Incorporating your business in Canada is one of the most consequential decisions you will make as an entrepreneur. A corporation offers limited liability protection, potential tax savings through the small business deduction, and a structure that can accommodate future growth or ownership changes. This guide walks you through every step of the 2025 incorporation process — from choosing your jurisdiction to opening your corporate bank account — with current costs and filing requirements.
The first decision is whether to incorporate federally through Corporations Canada or provincially through your home province's registry. Both create a valid corporation, but each suits different situations.
Federal incorporation through Corporations Canada costs $200 when filed online. A federal corporation has the right to carry on business under its corporate name in every province and territory, making it a natural fit for businesses that operate nationally or plan to expand across provincial borders. The trade-off is ongoing compliance: a federal corporation must still extra-provincially register in each province where it has a physical presence, adding cost and annual filing obligations in each jurisdiction.
Provincial incorporation is administered by each province's own registry. In Alberta, the Corporate Registry fee is $275, slightly higher than the federal option, but the registration grants you the right to operate throughout Alberta without additional registration. For the vast majority of small and medium businesses operating in one province, provincial incorporation is simpler and less expensive to maintain over time.
If your business is based in Calgary and serves Alberta clients, provincial incorporation is typically the better starting point. You can always continue the corporation federally later if your footprint grows.
You can incorporate with either a numbered name (e.g., 1234567 Alberta Ltd.) or a chosen name (e.g., Maple Ridge Consulting Ltd.).
A numbered company is faster and cheaper — the registry assigns a number automatically and no name search is required. This works well for holding companies or situations where you do not intend to carry on business under the corporate name.
A named company requires a NUANS (Newly Upgraded Automated Name Search) report to confirm the proposed name is available and not confusingly similar to an existing business or trademark. A NUANS report costs $13.80 and is valid for 90 days. The name must include a legal element (Limited, Ltd., Incorporated, Inc., Corporation, or Corp.) and cannot be misleading or deceptively similar to existing names.
The Articles of Incorporation is the founding document of your corporation. Filing this document with the registry is the act of incorporation. The Articles must include:
Getting the share structure right from the start avoids expensive amendments later. A typical incorporation for a small business includes at minimum two classes:
Common shares carry voting rights and participate in growth. They are the standard equity interest in the corporation.
Preferred shares (sometimes called Class A Preferred or similar) typically carry no voting rights but can be redeemed or retracted at a set value. These are used primarily for income splitting and tax planning — for example, paying dividends to a spouse or adult children who are shareholders, or for estate freeze transactions as the business grows.
Many accountants recommend incorporating with multiple share classes from the outset — commonly referred to as an "alphabet share" structure — even if you only issue one class initially. This preserves flexibility for future tax planning without requiring a costly amendment to the Articles. At Swift Accounting Calgary, we work with incorporations every week and consistently see business owners leave money on the table by starting with a single class of common shares.
Once incorporated, the first directors must pass an organisational resolution (or a series of resolutions) to formally set up the corporation. This typically covers:
Every corporation is legally required to maintain a minute book — a physical or electronic record of the corporation's key documents and decisions. A complete minute book contains:
Neglecting the minute book is the single most common corporate housekeeping failure among small businesses. Lenders, purchasers, and investors will review the minute book in any financing or sale transaction. An incomplete minute book can delay or derail a deal.
Shares are issued in exchange for consideration — money, property, or past services. The consideration must be received by the corporation before shares are issued. Directors pass a resolution confirming the value of the consideration and the number of shares issued. Share certificates are then prepared and signed by an officer of the corporation, and the share details are recorded in the securities register.
After incorporation, you must register with the Canada Revenue Agency. The registration process creates your Business Number (BN) — a nine-digit identifier that anchors all your CRA accounts. The major programme accounts are:
You can register online through CRA My Business Account, by phone, or through your accountant using the represent-a-client portal.
A corporation's finances must be kept completely separate from the personal finances of its shareholders. Banks will require your Certificate of Incorporation (or equivalent), Articles of Incorporation, the corporate resolution authorising the account opening, and government-issued identification for each signing officer. Some institutions also request the bylaws. Bringing a complete minute book to your appointment avoids repeated trips.
Incorporation is not a one-time event. Ongoing obligations include:
| Item | Cost (CAD) |
|---|---|
| Federal incorporation (Corporations Canada, online) | $200 |
| Alberta provincial incorporation (Corporate Registry) | $275 |
| NUANS name search (named company) | $13.80 |
| Minute book setup (professional preparation) | $500–$1,500+ |
| Lawyer or accountant preparation fees | $800–$2,500+ |
| Annual registry return (Alberta) | $45 |
| Annual T2 preparation (professional) | $800–$2,500+ |
Government filing fees are fixed; professional fees vary based on complexity and the firm you engage.
Incorporation done properly sets your business up for tax efficiency, clean ownership, and a minute book that will hold up under scrutiny. The team at Swift Accounting Calgary guides business owners through every step — from choosing a share structure that fits your tax planning goals, to registering with CRA, to keeping your minute book current year after year.
Contact Swift Accounting today to schedule a consultation and incorporate with confidence.
Online filings through the Alberta Corporate Registry are typically processed within one to two business days. Federal incorporation through Corporations Canada online generally takes the same timeframe, though complex or paper filings can take longer. You will receive your Certificate of Incorporation once processing is complete, at which point the corporation legally exists.
You are not legally required to use a lawyer or accountant to incorporate — you can file the Articles of Incorporation yourself. However, professional assistance is strongly recommended for the minute book and share structure. Errors in the Articles (particularly a poorly drafted share structure) can be expensive to correct and may limit your tax planning options for years. Many business owners use an accountant for incorporation because the accountant is already advising on tax strategy.
The small business deduction (SBD) reduces the federal corporate tax rate on the first $500,000 of active business income earned by a Canadian-controlled private corporation (CCPC). In 2025, the combined federal and Alberta corporate tax rate for income eligible for the SBD is approximately 11%, compared to the top personal marginal rate of approximately 48% in Alberta. Incorporation allows business income to be taxed at the corporate rate first, with personal tax deferred until funds are withdrawn — a significant deferral advantage for profitable businesses.
If you miss the annual return deadline, the Alberta Corporate Registry will send a notice of default. If the default is not remedied within the specified period, the Registrar can dissolve the corporation. A dissolved corporation loses its name protection and limited liability status. Reinstatement is possible but involves additional fees and paperwork. Setting a calendar reminder for your annual return due date — or engaging an accounting firm to track it for you — is the simplest way to avoid this outcome.
Our Calgary team handles personal tax, corporate returns, GST/HST, payroll, and bookkeeping.