The Complete Guide to Small Business Corporate Filing
Everything a small Canadian corporation files each year, which of it is tax and which is registry, and how to tell a nil year from a trading one. Nil T2 filing is $300.00 plus HST per tax year.
Written and reviewed by Sharad Gondaliya, CPA (Ontario), CPA Ontario Membership 61040184.
Last reviewed: October 27, 2026 · All nil T2 filing guides
On this page
- What Every Small Corporation Owes Each Year
- Deciding Whether Your Year Is Nil
- The T2 Short and Who Qualifies
- The Schedules a Small Corporation Files
- Canadian-Controlled Private Corporation Status
- The Annual Return Is a Separate Filing
- GST/HST and Payroll Accounts
- Records a Small Corporation Keeps
- The First Year After Incorporating
- Dormant Years Between Active Ones
- When the Corporation Outgrows a Nil Return
- What the Fee Covers
Gondaliya CPA Professional Corporation is a registered EFILE electronic filer. Returns are prepared and transmitted in Canada. Credentials are never shared and never used offshore.
What Every Small Corporation Owes Each Year
A small corporation faces a short list of recurring obligations. Not all of them are tax, and the ones that are not catch people out more often than the ones that are.
| Filing | Type | Applies |
|---|---|---|
| The T2 corporate income tax return | Tax | Every year, always |
| The annual return | Registry | Every year in most jurisdictions |
| Provincial corporate return | Tax | Alberta and Quebec, separately |
| GST/HST return | Tax | Where the corporation has an account |
| Payroll remittances and T4s | Tax | Where the corporation has an account |
The first row is the only one that applies to every corporation in every year without exception.
Deciding Whether Your Year Is Nil
The return is nil where the corporation had no revenue, no expenses, no income of any kind and no disposition of property in the tax year. Amount does not come into it.
A holding corporation with investment income, a rental corporation and a corporation that paid or received a dividend are not nil. Those are handled by Gondaliya CPA Professional Corporation at gondaliyacpa.ca at $350.00 plus HST per year.
The entries that most often take a year out of nil are bank interest credited to a corporate account and a registry fee paid from it. The full test is in the guide to zero-activity corporate tax returns.
The T2 Short and Who Qualifies
The T2 Short is a two-page return available to a Canadian-controlled private corporation meeting a list of conditions. A small corporation with a quiet year commonly meets them.
| Condition | Requirement |
|---|---|
| Corporation type | Canadian-controlled private corporation |
| Permanent establishments | One only |
| Reporting currency | Canadian dollars |
| Refundable credits claimed | None |
| Amalgamation in the year | None |
Eligibility is tested year by year. See the guide to T2 Short eligibility.
The Schedules a Small Corporation Files
The return is not the whole filing. Several schedules accompany it, and one of them appears only on a first return.
| Schedule | Reports | When |
|---|---|---|
| 100 | The balance sheet | Every year |
| 125 | The income statement | Every year |
| 141 | The notes checklist | Every year |
| 24 | First-time filer information | The first return only |
| 50 | Shareholders at 10% or more | Where there are any |
| 8 | Capital cost allowance | Where depreciable property is held |
Full detail is in the guide to T2 schedules on a nil return.
Nil T2 Filing, $300.00 plus HST per tax year
One price for every year and every province. CPA reviewed and transmitted electronically.
Canadian-Controlled Private Corporation Status
Most small Canadian corporations are Canadian-controlled private corporations, and the status matters on a nil return for one reason: it is a condition of the T2 Short.
The status turns on who controls the corporation and whether its shares are publicly traded. A corporation controlled by non-residents or by a public corporation does not have it.
Where the status is absent the return is a full T2 rather than the short form, and the figures reported are the same.
The Annual Return Is a Separate Filing
The annual return is filed with the registry the corporation was incorporated under. It confirms the directors, the registered office and the corporation’s continued existence. It reports no income and it is not a tax return.
Missing it is what gets a corporation struck from a registry, which is a different and more abrupt problem than an unfiled T2.
It is not covered by the fee on this page. See the guide to provincial and federal annual returns.
GST/HST and Payroll Accounts
These exist only where the corporation registered for them, and once they exist they generate obligations independently of the T2.
| Account | Obligation while open | Closed by |
|---|---|---|
| GST/HST | Returns remain due, nil ones included | Form RC145 |
| Payroll | Remittances remain expected, nil ones included | Form RC145 |
A dormant corporation with an open GST/HST account owes nil GST/HST returns as well as its nil T2. Neither closure is covered by the fee on this page.
