How to register your business in Canada

Starting a business is exciting, but before you can open your doors and serve your first customers, you need to register your business. Registering a business can feel like a maze because the process is different depending on your business type and where you plan to operate.

The good news is that most registrations can be done online. In this guide, we’ll give you a high-level overview of the decisions you need to make and the documents you should prepare before submitting your application.

What are the different types of business ownership in Canada?

Canada has four main business structures: sole proprietorship, partnership (general, limited, or limited liability partnership), corporation (federal or provincial/territorial), and co-operative. The structure you choose affects how you pay taxes, your personal liability, and how much administration you’ll need to handle day to day.

1. Sole proprietorship

A sole proprietorship is the simplest way to start a business because there’s no legal separation between you and the business. It’s quick and inexpensive to set up, profits flow straight to your personal tax return, and you keep full control. The downside is unlimited liability: if your business is sued or can’t pay its debts, your personal assets are at risk. Also, registering your business name doesn’t give you exclusive rights, so brand protection is limited.

2. Partnership (general, limited, or LLP)

A partnership means you share ownership with one or more people. The level of liability depends on the type of partnership:

• General partnership (GP): All partners manage the business and are personally responsible for its debts. Liability is usually joint and several, meaning each partner can be held fully responsible.
• Limited partnership (LP): There must be at least one general partner (manages the business and has unlimited liability) and one or more limited partners (do not manage the business and have liability only up to their investment).
• Limited liability partnership (LLP): Common for regulated professions like lawyers or accountants. Partners aren’t responsible for another partner’s mistakes, but they remain liable for their own actions.

3. Corporation (federal or provincial/territorial)

A corporation is a separate legal entity, which means you’re not personally liable for the company’s debts beyond what you invest. It can issue shares, raise capital more easily, and continue operating even if ownership changes. Incorporation can also offer tax planning advantages.

The trade-off is higher costs and more administrative work. Corporations must file annual returns, keep a minute book, and follow formal record-keeping rules. You can incorporate federally (Canada-wide name protection, but you’ll still need to register in each province where you operate) or provincially/territorially (simpler if you only plan to operate in one region, though name protection is limited to that province or territory).

4. Co-operative

A co-operative (co-op) is a business owned and run by its members, who could be customers, employees, or people in the community. Each member has an equal vote in decisions, no matter how much money they’ve put in. Profits are usually shared among members based on how much they use the co-op’s services, rather than how much they invested. The challenge is that decisions can take longer since everyone gets a say, and raising money from outside investors can be harder compared to a regular corporation.

How do you register your business in Canada?

There isn’t a one-size-fits-all process that you can follow to register your business in Canada. It entirely depends on the type of business you choose, where you plan to operate, and whether you’re registering as an individual or a corporation.

But, there are some common steps that apply to different types of business registration and most of the steps can be done online. Below, we’ll break down the common steps that you may go through to complete the registration.

1. Decide on structure and where to register

Pick the structure that fits your risk, tax and comfort. Next, decide whether you want to go through the federal vs. provincial/territorial registration. Federal incorporation gives stronger name protection across Canada, but you’ll still register in each province where you actually do business (extra-provincial registration).

Provincial incorporation can be simpler if you’ll operate in one region, with name protection limited to that jurisdiction. You can learn more on the Government of Canada website on how to choose the right registration path.

2. Choose and check your business name

The next step is running a name search to avoid conflicts with existing companies or trademarks. You can use NUANS search to check the conflicting name. For businesses in Quebec, they must use its own registry rather than NUANS.

3. Register your business

For sole proprietorship/partnership: Register your business (and trade name, if you’re not using your personal name) with your province or territory. You’ll receive confirmation you can use when opening bank and tax accounts.

Corporation (federal or provincial): File articles online, set your registered office and first directors, and keep a minute book (your official corporate records). Federal corporations must also file “individuals with significant control” (beneficial ownership) info after incorporation. Learn more about incorporating your business on the Government of Canada website.

For non-resident founders who start a Canadian business but do not live in Canada or hold Canadian citizenship/permanent residency. There are some incorporation rules for people in the board of directors:

• Federal corporations still require that at least 25% of directors be Canadian residents.
• Most provinces, however, have dropped this rule. That means a non-resident can often incorporate in a province like British Columbia, Ontario, or Alberta without needing a Canadian partner or director.

