How to Incorporate a Business in Ontario?

Incorporating a business in Ontario involves choosing between federal and provincial incorporation, reserving a business name, filing Articles of Incorporation, registering with the CRA for a Business Number, and setting up your corporate tax and payroll accounts. The process can be completed online in as little as one to two business days through Ontario’s provincial registry or Corporations Canada for federal incorporation. Once incorporated, your business pays the combined Ontario small business tax rate of 12.2% on the first $500,000 of active income instead of personal marginal rates that can exceed 53%.

This step-by-step guide walks Ontario business owners through every stage of the incorporation process from start to finish.

Federal vs Provincial Incorporation in Ontario

The first decision every Ontario business owner must make before incorporating is whether to incorporate federally under the Canada Business Corporations Act or provincially under the Ontario Business Corporations Act. Both create a valid corporation, but there are meaningful differences in cost, name protection, and where you can operate.

A federally incorporated company can operate under the same name in every province and territory in Canada without additional registration barriers. Federal incorporation provides stronger national name protection and is better suited to businesses that plan to operate across multiple provinces. A provincially incorporated Ontario corporation can operate freely within Ontario but must register as an extra-provincial corporation in any other province where it does business.

For a full picture of the tax advantages and structural benefits that come with incorporation, our complete guide on the advantages and disadvantages of incorporating a business in Canada covers everything you need to weigh before making this decision.

How to Incorporate a Business in Ontario? Step by Step

Every step of the Ontario incorporation process follows a clear and logical sequence when you know what to prepare and where to file.

Step 1: Choose Your Corporation Name or Use a Numbered Company

The first step is deciding whether your corporation will operate under a distinctive name or as a numbered company. A numbered company is assigned a number by the registry automatically, such as 1234567 Ontario Inc. This is the fastest option and involves no name approval process.

If you want a named corporation, you must conduct a NUANS name search to confirm the name is not already in use by another business in Canada. NUANS searches are conducted through authorized search firms and cost approximately $30 to $75. Your chosen name must include a legal element such as “Limited,” “Incorporated,” or “Corporation,” or their abbreviations “Ltd.,” “Inc.,” or “Corp.”

Step 2: Prepare Your Articles of Incorporation

Articles of Incorporation are the founding document of your Ontario corporation. They establish the basic structure of the company including the corporation’s name, the province of the registered office, the authorized share structure, any restrictions on the business the corporation may carry on, and the number of directors.

For most small businesses, a simple share structure with a single class of common shares is sufficient. If you plan to issue shares to family members for income splitting purposes, one of the key tax advantages covered in our guide on sole proprietorship vs corporation in Canada , your corporate lawyer or accountant can design a share structure that supports this from the start.

Step 3: File Articles of Incorporation with the Ontario Government

Ontario incorporation is completed online through the Ontario Business Registry at ontario.ca/businessregistry. The filing fee for Articles of Incorporation under the Ontario Business Corporations Act is $300. Federal incorporation through Corporations Canada costs $200 online.

The process is straightforward when your Articles of Incorporation are prepared correctly. Most online filings are processed within one to two business days. You receive a Certificate of Incorporation once the filing is approved, which is the official document confirming your corporation’s legal existence.

Step 4: Set Up Your Corporate Records and Minute Book

Every Ontario corporation must maintain a corporate minute book from the date of incorporation. The minute book contains the Articles of Incorporation, the Certificate of Incorporation, the corporate bylaws, the share register, the register of directors and officers, and the minutes of all annual and special meetings.

Maintaining an up-to-date minute book is a legal requirement under the Ontario Business Corporations Act. Corporations that fail to maintain proper corporate records can face legal complications when selling the business, bringing in investors, or applying for financing. Many business owners set up their minute book with the help of a corporate lawyer at the time of incorporation to ensure it is properly structured from day one.

