It does make sense because corporations that are incorporated in Ontario fall under the Ontario Business Corporations Act. You can read the whole Act here if you would like.
Incorporating as an Ontario corporation means that you can do business within the province. This is typically chosen if you don’t expect your corporation to grow beyond the province or you’re only planning on doing business within the province. Your corporation’s name will be protected from registration by another business in Ontario.
Incorporating federally in Canada means that your corporation would fall under the Canada Business Corporations Act. You can read the whole Act here if you would like.
Incorporating as a Canadian corporation allows your corporation to do business across Canada and internationally. You must file ‘extra provincial’ registrations for any province that you will be conducting business in (for an additional fee). You will also have to pay an annual fee if you incorporate federally. Your corporation’s name will be protected from registration by another business across Canada.
The differences between incorporating in Ontario or Canada will have an impact on your business. If you are thinking of incorporating, either as an Ontario corporation or as a Canadian corporation, you should consult a lawyer. A lawyer will be able to take you through the whole process and ensure the execution of all the proper documents, whether you wish to incorporate in Ontario or Canada.