When registering a business in Canada, entrepreneurs face an important decision: should they incorporate as a numbered company or a named corporation? Both options provide the benefits of incorporation — such as limited liability, tax advantages, and credibility — but they differ in branding, setup process, and long-term strategy.
This article breaks down the differences between numbered and named corporations, helping you decide which option aligns best with your business goals.
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Numbered Company or Named Corporation?
| Feature | Numbered Company | Named Corporation |
|---|---|---|
| Format | Assigned by government (e.g., 1234567 Ontario Inc.) | Custom name (e.g., Maple Leaf Consulting Inc.) |
| Setup Speed | Faster, less paperwork | Requires name approval & NUANS search |
| Cost | Typically lower | Slightly higher (due to name search fees) |
| Brand Identity | No inherent brand recognition | Strong branding opportunities |
| Flexibility | Can change to a named corporation later | Already brand-focused |
| Use Case | Holding companies, real estate, temporary ventures | Client-facing businesses, marketing-driven industries |
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What Is a Numbered Company?
A numbered company is a corporation identified by a sequence of numbers assigned by the government, followed by the jurisdiction and legal ending (e.g., “1234567 Ontario Inc.”).
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Advantages:
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Fast and easy registration (no name approval required).
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Useful for holding assets, real estate, or short-term projects.
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Minimal upfront costs.
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Limitations:
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Lacks a marketable brand identity.
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May appear less professional to clients or partners.
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What Is a Named Corporation?
A named corporation is registered under a unique, custom business name approved through a NUANS (Newly Upgraded Automated Name Search) report to avoid conflicts with existing businesses.
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Advantages:
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Strong branding and recognition (customers remember your name).
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Suitable for marketing, client-facing, or service-oriented industries.
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Builds long-term credibility.
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Limitations:
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Requires name approval and additional paperwork.
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Slightly higher registration cost.
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Name must be renewed or maintained to comply with regulations.
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Legal and Tax Treatment: Are They Different?
It’s important to note that both numbered and named corporations are treated equally under Canadian corporate law and taxation rules. The main differences lie in branding and administrative setup, not in liability protection or tax obligations.
Both types offer:
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Limited liability protection for shareholders.
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Access to corporate tax benefits, such as the small business deduction.
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Continuity of business regardless of ownership changes.
When to Choose a Numbered Company
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You’re creating a holding company to own assets or shares.
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Your business activities are temporary or internal.
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Branding is not a priority at the moment.
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You may switch to a named corporation later when client-facing operations begin.
When to Choose a Named Corporation
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You’re launching a customer-facing business (retail, consulting, services).
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Branding and reputation are essential for marketing.
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You want a unique identity that clients, investors, and partners can trust.
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You plan for long-term business growth under one name.
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Converting from a Numbered Company to a Named Corporation
One advantage of starting with a numbered company is that you can later amend the articles of incorporation to adopt a business name. This allows entrepreneurs to get started quickly and rebrand later when the business grows.
FAQ
Q: Is a numbered company less legitimate than a named corporation?
A: No. Both are equally valid in the eyes of the law and CRA. The difference is only in branding.
Q: Can I open a bank account with a numbered company?
A: Yes. Financial institutions recognize both numbered and named corporations.
Q: How much does it cost to register each type?
A: Numbered corporations usually cost less because they skip the NUANS name search fee. Named corporations include that extra cost.
Q: Can I operate under a trade name if I have a numbered company?
A: Yes. You can register a “doing business as” (DBA) name to operate with a brand name while keeping your corporation numbered.
Q: Which is better for startups?
A: If branding and marketing are central, choose a named corporation. If speed and cost matter most, a numbered company works well initially.