Have you ever thought about why people undertake incorporation? If you are running a business and are doing particularly well, why should you spend money and effort on incorporating it?
Well, the answer is quite simple: Incorporation gives your business an instant dose of credibility. It conveys that you “mean business” and are serious about carrying it along in the long run.
Moreover, it offers some additional benefits, like limited liability and tax advantages, among other things.
It becomes evident that incorporating your business is worth the cost.
Then, a question arises: How to do that? Is it simple? Who can do it?
Then, a question arises: How to do that? Is it simple? Who can do it?
Well, this is exactly what we are going to look at today. So, read on.
Laws Applicable
Alberta Business Corporations Act (ABCA)
Canada Business Corporations Act (R.S.C., 1985)
What is a corporation?
A corporation is an entity which takes birth after multiple individuals, stakeholders, and shareholders come together to do business and earn profits. A corporation protects stakeholders from liability and acts as a shield.
Incorporation Comes with Many Advantages:
Step by Step Guide to Incorporation:
Following are the steps you might take:
Choosing the Right Business Structure for Yourself
Following are the most common types of in Alberta:
Limited Liability Company: Individuals(owners) not liable for company’s financial losses
S-corporation: Pass-through entities in which profits and losses are passed directly to shareholder’s tax returns. Less taxes, less flexibility of ownership.
Corporation: Any large company or group of companies acting as a single entity as recognized by law.
C-corporation: All domestic corporations other than S-Corps.
Nonprofit: An association or corporation working solely for some social cause.
Limited liability partnership: Allows passive investment without unlimited liability.
Benefit corporation: A value-based for-profit company.
Cooperative: A farm, business or organization run jointly by its members, who share the profits coming from it.
Choose a Name:
In Alberta, a Cooperative’s name should contain three elements:
Before explaining the elements individually, consider this example:
“XYZ Constructions Ltd.”
Before explaining the elements individually, consider this example:
- The Distinctive Part: It means, it is the part of the name which makes your business distinct from other businesses. In this example, XYZ is the distinctive part.
- Descriptive: This part describes what your company does. In the above example, the word “construction” explains what the company does.
- Legal: This part corresponds to the legal standing of the company. In the above example, “Ltd.” is the legal element.
Collect the Documents:
The documents required are enlisted in Sections 12(3), 20 and 106 of the Business Corporations Act, 2000.
These include:
“Documents relating to corporate names”
You need to submit name documents to the satisfaction of the Registrar. One important document is the Nuans report.
The Nuans Report
Nuans is a business name and trademark search tool. This tool uses a powerful algorithm to look for identical names, etc. for a given input.
You can apply for this report on the online portal of the corporate registry office. You can access their website by clicking this link:
The Nuans report is a pre-requisite for filing an application for incorporation.
The report reserves the proposed business name for 90 days.
The fee for Nuans report in Alberta is $12.80. (As of June 2025). (source: https://nuans-report.ca/product/nuans-report)
If any pre-existing business feels your proposed name is too similar to theirs, they can file an objection.
The Nuans Report
Articles of Incorporation
Following is a figure depicting various elements of Articles of Incorporation extracted from section 6 of the Business Corporations Act:
Assignment of name
Section 11 of the Business Corporations Act empowers the Registrar Corporate Registry to assign an incorporator or an extra-provincial corporation by the name requested by it, subject to the rules and regulations stipulated in law.
Section 20 Requirements: Address, Director and Agent
Notice of Office
Section 20(1) of the Act makes it mandatory for a corporation to have a registered office in Alberta.
In this regard, while applying for incorporation, it needs to send to the registrar a notice of:
- A registered office
- A separate records office (optional)
- The designated post office.
Notice of Agent
Like an office, a corporation needs to appoint an agent for the service of notices.
The Act mandates that, with the application for incorporation, a notice of Agent be sent to the Registrar.
Conditions Regarding Agent
- He should be a resident Albertan.
- His office should be easily accessible to the public.
- He should have a readily identifiable address.
Notice of Director
At the time of application for incorporation, the incorporators need to send a notice to the registrar nominating a director.
The director remains in his post until the first meeting of the shareholders.
If the directors are not elected at the shareholders’ meeting, the incumbent directors continue to hold office.
Issuance of Certificate of Incorporation:
On provision of documents, fees (described below) and evidence, and fulfillment of other requirements, the registrar issues the Certificate of Incorporation and enters your incorporation into the corporate registry.
Federal Incorporation (Canada-Wide)
- Filing Articles of Incorporation: CAD 200 (when submitted online)
- NUANS Name Search (Name Approval): Approximately CAD 15
- Total Estimated Cost: Approximately CAD 215 (online filing)
Provincial Incorporation (Examples)
- British Columbia: CAD 350 for incorporation + CAD 30 for name approval = CAD 380
- Alberta: CAD 450 for incorporation + CAD 30 for name approval = CAD 480
Incorporation fees vary by province and typically range from CAD 255 to CAD 450, plus the name search cost.
Conclusion
Incorporation is a process that needs due care and understanding of the regulations. You can do it yourself or hire an agent for incorporation. Consulting with an expert is advisable in this regard.
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