How to Incorporate a Business in Quebec: A Practical Guide for Entrepreneurs

Are you ready to turn your idea into a real, recognized company? If you’re self-employed or working as a consultant, learning how to incorporate in Quebec is a key step toward building a solid and lasting enterprise.

Incorporation isn’t just about filling out forms. It’s about creating a separate legal entity, a company that can own assets, sign contracts, and assume its own debts. Incorporating also helps protect your personal assets, structure your taxes efficiently, and enhance your credibility with clients, partners, and financial institutions.

But between the Business Corporations Act (Quebec), the Registraire des entreprises du Québec (REQ), tax registrations, and administrative steps, the process can be confusing. This guide walks you through how to incorporate in Quebec step by step, with clear explanations, practical examples, and professional insights.

What Does It Mean to Incorporate a Business? Definition and Key Advantages

By definition, incorporating a business (also called forming a corporation) means creating a distinct legal person that exists separately from its owner. Your company becomes an independent entity that can own property, enter into contracts, incur debts, and pay its own taxes.

In practice, this means your corporation has its own rights, obligations, and responsibilities. That separation is what makes incorporation powerful: it protects your personal property and gives your business greater credibility with clients, investors, and financial partners.

Three Main Benefits

• Limited liability: Your personal assets are protected from business debts, except in cases of serious fault or legal non-compliance.
• Business continuity: The corporation continues to exist even if a shareholder leaves or passes away.
• Tax optimization: Incorporation allows for flexible planning of salaries, dividends, and investments.

To learn more about the benefits of incorporating, read our full article on the advantages of incorporation in Quebec.

How to Incorporate in Quebec: The 9 Legal Steps to Create your Company

In Quebec, creating a corporation follows a well-defined process under the Business Corporations Act (BCA) and the provincial business registry (REQ).

Here’s how to incorporate your business in Quebec, step by step.

Step 1 — Choose Between Federal or Provincial Incorporation

Before anything else, decide whether to incorporate:

• Under provincial law: the Business Corporations Act (Quebec),
• Or under federal law: the Canada Business Corporations Act (CBCA).

A provincial incorporation is generally the best fit if you operate mainly in Quebec. A federal charter is often preferred if you plan to do business in multiple provinces or you want to protect your business name across Canada.

For a detailed comparison, see our article: Federal vs. Provincial Incorporation in Canada.

Step 2 — Choose and Verify Your Business Name

Once you’ve chosen your jurisdiction, select your company’s legal name.
This choice affects your brand identity, legal compliance, and credibility.

You have two options:

Numbered company (e.g., 12345678 Quebec Inc.): Quick to register, the number is automatically assigned by the REQ. You can also register a separate trade name (e.g., Tremblay Services Inc.).

Personalized name: Must be unique, not misleading, and comply with Quebec’s Charter of the French Language. French must be predominant according to the Office québécois de la langue française (OQLF) (in French only).

Check name availability using the REQ business registry or on the Government of Canada's NUANS database.

Step 3 — Draft and File Your Articles of Incorporation

Your articles of incorporation are the foundation of your company. They define its structure and how it will operate. Once filed and approved, your business officially becomes a separate legal entity.

• These articles specify:
• The company name and head office address,
• Share structure (types and classes of shares),
• Restrictions on share transfers (if any),
• Names and addresses of the initial directors.

If you incorporate in Quebec, file online using the REQ Form RE-300 (in French only). Once accepted, your articles will generate a Certificate of Incorporation and a Quebec Enterprise Number (NEQ).

If you incorporate federally, file through Corporations Canada, which issues the federal Certificate of Incorporation and a nine-digit Business Number (BN) assigned by the CRA. You must then register your company in Quebec within 60 days of commencing operations.

Please note that even if you incorporate your company under the Quebec charter, you will still need to obtain a Business Number (BN) from the Canada Revenue Agency (CRA) for your federal tax obligations (T2, GST/HST, etc.). The NEQ and the BN are two distinct but complementary identifiers.

Step 4 — Pay the Fees and Confirm Incorporation

Filing your articles of incorporation requires payment of government fees, which vary according to jurisdiction and processing mode (regular or priority).

In Quebec, according to the official website of the Registraire des entreprises du Québec (REQ), fees are currently:

• Regular service: $389
• Priority service: $583.50

At the federal level, fees are currently:

• Online: $200
• Paper filing: $250

These amounts are valid for 2025 and may vary depending on the nature of the company (corporation, NPO, continuance, etc.). For current rates, visit the REQ or Corporations Canada websites.

Once paid and approved, you’ll receive your incorporation certificate, required for opening a business bank account, signing contracts, or applying for financing.

Step 5 — Register with the Registraire des entreprises du Québec (REQ)

Registration with the REQ confirms your company’s legal existence in Quebec and assigns your Quebec Enterprise Number (NEQ).

• Provincial incorporation: Registration is automatic when you file your articles with the REQ. You must then file the Initial Declaration within 60 days of incorporation.
• Federal incorporation: You must register your corporation with the REQ within 60 days of starting business in Quebec. This step gives you your NEQ and requires you to file the Initial Declaration.

