Are you planningto incorporate your business in Quebec in 2026, but want to know exactly how much it will cost before you get started? The cost of incorporation in Quebec ranges from $800 to $3,500 depending on the method you choose, plus recurring annual fees that many entrepreneurs forget to factor in. This guide provides a complete breakdown of all costs, with no hidden surprises.
Before choosing a professional to assist you, it is essential to understand the government fees you will have to pay regardless of the method you choose. These fees are set by the Registraire des entreprises du Québec (REQ) and by Corporations Canada for the federal option.
Provincial incorporation is the most common form of incorporation in Quebec. In 2026, the fees charged by the Registrair des entreprises amount to $397 for the incorporation of a corporation. This amount includesthe registration of your business with the REQ.
If you choose a named corporation (with a specific name rather than a number), you must add the fees for name search and reservation. The provincial incorporation process allows you to operate in the province of Quebec under the Quebec Business Corporations Act.
If you wish to operate in multiple Canadian provinces,federal incorporation is required. The costs break down as follows:
In addition to government fees, you will need to hire a professional to draft your articles of incorporation and shareholder agreement and set up your corporate structure. Here are the options available in Quebec, along with their rates for 2026.
Lawyers are the professionals most frequently consulted regarding company formation. According to data from the Quebec market in 2026:
A lawyer can provide you with personalized legal advice, draft a customized shareholders' agreement, and assist you if disputes arise. This is the most comprehensive option, but also the most expensive.
A notary is a legal professional who is also authorized to handle company incorporations in Quebec. Their fees are generally comparable to those of a lawyer:
The advantage of using a notary: notarized documents have greater legal weight and do not require additional proof in court. This is a significant advantage for a shareholders' agreement.
Several platforms offer low-cost online incorporation:
These services use standardized templates. They are suitable for self-employed individuals and sole proprietors with a simple structure (a single shareholder, a single class of shares).
The role of the accountant in the incorporation process is often underestimated. Even though the lawyer or notary drafts the legal documents, it is the accountant who determines whether incorporation is fiscally advantageous for your situation. A good accountant analyzes your income, your ability to reinvest, and your compensation strategy (salary vs. dividends) to confirm that incorporation is the right decision.
| Option | Fees | Provincial government fees | Total for Year 1 | Ideal for |
|---|---|---|---|---|
| Attorney (limited liability company) | $800 to $900 | $397 | $1,197 to $1,297 | Simple structures with legal advice |
| Attorney (Company Name) | $900 to $1,200 | $397 | $1,297 to $1,597 | Companies looking for a specific business name |
| Notary | $800 to $1,200 | $397 | $1,197 to $1,597 | Need for a notarized shareholders' agreement |
| Online Service (Basic) | $495 to $700 | $397 | $892 to $1,097 | Sole proprietor, simple business structure |
| Online service (full) | $700 to $1,200 | $397 | $1,097 to $1,597 | Small and medium-sized enterprise with a standard shareholders' agreement |
| Attorney + Federal Incorporation | $1,000 to $1,500 | $597 (federal + REQ) | $1,597 to $2,097 | Operations in several provinces |
One aspect that new entrepreneurs often overlook: incorporation involves recurring annual fees that add up each year. Here is a complete breakdown to help you plan your business launch effectively.
Every corporation must file an annual update with the REQ. In 2026, the fee is $104 per year. A 50% penalty applies for late filing (an additional $52).
Your corporation must file two tax returns each year:
An accountant's fees for preparing T2 and CO-17 returns range from $1,000 to $3,000 per year, depending on the complexity of your case. For a simple small business with few transactions, expect to pay approximately $1,200 to $1,800.
Bookkeeping is mandatory for all corporations. The costs depend on your transaction volume:
Here is a table summarizing all costs, from Year 1 through recurring expenses. This comprehensive overview allows you to compare and assess the budget required for your incorporation project.
| Expense item | Year 1 | Subsequent years | Notes |
|---|---|---|---|
| Government fees (REQ) | $397 | $104/year | Articles of Incorporation + Annual Update |
| Federal fees (if applicable) | $200 | $0 | For federal incorporation only |
| Professional fees (incorporation) | $500 to $3,000 | $0 | Depending on the professional you choose |
| Accountant (T2 and CO-17 returns) | $1,200 to $3,000 | $1,200 to $3,000 per year | Required for each tax year |
| Bookkeeping | $2,400 to $9,600 | $2,400 to $9,600 per year | $200 to $800 per month, depending on volume |
| GST/QST (registration if applicable) | $0 | $0 | Free, but requires additional accounting software |
| Estimated total (provincial, simple SME) | $4,500 to $8,000 | $3,700 to $6,000 per year | Includes incorporation + first-year accounting |
Incorporation costs are tax-deductible for your company. According tothe Canada Revenue Agency, legal and accounting fees related to incorporation can be deducted from the company’s income. This is an investment that pays for itself in part as early as the first tax year.