Step 5: Register for a CRA Business Number and Corporate Accounts

Once your Certificate of Incorporation is issued, you must register your corporation with the Canada Revenue Agency to obtain a Business Number and set up the tax accounts your corporation requires.

Most Ontario corporations need the following CRA accounts:

• Corporate income tax account (RC) for filing your T2 corporate tax return annually
• GST/HST account (RT) required once your taxable revenues exceed $30,000, or immediately if you expect to reach that threshold quickly
• Payroll account (RP) required as soon as you hire your first employee

CRA registration is completed online through the CRA’s Business Registration Online portal. You can register for all three accounts at the same time, which is the most efficient approach.

Step 6: Open a Corporate Bank Account

A corporation must have its own separate bank account. Using a personal account for corporate transactions is not acceptable and creates significant bookkeeping and tax complications. Most Canadian banks offer business accounts with online banking, corporate credit cards, and merchant payment services tailored to small businesses.

When opening the account, bring your Certificate of Incorporation, your CRA Business Number confirmation, and valid personal identification. Some banks also require a copy of your Articles of Incorporation and your corporate bylaws.

Step 7: Register for Ontario-Specific Programs

Ontario corporations have additional provincial registration requirements beyond the federal CRA accounts. Most Ontario employers must register with the Workplace Safety and Insurance Board within ten days of hiring their first employee. WSIB provides workplace injury coverage and is funded through employer premiums. Our guide on WSIB registration for Toronto small businesses covers this process in full detail.

Ontario businesses with annual payrolls above $1 million must also register for the Employer Health Tax with the Ontario Ministry of Finance. Our guide on the Ontario Employer Health Tax covers the thresholds, rates, and filing requirements every Ontario business owner should understand.

Ontario vs Federal Incorporation: Key Comparison

The table below outlines the key differences between incorporating provincially in Ontario versus incorporating federally under the Canada Business Corporations Act:

Factor	Ontario Provincial	Federal (CBCA)
Filing fee	$300	$200 (online)
Name protection	Ontario only	Canada-wide
Processing time	1 to 2 business days	1 to 5 business days
Annual return filing	Ontario Business Registry	Corporations Canada
Operating in other provinces	Extra-provincial registration required	Easier national operations
Best suited for	Ontario-based businesses	Multi-province businesses

Tax and Compliance Obligations After Incorporation in Ontario

Once your Ontario corporation is active, your ongoing compliance obligations begin immediately. Understanding these from day one prevents the late filing penalties and CRA interest charges that catch many new corporations off guard. Your corporation must file a T2 corporate income tax return every year within six months of the fiscal year end. Corporate tax owing must be paid within two months of the fiscal year end for most corporations.

HST at 13% must be collected on all taxable sales once your corporation exceeds the $30,000 registration threshold. Our guide on how HST works in Ontario covers registration, filing, and Input Tax Credit claims in full detail. For corporations that are also paying dividends or managing salaries for shareholders, corporate tax planning is an ongoing annual process rather than a once-a-year filing exercise. Our guide on understanding corporate tax planning explains how to structure withdrawals efficiently between salary and dividends to minimize the overall tax burden.

Our team at Tax Return Filers Ltd. provides Business Incorporation Services in Toronto, Corporate Tax Return in Toronto, HST Returns in Mississauga, and Brampton Bookkeeping services to help newly incorporated Ontario businesses manage every compliance obligation from the very first year of operation.

Conclusion

Incorporating a business in Ontario is a straightforward process when you follow the right steps in the correct order. Choose your name or numbered company, prepare your Articles of Incorporation, file with the Ontario Business Registry, register with the CRA, open a corporate bank account, and set up your Ontario-specific accounts for WSIB and EHT. Getting the structure right from the start protects you legally, positions your business for significant tax savings, and creates a foundation that supports long-term growth.

If you want a professional team to handle your Ontario business incorporation and manage every tax and compliance obligation that follows, Tax Return Filers Ltd. is here to support your business every step of the way.