How to Start a Business in Canada in 2026: Structure, Registration, Tax, Licences and Funding

Whether it's a renovation crew in Surrey, a bookkeeping practice in Halifax or an Etsy shop run from a Winnipeg basement, starting a business in Canada follows the same broad path: choose a structure, register with your province (and sometimes the federal government), get a free CRA Business Number, sort out GST/HST, find your licences, and set up your money. This guide walks through each step in the order you'll meet it, with the government fees for the main provinces, the small-supplier test worked through in Canadian dollars, and a start-up budget that separates fixed government charges from the costs you'll need quotes for.

Quick answer

To start a business in Canada, pick a structure (sole proprietorship, partnership or corporation), register the name or corporation with your province or with Corporations Canada, get a free Business Number through CRA Business Registration Online, register for GST/HST once taxable sales pass C$30,000, and check BizPaL for municipal and provincial licences before you open.

• Trading under your own legal name? Most provinces don't require a name registration

• Trade name fees: C$60 in Ontario, C$40 + C$30 in BC, C$10.30 + agent fee in Alberta

• Federal incorporation: C$200 online; Ontario C$300; BC C$350

• Since 3 November 2025 new Business Numbers are registered online only — issued instantly

• Hire staff? Open a CRA payroll account and register with your province's workers' compensation board

Before you register: is it a business, and where will it run?

The CRA treats an activity as a business when you carry it on for profit with some regularity and organisation — selling, advertising, keeping stock or taking on clients. A one-off sale of your old furniture isn't a business; buying furniture to restore and resell every weekend is. The distinction matters because business income is taxable from the first dollar of profit, and because the registrations below only make sense once you're genuinely trading.

Next, decide where the business lives. Registration in Canada is mostly provincial, so a business with an office, staff or premises in Ontario registers in Ontario, and one based in Calgary deals with Alberta's Corporate Registry. If you'll operate in several provinces from day one, that pushes you towards a federal corporation, covered below. The federal government's own starting-a-business guide follows the same order this article uses: plan, choose a name, register, get permits and licences, then find support and financing.

Before you spend anything, write down three things: what you'll sell, who will buy it, and what it costs you to deliver. A one-page plan is enough to show whether the numbers work, and lenders such as Futurpreneur ask for one. Our free business plan generator gives you a structure to fill in. Newcomers should also check that their immigration status allows self-employment; that depends on the permit type, not on business law.

Step 1: Choose a business structure

Your structure decides how you're taxed, who is liable for debts, and which registry you file with. Most people start as sole proprietors and incorporate later once profits or risks grow.

Canadian business structures at a glance (2026)

	Sole proprietorship	Partnership	Provincial corporation	Federal corporation
Who owns it	You alone	Two or more people or companies	Shareholders	Shareholders
Liability	Personal, unlimited	Partners personally liable (general partnership)	Limited to the corporation	Limited to the corporation
Income tax	Your personal T1 return (Form T2125)	Each partner's personal return	Corporate T2 return	Corporate T2 return
Registry	Province, only if not your own name	Province	Province	Corporations Canada, then each province you operate in
Set-up fee example	C$60 (Ontario name)	C$60 (Ontario)	C$300 (Ontario)	C$200 online
Name protection	None	None	Province-wide	Canada-wide

Who owns it

Sole proprietorship

You alone

Partnership

Two or more people or companies

Provincial corporation

Shareholders

Federal corporation

Shareholders

Liability

Sole proprietorship

Personal, unlimited

Partnership

Partners personally liable (general partnership)

Provincial corporation

Limited to the corporation

Federal corporation

Limited to the corporation

Income tax

Sole proprietorship

Your personal T1 return (Form T2125)

Partnership

Each partner's personal return

Provincial corporation

Corporate T2 return

Federal corporation

Corporate T2 return

Registry

Sole proprietorship

Province, only if not your own name

Partnership

Province

Provincial corporation

Province

Federal corporation

Corporations Canada, then each province you operate in

Set-up fee example

Sole proprietorship

C$60 (Ontario name)

Partnership

C$60 (Ontario)

Provincial corporation

C$300 (Ontario)

Federal corporation

C$200 online

Name protection

Sole proprietorship

None

Partnership

None

Provincial corporation

Province-wide

Federal corporation

Canada-wide

A sole proprietorship is the cheapest and simplest: profits are added to your personal income and taxed at your marginal rate, and you can deduct business losses against other income. The trade-off is unlimited personal liability — if the business is sued or can't pay a supplier, your house and savings are exposed.