The question isn't just "How much does it cost?", but also "Is it worth it?". Incorporation isn't the right choice for every business owner. Here are the factors you should discuss with your accountant.
Generally speaking, incorporation becomes fiscally advantageous once your annual net income reaches between $50,000 and $60,000, especially if you can leave a portion of the profits in the company rather than withdrawing it all as salary. According to the Institut de la statistique du Québec, nearly 40% of self-employed individuals earn more than $75,000 annually, a threshold at which incorporation is almost always beneficial.
In 2026, an eligible small business in Quebec faces a combined tax rate of approximately 12.2% on the first $500,000 of income from an actively operated business. By comparison, an unincorporated self-employed individual may be taxed at a marginal rate of up to 53.3%.
Other major tax benefits:
Let’s take the example of a technology consultant in Montreal who generates $120,000 in annual net income and can leave $40,000 in the company:
| Plot | Net income | Estimated total tax | Additional fees | Net savings |
|---|---|---|---|---|
| Self-employed person | $120,000 | ~$42,000 | $0 | - |
| Corporation (80k salary + 40k in company equity) | $120,000 | ~$30,000 (staff + corporate) | ~$5,000 (accountant + REQ) | ~$7,000/year |
In this example, even after accounting for accounting fees and the REQ, the business owner saves approximately $7,000 a year in taxes. Over 10 years, that amounts to potential savings of more than $70,000.
Bankeo's network of over 1,500 partner firms includes incorporation experts. Since 2023, more than 12,000 entrepreneurs have been matched with the accountant best suited to their needs.
Find my accountantIncorporation isn't just a legal process. It's first and foremost a financial and tax decision. Here's why your first accountant is an essential ally in this process:
An accountant specializing in corporate accounting will help you avoid costly mistakes and maximize your tax savings starting in the first year. The Ordre des CPA Québec recommends consulting a Chartered Professional Accountants making any decision to incorporate.
The choice between provincial and federal incorporation depends on your geographic scope:
For most Quebec startups and small and medium-sized businesses, provincial incorporation is the most logical and cost-effective choice. You can always switch to federal incorporation later if your business expands.
To get a complete picture of the costs, here are the steps you (or your professional) will need to follow:
For a detailed guide to the entire process, see our article on incorporating a business in Quebec.
There are several strategies for minimizing initial costs:
Bankeo connects you with accountants who are familiar with the incorporation process and corporate tax laws in Quebec. This service is free for entrepreneurs.
Find my accountantThe total cost ranges from $900 to $3,500 for the first year, including government fees ($397 for the REQ) and professional fees ($500 to $3,000, depending on the professional you choose). In addition, there are recurring annual fees for accounting and tax filing.
For provincial incorporation, the Corporate Registrar’s fee is $397 in 2026. For federal incorporation, add a $200 fee to Corporations Canada, for a total of $597 in government fees.
Yes, online incorporation services charge fees ranging from $495 to $1,200, compared to $800 to $3,000 for a lawyer or notary. However, these services use standardized templates that may not be suitable for all situations (such as multiple shareholders or complex shareholder agreements).
Incorporation generally becomes advantageous once your annual net income reaches $50,000 to $60,000, especially if you can leave profits in the company. Above $75,000, it is almost always beneficial from a tax perspective.
Recurring expenses include: the annual REQ update ($104), T2 and CO-17 tax returns ($1,200 to $3,000 per year for the accountant), and bookkeeping ($200 to $800 per month). In total, budget between $3,700 and $6,000 per year for a medium-sized SME.
Both professionals are qualified to incorporate a business in Quebec, with similar fees ($800 to $1,200). A notary offers the advantage of notarized documents, which have greater legal weight. A lawyer is the better choice if you anticipate disputes or negotiations among shareholders.
Federal incorporation costs an additional $200 in government fees ($597 vs. $397). Professional fees are also slightly higher for federal incorporation. For an SME operating solely in Quebec, provincial incorporation is sufficient and more cost-effective.
Yes, the legal and accounting fees associated with incorporation are deductible from the company's income. This includes fees paid to lawyers, notaries, and accountants. Government fees are also deductible.
An accountant does not draft the legal incorporation documents (that is the role of a lawyer or notary), but they are essential in determining whether incorporation is the right decision for your financial situation. After incorporation, an accountant is indispensable for filing annual tax returns (T2 and CO-17).
Incorporation in Quebec generally takes between 3 and 10 business days once the documents have been submitted to the Registrair des entreprises. With the help of a professional, the entire process (consultation, drafting, and submission) usually takes 2 to 4 weeks.
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