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Federal
Incorporation vs. Ontario Incorporation |
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Legislation
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Canada
Business Corporations Act
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Ontario
Business Corporations Act
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Names
Selection
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Thorough
tested through Federal database
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Tested
through Ontario database only
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Name
Protection
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Strong
name protection second only to trademarks
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Little
name protection provided
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Name
Use
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You
can do business anywhere in Canada under your own corporate name
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You
can use the name to do business in Ontario
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Liability
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A
federally incorporated company is considered a legal entity anywhere
in Canada. The shareholders are protected by limited liability
anywhere in Canada.
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A
provincially incorporated company is a legal entity only in the
province in which it is incorporated. The shareholders are only
protected by limited liability in the home province.
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Registered
Office
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Must
be in Canada
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Must
be in Ontario.
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Government
Fee
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Canada
government fee - $250, ($200 - online incorporation)
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Ontario
government fee - $360, ($300 - online incorporation)
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Certificate
Confirming Status of the Company
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Certificate
of Compliance - $10
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Certificate
of Status - $30
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Annual
Filing Fee
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$40
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No
charge
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Directors
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At least
twenty-five per cent of the directors must be resident Canadians.
However, if a corporation has less than four directors, at least one
director must be a resident Canadian.
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A
majority of the directors must be resident Canadians. However, if a
corporation has only one or two directors, that director or one of
the two directors must be a resident Canadian.
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Prestige
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More
prestigious in terms of international perspective.
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General
prestige associated with any local corporation.
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Both legal entities may conduct business with
parties located in Ontario and outside of Ontario including parties
located outside of Canada. |
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