Startup and Onboarding
Costs of incorporating a business in Quebec in 2026: Actual costs and a complete breakdown
July 23, 2026
Are you considering Incorporate Your Business in Quebec in 2026, but you want to know exactly how much it costs before you get started? The Cost of Incorporating a Business in Quebec ranges from $800 to $3,500 depending on the method chosen, in addition to recurring annual fees that many entrepreneurs forget to factor in. This guide provides a complete breakdown of all costs, with no unpleasant surprises.
Useful reference: according to the Bankeo Fee Barometer (15,000+ requests received, 2024-2026 data), most businesses pay between $500 and $6,000 per year for their accountant, with a median of around $3,000.
Before choosing a professional to assist you, it’s essential to understand the Government fees that you will have to pay regardless of the method you choose. These fees are set by the Quebec Registraire des entreprises (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 Registraire des entreprises are $397 for the formation of a corporation. This amount includes the Registering Your Business with the REQ.
If you choose to Company Name (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 Corporation Act.
If you want to operate in multiple Canadian provinces, the Federal Incorporation is required. The costs break down as follows:
In addition to government fees, you’ll need to hire a professional to draft your articles of incorporation and shareholders’ agreement and set up your corporate structure. Here are the options available in Quebec, along with their Rates in 2026.
Lawyers are the most sought-after professionals for business incorporation. According to data from the Quebec market in 2026:
A lawyer provides personalized legal advice, can draft a customized shareholders’ agreement, and supports you should any disputes arise. This is the most comprehensive option, but also the most expensive.
A notary is a legal professional who is also authorized to incorporate a business 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 for sole proprietors with a simple structure (a single shareholder, a single class of stock).
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 the incorporation is tax-advantaged for your specific situation. A good accountant analyzes your revenue, your reinvestment capacity, and your compensation strategy (Salary vs. Dividends) to confirm that incorporation is the right decision.
| Option | Fees | Government Fees (Provincial) | Total for Year 1 | Ideal for |
|---|---|---|---|---|
| Lawyer (Numbered Company) | $800 to $900 | $397 | $1,197 to $1,297 | Simple Structures with Legal Advice |
| Lawyer (named company) | $900 to $1,200 | $397 | $1,297 to $1,597 | Businesses Seeking a Specific Trade 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 (Complete) | $700 to $1,200 | $397 | $1,097 to $1,597 | SMEs with a Standard Shareholders’ Agreement |
| Lawyer + Federal Incorporation | $1,000 to $1,500 | $597 (federal + REQ) | $1,597 to $2,097 | Operations in Multiple Provinces |
An aspect often overlooked by new entrepreneurs: incorporating a business involves Recurring annual fees which are added each year. Here is the complete breakdown so you can Plan Your Business Launch.
Every corporation must file a Annual Update Filing with the REQ. In 2026, the fees are $104 per year. A 50% penalty applies for late payment (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 SME with few transactions, expect to pay approximately $1,200 to $1,800.
The bookkeeping is mandatory for all corporations. 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 Evaluate The budget you’ll need for your incorporation project.
| Expense Category | Year 1 | Subsequent Years | Notes |
|---|---|---|---|
| Government Fees (REQ) | $397 | $104/year | Incorporation + Annual Renewal |
| 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/year | $200 to $800 per month, depending on volume |
| GST/QST (registration if applicable) | $0 | $0 | Free, but requires additional accounting services |
| Estimated Total (Provincial, Simple SME) | $4,500 to $8,000 | $3,700 to $6,000 per year | Includes incorporation + first-year accounting |
Incorporation fees are tax-deductible for your company. According to the Canada Revenue Agency, the legal and accounting fees associated with 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 beneficial for all entrepreneurs. Here are the criteria to evaluate with your accountant.
Generally speaking, incorporation becomes tax-advantageous starting at $50,000 to $60,000 in annual net income, especially if you can leave a portion of the profits in the company rather than withdrawing it all as a 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 SME in Quebec benefits from 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:
| Scenario | Net Income | Estimated Total Tax | Additional Fees | Net Savings |
|---|---|---|---|---|
| Self-Employed Individual | $120,000 | ~$42,000 | $0 | - |
| Corporation (80k salary + 40k in the company) | $120,000 | ~$30,000 (personnel + corporate) | ~$5,000 (accountant + REQ) | ~$7,000/year |
In this example, even after accounting for accounting fees and the REQ, the entrepreneur saves approximately $7,000 per year in taxes. Over 10 years, that’s a potential savings of more than $70,000.
Bankeo’s 1,500+ partner accountants include experts in business incorporation. Since 2023, Bankeo has received more than 15,000 requests from entrepreneurs looking for the ideal accountant for their situation.
Find my accountantIncorporation isn’t just a legal process. It’s first and foremost a Financial and Tax Decisions. Here’s why your Top Accountant is an essential partner in this process:
An accountant specializing in Business Accounting will help you avoid costly mistakes and maximize your tax savings starting in the first year. The Ordre des CPA du Québec recommends consulting a Chartered Professional Accountant before making any decision to incorporate.
The choice between provincial and federal incorporation depends on your geographic ambitions:
For most Quebec Startups and SMEs... 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 expenses:
Bankeo connects you with accountants who are familiar with the incorporation process and the tax regulations for corporations 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 to the REQ) and professional fees ($500 to $3,000, depending on the professional chosen). In addition, there are recurring annual fees for accounting and tax filings.
For provincial incorporation, the Registraire des entreprises 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 cost between $495 and $1,200 in fees, 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 (multiple shareholders, complex shareholder agreements).
Incorporation generally becomes advantageous once annual net income reaches between $50,000 and $60,000, especially if you can retain profits within the corporation. Above $75,000, it is almost always beneficial from a tax perspective.
Recurring expenses include: the annual REQ renewal fee ($104), T2 and CO-17 tax returns ($1,200 to $3,000 per year for an accountant), and bookkeeping ($200 to $800 per month). In total, expect to 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 rates ($800 to $1,200). A notary public offers the advantage of notarized documents with greater legal weight. A lawyer is preferable if you anticipate disputes or negotiations among shareholders.
Federal incorporation costs $200 more 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 essential for filing annual tax returns (T2 and CO-17).
Provincial incorporation in Quebec generally takes between 3 and 10 business days once the documents are submitted to the Registraire des entreprises. With a professional, the entire process (consultation, drafting, submission) usually takes 2 to 4 weeks.
General information provided for informational purposes only, based on known 2026 tax rules. It is not a substitute for the advice of a Chartered Professional Accountant (CPA): always consult a professional regarding your specific situation.
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