How to Incorporate a Business in Ontario Online (Step-by-Step)

What Does It Mean to Incorporate in Ontario?

Incorporating a business in Ontario means creating a separate legal entity that exists independently from you as an individual. Once incorporated, your company becomes its own legal person. It can enter contracts, open bank accounts, borrow money, hire employees, own assets, and be sued under its corporate name rather than yours.

For Ontario founders, incorporation is often the transition point between operating informally and building a more established, scalable business. It provides:

• Limited liability protection: Your personal assets, such as your home or car, are generally protected if the business incurs debt or faces legal claims.
• Potential tax advantages: Ontario corporations may benefit from lower small business tax rates, income deferral opportunities, and income splitting strategies in some cases.
• Greater credibility: An incorporated business, such as “1234567 Ontario Inc.” or “Smith Tech Solutions Inc.”, signals professionalism to customers, lenders, partners, and investors.
• Access to funding and grants: Banks and government funding programs often prefer or require businesses to be incorporated.
• Business continuity: A corporation can continue operating even if ownership changes.

Incorporation formalizes your business under Ontario law and creates a foundation for protection, growth, and long-term planning. Historically, the process required legal support and manual paperwork. Today, Ontario allows full online incorporation, and modern platforms like Venn streamline the process further by combining incorporation with business banking in one step. This will be explored in a later section.

Should You Incorporate? (Sole Proprietorship vs Partnership vs Corporation)

Before incorporating in Ontario, many founders start as a sole proprietorship or partnership because these structures are quicker and less expensive to set up. However, they do not provide the same legal protection or long-term advantages as a corporation. Understanding the differences helps determine whether incorporation is the right move now or in the near future.

Business Structure Comparison

‍

When Incorporation Becomes the Better Choice

Incorporation generally becomes worthwhile when:

• You want to protect your personal assets from business liabilities
• You are generating enough revenue to benefit from lower Ontario corporate tax rates
• You plan to raise investment, apply for grants, or work with larger clients
• You want to build long-term credibility and brand permanence
• You are planning to hire employees or scale operations

If you are moving from an informal side business to a serious, scalable company, incorporation is often the next logical step. In the next section, we will look at whether you should incorporate at the provincial (Ontario) or federal level.

Provincial vs Federal Incorporation – Which Is Right for an Ontario Business?

When incorporating in Ontario, one of the first decisions is whether to register as an Ontario corporation (provincial) or a federal corporation under Corporations Canada.

What is an Ontario (Provincial) Corporation?

A provincial corporation is registered through the Ontario Business Registry and has name protection only within Ontario. It is typically chosen by businesses that plan to operate mainly in Ontario without expanding to other provinces immediately.

Advantages:

• Simpler compliance requirements for Ontario-only businesses
• Lower administrative burden
• Name protection within Ontario
• Faster approval timelines in many cases

What is a Federal Corporation?

A federal corporation is registered through Corporation Canada and offers nationwide name protection. If operating in Ontario, it must still be registered provincially after incorporation (extra-provincial registration).

Advantages:

• Name protection across all provinces and territories
• Ideal for businesses that plan to operate or expand nationwide
• Can appeal more to national clients or investors

Choosing the Right Option for Your Business

You may prefer provincial incorporation if:

• Your business is based in Ontario and serves primarily Ontario customers
• You want a straightforward setup with fewer compliance steps
• You do not anticipate immediate expansion outside the province

You may prefer federal incorporation if:

• You want name protection across Canada from day one
• You plan to operate in multiple provinces or target nationwide markets
• You are building a brand with national visibility or investor appea

How Venn Handles it

With Venn, you can choose either federal or Ontario incorporation from the start. The platform guides you based on your goals and ensures the proper filings are completed. Whether provincial or federal, the incorporation process is completed fully online, and your business account is automatically created once approved.

