How to Register a Business in Canada (Federal or Provincial)
Registering in Canada is fast: choose sole proprietorship, partnership, or corporation; pick federal (Canada-wide name protection) or provincial (cheaper, faster); reserve a name; and file online. The CRACanada Revenue Agency — Canada's tax agency. It administers income tax, benefits like the GST/HST credit, and CRA My Account.Click for official info ↗ then issues a business number you extend into GST/HST and payroll accounts.
The Steps
Follow these in order
Each card shows the phase, expected time, and any cost. Data checked against official CAN sources(2025-Latest).
0 of 7 steps
- Before You Go 1–2 hours of research
Choose the business structure
Sole proprietorship: cheapest, income taxed on your personal return, unlimited personal liability. Partnership: shared liability. Corporation: separate legal entity, limited liability, and often lower tax on profits kept in the company (small-business rate ~9–13% federally+provincially in 2025). Most consultants start sole proprietor then incorporate once profits justify ~$1,500/year in accounting costs.
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- Before You Go 30 min
Choose federal or provincial
Federal incorporation ($200 online, Corporations Canada) protects your name Canada-wide and lets you operate anywhere, but requires extra provincial registration where you operate. Provincial incorporation (e.g., Ontario ~$300 online, BC ~$350) is simpler and fine if you stay in one province. Registering a sole proprietorship is trivial — often online the same day, under $100.
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- Go 1 hour
Run a name search (NUANS)
Incorporations need a NUANS report ($13.75 federal / ~$8–20 provincial) showing conflicts with existing names and trademarks. Pick 2–3 backups. Sole proprietorships operating under a personal name (Jane Doe Consulting) need nothing; a separate trade name just needs a provincial name registration. Avoid names implying government ties or restricted words (Royal, Bank) — these trigger manual review.
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- Fill / Prepare 1–2 hours
File the incorporation or registration
Federal: file through Corporations Canada online with your articles, director list, and registered office. Ontario/BC/Alberta: provincial registries or a service provider (e.g., OnCorp, registries). You get a certificate of incorporation (or master business licence for sole proprietors) usually within 1–5 business days. Foreign-owned companies can incorporate federally — non-resident directors are allowed federally (some provinces require a resident director).
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- Submit & Pay 1 hour
Get your CRA business number and accounts
Within days the CRACanada Revenue Agency — Canada's tax agency. It administers income tax, benefits like the GST/HST credit, and CRA My Account.Click for official info ↗ auto-issues a 9-digit business number (BN). Register for the accounts you need: GST/HST (required over $30,000 worldwide revenue in 4 quarters — voluntary earlier lets you claim input credits), payroll (before your first employee), and import/export. All free via the CRACanada Revenue Agency — Canada's tax agency. It administers income tax, benefits like the GST/HST credit, and CRA My Account.Click for official info ↗ Business Registration Online portal.
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- Follow Up 2–3 hours
Open a business bank account
Corporations MUST keep finances separate (courts pierce the veil when personal and corporate money mix). Most banks offer low-fee small-business accounts ($10–$30/month); bring your certificate, article of incorporation, and ID. Also confirm whether your industry needs a municipal business licence (restaurants, trades, home businesses in many cities).
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- Receive —
Stay compliant
Corporations file an annual return with the registry (federal: $12/year) plus a T2 corporate tax return within 6 months of fiscal year-end, and keep a minute book of shareholder resolutions. Sole proprietors just file their personal return with Form T2125. Set calendar reminders — the registry can dissolve corporations for missed annual filings.
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FAQ
Frequently Asked Questions
Can I start a business in Canada as a non-resident?
Yes, you can incorporate and own shares in a Canadian company from abroad — federal incorporation allows non-resident directors. But owning a company does NOT grant you any work or residency status: to actively run it inside Canada you need a work permit or PR.
When must I register for GST/HST?
Once your worldwide taxable revenue exceeds $30,000 in a single calendar quarter or over four consecutive quarters. Registering earlier can be smart — you recover GST/HST paid on startup costs but must charge tax on sales from day one.
Sole proprietorship or corporation for consulting?
Start sole proprietor while validating: it is free–cheap, income is reported on your T1, and losses offset other income. Incorporate when profits exceed your salary needs (~$80–120k) so surplus is taxed at the small-business rate instead of your top marginal rate.
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