What is the difference between an Provincial (Ontario) Corporation and a Federal (Canada) Corporation?
Many clients ask, what is the difference between an Provincial (Ontario) Corporation and a Federal (Canada) Corporation? The answer is quite easy – there’s not much difference at all. A Federal Corporation is governed by the Canada Business Corporations Act (CBCA) and an Ontario Corporation is governed by the Ontario Business Corporations Act (OBCA). The two pieces of legislation are almost identical, with very few minor variances. This is because the OBCA was modeled after the CBCA to create uniformity across corporate law in Canada an in our provinces.
Some advantages and disadvantages of choosing the territory in which you incorporate are briefly explained below.
|ONTARIO INCORPORATION||FEDERAL INCORPORATION|
|Some advantages of incorporating under the Ontario Business Corporations Act are:||Some advantages of incorporating under the Canada Business Corporations Act are:|
Some disadvantages include:
|Some disadvantages are:|
For more information on the advantages and disadvantages of Provincial (Ontario) Corporation and a Federal (Canada) Corporation and for assistance in selecting your type of corporation, Contact Us to speak with one of our business lawyers.
-Shira Kalfa, BA, JD, Partner and Founder
© Kalfa Law 2018
The above provides information of a general nature only. This does not constitute legal advice. All transactions or circumstances vary, and specified legal advice is required to meet your particular needs. If you have a legal question you should consult with a lawyer.