How to Incorporate a Business in Ontario (Step-by-Step)

Whether you choose to incorporate on your own or through a service provider, the overall steps are the same. Below is a breakdown of the full Ontario incorporation process, followed by an explanation of how modern platforms like Venn simplify these steps into a fully online flow.

Step 1: Choose a Business Name and Confirm Availability (NUANS Search)

Your corporation must have a unique legal name unless you choose a numbered company (e.g., 1234567 Ontario Inc.). To ensure your name isn’t already in use, a NUANS (Newly Upgraded Automated Name Search) report is required. This report reserves your chosen name for 90 days and is mandatory for named corporations in Ontario.

Before ordering the official NUANS report, you can use a business name search tool to run a preliminary search and check if your desired name appears available. Once you’re ready to proceed and if you're using Venn's incorporation process, we’ll handle the NUANS report and final name reservation for you, ensuring your corporation name meets all legal requirements.

Step 2: Decide Between Ontario (Provincial) or Federal Incorporation

You must select whether to incorporate provincially in Ontario or federally under Corporations Canada. Provincial incorporation is often sufficient for Ontario-based companies. Federal incorporation is better suited for businesses planning to operate nationwide with name protection across Canada.

(Venn supports both options and guides you through the selection based on your business plans.)

Step 3: Complete and File Articles of Incorporation

Articles of Incorporation are the legal documents that define key details about the corporation, including:

• Corporate name or numbered designation
• Registered office address in Ontario
• Share structure and share classes
• Initial directors

If filing manually or through a lawyer, you will need to draft or review these documents yourself. Venn automatically generates compliant Articles of Incorporation based on your inputs during the application.

Step 4: Pay the Government Incorporation Fee

The Ontario government charges a one-time incorporation fee (typically $299 for provincial or $199 for federal). If you use a third-party service or lawyer, you may also be charged additional service or legal fees on top of government fees.

This is where service providers differ significantly:

‍

Step 5: Receive Your Articles of Incorporation (and Business Number if Federally Incorporated)

Once processed, you’ll receive your Articles of Incorporation, which serve as the official legal proof that your corporation has been formed.

• If you incorporated federally: A 9-digit Business Number (BN) will be issued automatically by the Canada Revenue Agency (CRA). This BN is required to register for HST, payroll accounts, corporate tax filing, and other government programs.
• If you incorporated provincially in Ontario: You will need to register separately for a CRA Business Number after your incorporation is complete.

When incorporating with Venn, your Articles of Incorporation are delivered digitally and securely. If you incorporated federally, we’ll provide your BN along with your documents.

Step 6: Open a Business Bank Account (Mandatory for Corporations)

Ontario corporations must have a dedicated business bank account to separate corporate and personal finances. Traditionally, this meant booking a bank branch visit after incorporation.

Venn’s incorporate product eliminates this extra step by automatically opening a CDIC-protected corporate account once your incorporation is approved. You can begin depositing capital immediately and even earn a bonus of up to $350 for funding your account.

‍

Incorporating Online Faster and Cheaper with Venn

In the past, incorporating in Ontario often meant either navigating the government registry manually or paying a lawyer or third-party platform to handle filings. These approaches can still work, but they often require multiple steps, additional fees, and a separate banking setup after the corporation is formed.

Venn offers a modern alternative designed specifically for Ontario founders who want to complete incorporation and business banking in one seamless flow.

Learn more about what to expect after incorporation in our blog post here!

Why Many Ontario Founders Choose Venn for Incorporation

Venn allows you to search your business name, file your Articles of Incorporation, receive your Business Number, and open a business bank account without visiting a branch or paying service fees beyond the government cost of incorporation.

Key advantages include:

• Incorporation is completed fully online in minutes
• No added service fee beyond the government fee
• Banking is automatically set up upon approval
• You earn up to a $350 welcome bonus when you fund your account
• No need to schedule branch appointments or complete separate onboarding
• Incorporation and banking records are delivered digitally in one platform

For many business owners, this means incorporation moves from being a compliance task to a launch step that immediately activates the company’s financial infrastructure.

