Small business incorporation in Canada — where to incorporate, what you need and how much it costs
Incorporating a small business through a lawyer
We always recommend consulting with a lawyer and having them set up your corporation and minute books. An accountant will provide advice on the tax implications of the share structure, but the lawyer will recommend a corporate structure that is right for your business.
A lawyer will charge somewhere between $900 and $1,200. Here are a few of the lawyers we recommend from our Partners page:
The lawyer will organize your corporate records and get you set up to start your business.
Incorporating yourself: online or at registries
You also have the option to incorporate yourself at Alberta Registries (however, you need to create your own minute books as well as issue your own share certificates), or through an online legal company like Ownr.co, starting at about $500 - $600.
The Government of Canada also has an Online Filing Centre where you can incorporate federally. This is not recommended because you still have to register provincially which is the same as registering at the Alberta Registry, costing another $500.
If you're going to incorporate yourself, here are the steps:
Step 1: Name your corporation. You need to search the name to make sure no other businesses are using it. This search is called a NUANS search and will cost about $30. You can save this if you just get a numbered company.
Step 2: File articles of incorporation. Decide who the shareholders will be and their ownership percentages and share classes, and share values.
Step 3: Establish a registered office address and directors. Pick the location where you keep your minute books. Appoint directors who will be able to do business on behalf of the corporation, i.e. banking, signing authority, etc.
Step 4: Pay the fee.
Directors do not have to be shareholders. Shareholders do not have the authority of directors unless they are a director.
Incorporation does not take a long time and can be done in a day. The fee for registering online is around $200. Here is a government website that lists all incorporation fees.