Starting and Incorporating a Business in Quebec

Quebec offers a unique environment for starting a business, with distinct legal requirements, generous tax incentives, and access to a bilingual talent pool. This guide walks you through the process of incorporating and launching your startup in Quebec.

Sole Proprietorship (Entreprise Individuelle)

• Simplest structure, you and business are the same legal entity
• No separate tax filing, income reported on personal taxes
• Unlimited personal liability
• Best for: Freelancers, consultants, testing a business idea

General Partnership (Société en Nom Collectif)

• Two or more people share ownership
• Partners personally liable for business debts
• Profits/losses flow through to personal tax returns
• Best for: Professional services, small joint ventures

Corporation (Société par Actions)

• Separate legal entity from owners
• Limited liability protection
• Can be incorporated federally or provincially
• Best for: Startups seeking investment, scaling businesses

Cooperative (Coopérative)

• Owned and controlled by members
• Democratic governance structure
• Various types: worker, consumer, producer, solidarity
• Best for: Community-focused businesses, shared services

Quebec Incorporation

• Cost: ~$367 (online) or ~$429 (paper)
• Registry: Registraire des entreprises du Québec (REQ)
• Name protection: Quebec only
• Best for: Businesses operating primarily in Quebec

Federal Incorporation

• Cost: ~$200 (online) or ~$250 (paper)
• Registry: Corporations Canada
• Name protection: Canada-wide
• Best for: Businesses planning national expansion

Step 1: Choose Your Business Name

• Check name availability at REQ (Registraire des entreprises)
• Name must include a legal element (inc., ltée, etc.)
• Consider bilingual requirements for signage
• Reserve name if needed (optional, $25)

Step 2: Prepare Articles of Incorporation

• Define share structure
• List directors (minimum 1 for Quebec corp)
• Specify registered office address (must be in Quebec)
• Determine fiscal year-end

Step 3: File with REQ

• Online: registreentreprises.gouv.qc.ca
• Processing: Usually same day for online
• Receive: Quebec Enterprise Number (NEQ)

Step 4: Post-Incorporation Setup

• Open business bank account
• Register for GST/HST (if revenue > $30K)
• Register for QST (Quebec Sales Tax)
• Register for CNESST (workers comp)
• Set up payroll accounts if hiring

Tax	Agency	When Required
NEQ	REQ	At incorporation
BN (GST/HST)	CRA	Revenue > $30K or voluntary
QST	Revenu Québec	With GST registration
Payroll	CRA + RQ	When hiring employees

Registraire des Entreprises (REQ)

• Business registration
• Annual declaration filing
• Name changes, amendments

Revenu Québec

• Quebec corporate tax
• QST (Quebec Sales Tax)
• Source deductions

Canada Revenue Agency

• Federal corporate tax
• GST/HST
• Payroll deductions

Item	Cost
Quebec incorporation	$367-429
Federal incorporation	$200-250
Name reservation	$25
Annual REQ declaration	$89
Legal fees (optional)	$500-2,000

Government Resources

• Registraire des entreprises du Québec
• Corporations Canada
• Revenu Québec
• Info-Entrepreneurs

Legal & Accounting Help

• Many accelerators offer legal office hours
• Quebec Bar referral service for startup lawyers
• CPA Quebec can connect you with startup-friendly accountants

Do I need a lawyer to incorporate?

No, you can self-incorporate online, but consulting a lawyer is recommended for complex situations (multiple founders, investor agreements, etc.).

Can I incorporate if I'm not a Canadian resident?

Yes, but at least 25% of directors must be Canadian residents for federal corporations. Quebec corporations have no residency requirement.

How long does incorporation take?

Online Quebec incorporation is usually same-day. Federal incorporation takes 1-5 business days.

What's the minimum capital required?

There's no minimum capital requirement in Canada. You can incorporate with $1 in share capital.