Opening a Federal Corporation in Canada is exciting — but prior to actually registering your corporation at the federal level, you require something referred to as a federal name approval. Consider it as a receiving a “green light” from your business name so no one else has it and it’s in compliance with all regulations. Here in this guide, we’re going to tell you how to receive a federal name approval, step-by-step, in simple terms.
What is a Federal Name Approval?
A federal name approval is an official confirmation from the Canadian government that your chosen business name is unique and acceptable for federal incorporation. It’s part of the process of registering a business under the Canada Business Corporations Act (CBCA).
Without this approval, you can’t move forward with forming your federal corporation. The government verifies that your name:
- Not same/similar to any existing corporation in Canada
- Doesn’t use forbidden terms such as “banking” or “insurance” without due authorization
- Isn’t deceptive to the public
Obtaining a federal name approval is like saving your space in the corporate world prior to actually opening a shop.
Why Getting Name Approval in Canada is Important
A lot of new business owners try to choose a name that they love, only to find out later that it’s already taken or rejected. Avoid this frustrating and expensive experience and do it the correct way from the very beginning.
Here’s why obtaining the name approval matters:
- Avoid legal issues: In case your business name sounds like some other business, then you are likely to face lawsuits.
- Make sure the branding becomes consistent: You can use your registered name in your website, social media, and advertising material.
- Speed up incorporation: Once your name is approved, you can immediately register your corporation without delays.
Steps to Get a Federal Name Approval
Getting a federal name approval is easier than it sounds. Here’s a simple breakdown:
Step 1: Think of a Business Name You Like:
Choose a name that is:
- Unique and memorable
- Not used by another corporation in Canada
- Appropriate and professional
Tip: Make a list of 3–5 potential names. This helps in case your first choice is rejected.
Step 2: Conduct a Preliminary Name Search
Before submitting a federal name approval request, you should check if your name is available. You can:
- Search the NUANS database, which compares your proposed name with existing federal and provincial corporations
- Use Google and social media to make sure no one else is using it in a confusing way
This step reduces the chances of rejection.
Step 3: Submit a Federal Name Approval Request
Once you have a name ready and checked, you can file your federal name approval request with Canada Incorporation Agency. You’ll need to do these steps:
- Go to incorporationagency.ca website.
- Select the “Nuans and Records” option on the menu bar, click on “Federal Name Approval”
- Fill out the application with your contact information
- Complete the payment
Once the payment is completed, we will send you a confirmation email.
Step 4: Wait for Approval
Corporations Canada will review your submission and decide if your name is acceptable. If approved, you will receive a federal name approval certificate, which is valid for 90 days. You must incorporate your business within this period, or the approval will expire.
Step 5: If Your Name is Rejected
Don’t worry—rejection is not the end of the world. You can:
- Choose a new name and submit another request
- File a federal name appeal if you believe your original name meets all requirements
A federal name appeal is a formal way to contest a rejection, but it’s usually faster to pick a new name.
Example of Getting a Federal Name Approval
Let’s imagine Sarah wants to start a business selling eco-friendly home cleaning products. She chooses the name “GreenSpark Cleaning Inc.”
- She checks the NUANS database and finds no matching names.
- She submits a federal name approval request to Canada Incorporation Agency.
- A week later, she receives approval. She now has 90 days to incorporate federally.
- Sarah files her incorporation documents and officially becomes GreenSpark Cleaning Inc.
By following these steps, Sarah avoided potential legal issues and secured her business name early.
FAQs About Federal Name Approval
1. How long does a federal name approval last?
A federal name approval is valid for 90 days from the date of issue. You must incorporate within this period.
2. Can I appeal a rejected name?
Yes, you can file a federal name appeal if you believe your name was unfairly rejected.
3. Can two companies have the same name federally?
No, federal corporations cannot have identical or confusingly similar names.
4. Is NUANS search mandatory for federal name approval?
Yes, a NUANS report is usually required to show that your name is unique.
5. How much does a federal name approval cost?
The fee is currently around CAD $30–50 per request, but prices can change, so check the latest rates with Corporations Canada.
Conclusion
You must apply for a federal name approval when you incorporate federally in Canada. It is not as hard and scary as you think. To avoid the mistakes and make the process quick and smooth, apply through the third party like Canada Incorporation Agency. Contact us at 647-945-8893 or visit our website: incorporationagency.ca , and our experienced filing agents are going to make sure that the name you pick for your company is approved by the Canadian government. Good luck with starting a new business!