A corporation is a separate legal person. Canadian-controlled private corporations that qualify for the small business deduction pay a federal rate of 9% on the first C$500,000 of active business income, plus a provincial rate (for example 2% in Alberta and 2% in BC). That low rate only helps if you leave money in the company; once you pay yourself salary or dividends, personal tax applies. Corporations also cost more to run: a separate T2 return each year usually means an accountant. For the full comparison, read our guide to incorporating in Canada.

Provincial or federal? A federal corporation costs C$200 online, is usually processed in a day, and reserves the name across Canada. But it must then register extra-provincially in each province where it carries on business and file a C$12 federal annual return every year, on top of any provincial filings. If you'll trade in one province, a provincial corporation is usually less paperwork.

Step 2: Register your business name or corporation with your province

Each province runs its own registry, with its own fees and rules. The table shows the government fees for the most common filings in the largest provinces; links to each province's detailed guide follow.

The rule of thumb across the provinces: a sole proprietor trading under their exact legal name ("Amrit Gill") doesn't register a name, while "Gill Renovations" or "Northshore Bookkeeping" does. Alberta, for example, requires a trade name whenever an individual does business under a name other than their own, and handles the filing through private registry agents who add their own service charge to the government fee. BC asks you to register within 3 months after the business name is first used. Detailed walkthroughs: Ontario, British Columbia, Alberta, Quebec, Manitoba and Nova Scotia.

Registering a name doesn't give you exclusive rights to it. Provincial registries keep a public record of who is behind a name; they don't stop someone else in another province using it. If the brand matters, search the federal trademarks database and consider a trademark. Brainstorm options first with the business name generator.

Step 3: Get your CRA Business Number

The Business Number (BN) is the nine-digit number the Canada Revenue Agency uses to identify your business. Each business gets only one, and every tax account — GST/HST, payroll, corporate income tax, import-export — hangs off it as a "program account".

You may get the BN without asking. Federal incorporation through Corporations Canada issues a BN and a corporation income tax account automatically. Registering or incorporating in Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario, Prince Edward Island or Saskatchewan also produces a BN. In Quebec, Newfoundland and Labrador and the territories you register with the CRA separately.

An unincorporated sole proprietor only needs a BN once they open a CRA program account — typically when registering for GST/HST, hiring an employee or importing goods commercially. Until then, your Social Insurance Number and personal tax return are enough.

Registering for a Business Number online

1. 1

   Sign in to your CRA account

   Business Registration Online (BRO) is reached through the CRA's sign-in services. Sole proprietors can use their My Account credentials.

   CRA Business Registration Online
2. 2

   Enter owner and business details

   Legal name, operating name, address, a description of your main activity and your expected sales.

3. 3

   Add the program accounts you need

   GST/HST (RT) if you're over or near C$30,000 or registering voluntarily; payroll (RP) before your first pay run; import-export (RM) for commercial imports, administered by the CBSA since 21 October 2024.

4. 4

   Save the confirmation

   The BN and program account numbers are issued instantly on screen and aren't mailed separately — download or print them.

   Tip: Phone or paper registration now applies only to reopening a closed account, businesses whose owners all live outside Canada, and businesses owned by another corporation or partnership.

There's no fee for a BN or any CRA program account. Sites that charge to "get your business number" are filing the same free form. See our Business Number guide for the detail of each account type.

Step 4: GST/HST, provincial sales tax and income tax

GST/HST: the C$30,000 small-supplier rule

You don't have to register for GST/HST while you're a small supplier — worldwide taxable sales of C$30,000 or less over four consecutive calendar quarters. You stop being a small supplier in one of two ways. If you pass C$30,000 in a single quarter, you must charge tax from the sale that takes you over. If you pass it over four quarters but not in one, you stay a small supplier until the end of the month after that quarter. Either way you generally have 29 days from that date to register. Taxi and rideshare drivers are the exception: they register from their first fare.

