Named vs. Numbered Corporation: What’s the Best Fit for Your Business?Posted on Feb 10, 2025

Numbered Corporation

A Numbered Corporation uses a name automatically assigned by the federal or provincial government at the time of incorporation. This system simplifies the registration process by eliminating the need for businesses to choose and register a unique name.

The assigned name typically follows a format such as '1234567 Canada Inc.' or '1234567 B.C. Ltd.', with a legal ending that must be included. The available legal endings, depending on federal and provincial regulations, include:

• Incorporated (Inc.)

• Corporation (Corp.)

• Limited (Ltd.)

• Ltée (French equivalent)

• Some provinces may allow additional legal endings.

The primary advantage of a Numbered Corporation is that it allows for rapid registration without the need for a name search or approval process. Unlike a Named Corporation, there is no need to verify name availability, and no additional approval steps are required, simplifying the incorporation process.

However, a Numbered Corporation may not effectively establish a corporate identity, as its legal name consists solely of numbers. This can make it difficult to build brand recognition, and businesses are required to use the numerical corporate name in official documents and contracts, which may impact their credibility and professionalism.

Named Corporation

A Named Corporation allows businesses to register a unique, self-chosen name. A corporate name must include the following three elements:

1. Distinctive Element – A unique word that differentiates the business from others.

• Example: In 'ABC Technologies Inc.,' 'ABC' is the distinctive element.

2. Descriptive Element – A term describing the nature of the business.

• Example: In 'ABC Technologies Inc.,' 'Technologies' describes the business activity.

3. Legal Ending – A legally required suffix that indicates corporate status.

• Must include Inc., Corp., Ltd., or Ltée.

To register a Named Corporation, businesses must submit a NUANS (Newly Upgraded Automated Name Search) report. NUANS checks name availability and helps prevent duplication. While NUANS is mandatory for federal incorporations and most provinces, some provinces—such as British Columbia and Quebec—use their own name search systems instead.

The biggest benefit of a Named Corporation is brand recognition and credibility. A unique name helps businesses build trust with customers, enhance marketing efforts, and establish a professional identity. Additionally, businesses can register a trade name (operating name) to further strengthen their branding strategy.

However, the registration process for a Named Corporation is more complex and time-consuming than for a Numbered Corporation. A business must ensure the name is available, and there is a risk that the name may be rejected if it is too similar to existing corporate names.

When incorporating a business in Canada, selecting either a Numbered Corporation or a Named Corporation should align with the company’s goals and operations. If speed and simplicity are priorities, a Numbered Corporation is a practical choice. However, if brand recognition and business identity are essential, a Named Corporation offers long-term advantages.

Your company’s name is an important part of its identity and business strategy. Rise Partners provides expert assistance in Canadian incorporation and corporate name registration. If you have any questions, feel free to contact us.