Records a Small Corporation Keeps
Books and records are kept whether or not the corporation traded, and a nil year still has records: the bank statements that show no movement, the registry filings and the minute book.
A nil T2 does not require prepared financial statements. The balance sheet and income statement are reported through the coded GIFI format on the return itself.
The First Year After Incorporating
The first tax year runs from incorporation to the chosen year-end and may not exceed 53 weeks. The first return filed is what fixes the year-end, and Schedule 24 appears on it.
Many first years are nil, because the corporation was set up before trading began. A nil first year is filed exactly as any other.
See the guide to first-year T2 filing and when the first T2 is due.
Dormant Years Between Active Ones
A corporation that traded, stopped and may trade again files a nil return for each quiet year. The earlier trading does not change what the quiet year is.
Each year is assessed on its own facts, so a nil year sitting between two trading years is still a nil year.
See the guide to dormant and inactive corporations.
When the Corporation Outgrows a Nil Return
The year revenue arrives is a trading year, whatever month it arrives in. From that point the return carries real figures and real schedules.
Filing then moves to Gondaliya CPA Professional Corporation at gondaliyacpa.ca, at $350.00 plus HST per year.
The handover is described at when your corporation starts operating.
What the Fee Covers
The fee is $300.00 plus HST per tax year, covering one nil T2 return for one corporation for one tax year:
| Included | Detail |
|---|---|
| The T2 return | Including the T2 Short where the corporation qualifies |
| GIFI Schedules 100, 125 and 141 | Where they are required |
| Schedule 24 | On a first return |
| Schedule 50 | For every shareholder at 10% or more |
| Schedule 8 and loss continuity | Recorded |
| Form T183CORP package | With single-use secure e-signing |
| CPA review | Before transmission |
| Electronic transmission | By a registered EFILE electronic filer |
| One corrected transmission | If the Agency rejects the first one |
| CRA confirmation | Emailed within 3 business days |
See the full nil T2 filing cost.
Frequently Asked Questions
What Does a Small Corporation Have to File Every Year?
The T2 corporate income tax return, always. In most jurisdictions an annual return with the registry as well, and separately the Alberta AT1 or the Quebec CO-17 where the corporation is in those provinces.
Is the Annual Return the Same as the T2?
No. The annual return is a registry filing confirming the directors, the registered office and the corporation’s existence. It reports no income and missing it is what gets a corporation struck from a registry.
Do I Need Financial Statements for a Nil T2?
No. The balance sheet and income statement are reported through the coded GIFI format on the return itself, so no separately prepared statements are required.
Can I File a Nil T2 Myself?
A director can, but for tax years starting after 2023 electronic filing is mandatory for virtually all corporations, and a paper return draws a flat charge. Returns here are transmitted electronically by a registered EFILE electronic filer.
Does an Open GST/HST Account Matter on a Dormant Corporation?
Yes. While the account is open, GST/HST returns remain due including nil ones, separately from the T2. It is closed with Form RC145.
What Happens When the Corporation Starts Trading?
That whole year is a trading year, whatever month the revenue arrives in. Filing moves to Gondaliya CPA Professional Corporation at gondaliyacpa.ca at $350.00 plus HST per year.
Questions Answered in Full
- Can I File a Nil T2 Myself Without an Accountant?
- Do I Need Financial Statements for a Nil T2 Return?
- Do I Need a Business Number to File a Nil T2?
- Do I Need to File a T2 if My Corporation Had No Activity?
- When Should I File My First T2 After Incorporating?
- How Do I File a Nil T2 Return in Canada?
The Other Nil T2 Filing Guides
- The Complete Guide to the Corporate Compliance Calendar
- The Complete Guide to Numbered Company Maintenance
- The Complete Guide to Mandatory T2 Electronic Filing
- The Complete Guide to Schedule 50 and Shareholder Reporting
- The Complete Guide to Non-Resident-Owned Corporation Nil Filing
- The Complete Guide to the Nil T2 Return
- The Complete Guide to Dormant and Inactive Corporations
- The Complete Guide to Catching Up on Unfiled Corporate Tax Returns
- The Complete Guide to the Final T2 and Dissolution
- The Complete Guide to T2 Short Eligibility
- The Complete Guide to Provincial and Federal Annual Returns
- The Complete Guide to Form T183CORP Signing and Transmission
Nil T2 Filing, $300.00 plus HST per tax year
Type your corporation name, pick your unfiled years, pay, and sign Form T183CORP on a secure screen. Your CRA confirmation is emailed within 3 business days.