How Much Does It Cost to Maintain a Federal Corporation Each Year?

The annual return: the one mandatory federal filing

Every corporation governed by the Canada Business Corporations Act (CBCA) must file an annual return with Corporations Canada every year, regardless of the corporation’s size, revenue, or level of activity. This obligation comes from section 263 of the CBCA, which requires the corporation to send the Director “an annual return in the form and within the period that the Director fixes.” Filed online, the current government fee is $12 per year.

This is a corporate-law filing, not a tax filing. Corporations Canada is explicit that the annual return “is not your income tax return.” A corporation must still meet its separate federal income tax obligations with the CRA (typically a T2 return) regardless of whether or when the annual return is filed.

Individuals with significant control (ISC): bundled in, not an extra fee

Since January 22, 2024, CBCA corporations must also file information on their individuals with significant control (ISC), meaning people who own or control a significant share of the corporation, at the same time as the annual return, within 60 days of the corporation’s anniversary date. There is no separate government fee for this disclosure: it is submitted as part of the same annual filing that costs $12.

What happens if the annual return isn’t filed

Missing the annual return does not trigger an immediate penalty fee, but it does create dissolution risk. The CBCA allows Corporations Canada to dissolve a corporation administratively after one year of non-filing under section 212(1)(d). As a matter of policy, however, Corporations Canada waits until two consecutive years have been missed before actually dissolving a business corporation.

If a corporation is dissolved and needs to be brought back into existence later, the cost changes substantially: the government filing fee for Articles of Revival is $250, and this fee is non-refundable even if the application to revive is ultimately refused. In practical terms, the real annual cost of neglecting the $12 filing is the risk of a much larger, one-time $250 bill (plus the administrative work of revival) if the corporation lapses into dissolution.

Where the cost can grow

For most federal corporations that file on time every year, the direct government cost of staying in good standing is the $12 annual return fee, with the ISC disclosure folded in at no extra charge. The cost only grows when filings are missed: two missed years risk dissolution, and reversing a dissolution costs $250 in government fees alone, non-refundable, on top of whatever time it takes to reconstruct the filing history and get the corporation reinstated.

FAQ

Does filing my federal annual return also take care of my corporate taxes? No. The CBCA annual return is a corporate-law filing with Corporations Canada, separate from federal income tax filings with the CRA. A corporation must meet both obligations independently.

Do I have to file an ISC (individuals with significant control) report and pay for it separately? No. Since January 22, 2024, ISC information is filed together with the annual return, within 60 days of the corporation’s anniversary date, and there is no separate government fee for it.

What happens if I forget to file my federal annual return for a year or two? The CBCA allows dissolution after one missed year, but Corporations Canada’s policy is to dissolve only after two consecutive missed years. If dissolution happens, reviving the corporation costs $250 in government fees, non-refundable even if the revival application is refused.

Is the $12 fee the same everywhere in Canada? Yes, for corporations incorporated federally under the CBCA, this fee and the filing rules are set nationally by Corporations Canada and do not vary by province. Corporations incorporated provincially in Ontario or Alberta instead follow their own provincial annual return rules, which were not covered in this article.