4. Get a business number (BN) and CRA program accounts

Your Business Number (BN) is a unique 9-digit identifier issued by the Canada Revenue Agency (CRA). The government uses this ID to keep track of your company across different programs.

You can get a BN online through the CRA’s Business Registration Online (BRO) service. Once you have it, you can add program accounts depending on your business activities. The most common are:

• GST/HST account: With this account, you can charge customers the right tax, claim input tax credits on your business expenses, and remit the collected tax to the CRA.
• Payroll deductions account: If you hire employees, you need this account to send the government the amounts you deduct from their pay. This includes income tax, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums. Without it, you can’t legally run payroll.
• Import/Export: If you import goods into Canada or export them to other countries, the import-export program account is required for customs and duty purposes. It links your shipments to your business so border services and CRA can properly assess duties and taxes.

5. Register for sales taxes you actually need to collect

If your taxable sales exceed $30,000 in one calendar quarter or over four consecutive quarters, you must register to charge GST/HST.

Some provinces also require PST or QST registration; for example, Quebec administers QST through Revenu Québec, and provinces like B.C., Saskatchewan and Manitoba run PST separately. Check your selling footprint and register where needed.

6. Apply for licences and permits

Licensing depends on what you do and where you operate. Use BizPaL to generate a personalized list of municipal, provincial/territorial, and federal permits, such as a city business licence, a health permit for food service, or a liquor licence. It’s free and covers most locations in Canada.

7. Open your business bank account and set up payments

For business bank account: Banks typically ask for your registration or incorporation documents, your Business Number (BN), and valid ID.

For setting up payments: You’ll need to open a merchant account with a payment processor or bank. This account gives you access to payment tools so you can set up and test your checkout system before opening day.

There are two main ways to set up payment processing:

• Through a bank: This is the traditional route, so some businesses find it more familiar and trustworthy. The downside is that it’s often slow, there’s a lot of paperwork, and the payment solutions offered can be very basic, which may not support all the features you need. Besides, the payment processing cost is more expensive.
• Through a payment processor like Helcim: This option is faster and more flexible. The signup process is entirely online, and you get access to modern tools such as recurring billing software, virtual terminals, and smart terminals that let you accept credit card payments in person or online. On top of that, Helcim offers some of the lowest credit card processing fees available to small businesses.

8. Set up bookkeeping and keep required records

Choosing the right accounting system early will save you stress later. Start by picking accounting software that fits your business size and comfort level. Two popular cloud-based solutions for small businesses are QuickBooks or Xero.

Create a basic chart of accounts so you can track income and expenses in the right categories (e.g., sales, cost of goods, marketing, rent). Then make it a habit to store receipts, invoices, and contracts securely, digital copies are fine as long as they’re easy to find.

Good record-keeping makes GST/HST filings faster, helps you spot cash flow issues, and gives you reliable numbers for year-end. It also keeps you compliant if the CRA ever audits your business.

9. Hiring? Add payroll and workplace registrations

If you’re hiring, as soon as you bring on staff, there are a few steps you need to do to keep things legal and organized:

• CRA payroll account: Register with the Canada Revenue Agency for a payroll deductions account. This lets you withhold and remit income tax, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums from your employees’ pay. Without it, you can’t run payroll properly.
• Workplace safety/compensation board: Each province has its own workers’ compensation authority (for example, WSIB in Ontario or WorkSafeBC in British Columbia). You’ll need to register your business so your employees are covered if they get injured on the job. Many provinces expect this registration to be done within a few days of hiring your first worker.

What licenses and permits are needed to start a business in Canada?

When you start a business in Canada, registering your company is only step one. You also need the right licenses and permits so you can legally open your doors. The permits you need depend on what you’re selling and where you’re located.

You can use BizPaL, a free government tool, to get a customized list of permits you’ll need based on your location and industry.

1. Federal level

Most small businesses don’t need federal licences, but a few industries do. For example, if you import food, you’ll need a licence under the federal food safety regulations. Other federally regulated industries include trucking, broadcasting, and banking.

2. Provincial or territorial level

Most of the licences you need to get depend on your industry and provinces. For example, restaurants or food trucks need a health permit. Or, bars or stores that sell alcohol need a provincial liquor licence.