Worked example — a Calgary photographer. Maya invoices C$6,000 a month for event photography from January. Her January–March quarter totals C$18,000, and by the end of June her two quarters total C$36,000 — over the limit across consecutive quarters, though neither quarter alone passed it. She remains a small supplier until 31 July (the end of the month after the April–June quarter) and must charge GST from her first sale on or after 1 August, registering within 29 days. Alberta has no provincial sales tax, so a C$2,000 wedding package becomes C$2,000 × 1.05 = C$2,100. The same job in Ontario would carry 13% HST (C$2,260), and in Nova Scotia 14% (C$2,280).

Registering early can pay off. A voluntary registrant charges GST/HST but can claim input tax credits for the tax paid on cameras, laptops and rent — often worth more than the price disadvantage when your customers are businesses that claim the tax back themselves. Voluntary registration can usually take effect up to 30 days before you ask. For more, read our GST/HST registration guide.

Try it — add GST/HST to a price

Add TaxRemove Tax

AmountTax Rate

5% GST (AB, NT, NU, YT)13% HST (ON)14% HST (NS)15% HST (NB, NL, PE)11% GST+PST (SK)12% GST+PST (BC, MB)14.975% GST+QST (QC)

Net Amount (Before Tax)$2,000.00

Tax (5%)$100.00

Gross Amount (Including Tax)$2,100.00

Open the full GST/HST Calculator (PDF, save, compare)

Provincial sales tax in BC, Saskatchewan, Manitoba and Quebec

Four provinces add their own sales tax on top of the 5% GST, with separate registration: BC PST at 7%, Saskatchewan PST at 6%, Manitoba RST at 7% and Quebec QST at 9.975%. Thresholds differ — BC lets "small sellers" with gross revenue up to C$10,000 skip registration in many cases — and many services are exempt from PST even where GST applies. Check the province's rules before your first sale; our GST/HST rates by province page lists them side by side.

Income tax and CPP

A sole proprietor reports business income and expenses on Form T2125 with their personal return. Self-employed individuals (and their spouses) have until June 15 to file, but any balance owing is due by April 30 — interest runs from that date. You also pay both halves of the Canada Pension Plan on net self-employment earnings: 11.9% in 2026, up to C$8,460.90 for the base plan. Put aside roughly a quarter to a third of profit for tax and CPP from your first invoice; once your tax owing passes C$3,000, the CRA will ask for quarterly instalments.

A corporation files a T2 return within six months of its year-end and pays its tax earlier — usually within two or three months of year-end. See our T2 corporate tax return guide.

Step 5: Permits and licences — check BizPaL first

Canada has no single "business licence". Permits come from all three levels of government:

• Federal — for example importing commercially, selling regulated products such as health products, or anything involving radio and broadcasting.
• Provincial — regulated trades (electricians, plumbers), food premises approval from the health authority, liquor, cannabis retail, motor dealers, real estate and many personal services.
• Municipal — the general business licence most people mean, plus zoning, home-based business permits, signage, building permits and fire inspections.

BizPaL is a free joint service of the federal, provincial, territorial and municipal governments. You enter your activity and location and it lists the permits and licences you may need, with links to each issuing office. It covers all provinces plus Yukon and the Northwest Territories. City licence fees vary widely: Calgary's base licence fee for a new business is C$172, while many smaller towns charge less or don't license general businesses at all.

Before you open, work through this list: a BizPaL search for your activity and municipality; the municipal business licence (and home-based business rules if you work from home); zoning approval for premises, checked before you sign a lease; a health inspection or food premises approval for any food business; a provincial trade or professional licence if your work is regulated; a sign permit; and a fire inspection or occupancy permit for premises the public visits.

Home-based businesses are allowed in most Canadian cities but with conditions — limits on customer visits, signage, parking and staff who don't live there. Read your city's home occupation bylaw before you print business cards. If you're planning a food business from home, the rules are much tighter; see our guide to starting a home-based food business.

