Starting a business in Canada is straightforward if you follow the correct steps. Here’s how you can register your business successfully.
1. Choose Your Business Structure
Decide on a structure that best fits your business needs:
- Sole Proprietorship
- Partnership
- Corporation
- Cooperative
Each type has different tax implications, liability considerations, and administrative requirements.
2. Choose a Business Name
Select a unique name for your business and check for availability on the Canada Business Network website. If your chosen name is available, reserve it through Corporations Canada.
3. Register Your Business
- Federal Registration: Register your business federally through Corporations Canada if you plan to operate nationwide.
- Provincial Registration: If you only plan to operate in one province, register with the provincial authority, such as Ontario Business Registry or BC Registries for British Columbia.
4. Get a Business Number (BN)
Apply for a Business Number (BN) from Canada Revenue Agency (CRA). You’ll use this number for tax filings and to interact with federal, provincial, and local governments.
5. Register for GST/HST
If your business’s revenue exceeds $30,000 annually, you must register for Goods and Services Tax (GST) or Harmonized Sales Tax (HST) through the Canada Revenue Agency (CRA).
6. Apply for Permits and Licenses
Depending on your business activities, you may need to apply for specific licenses or permits. Check with local authorities or industry-specific agencies to ensure you have all the required approvals.
7. Open a Business Bank Account
Once you’ve completed your registration, open a business bank account. This helps you separate your personal and business finances and simplifies your bookkeeping.
8. Register for Payroll Deductions (if hiring employees)
If you plan to hire employees, register for payroll deductions with CRA to handle taxes, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI).
9. Stay Compliant with Corporate Requirements
Corporations must file annual returns and financial statements. Keep track of your obligations to stay compliant with Canadian business regulations. pliance.
