Article
Expanding into Canada: Incorporation as a Provincial or Federal Corporation
July 16, 2024
Fiona Brown and Felix Ng
In Canada, a corporation may be incorporated under federal law pursuant to the Canada Business Corporations Act or under the corporate statute of any province or territory. When establishing a wholly-owned Canadian subsidiary, there are generally no meaningful disadvantages to incorporating provincially vs. incorporating federally. The statutes are substantially similar, and there are no significant cost differences. Incorporating federally does provide slightly stronger legal name protection, but it can be challenging and time-consuming to obtain federal corporate approval (vs. provincial approval), and companies seeking strong brand protection should look to register a trademark to properly protect their intellectual property rights.
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