Provincial or Federal — Both Options Supported

Venn supports both Ontario and federal incorporations. During onboarding, founders simply indicate whether they plan to operate primarily in Ontario or across Canada. The platform automatically adjusts filings accordingly and completes provincial registration where necessary.

Designed for First-Time and Returning Founders

Whether you are incorporating for the first time or transitioning from a sole proprietorship, Venn simplifies the process by automatically generating a compliant Articles of Incorporation template based on your ownership structure. This removes the need for legal drafting in most standard ownership scenarios.

Faster Access to Operational Banking

Unlike most incorporation platforms that require founders to complete a separate business banking application after incorporation, Venn allows entrepreneurs to begin banking activity as soon as their corporation is registered. This enables businesses to start invoicing, accepting payments, and funding operations immediately.

Turning Incorporation from a Cost into a Net Gain

Because Venn does not charge a service fee and provides a funding bonus of up to $350 after opening and funding your account, some founders recover more than the cost of their government filing, effectively turning incorporation from a cost into a net financial gain at launch.

Ready to Launch Your Ontario Corporation?

If you are ready to incorporate and start operating as a legal business entity in Ontario, choosing the right platform can save you time, stress, and unnecessary fees.

With Venn, you can:

• Incorporate fully online in minutes
• Avoid paying extra service or legal fees beyond the government cost
• Automatically receive your Business Number (BN) and Articles of Incorporation
• Get a corporate bank account created for you as soon as you are approved
• Avoid branch visits and paperwork
• Earn up to $350 when you fund your new account
• Start invoicing, spending, and managing business finances immediately

In Ontario, incorporation is now faster, cheaper, and easier when banking is built in from day one.

Start your incorporation with Venn today!

FAQs About Incorporating in Ontario

Q: How much does it cost to incorporate a business in Ontario?

A: The Ontario government fee is typically $299 for a provincial corporation and $199 for a federal corporation. If you use a lawyer or third-party service like Ownr, additional service fees can range from $200 to over $1,500. Venn charges no additional service fee, meaning you only pay the government cost.

Q: Can I incorporate online in Ontario without a lawyer?

A: Yes. Ontario allows full online incorporation without hiring a lawyer if your ownership structure is straightforward. Platforms like Venn generate compliant Articles of Incorporation, file them on your behalf, and complete the process legally.

Q: What is the cheapest way to incorporate in Ontario?

A: The lowest-cost method is to use a platform that does not add a service fee on top of government fees. Venn is one of the only fully online platforms where you pay only the government cost and can receive up to $350 in bonuses when you fund your new corporate account.

Q: How long does it take to incorporate a business in Ontario?

A: Provincial incorporations are often approved within one business day, and federal incorporations typically take one to two business days. When using Venn, the timeline matches government processing speeds, and your corporate banking account is ready immediately upon approval.

Q: Do I need a separate business bank account after incorporating?

A: Yes. Ontario corporations must maintain a separate business bank account to protect liability status and comply with CRA requirements. If you incorporate with Venn, a business account is opened automatically, eliminating the need for a separate banking application.

Q: What is a numbered company in Ontario, and how do I get one?

A: A numbered corporation is automatically assigned by the government and appears as “1234567 Ontario Inc.” This option skips the name approval process. Venn allows you to choose between a named or numbered corporation during setup.

Q: Is it better to incorporate provincially or federally?

A: Provincial incorporation is ideal if your business will primarily operate in Ontario. Federal incorporation is better when you want name protection across Canada or intend to expand nationally. Venn supports both options and helps you choose based on your business goals.

Q: What happens after I receive my Articles of Incorporation?

A: After incorporation, you must maintain a corporate records book, register for CRA tax accounts when needed, open a corporate bank account, and comply with licensing requirements. Venn simplifies this process by opening your business account automatically after incorporation approval.

‍_{This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Venn Software Inc or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.}