration in a province you actually operate in costs more than the entire gap. Work out the real five-year total.
gap to second place
—
—
—
—
Five-Year Government Cost by Jurisdiction
| Jurisdiction | Year One | Annual Return | Extra-Provincial | Total |
|---|
What the Fee Comparison Leaves Out
| Factor | Why It Matters More Than the Fee |
|---|
Your Situation
| Item | Detail |
|---|
Points That Decide This
What to Do Next
—
Disclaimer: Government fees used in this comparison are indicative and are stated as Ontario incorporation $300, federal incorporation $200, British Columbia incorporation $350 plus a $30 name request, Alberta incorporation $275 and Quebec incorporation $397, with annual return fees of nil for Ontario, $12 federally, $43.39 for British Columbia, $90 for Alberta and $106 for Quebec, and a name search report at $25 where a named corporation is chosen. Registry fees change without notice and vary with the filing method and with service provider charges, and every figure should be confirmed against the current fee schedule of the relevant registry before filing. Extra-provincial registration costs are estimated and differ substantially by province. Federal corporations incorporated under the Canada Business Corporations Act are generally subject to a requirement that at least 25% of directors be resident Canadians, with a requirement of at least one resident Canadian director where there are fewer than four directors, subject to limited exceptions. Ontario removed its resident director requirement for corporations governed by the Business Corporations Act (Ontario) effective 5 July 2021, and British Columbia and Alberta do not impose a general resident director requirement, while requirements differ in other jurisdictions and should be confirmed. A corporation carrying on business in a province other than its jurisdiction of incorporation is generally required to register extra-provincially in that province, and what constitutes carrying on business is determined by the law of that province. The jurisdiction of incorporation does not determine which province’s corporate income tax applies, as provincial income tax allocation is generally determined by where the corporation has a permanent establishment. This page is general information, not tax or legal advice.
The Whole Spread Is About Five Hundred Dollars Over Five Years
People arrive at this question expecting a meaningful saving. Here is the honest answer before the detail: across every jurisdiction, over five years, the government fees differ by roughly the cost of one hour of professional time.
| Jurisdiction | Year One | Annual | Five-Year Total |
|---|---|---|---|
| Federal | $200 | $12 | $248 |
| Alberta | $275 | $90 | $635 |
| Ontario | $300 | Nil | $300 |
| British Columbia | $380 | $43.39 | $554 |
| Quebec | $397 | $106 | $821 |
One extra-provincial registration costs more than the entire spread. Incorporating federally to save a hundred dollars and then registering extra-provincially in Ontario because that is where you actually operate leaves you worse off and with two sets of filings to remember.
Incorporate Where You Operate
That is the rule, and it answers the question for almost everyone. A corporation carrying on business in a province generally has to register there regardless of where it was incorporated.
So a Toronto business incorporating in Alberta to save twenty-five dollars still has to register extra-provincially in Ontario. It now pays Alberta’s annual return, Ontario’s registration, and keeps track of two registries. The saving evaporated before the first year ended.
Ontario has no annual return fee, which is quietly the best deal on this list. Three hundred dollars once and nothing after that. Federal is cheaper on day one and costs twelve dollars a year, so Ontario overtakes it well within a decade for anyone actually based here.
The Resident Director Rule Is the Real Differentiator
For a founder outside Canada this matters far more than any fee. Federal corporations are generally subject to a resident Canadian director requirement. Ontario removed its equivalent requirement in 2021.
A foreign founder incorporating federally needs either a Canadian resident willing to take on directors’ liabilities or a paid nominee arrangement. Both cost far more than the entire five-year fee difference, and the nominee route carries its own risks.
| Jurisdiction | Resident Director Required |
|---|---|
| Ontario | No, since July 2021 |
| British Columbia | No general requirement |
| Alberta | No general requirement |
| Federal | Generally yes |
Incorporating Somewhere Does Not Move Your Tax
This is the misconception underneath most searches for a cheaper province. Where you incorporate does not determine which province taxes your income.
Provincial corporate tax is allocated by where the corporation has a permanent establishment. An Alberta corporation operating entirely from Toronto pays Ontario corporate tax. The articles do not change that, and nothing about the jurisdiction of incorporation is a tax planning tool.
Alberta’s lower corporate tax rate does not come from incorporating in Alberta. It comes from having a permanent establishment there. Incorporating in Alberta while operating in Ontario gets you Alberta’s annual return fee and Ontario’s tax rate, which is the worst of both.
When Federal Is Genuinely Right
- You operate in several provinces from the start and want one governing statute
- Name protection across Canada matters to the business
- The corporate name is a real asset you want defended nationally
- You have a resident Canadian director and the requirement is not an obstacle
Federal incorporation still generally requires extra-provincial registration in the provinces where you carry on business, so it is not an escape from that. It is a choice about the governing statute and national name protection rather than a cost saving.
The Costs That Actually Vary
If the goal is genuinely to minimise what the corporation costs to run, the government fees are the smallest line. What moves the number is elsewhere.
- The annual T2 and financial statements, which dwarf every registry fee
- Bookkeeping, driven by transaction volume and record quality
- Whether you need payroll and how many people are on it
- HST filing frequency and method
- Multiple jurisdictions, each adding filings and deadlines
Choose the jurisdiction you operate in and spend the thinking time on the share structure. Our incorporation service covers the jurisdiction, the articles and the first year of filings.
What This Calculator Does Not Cover
- Service provider fees, which vary widely
- Provinces outside Ontario, BC, Alberta, Quebec and federal
- Quebec’s language and filing requirements, which are substantial
- Which province taxes your income, set by permanent establishment
- Nominee director arrangements, priced separately
- Whether to incorporate at all
Frequently Asked Questions
Common questions on choosing a jurisdiction.
Related Calculators and Guides
More tools for setting up.
Spend the Effort Where It Pays
Tell us where you will operate and who will hold shares. We will pick the jurisdiction, handle the articles and the share structure, and set up the CRA accounts so the first year is clean.