Key Takeaways
- When registering a business in Ontario, choose a business structure that fits your ownership, liability, tax, and growth needs.
- Before you spend money on branding or marketing, research your proposed business name.
- Have your information and payment method ready for online registration.
- Check if your business requires special licenses, permits, or tax accounts.
- Before you start working, set up basic compliance, bookkeeping, and record-keeping systems.
Registering a business in Ontario may seem like a simple matter of choosing a name and completing a form. However, there are several decisions to make before you reach that stage. The structure you choose, the name you register, and the licences or tax accounts you may need can all shape how your business operates after registration.
If you’re planning to register a business in Ontario, taking care of these details first can save you from delays, unexpected costs, or having to change your setup later. Ontario entrepreneurs also need to understand the province’s specific registration requirements, not just general advice about starting a business in Canada.
So, before you register a business in Ontario, it pays to get the groundwork right. Here are five important first steps.
1. Choose the Right Business Structure
Your business structure impacts ownership, liability, taxes, and administration, so decide on it before you start the registration process.
Choosing to register a business in Ontario often means choosing between a sole proprietorship, partnership, or corporation.
If you are running a business alone, a sole proprietorship might be a good fit. It is relatively simple, but the business is not a separate legal entity from its owner.
A partnership is when two or more people run a business together. Before you sign up, agree on responsibilities, profit sharing, expenses, decision-making, and how to handle disputes.
A corporation is an independent legal entity. In Canada, you can choose to incorporate provincially, in Ontario, or federally in Canada, through Corporations Canada. The processes and requirements for federal and provincial incorporation differ.
Consider your expected revenue, liability exposure, number of owners, and expansion plans. If you’re in doubt, an accountant or lawyer can help you understand the implications of each structure.
2. Secure Your Business Name
Before you register a business in Ontario, research your business name before you invest in branding, signage, packaging, or a website.
In Ontario, the Ontario Business Registry lets entrepreneurs check whether a business name is already in use. But a registry search shouldn’t be your only test. Search for similar businesses, trademarks, domain names, and social media handles.
What Is a NUANS Report?
NUANS is the Canadian corporate name and trademark search system. It locates corporate names and trademarks similar to a proposed name.
A NUANS report isn’t required for every business registration. For example, an Ontario business corporation using a word name requires an Ontario-biased or weighted NUANS name search report. Federal incorporation is another process, and most online federal incorporation applications include a name search.
Knowing the difference can save you from paying for a report you don’t need or using the wrong search type.
Check Domain Availability
Your business name might be available to register, but unavailable as a practical online brand. Check the domain and social media handles before you commit to the name.
3. Understand the Online Registration Process
Registering your business online in Canada can be much easier if you know what information you need before you begin.
The Ontario Business Registry offers an online option for eligible Ontario registrations. To register online, you will usually require a valid debit/credit card and a working email address.
The cost depends on the structure. Ontario currently charges $60 for a sole proprietorship, $60 for a general partnership, and $300 for a business corporation. Federal online incorporation now costs $200. Government fees are subject to change, so check the current amount when you file.
|
Registration Type |
Current Government Fee |
|
Sole proprietorship |
$60 |
|
General partnership |
$60 |
|
Ontario business corporation |
$300 |
|
Federal online corporation |
$200 |
You should also have some basic information ready, such as proposed name, business address, owner or director details, business activities, and contacts.
Processing times differ by registration type and jurisdiction. Corporations Canada currently states that standard online federal incorporation takes one business day. Processing times in Ontario may vary by transaction.
Before You Register: A Quick Preparation Checklist
A little preparation before you begin the application can save you a lot of time. Before you can register a business in Ontario, especially online, you need to gather information and documents about your chosen structure.
Start with your business name and a few variations. Then check the business address, ownership details, business activities, and contact details you will use. If you are incorporating, review the requirements for directors, registered office details, and corporate structure before you submit.
It is also worth considering how you will deal with money from day one. Estimate a first budget for registration, licenses, insurance, equipment, marketing, accounting, and other start-up costs. These costs will give you a better idea of how much capital you need to start a business in Canada.
4. Check Licences, Permits, and Tax Requirements
Registering a business in Ontario does not automatically give you the right to do everything your company might want to do.
