TL;DR
A step-by-step walkthrough of registering a business in Canada. From choosing your structure to getting your Business Number, here's exactly what to do and in what order.
You've got the idea, the energy, and maybe your first client lined up. But before you take a single dollar, you need the paperwork right. I've seen entrepreneurs lose weeks (and thousands) because they skipped steps or did them in the wrong order.
Here's the exact sequence I walk my clients through. No fluff, just the steps.
Pick Your Structure First
This is the most important decision you'll make early on. Most new business owners choose between three options: sole proprietorship, partnership, or incorporation.
A sole proprietorship is the simplest. You report income on your personal return and take on all liability. Costs $60 to $80 to register. A partnership splits control and earnings between two or more people. A corporation is a separate legal entity with liability protection and lower tax rates on the first $500,000 of active business income. It costs more to set up and maintain, but it's the right move for most businesses planning to grow.
According to Innovation, Science and Economic Development Canada, over 100,000 new businesses incorporate each year. Most of the ones that come to me wish they'd done it sooner.
Register Your Name
If you're operating under anything other than your legal name, you need to register a business name. Use the NUANS name search system (or your province's equivalent) to check availability. Federal incorporation gives you nationwide name protection. Provincial registration is cheaper and faster but only covers your province.
In Ontario, use the Ontario Business Registry. BC has its own system. Alberta, Quebec, and others have their own platforms. Don't skip this step. I've had clients build an entire brand around a name that was already taken.
Get Your Business Number
Your Business Number (BN) is a nine-digit number from the CRA. You need it to collect GST/HST, run payroll, or import/export goods. Apply online through the CRA. It's usually same-day.
Handle Licenses and Permits
Depending on your industry and location, you might need municipal, provincial, or federal licenses. Construction, food service, health care, and transportation all have specific requirements. Use the BizPaL tool to search by location and industry.
Register for GST/HST
If you expect to earn more than $30,000 per year, you must register and start collecting GST/HST. Even below that threshold, voluntary registration lets you claim input tax credits on business expenses. Register online through the CRA.
What To Do This Week
- Choose your structure. If you're the only owner and revenue is under $50K, sole proprietorship is fine to start. Planning to grow or take on risk? Incorporate.
- Run a name search. Use NUANS or your provincial registry. Budget $13 to $75.
- Register online. Provincial registries and Corporations Canada both offer digital applications.
- Apply for your Business Number. CRA online, takes minutes.
- Open a business bank account. Bring your registration docs and BN. Keep personal and business money completely separate from day one.
- Get basic insurance. General liability at minimum. Errors and omissions if you provide professional advice.
As Warren Buffett put it, "Someone's sitting in the shade today because someone planted a tree a long time ago." Getting your registration right is that tree.
The Bottom Line
Registering a business in Canada follows a clear sequence. Choose your structure, register your name, get your Business Number, meet tax obligations, and keep records clean from day one. Skip any of these and you're building on a shaky foundation. If you need help figuring out the right structure for your situation, book a free call.
Next step: run your numbers through the free CFO scorecard.
Frequently Asked Questions
- How much does it cost to register a business in Canada?
- Sole proprietorship registration costs $60 to $80 depending on your province. Federal incorporation costs $200 to $250. Provincial incorporation ranges from $300 to $500. Add $13 to $75 for a NUANS name search if required.
- Do I need a lawyer to register a business in Canada?
- No. Sole proprietorships and simple incorporations can be done online through your provincial registry or Corporations Canada. But if you have partners or a complex share structure, a lawyer helps avoid expensive mistakes down the road.
- How long does it take to register a business in Canada?
- A sole proprietorship can be registered in a few hours online. Incorporation typically takes 1 to 5 business days. Getting your CRA Business Number is usually same-day if you apply online.
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