ABC or 123 – Deciding between a Named Alberta Corporation and a Numbered Alberta Corporation

• Zoë
  Beckett

  Zoë
  Beckett

  view bio

Embarking on the journey of incorporation in Alberta? One of the first steps is to decide whether you would like to incorporate a named or numbered corporation. It’s a question that leaves many asking, ‘What’s the difference?’.

A numbered corporation, such as 1234567 Alberta Ltd., is formed without assigning a unique or descriptive name to the Corporation. The series of numbers in the name is automatically generated by the registry, which, in Alberta, will be followed by the word “Alberta” and a legal suffix of your choosing such as “Ltd.”, “Corp.” or “Inc.”.

Yet, this numbered corporation may crave a public persona. Enter the trade name, an additional layer of identity that requires extra steps post-incorporation. However, registering a trade name does not prevent others from using the same name for their own business.

In contrast, a named corporation in Alberta has an additional benefit in that it is restricted to a single entity in the province. The first step in incorporating a named corporation is to obtain what is often called a NUANS search. A NUANS search compares your proposed corporation name against all of the names then registered to corporations in Alberta. Although a NUANS search is an additional expense, this step is important as corporate registries will not approve your desired corporation name if that name, or a very similar one, is already registered in Alberta.

Further, a named corporation in Alberta, such as Alberta Bee Centre Ltd.*, dons a triple-layered crown, requiring:

• A distinctive element (a unique word or location),
• A descriptive element (a word or phrase that tells others what the business does or is), and
• A legal suffix.

This can make choosing and obtaining approval for a corporation name tricky. However, a corporation such as Alberta Bee Centre Ltd., once incorporated, can protect its business name and, therefore, its brand through the decision to use a named corporation.

Although this blog post outlines some of the differences between them, both named and number corporations in Alberta share the same perks – liability protection, tax benefits, and the same annual maintenance and filing costs.

So, the question persists: to name or to number? The decision is a personal one, a tapestry woven with threads of risk and benefit. If you’re feeling lost, a wise move is seeking professional guidance, ensuring your decision is the right one for your unique situation.

  _{*For illustrative purposes only, Alberta Bee Centre Ltd. is not a real corporation}

_{This post is meant to provide information only and is not intended to provide legal advice. Although every effort has been made to provide current and accurate information, changes to the law may cause the information in this post to be outdated.}