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Federal or Ontario? Five questions.
Answer five quick questions and see which way the general rules lean for a company like yours. Either works for most Ontario startups; this shows what tips the balance.
General information about Ontario and Canadian law, not legal advice or an opinion on your situation. Results depend on your facts and documents, so check with a lawyer before you act.
Questions
Do federal corporations need Canadian resident directors?
Yes. Under the Canada Business Corporations Act, at least 25% of a federal corporation’s directors must be resident Canadians, and at least one if there are fewer than four directors. Ontario corporations have no residency rule for directors.
If we incorporate federally, do we also register in Ontario?
Yes. A federal corporation that carries on business in Ontario also registers in Ontario, so there are filings in both places to keep up with.
Can we switch from Ontario to federal later?
Generally yes. A corporation can move from one jurisdiction to another later through a process called continuance. It takes filings and fees, so it’s worth choosing deliberately at the start.
Read next: Read the full guideIncorporation fees
This tool gives general information and estimates about Ontario and Canadian law only, not legal, tax or financial advice. Results depend on the exact terms of your documents. Legal services are provided by lawyers licensed by the Law Society of Ontario. See our Terms of Use.