Incorporating a business in Quebec: the ultimate guide to creating your company

Incorporating a business is much more than registering a name. It's creating a separate legal entity , with its own rights, obligations, tax structure, and structure. In Quebec, incorporation is a strategic choice for thousands of entrepreneurs, whether to start a business, structure a takeover, protect assets, or plan for long-term growth.

Here is an ultimate guide to understanding how to incorporate a business in Quebec , the steps to follow, the concrete advantages and the tools to do it without error.

What is an incorporation?

Incorporation is the legal process that allows the creation of a corporation , also called a company (inc.) , recognized as a legal entity distinct from its owners.

A company can:

• Own property

• Sign contracts

• Hire employees

• To be prosecuted or to be sued

• Pay your own taxes separate from the founders

Why incorporate your business?

Main advantages of incorporation in Quebec:

• Limited liability : your personal assets are protected in the event of lawsuits or debts (except personal guarantees)

• Tax benefits : reduced tax rate on the first $500,000 of profits

• Credibility : strengthens the confidence of banks, investors and customers

• Estate planning : possibility of issuing shares, planning for succession or sale

• Split income and dividends (according to applicable tax rules)

• Easier transfer : you can sell the shares instead of the assets

Federal vs. Provincial Incorporation: Which Option to Choose?

Criteria	Incorporation in Quebec	Federal incorporation
Territory	Quebec only	All of Canada
Protected name	Quebec only	Pan-Canadian (if accepted)
Language of administration	French	English or bilingual required
Initial costs	~ $356	$200 (plus $356 for secondary registration in Quebec)
Time limit	Fast	May take longer depending on the process
For whom?	Local or regional SMEs	National companies or companies with ambitions outside Quebec

For a business operating only in Quebec, provincial incorporation is sufficient . For a project targeting all of Canada, federal incorporation may be preferable.

Steps to incorporate a business in Quebec

1. Choose the legal structure

You must opt ​​for a joint-stock company (company). This is what allows for the incorporation and issuance of shares.

2. Choose a name (company name)

You can :

• Choose a personalized name (e.g.: Groupe Innovation Tremblay inc.)

• Or use a numeric designation (e.g.: 1234-5678 Québec inc.)

The name must be distinctive, not misleading and available . You can check availability through the Registrar of Companies .

3. Complete the incorporation application

Access the online form on the REQ website or use a business creation service.

Required information:

• Company Name

• Head office address

• Name and address of the directors

• Number and types of authorized actions

• General regulations (or use the REQ models)

4. Pay the incorporation fees

The standard fees (2025) are:

• $356 for online incorporation

• $393 if done by paper form

5. Receive your official documents

After acceptance, you receive:

• The NEQ (Quebec business number)

• The certificate of incorporation

• Registration with the REQ

• The official status of INC

What are the obligations after incorporation?

• Annual update declaration to the REQ (often on the anniversary date)

• Bookkeeping : minute books, shareholder register, meeting minutes

• Rigorous accounting

• Filing a corporate income tax return each year

• Possibility of registering for GST/QST , if your income exceeds $30,000

You can also open a business account and register tax accounts with Revenu Québec and the CRA .

Example: incorporate alone or with a partner?

Case 1: Single entrepreneur

• Can be director and sole shareholder

• Owns 100% of the shares

• Can pay a salary or dividends

Case 2: Two partners

• Decide on the distribution of shares (e.g. 60% / 40%)

• Can sign a shareholders' agreement (strongly recommended)

• Can create different categories of shares (voting, participating, etc.)

Frequently Asked Questions – Incorporation in Quebec

Can I incorporate alone?

Yes. A single person can be a shareholder, director, and officer of a company.

Do I need to have an office or business address?

A correspondence address in Quebec is required, but it can be your home or an authorized PO box.

Can I incorporate a business myself?

Yes, via the REQ website. However, if you have multiple shareholders, a complex structure, or a project with tax implications, consult a lawyer or notary.

How long will it take?

Online incorporation typically takes 1 to 2 business days . Secondary registration for a federal business takes longer.

Is an INC required to register for GST/QST?

No, unless you have an annual income of over $30,000 . However, it is often recommended to register from the start for credibility reasons.

Conclusion: Incorporation, a powerful tool for building on solid foundations

Incorporating your business in Quebec allows you to protect your assets, structure your growth, improve your tax situation, and prepare for the future . It's a smart investment for any serious entrepreneur, buyer, or professional who wants to build something lasting.

At trnsfr , we support entrepreneurs at every stage: from the idea to incorporation, including the purchase or sale of a business.

→ Access our tools, models and support for business creation