There are many different routes that you can opt for when starting a business in Canada. You can begin as a sole proprietor, form a partnership, or take the more formal route and incorporate a company. When you decide to incorporate, you have two main naming options:
- A named company
- A numbered company
You may wonder, what exactly is a numbered company? But why do so many business owners in Canada choose it? In this blog, let’s explore what it means, how it works, and when it’s the right fit for your goals.
What Is a Numbered Company in Canada?
A numbered company is also called a numbered corporation. It is a legal business entity that uses a number instead of a custom name. When you register your corporation, the government assigns a unique number. For example, 1234567 Canada Inc. or 9876543 Ontario Ltd.
That number becomes your legal company name. You can still operate under a trade name or brand name. This is known as ‘doing business as’ (DBA), but your numbered name will still appear on legal and government documents.
Example:
- Legal name: 1234567 Ontario Inc.
- Operating name: Sunrise Cleaning Services
So, while customers see Sunrise Cleaning Services, your official legal name remains 1234567 Ontario Inc.
How a Numbered Company Works
When you incorporate a company in Canada, your business becomes a separate legal entity. It can:
- Enter contracts
- Own property and assets
- File taxes
- Sue or be sued
For a numbered company, your legal name follows this format:
[Number] + [Jurisdiction] + [Legal ending (Inc., Ltd., or Corp.)]
Example:
- 1234567 Canada Inc. → Federal registration
- 1234567 Ontario Inc. → Provincial registration
The number is automatically assigned by Corporations Canada (for federal) or by a provincial business registry, such as the Ontario Business Registry.
Numbered Company vs Named Company in Canada
Here’s a simple side-by-side comparison to help you decide which is right for you:
| Feature | Numbered Company | Named Company |
|---|---|---|
| Company Name | Government assigns a number | You choose a custom name |
| Name Search | Holding companies, real estate, and internal entities | NUANS name search required |
| Registration Time | Instant | Slightly longer (needs approval) |
| Cost | Lower (no name reservation fee) | Higher (includes name reservation) |
| Privacy | More private (no personal name displayed) | Public and brand-oriented |
| Branding | Operates under a separate trade name | Legal and brand name are the same |
| Best For | Holding companies, real estate, internal entities | The government assigns a number |
Why Choose a Numbered Company?
There are several good reasons why entrepreneurs and investors in Canada prefer numbered corporations.
1. Fast and Simple Registration
You don’t need to think of a name or wait for approval. Incorporation can be completed within minutes. Especially with online filing.
2. Cost-Effective
Since there’s no need for a NUANS name search, setup costs are lower, making it a budget-friendly choice.
3. Privacy and Discretion
A numbered company keeps the owner’s name out of the public eye. This is helpful for real estate investors, holding companies, or those who value privacy.
4. Legal Recognition
Banks, investors, and the Canada Revenue Agency (CRA) treat numbered corporations exactly the same as named ones. A numbered corporation is a fully recognized legal entity that can open accounts. Apply for loans and file taxes like any other company.
5. Flexibility in Branding
You can still use a trade name for marketing while keeping your legal name numbered. This lets you separate your brand identity from your legal corporation.
When to Use a Numbered Company
Numbered corporations are especially useful in certain business cases:
1. Holding or Investment Companies
If your corporation holds assets such as real estate, investments, or shares in other companies, branding isn’t necessary. A numbered company keeps operations simple and discreet.
2. Real Estate Ownership
Real estate investors often form separate numbered companies for each property. This provides liability protection and can simplify tax planning.
3. Joint Ventures
When two or more partners start a joint project. A numbered company serves as a neutral structure with no bias in its name.
4. Internal Corporate Structures
Larger organizations sometimes create subsidiary numbered corporations for internal departments or specific assets.
5. Quick Incorporation
If you need to incorporate immediately. If you need to incorporate quickly for a contract, grant, or deal, a numbered company allows same-day registration.
When a Named Company Is Better
While numbered corporations have their benefits, a named company makes more sense if:
- You want to build a recognizable public brand
- Your business is customer-facing (like retail, digital marketing, or hospitality)
- You rely on reputation and word-of-mouth marketing
How to Register a Numbered Company in Canada
Setting up a numbered corporation is quick and straightforward.
