Registration
Federal vs Provincial Business Registration in Canada
Federal business registration in Canada isn't one form: it splits into federal incorporation and CRA program accounts. Compare federal vs provincial rules.
In Canada, federal business registration is not a single step or a single office. It usually means one of two things: incorporating a corporation under federal law through Corporations Canada, or registering for a federal Business Number (BN) and program accounts with the CRA. Sole proprietorships and partnerships, by contrast, are registered provincially or territorially — they cannot be incorporated federally. Knowing which level of government handles which filing helps you avoid paying for the wrong registration today.
What "federal business registration" actually means in Canada
Two very different processes get lumped under that phrase. The first is federal incorporation, completed under the Canada Business Corporations Act (CBCA) through Corporations Canada. It creates a corporation that exists across Canada and is the only genuinely federal form of business registration available to a new company. The second is federal tax and program registration: applying to the CRA for a Business Number and, where required, accounts for GST/HST, payroll deductions, corporate income tax, or imports. Most businesses in Canada eventually do the second; only corporations can do the first.
Who can register federally versus provincially
Canada divides business registration between the federal government and the provinces and territories, and the split is fairly clean:
- Federal: corporations under the CBCA; the Business Number and CRA program accounts.
- Provincial or territorial: sole proprietorships, partnerships, business names, and corporations created under that province's or territory's own statute.
- Both: a federally incorporated company that carries on business in a province normally must also register extra-provincially there.
There is no such thing as a federally registered sole proprietorship. If you operate alone and stay unincorporated, your registration happens where you do business — for example, through the Ontario Business Registry or BC Registry Services. Review our walkthrough for registering a sole proprietorship in Ontario and our explainer on what a sole proprietorship is before you decide.
Federal vs provincial incorporation: key differences
If you plan to incorporate federally in Canada, the level you choose affects where your name is protected, where you must file, and how much ongoing paperwork you face.
| Feature | Federal (CBCA) | Provincial or territorial |
|---|---|---|
| Governing law | Canada Business Corporations Act | The province or territory's own corporations statute |
| Where you register | Corporations Canada | Provincial or territorial corporate registry |
| Name protection | Across Canada | Within the province or territory |
| Operating in other provinces | Extra-provincial registration typically required | Extra-provincial registration where you carry on business |
| Ongoing filings | Federal annual return plus provincial filings | Annual return to the provincial registry |
| Income tax filing | T2 corporation return to the CRA | T2 to the CRA, plus any provincial corporate return |
| Fees | Set by the registry — confirm current amounts | Set by the registry — see our cost breakdown by province |
Extra-provincial registration: the step most founders miss
Federal incorporation gives you the right to use your corporate name across Canada, but it does not automatically authorise you to operate everywhere. Once you have a real and substantial presence in a province or territory, you generally must register extra-provincially with that jurisdiction. This usually involves filing a copy of your federal articles of incorporation and a name search, and paying that registry's fee. Registration is typically triggered by having an office, employees, or a physical presence there. For the naming side, see our guides on the NUANS report in Canada and how to register a business name in Canada.
Business Number, GST/HST and CRA program accounts
Separate from incorporation, the CRA issues a Business Number to identify your business for tax purposes. It is a single identifier with program accounts added on: RT for GST/HST, RP for payroll, RC for corporate income tax, and RM for import/export. Sole proprietors use the same BN system when they register for GST/HST or hire employees, because the BN attaches to the business rather than to incorporation. GST/HST registration is generally required once revenue exceeds the small-supplier threshold; confirm the current threshold on the CRA website.
On the filing side, self-employed individuals report business income on form T2125 with their T1 return, corporations file a T2, payroll remittances cover CPP and EI once you pay employees, and payments to contractors may require a T4A slip. Rates, thresholds, and deadlines change, so verify current figures with the CRA.
Which route fits your business?
- One person, one province, modest revenue: a provincial or territorial sole proprietorship is usually the simplest starting point.
- Want liability protection and a distinct name: compare structures using our guide to sole proprietorship versus corporation in Canada.
- Plan to operate in several provinces immediately: federal incorporation can reduce duplicate name approvals, though each province may still require extra-provincial registration.
- Province-specific tax or licensing reasons: provincial incorporation may be more convenient if your operations, financing, and advisers are concentrated in one jurisdiction.
Whichever you choose, confirm current fees, forms, and filing requirements with Corporations Canada, the relevant provincial or territorial registry, and the CRA before you file. This page is general information, not legal or tax advice.
Frequently asked questions
Is federal business registration the same as incorporating federally?
Not exactly. "Federal business registration" is a loose term. Incorporating federally means creating a corporation under the Canada Business Corporations Act through Corporations Canada. Separately, almost every business registers for a federal Business Number with the CRA in order to handle GST/HST, payroll, or corporate income tax. Only corporations can incorporate federally; the Business Number applies to sole proprietors too.
Can I register a sole proprietorship federally in Canada?
No. Sole proprietorships and partnerships are registered with a province or territory, not with the federal government. There is no federal sole proprietorship registry. What you can obtain federally is a CRA Business Number with program accounts for GST/HST or payroll. Provincial registration requirements, names, and fees vary, so check your provincial or territorial registry.
If I incorporate federally, do I have to register in every province?
Not automatically. Federal incorporation protects your name across Canada, but you generally must register extra-provincially in each province or territory where you have a real and substantial presence, such as an office, employees, or ongoing operations. Registration is usually triggered once you carry on business there, and each registry sets its own forms and fees. Confirm requirements with the province before expanding.
Should I incorporate federally or provincially?
It depends on where you operate. Federal incorporation suits businesses trading in multiple provinces and offers nationwide name protection, but it usually adds extra-provincial registrations. Provincial incorporation may be simpler if your operations, advisers, and financing stay in one province. Compare fees, annual filing duties, and tax filings for each option, and consider professional advice before deciding.