3. City or town level

Your city or town usually requires a business licence. This licence ensures that your business meets local zoning, fire, and safety rules. You may also need extra permits if you put up signage, add a patio, or renovate your space. Make sure to check your city website to know which types of permits you need to get.

Can a non-resident start a business in Canada?

Foreign business owners and Canadians living outside the province where they want to operate are considered “non-residents” in different contexts. Both of these groups can start and run businesses in Canada, but there are extra rules and requirements that you need to keep in mind.

Sole proprietorships for non-residents

For foreign entrepreneurs: Registering sole proprietorship is tricky because every sole proprietorship must have a local address in the province where it’s registered. If you don’t live in Canada, you’ll need a representative or service provider to provide this address. You’ll also need to physically travel to Canada to open a business bank account because most banks require in-person ID verification. Also, you need to file your tax in Canada.

For Canadians living out of province: Even if you’re a Canadian citizen, if you are still a non-resident if you want to open a sole proprietorship in another province. That’s why you still need a physical business address in that province for a registration.

Corporations for non-residents

Corporations are the most flexible option for non-residents, but the physical address rules still apply for both foreign and non-resident business owners.

Federal corporations: Under the Canada Business Corporations Act (CBCA), at least 25% of directors must be Canadian residents. If the board has fewer than four directors, at least one must be a resident.

Provincial corporations: Many provinces such as British Columbia, Alberta, Ontario, Quebec, New Brunswick, Nova Scotia, and Prince Edward Island have removed this federal residency rule. That means a non-resident can incorporate there as a sole director and shareholder. If your corporation operates in more than one province, you must register in every province where you do business.

Agent for service: Some provinces (like Ontario) require non-resident corporations to appoint a local agent for service. This person or company in the province can receive legal documents on behalf of the business.

Partnerships for non-residents

For foreign entrepreneurs: The partnership must have a Canadian address in the province that it’s registered. Non-resident partners must report their share of business income in Canada, and withholding tax may apply when profits are distributed abroad. Partnerships usually work best when at least one partner is Canadian and can handle day-to-day operations.

For Canadians living out of province: You can form a partnership in another province, but you’ll need to register the partnership name there and follow that province’s rules for taxes and licensing.

Canada business registration costs and processing time

The time it takes to register a business in Canada depends on your business structure, the province or territory where you register, and whether you file online or by mail.

Provincial business registration costs and timelines vary, so it’s best to check the provincial website for the most accurate and up-to-date information. Below are the business registration costs and processing times you can expect at the federal level:

1. General registration time

• Business name registration: Each province has its own name approval system. The process typically takes 1–2 days, though you can often pay extra for 24-hour or even 2-hour service.
• Business Number (BN) from CRA: If you use a provincial business registry portal that integrates with the CRA, you’ll usually receive your BN automatically within a day or two. If you apply directly through CRA’s Business Registration Online, it is often instant. Non-residents who register through the online web form may wait a few days to receive their BN.
• Extra-provincial registration: If you want to expand your business into another province, you must register extra-provincially. Some provinces, like Ontario, process this instantly and at no cost. Others may take several days to a couple of weeks.
• Licences and permits: Timelines vary depending on the licence. Municipal business licences can be issued the same day or within a few weeks. Provincial licences may take one to two months. The good news is that you can apply for licences in parallel with your business registration to save time.

2. Sole proprietorships and partnerships registration time

Registering a sole proprietorship and partnerships can take the same day to a couple of days online, up to two weeks by mail.

• Fastest option: Most provinces have online portals that issue confirmation immediately after you submit your application. For example, in Ontario you can register a sole proprietorship online and receive your Master Business Licence instantly.
• By mail or email: Paper or mail applications can take up to 15 business days.

3. Corporations registration time

Federal registration: Online registration usually costs $200 and takes 1 business day, but you can pay an additional $100 for 4-hour express services. Paper or email applications take 10 days to process. You can always visit Canada services, fees and processing times website for the latest timelines.

Provincial registration: Different provinces will have different processing time. For example, Ontario corporation applications can receive immediate approval online or up to 15 days by mail. British Columbia application can take up to 19 days depending on the services.