Step 1: Choose Your Jurisdiction
You can incorporate federally or provincially:
- Federal incorporation allows you to operate across all provinces and territories.
- Provincial incorporation limits you to one province, but can be simpler and cheaper.
Step 2: Gather Required Information
You’ll need to provide:
- Registered office address
- Names and addresses of directors
- Share structure and class
- Business activity (NAICS code)
Step 3: File Your Incorporation
You can file online directly or get professional help through Bestax Canada.
Step 4: Receive Your Corporation Number
Once approved, you’ll receive:
- Your corporation number (e.g., 1234567 Canada Inc.)
- A Certificate of Incorporation confirming registration
Tax and Legal Requirements
Numbered companies in Canada have the same tax duties and legal responsibilities as any other corporation.
They must:
- File T2 Corporate Tax Returns annually
- Keep corporate records (minute book, resolutions, share register)
- File annual returns with the appropriate registry
- Maintain a registered office address and active directors
Advantages of Numbered Companies
Here’s a summary of the main advantages:
| Benefit | Description |
|---|---|
| Fully recognized by CRA, banks, and the government | Incorporate instantly without waiting for name approval |
| Lower Cost | No NUANS name search or reservation fee |
| Privacy | Keeps personal names out of public records |
| Flexible Branding | Operate under any registered trade name |
| Legitimacy | Fully recognized by CRA, banks, and government |
| Ideal for Holding Companies | Simple structure for asset management |
Can You Rename a Numbered Company Later?
Yes, you can easily change your numbered company to a named company at any time.
Steps:
- Conduct a NUANS name search to ensure your desired name is available.
- File a Change of Corporate Name document online through your registry.
- Pay a small administrative fee.
Branding With a Numbered Company
Even if your official name is numeric, you can register a separate operating name for marketing.
Example:
- Legal name: 1234567 Ontario Inc.
- Trade name: PureSpark Consulting
Just make sure to register your operating name (DBA) under your province’s Business Names Act. This allows you to build a strong public brand while keeping the legal structure simple.
Are Numbered Companies Recognized by Banks and CRA?
Banks and the Canada Revenue Agency (CRA) treat numbered companies in the same manner as named corporations.
You can:
- Open a business bank account
- Apply for business loans
- Register for GST/HST
- File corporate taxes
Key Takeaways
- A numbered company is a fully legal corporation identified by a government-assigned number.
- It’s fast, affordable, and private. Ideal for holding real estate or investment companies.
- It can operate under a trade name for branding and marketing.
- You can later convert it to a named company if your business evolves.
- It offers the same legal, tax, and financial rights as a named corporation.
Need Help Registering a Numbered Company in Canada?
Incorporating doesn’t have to be stressful. At Bestax Accountants, our experts make business setup simple and quick. Whether you’re forming a named or numbered company.
Their team will help you:
- File your incorporation documents
- Get your Business Number and CRA registration
- Maintain compliance under the Corporations Information Act
- Handle corporate tax filings and annual returns
Start your incorporation journey today with Bestax Accountants, build your company the right way, quickly, and fully compliant
Final Thoughts
A numbered company in Canada is a smart, flexible, and cost-efficient option for many business owners. It gives you all the legal protection and benefits of incorporation without the extra hassle of naming and approvals.
And when you’re ready to take the next step, you can always rename or rebrand later. If you’re ready to incorporate, Bestax Accountants is here to guide you every step of the way. From registration to long-term compliance and business growth.
Quick FAQs
1. What is a numbered company?
A corporation that uses a number assigned by the government instead of a custom name.
2. Are there tax benefits?
No difference, both named and numbered corporations follow the same tax rules under the CRA.
3. Can I open a bank account with a numbered company?
Yes. Banks and lenders treat them like any other registered corporation.
4. Can I use a different name publicly?
Yes. Register a trade or operating name under the Business Names Act.
5. How fast can I register?
Usually, within minutes if filed online with the federal or provincial registry.
6. Can I change the number to a name later?
Yes, through a corporate name change filing.
7. Is it legal across all provinces?
Yes, though you must incorporate federally to operate nationwide.
The information provided in this blog is for general informational purposes only. For professional assistance and advice, please contact experts.
