A Federal Corporation is administered under the constitution of Canada while a Provincial Corporation is administered under the local provincial law based on the province it is registered in. A Federal Corporation can carry out business activities throughout Canada and enjoy higher foreign recognition and greater legal protection of its business name. However, a Federal Corporation may need to apply for extra-provincial licenses if it wishes to conduct business activities in certain provinces.
To register a Federal Corporation, you will need to register two times: once with the federal government and another with the province in which your corporation is situated in. The registration cost for a Federal Corporation is usually lower than a Provincial Corporation.