4. Co-operatives and not-for-profits registration time

Federal registration: You can only register a not-for-profit and co-operative business by mail or email, and it takes about 10 days to receive approval. Both applications cost $250. For not-for-profit corporations registration, you can pay an additional $100 for 1-day service.

Provincial registration: The registration time depends on your province, so be sure to check the provincial website for the most accurate details. For example, in Ontario, not-for-profit corporation applications take 5 business days to process online and 15 business days by mail. Co-operative registrations take 35 business days by mail or email, and online registration is not available.

What should you do after registering your business in Canada?

It’s exciting to launch your business, but before that, let’s make sure your operation is set up correctly. Below is the quick checklist of some important things that you need to do before opening your door and serving your first customers.

1. Open your business bank accounts to keep business and personal money separate. You can have one account for daily operation and another account for GST/HST, payroll, and income tax. Separating these two accounts can help you manage your cash flow easier.

2. Pick accounting software that helps you easily keep track of sales, refunds, cost of goods, shipping, marketing, wages, rent, merchant fees, and taxes. Popular options like QuickBooks and Xero are a great start.

3. Register your merchant account to accept payments from your customers. Make sure to set up your business details, tax, import inventory, and buy payment hardwares that you need so that your opening day is as smooth as possible. Learn more about the best payment processor for business and cheapest credit card processors here.

4. Get your CRA program accounts. If you expect your sales to exceed $30,000 in any 12 months, or you want to claim input credits earlier, register for GST/HST. You can do this through CRA BRO or by phone in minutes. Once registered, remember to charge the appropriate GST or HST on your invoices and set aside that money for remittance.

5. Open a payroll account. If you will have employees or pay yourself a salary/dividend from a corporation, set up payroll accounts. For a corporation paying the owner a salary, you need to open a PAYROLL account (BN + RP0001). You’ll need to remit source deductions monthly or quarterly. Even if you’re a sole prop with one part-time employee, you need to do this. CRA’s payroll registration can be done online. After registering, CRA will send you a remittance schedule.

6. Set up an import/export (RM) account. If you plan to import goods or export, then you need an RM account (BN + RM0001). There’s a form online or via CRA. Starting in 2024, importers are being moved to a system called CARM (you may need to register through that as well).

7. Sign up for workplace safety/compensation board: If you have employees, in most provinces you must register with the provincial workers’ compensation board for insurance. Some small businesses are exempt until a certain payroll or number of employees. Check your province’s rules for more details.

FAQ

Do I need a Canadian address to register?

Yes. Every business in Canada must have a local address in the province or territory where it’s registered. This can be your office or store if you have one, or a registered agent or service provider if you don’t live there. A P.O. Box alone is not accepted as an official registered address.

Can I run a Canadian business from outside Canada?

Yes, you can own and operate a Canadian business while living abroad. However, you’ll need to appoint a Canadian address and, in some cases, an agent for service. If you’re foreign business owner, getting a business bank account can be hard because most banks require you to open an account in-person. You may also need a Canadian director or local manager to handle day-to-day operations.

What is a Business Number (BN) and how do I get one?

A Business Number is a unique 9-digit identifier issued by the Canada Revenue Agency (CRA). It’s used to manage your business tax accounts, including GST/HST, payroll, and import/export.

When do I need to register for GST/HST?

You must register if your business makes more than $30,000 in taxable sales in a single quarter or over four consecutive quarters. This is known as the “small supplier” threshold.

What is NUANS and do I need a NUANS report?

NUANS (Newly Upgraded Automated Name Search) is a report that compares your proposed business name against existing corporate names and trademarks. It ensures your name is unique and not confusingly similar to others. NUANS reports are required for federal incorporation and in provinces like Ontario, Alberta, and New Brunswick. If you choose a numbered company or operate in provinces like B.C. or Quebec, NUANS may not be required.

Does Canada have LLCs or S-corps?

No. LLCs and S-corporations are U.S. business structures and don’t exist in Canadian law.

Do I need a lawyer or accountant to register a business in Canada?

Legally, you can register or incorporate on your own using government websites. However, a lawyer can help draft articles of incorporation, shareholder agreements, or review contracts, while an accountant can advise on tax structure and set up your books correctly. For non-residents, legal agencies are useful to navigate residency rules, banking, and cross-border tax issues.