What is a Numbered Company?
Have you ever heard of a company without a name? Sounds mysterious, right? Well, in Canada, it’s completely legal! When you register a business but don’t want to go through the hassle of picking a unique name, the government assigns you a numbered company—something like 12345678 Canada Inc. or 98765432 Ontario Inc.
Think of it like a business license plate—unique, official, and functional. While it may not sound exciting at first, numbered companies offer some surprising advantages, especially for newcomers from Hong Kong who may not be familiar with this concept.
How Do Numbered Companies Work?
A numbered company functions exactly like any other corporation in Canada. It can:
Sign contracts and legal agreements
Open a business bank account
Hire employees
Buy property and assets
The only difference? Instead of choosing a creative name, the company gets a pre-assigned number from the government. The business owner can still operate under a trade name (DBA) later if they want a more marketable identity.
Why Choose a Numbered Company?
A numbered company may not be the flashiest choice, but it’s surprisingly practical. Here’s why many business owners—especially investors, holding companies, and contractors—love them:
1. Fast & Hassle-Free Setup
No need to brainstorm a company name.
No NUANS name search required.
Saves time and paperwork—just file, and you’re done!
2. Perfect for Holding Companies & Investments
Many investors use numbered companies to hold real estate, stocks, or assets.
Helps keep business and personal finances separate.
3. Great for Contractors & Consultants
Many self-employed professionals (like IT consultants, engineers, and freelancers) set up a numbered company for tax benefits and liability protection.
4. Privacy & Low Profile
A numbered company doesn’t reveal its purpose at first glance—helpful for confidential deals or keeping competitors guessing.
5. You Can Rebrand Anytime
Later, if you want a proper business name, you can register a trade name (DBA) without changing your legal entity.
Potential Risks of a Numbered Company
While a numbered company has many advantages, there are a few potential drawbacks to consider:
Lack of Brand Recognition: If your business needs a strong public identity, a numbered company may not be ideal unless you later register a DBA.
Confusion in Transactions: Suppliers, clients, or partners might find it harder to recognize or remember your business if it’s only identified by a number.
Limited Marketability: A business with just a number might not seem as credible or professional to potential customers.
Potential Name Change Costs: If you later decide to change to a named corporation, additional fees and paperwork will be required.
Fun Facts About Numbered Companies
Numbered companies might sound boring, but they have some cool and quirky aspects:
Secret Business Club: Owning a numbered company is like having a mystery identity for your business—only you and the government know what it’s about!
Business License Plate: Just like how cars get a random number plate, businesses get a numbered identity—except this one makes money!
Millionaire’s Favorite Trick: Many wealthy entrepreneurs use numbered companies to buy and hold real estate quietly.
Lucky Numbers: Some entrepreneurs hope for lucky number combos like 88888888 Canada Inc.
The Lazy Entrepreneur’s Choice: No need to spend hours thinking of a name—just let the government decide!
Can I Change the Company Name Later?
Yes! If you start with a numbered company but later decide you want a brand name, you have two options:
Register a “Doing Business As” (DBA) Name – Keep your legal number but operate under a trade name.
Legally Change the Company Name – This requires official paperwork but is possible.
Weighing the Pros and Cons
A numbered company is a smart and efficient way to set up a business quickly, especially for investors, consultants, and entrepreneurs who prioritize simplicity and flexibility. However, it may not be the best fit for businesses needing immediate brand recognition or strong market presence.
If speed, privacy, and ease of setup are your top priorities, a numbered company could be a great solution. But if branding and public recognition matter to you from day one, registering a named corporation might be the better choice.
Thinking about setting up a numbered company? What factors matter most to you—speed, privacy, or branding? Every business is unique, and we’re here to help you find the best fit for your goals. Reach out to us for expert guidance and make your incorporation process seamless!