Incorporation in Ontario: A Comprehensive Guide to Starting Your Business

Incorporating an Ontario corporation costs $300 in government fees and, filed online through the Ontario Business Registry (OBR), is approved immediately. A named corporation also needs an Ontario-biased NUANS name report. This guide covers each step, every government fee, the tax advantages, and what you must file each year to stay in good standing.

Ontario incorporation at a glance

Why incorporate in Ontario?

A separate legal entity

A corporation is a legal person separate from its owners. It owns its assets, signs its own contracts and is responsible for its own debts. If the business is sued or fails, shareholders generally risk only what they invested, not their home, savings or car. The exceptions are personal guarantees you sign and certain director liabilities, such as unpaid employee wages and unremitted source deductions.

Tax advantages

A Canadian-controlled private corporation (CCPC) pays a combined federal and Ontario rate of about 11.2% (9% federal + 2.2% Ontario, reduced from 3.2% on July 1, 2026; prorated for tax years straddling that date) on its first $500,000 of active business income. That is well below the top personal rates. Profits you leave in the corporation are taxed at that low rate and can be reinvested, which defers personal tax until you pay yourself through salary or dividends. Income-splitting with family members is restricted by the tax on split income (TOSI) rules, so get advice before you rely on it.

This section is general information, not tax advice. Talk to an accountant about salary versus dividends for your situation.

Credibility, capital and continuity

Banks, landlords and larger clients often prefer to contract with a corporation. A corporation can raise money by issuing shares, which a sole proprietorship can't do, and it keeps existing when owners change or leave.

Ontario or federal incorporation?

See our federal incorporation guide for the full comparison.

How to incorporate in Ontario: step by step

Step 1: Choose a name or a number

A named Ontario corporation needs a distinctive element, a descriptive element and a legal ending: Limited, Limitée, Incorporated, Incorporée, Corporation, or the abbreviations Ltd., Ltée, Inc. or Corp. If you don't need a name yet, incorporate a numbered company (for example, 1234567 Ontario Inc.). There is no name search and you can register an operating name later.

Step 2: Order an Ontario-biased NUANS report

For a named corporation, Ontario requires an Ontario-biased (or weighted) NUANS report. A federal-biased NUANS report will not be accepted. The report must be obtained from a private NUANS provider, and it is valid for 90 days. You can order an Ontario NUANS report from us; our Ontario NUANS guide explains how to read the results.

Step 3: Set up access to the Ontario Business Registry

Since 2021, all Ontario corporate filings go through the Ontario Business Registry. To file yourself you need an Ontario.ca login and an Ontario Business Registry account, or you can use an authorized service provider such as OpenCompany, which files on your behalf.

Step 4: Prepare the Articles of Incorporation

The Articles set out the name, the registered office address in Ontario, the number of directors (fixed, or a minimum and maximum), the first directors, the classes and maximum number of shares, and any restrictions on share transfers or business activities. The share structure deserves the most thought: it determines who controls the company and how you can pay dividends. Changing it later means filing Articles of Amendment ($150).

Step 5: File and pay $300

Submit the Articles through the OBR and pay the $300 fee. Online filings are approved immediately, and you receive the Certificate and Articles of Incorporation with your Ontario Corporation Number. Paper filings by mail take about 15 business days.

Step 6: Organize the corporation

The directors pass organizational resolutions: adopt by-laws, issue shares, appoint officers, set the fiscal year-end and authorize banking. Set up the minute book with the articles, by-laws, resolutions and registers. Private Ontario corporations must also keep a register of individuals with significant control, usually anyone holding 25% or more of the votes or value, at the registered office.

Step 7: Register with the CRA and open a bank account

Get your Business Number and corporate income tax account, then register for HST (13% in Ontario) once taxable revenue passes $30,000 over four consecutive quarters, or earlier if you want to claim input tax credits. Add a payroll account before you hire, and open the bank account in the corporation's name.

Step 8: Check licences and permits

Depending on your industry and municipality you may need business licences, WSIB coverage or sector permits. Ontario's BizPaL tool lists the requirements by location and activity.

How much does it cost to incorporate in Ontario?

For OpenCompany's all-in price, including the NUANS report, articles and filing, see pricing or start an Ontario incorporation.

Staying compliant after incorporation

• Annual return: file it free through the OBR within 6 months after each fiscal year-end (the same window as your T2 return). Missing returns can lead to dissolution.
• Notices of change: report changes to directors, officers or the registered office within 15 days.
• Annual meetings and resolutions: hold an annual shareholder meeting, or pass written resolutions in lieu, and approve the financial statements.
• Corporate records: keep the minute book, securities register and individuals-with-significant-control register up to date.
• Taxes: file a T2 return (with the Ontario schedules) within six months of year-end, and HST and payroll returns on schedule.