Depending on the industry, location, and activities you are involved in, you may need municipal, provincial, or federal licences and permits. A restaurant, a contractor, a childcare provider, a retailer, and a home-based consultant can need very different things. So, determine which rules apply to your business before registering.
Tax obligations are also worth paying attention to. A Business Number (BN) is a 9-digit number unique to your business that the Canada Revenue Agency (CRA) and some government programs use to identify your business. Depending on your circumstances, you may need accounts for GST/HST, payroll, or other tax programs.
Generally, a business must register for GST/HST when it exceeds the applicable small-supplier threshold, although in some situations, you may be able to register voluntarily. If you plan to hire employees, learn your payroll responsibilities before you hire your first employee.
5. Prepare for Life After Registration
The registration certificate marks the start of your compliance responsibilities, not the end.
Before you sign up, create a simple checklist for after you sign up. Verify your Business Number and CRA accounts. Then determine whether you need to register for GST/HST and set up a separate business bank account. Afterward, register for any necessary licences, set up bookkeeping systems, and keep all important documents in a safe place.
If you incorporate, you’ll also need to understand your corporate record-keeping and annual filing requirements. Corporations in Ontario must file an annual return with the Ontario Business Registry no later than six months following the end of their fiscal year.
Keep your business information up to date and report changes as needed. Depending on your business, you may also need to consider insurance, contracts, privacy procedures, and employee policies.
Getting these systems ready ahead of time may help to avoid compliance becoming a last-minute headache.
Common Business Registration Mistakes to Avoid
If you’re looking to register a business in Ontario, mistakes are bound to happen; however, most registration mistakes are easier to avoid than they are to fix once the business is up and running.
You could get into trouble later if you choose a structure based only on the registration fee. A sole proprietorship may be less expensive to start than a corporation, but the two have very different legal and administrative ramifications.
Another misconception is that a business name search provides trademark protection. Registering a business name and protecting a trademark are different.
Some entrepreneurs ignore licenses because they work online or from home. Your location and business model can still create licensing or zoning obligations.
Lastly, don’t wait until tax season to register for taxes. Before you start, find out whether you need a Business Number, GST/HST account, payroll account, or any other CRA program account.
Frequently Asked Questions
How much does it cost to register a business in Ontario, Canada?
There is no single Canada-wide fee. Ontario government fees are $60 for a sole proprietorship and $300 for a business corporation. The federal online incorporation fee is currently $200.
Can I register a business online in Canada?
Yes. Ontario allows online registration through the Ontario Business Registry and federal incorporation through Corporations Canada. CRA Business Registration Online also supports eligible tax registrations.
Do I need a NUANS report?
Not all the time. Requirements vary by jurisdiction and registration type. Ontario requires an Ontario-biased or weighted NUANS report for some word-name corporate registrations, but federal online incorporation usually includes the name search as part of the application.
How long does business registration take?
Processing times vary. Standard service Federal online incorporation is currently listed as one business day. Processing times in Ontario vary by registration type and transaction.
Should I incorporate federally or provincially?
Depends on what you have in mind. Incorporating in Ontario may be a better option for a business that does most of its business in Ontario, while incorporating federally may suit a business that wants to operate across Canada. You may still need additional registration outside the province.
Can a non-resident register a business in Canada?
Canadian business registration and tax requirements may apply to non-residents, but the process and requirements differ from those for Canadian residents. The CRA offers a separate registration process for eligible non-residents.
Need Help With Business Registration?
If you are not sure which structure to choose, how to search for a name, or what you need to file when trying to register a business in Ontario, professional help can make the registration process easier.
Ontario Corporate Filing Centre can help with things like business registration, NUANS searches, and incorporation. Getting help before you file can also reduce the chances of filing inaccurate or incomplete information.
The key is to set up the business properly before you start taking customers. It is easier to register once you’ve made the decisions behind the registration. That preparation can also give you confidence that the name, structure, tax setup, and operating plans align with your long-term goals.
Final Thoughts
To start a business in Canada, you need to know more than just how to apply online. If Ontario is your jurisdiction of choice, carve out some time to pick the right structure, search your name, know your registration requirements, pinpoint your licences and tax obligations, and gear up for ongoing compliance.
Business registration requirements in Canada become easier to handle when you have good preparation, as you are making important decisions before filing. Don’t think of registration as the end; think of it as the point where your business is ready to function properly.
