When you incorporate, you pick between a named corporation and a numbered corporation. People agonize over this more than they need to, because the two are legally identical. The corporation works the same way either way. The difference is branding, a little cost, and a little speed.
Here is how to think about it.
What a numbered corporation is
A numbered corporation takes a name the government assigns: a number, the jurisdiction, and a legal ending. Something like 1234567 Canada Inc. or 1234567 Ontario Inc. You do not choose the number, and because the name is guaranteed unique, there is no name search to do.
What a named corporation is
A named corporation carries a name you choose, like Maple Ridge Consulting Inc. Because the name has to be distinctive and not clash with existing businesses, it needs a NUANS name search before you file. That is the extra step and the small extra cost.
Named vs numbered at a glance
| Factor | Named | Numbered |
|---|---|---|
| Name search | NUANS required | None needed |
| Speed | Slightly longer | Fastest |
| Cost | Small extra for NUANS | Lowest |
| Branding | Your own name | Generic number |
| Legal status | Identical | Identical |
Which should you choose?
Choose a named corporation if the company is customer-facing and the name is part of the brand. Choose a numbered corporation if the name does not matter to customers, if you want the fastest and cheapest setup, or if it is a holding company or a behind-the-scenes entity.
One thing that surprises people: a numbered corporation is not a life sentence. You can operate under a separate business or trade name, or add a corporate name later, so a numbered corporation can still do business as something friendlier.
Where Korporex fits
The Korporex incorporation wizard offers both. Pick a numbered corporation for the fastest route, or enter a name and Korporex runs the NUANS search as part of the filing.