The Initial Declaration is only filed once, at first registration. It provides the REQ with basic information about your business:

• Head office address  
• Names and addresses of the directors  
• Description of the company’s activities

This information is public and may be consulted by financial institutions or business partners. To find out more, read our article on the initial declaration of a legal entity.

Step 6 — Obtain Tax Numbers and Register for GST/HST and QST

Once your company is registered, you must register with the tax authorities to obtain the numbers you need for your tax obligations (if you haven't already done so).

For businesses incorporated in Quebec, you receive your NEQ automatically, but you must request your BN (Business Number) from the CRA for your federal accounts (tax, GST/HST, source deductions).

For businesses incorporated in Canada, you automatically receive your Business Number (BN) when your company is incorporated, and the NEQ when it is registered in Quebec.

These numbers are used to open your tax accounts:

• GST/HST (federal, CRA);
• QST (provincial, Revenu Québec);
• Source deductions, if you have employees or pay yourself a salary.

GST/HST and QST registration becomes mandatory once you exceed $30,000 in taxable sales in a single calendar quarter or over four consecutive quarters. You then have 29 days to register after crossing the threshold.

Use Revenu Québec’s LM-1 form to consolidate your tax entries (QST, income tax, source deductions).

Step 7 — Set Up Corporate Governance and Minute Book

Once incorporated, you must formalize your internal structure: appoint directors and officers, adopt by-laws, and issue shares as defined in your articles.

Even for a sole shareholder, these steps are mandatory for legal compliance.

Keep all these documents, articles, by-laws, share registers, resolutions, in your corporate minute book. This book is your official legal record and will be requested by banks, investors, and auditors.

Step 8 — Declare Beneficial Owners

Since 2024, all corporations in Canada must identify their ultimate beneficial owners:

• Quebec: file the declaration of ultimate beneficiaries to REQ (partially public first and last names). Any changes must be declared within 15 days.
• Federal: maintain a Register of Individuals with Significant Control (ISC) at Corporations Canada, to be updated within 15 days of any change.

Failure to comply can result in substantial fines. Include this update in your annual compliance checklist.

Step 9 — Maintain Annual Obligations

A corporation must remain compliant every year to maintain its legal status. These annual steps ensure that your company remains active and recognized by the Registraire des entreprises and the tax authorities.

To remain active and compliant, corporations must:

• File the annual update declaration with the REQ;
• Pay the annual registration fee (about $96 in 2025);
• File both T2 corporate tax return (federal) and CO-17 tax return (Quebec), even if inactive;
• Keep beneficial ownership records up to date.

We recommend setting an annual reminder or entrusting this to your accountant to avoid late fees or deregistration.

When Should You Incorporate in Quebec?

If you’re wondering when to incorporate a small business in Quebec, timing matters.
Generally, incorporation becomes worthwhile when your income is stable and you don’t withdraw all profits personally. It’s also the right time if you hire employees, sign contracts with liability risk, or want to separate business and personal finances.

A simple rule of thumb: once your business earns more than you need to live on, it’s time to consider incorporation.

If you’re still testing your business model, staying self-employed may be simpler initially. But as your company grows, incorporation offers greater legal protection, credibility, and tax flexibility. To compare both structures, read our guide: Self-Employed vs. Incorporated Business in Canada.

Incorporating a Business in Quebec the Right Way

You now understand how to incorporate a business in Quebec, from drafting your articles to meeting annual compliance requirements.

Incorporation is a structured process governed by the Business Corporations Act, the REQ, the CRA, and Revenu Québec. Done correctly, it provides long-term stability, credibility, and tax efficiency.

If you want professional support, T2inc.ca works with CPA accountants, tax specialists, and legal partners to help you incorporate online in a compliant, structured way. Get a quote today through our online incorporation service.

This article is for informational purposes only and does not replace professional accounting, tax, or legal advice.

FAQ – Small Business Incorporation in Quebec

Is it worth incorporating a small business?

Yes. Incorporation separates your personal and business finances, limits your personal liability by separating business debts from your personal assets, and allows for tax planning (for example, paying yourself through a mix of salary and dividends). It also increases your company’s credibility with lenders and clients. Once you can keep some profit in the company instead of withdrawing everything personally, incorporation often becomes the most advantageous structure.

How much does it cost to incorporate a business in Quebec?

Fees depend on jurisdiction. In Quebec, filing with the Registraire des entreprises costs $389 (regular) or $583.50 (priority). At the federal level, Corporations Canada charges $200 online or $250 on paper. Add any professional fees and REQ annual fees (≈ $96).

Who can incorporate in Quebec?

Any adult resident of Canada can incorporate a company, alone or with other shareholders. This is open to entrepreneurs, self-employed workers and professionals. Non-residents can also incorporate, but may be required to appoint a Canadian director. No degree is required, but it is advisable to consult a CPA or tax specialist before filing the articles.