Step 6: Hiring your first employee

Three registrations come before your first payday:

1. CRA payroll account (RP). Add it to your BN through Business Registration Online. You'll withhold income tax, CPP and EI from each pay and remit them, usually by the 15th of the following month for new small employers. Our payroll deductions guide covers the rates.
2. Workers' compensation. Each province runs its own board — WSIB in Ontario, WorkSafeBC, WCB Alberta, CNESST in Quebec. Coverage is compulsory for most industries, and deadlines are short: Ontario requires registration within 10 calendar days of hiring your first worker.
3. Employment standards. Minimum wage, overtime, vacation pay and statutory holidays are set provincially (federally for banks, airlines, telecoms and interprovincial trucking). Ontario's general minimum wage is C$17.95 an hour and Alberta's is C$15 an hour.

Be careful with "contractors". Calling someone a contractor doesn't make them one; the CRA looks at control, tools, financial risk and integration into your business. Misclassifying an employee leaves you owing both shares of CPP and EI plus penalties.

Step 7: Banking, insurance, bookkeeping and funding

Open a separate business bank account, even as a sole proprietor. Mixing personal and business spending is the most common reason small-business tax returns get adjusted, because you can't prove which expenses were business ones. Banks will ask for your provincial registration (or articles of incorporation) and photo ID; a corporation's account must be in the exact corporate name.

Insurance isn't legally required for most small businesses, but clients, landlords and cities often insist on it. Commercial general liability is the usual minimum; professionals add errors-and-omissions cover, and anyone driving for work needs the business use declared on their auto policy. Keep receipts and invoices for six years — the CRA's standard retention period — and use simple accounting software from day one. Our free invoice generator creates invoices with GST/HST lines.

Funding for new Canadian businesses

Most start-ups are funded by the owner's savings, but there are programs worth knowing:

Start-up financing in Canada (2026)

C$75,000

Futurpreneur start-up loan

Ages 18–39, incl. up to C$50,000 from BDC

C$1.15 million

Canada Small Business Financing Program cap

Government-backed loans through your bank

C$5,000

Ontario Starter Company Plus grant

Owner puts in at least 25%

Futurpreneur pairs its loan with up to two years of one-on-one mentoring, and the application — including a business plan and cash-flow forecast — must be in before your 40th birthday. The Canada Small Business Financing Program shares the lender's risk on loans for equipment, leaseholds and working capital. Provinces run their own grants, often tied to training or hiring: see Ontario, BC and Alberta. ISED's Canada Business app, free on iOS and Android in English and French, filters federal and provincial programs to your business and sends reminders.

How much does it cost to start a business in Canada?

The government side is small. A home-based sole proprietor in Ontario with a trade name pays C$60 to the province and nothing to the CRA. An Ontario corporation pays C$300 plus a NUANS name search if it wants a word name. The bigger numbers are market costs, which vary by trade.

Worked example. A Toronto freelance designer trading as "Lakeline Studio" pays C$60 for the name, nothing for the BN, roughly C$600 for a year of liability cover and C$25 a month for software — about C$960 in year one if she already owns her computer. The same designer incorporating federally would add C$200, a C$12 annual return and an Ontario extra-provincial initial return, and an accountant's fee for the T2. Run your own numbers in the startup cost calculator.

What changed for new businesses in 2025–2026

Recent changes that affect start-ups

1 Oct 2025

Alberta's updated registry fee catalogue: trade name C$10.30 government fee

3 Nov 2025

CRA moves new Business Number and program account registrations online only

1 Jan 2026

CPP self-employed rate 11.9% on earnings up to the 2026 YMPE

1 Jul 2026

Ontario's small business corporate rate falls to 2.2%

18 Sep 2026

BC pauses its planned PST on professional services, which had been set for 1 October 2026

The biggest practical change is the CRA's move to online-only registration. Many older guides still tell you to call the Business Enquiries line for a BN; since November 2025 the agents will direct you to Business Registration Online, and only a few cases — such as businesses owned entirely by non-residents — still use phone or paper.

