CRA Federal Corporation:
- This refers to a corporation that operates under the federal laws of Canada and is registered with the Canada Revenue Agency (CRA) for tax purposes.
- Federal corporations are governed by the Canada Business Corporations Act (CBCA) or other specific federal legislation governing particular industries.
- Federal incorporation allows you to conduct business across the country.
- Federal incorporation protects your business name across Canada.
- Federal incorporation is usually less expensive.
- If you incorporate federally, you’ll still need to incorporate your business in the province in which you primarily operate.
- Ontario Corporation:
- An Ontario corporation is one that is incorporated under the laws of the province of Ontario, Canada.
- These corporations are registered with the Ontario government and are subject to the Ontario Business Corporations Act (OBCA) or the Corporations Act if it’s a not-for-profit corporation.
- They are primarily governed by the rules and regulations set forth by the Province of Ontario.
- While an Ontario corporation can conduct business within Ontario and potentially in other provinces or territories, it must ensure compliance with the laws and regulations of those jurisdictions.
- Provincial incorporation protects your business name in that province only.
In summary, the key differences between a CRA Federal Corporation and an Ontario Corporation lie in their regulatory oversight and jurisdictional scope. The former operates under federal laws and is registered with the CRA for tax purposes, while the latter is incorporated under Ontario provincial laws and is subject to provincial regulations.