Common mistakes when starting a business in Canada

• Paying a "registration service" for free filings. The BN and GST/HST account are free from the CRA, and provincial fees are fixed. Look-alike sites charge several times the government fee.
• Assuming a name registration is a licence. It isn't — you still need the municipal licence and any provincial permits BizPaL shows.
• Ignoring the small-supplier clock. Once you pass C$30,000, tax you fail to charge comes out of your own pocket.
• Incorporating federally and forgetting the province. A federal corporation must still register in each province where it carries on business.
• Signing a lease before checking zoning. A use that isn't allowed at that address can't get a licence, and you'll still owe the rent.
• Hiring "contractors" who are really employees. The CRA can assess the unpaid CPP and EI later.
• No tax savings. First-year sole proprietors are often caught by a large April bill; set money aside every month.

Official links

• Government of Canada — Starting a businessFederal step-by-step guide
• BizPaL — permits and licencesFree search by activity and municipality
• Canada Business app (ISED)
• CRA — Business Registration Online
• CRA — When to register for and charge GST/HST
• Corporations Canada — fees and processing times
• Ontario Business Registry
• BC Registries — proprietorships and partnerships
• Alberta — register a business name

What to do next

Start with the decisions that are hard to undo: your structure and your name. Then register with your province, get the Business Number the same day, and diary the GST/HST threshold. If you already know what you're launching, our industry guides go deeper — starting a cleaning business, a home-based food business and an online business. For the registration detail by province, read the Canada business registration guide.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

How much does it cost to start a business in Canada?

Government fees are modest. A trade name costs C$60 in Ontario, C$40 plus a C$30 Name Request in BC, and C$10.30 plus a registry agent's service fee in Alberta. Federal incorporation is C$200 online. The Business Number and GST/HST account are free. Equipment, insurance, software and stock are usually the bigger costs.

Do I need to register my business in Canada if I use my own name?

Usually not with the province. A sole proprietor trading under their exact legal name generally doesn't need a trade name registration in Ontario, BC or Alberta. You may still need a CRA Business Number once you register for GST/HST or payroll, plus any municipal licence your activity requires. Add any other words to the name and provincial registration is required.

When do I need to register for GST/HST?

Once your worldwide taxable sales pass C$30,000 in a single calendar quarter or over four consecutive quarters, you stop being a small supplier and must register, generally within 29 days of the date you have to start charging tax. Below that, registration is optional; many new businesses register voluntarily so they can claim back the tax paid on start-up purchases.

Can I start a business in Canada with no money?

You can start a service business with very little: trading under your own name costs nothing to register, the Business Number is free, and you can work from home with your own laptop and phone. You still need a municipal licence where one applies and, realistically, some insurance. Futurpreneur lends up to C$75,000 to founders aged 18 to 39 with mentoring.

Should I incorporate federally or provincially?

If you'll only operate in one province, a provincial corporation is usually simpler: one registry, one annual return. Federal incorporation costs C$200 online and protects the name across Canada, but you must also register in each province where you carry on business and file a federal annual return (C$12) every year.

Do I need a business licence in Canada?

There is no single national business licence. Permits come from all three levels of government: federal for things like importing or broadcasting, provincial for regulated trades and food, and municipal for most local business licences, zoning and signs. The free BizPaL search lists the permits for your activity and municipality in one place.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 13 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Starting a business — Government of Canada · accessed 13 October 2026
2. 2.Canada Business app — Innovation, Science and Economic Development Canada · accessed 13 October 2026
3. 3.BizPaL — permits and licences — BizPaL (federal, provincial, territorial and municipal governments) · accessed 13 October 2026
4. 4.When you need a business number or CRA program account — Canada Revenue Agency · accessed 13 October 2026
5. 5.Businesses: Go online to register for a business number or CRA program account — Canada Revenue Agency · accessed 13 October 2026
6. 6.When to register for and start charging the GST/HST — Canada Revenue Agency · accessed 13 October 2026
7. 7.Report business income and expenses (Form T2125) — Canada Revenue Agency · accessed 13 October 2026
8. 8.Services, fees and processing times — Corporations Canada (ISED) · accessed 13 October 2026
9. 9.Register a business name (trade name and partnership) — Government of Alberta · accessed 13 October 2026
10. 10.Get started with Futurpreneur — Futurpreneur Canada · accessed 13 October 2026