How to Register a Business in Canada (Federal or Provincial)
Registering a business in Canada is fast. First, choose your structure: sole proprietorship, partnership, or corporation. Next, pick federal or provincial registration. Federal protects your name across Canada. Provincial is cheaper and faster. Then reserve a name and file online. The CRACanada Revenue Agency — Canada's tax agency. It administers income tax, benefits like the Canada Groceries and Essentials Benefit (formerly the GST/HST credit), and CRA My Account.Click for official info ↗ then gives you a business number. You add GST/HST and payroll accounts to it.
At a glance
- Cost:
- $60–$300 registration; $200 federal incorporation (2026 fees)
- Total time:
- 1–5 business days for registration
- Steps:
- 7 steps
- Where to apply:
- canada.ca
Last reviewed October 2026 against official sources. Re-checked annually · next review due October 2027.
The Steps
Follow these in order
Each card shows the phase, expected time, and any cost. Data checked against official CAN sources(October 2026).
0 of 7 steps
- Before You Go 1–2 hours of research
Choose the business structure
Sole proprietorship: the cheapest option. The income is taxed on your personal return. You carry unlimited personal liability. Partnership: you share the liability. Corporation: a separate legal entity, with limited liability. Tax is often lower on profits you keep in the company. The small-business rate was ~9–13%, federal and provincial combined, in 2025. Most consultants start as sole proprietors. They incorporate later, when profits cover the extra cost. Accounting costs about ~$1,500/year.
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- Before You Go 30 min
Choose federal or provincial
Federal incorporation costs $200 online, through Corporations Canada. It protects your name across Canada and lets you operate anywhere. But you must also register in each province where you operate. Provincial incorporation is simpler. For example, Ontario is ~$300 online, and BC is ~$350. It is a good choice if you stay in one province. Registering a sole proprietorship is very simple. It is often done online the same day, for under $100.
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- Go 1 hour
Run a name search (NUANS)
Incorporations need a NUANS report. It costs $13.80 federal, or ~$8–20 provincial. The report shows clashes with existing names and trademarks. Pick 2–3 backup names. A sole proprietorship that uses your personal name, like Jane Doe Consulting, needs nothing. A different trade name only needs a provincial name registration. Avoid names that suggest a link to the government. Avoid restricted words, like Royal or Bank. These trigger a manual review.
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- Fill / Prepare 1–2 hours
File the incorporation or registration
Federal: file online through Corporations Canada. Send your articles, your director list, and your registered office. Ontario, BC, and Alberta: use the provincial registry, or a service provider like OnCorp. You usually get a certificate of incorporation within 1–5 business days. Sole proprietors get a master business licence. Foreign-owned companies can incorporate federally. But under the Canada Business Corporations Act, at least 25% of directors must be resident Canadians. If the board has fewer than 4 directors, at least one must be a resident Canadian. Ontario dropped its own resident-director rule in July 2021.
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- Submit & Pay 1 hour
Get your CRA business number and accounts
Within days, the CRA sends you a 9-digit business number (BN). It comes automatically. Register for the accounts you need. GST/HST is required once your worldwide revenue passes $30,000 in 4 quarters. You can register earlier if you want. Early registration lets you claim input credits. You need a payroll account before your first employee. There is also an import/export account. All of this is free, through the CRA Business Registration Online portal.
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- Follow Up 2–3 hours
Open a business bank account
Corporations MUST keep business money separate from personal money. Courts ignore the company shield when the two mix. Most banks offer low-fee small-business accounts, at $10–$30/month. Bring your certificate, your articles of incorporation, and your ID. Also check if your industry needs a city business licence. Many cities require one for restaurants, trades, and home businesses.
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- Receive —
Stay compliant
Corporations file an annual return with the registry. The federal fee is $12/year. They also file a T2 corporate tax return within 6 months of the fiscal year-end. And they keep a minute book of shareholder resolutions. Sole proprietors simply file their personal return with Form T2125. Set calendar reminders. The registry can dissolve a corporation that misses its 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 a Canadian company from abroad and own shares in it. But federal rules say at least 25% of directors must be resident Canadians. If there are fewer than 4 directors, at least one must be a resident Canadian. Owning a company does NOT give you any work or residency status. To run it in person inside Canada, you need a work permit or PR.
When must I register for GST/HST?
You must register once your worldwide taxable revenue goes over $30,000. This can be in a single calendar quarter, or over four quarters in a row. Registering early can be smart. You get back the GST/HST you paid on startup costs. But you must charge tax on your sales from day one.
Sole proprietorship or corporation for consulting?
Start as a sole proprietor while you test the idea. It is free or cheap. You report the income on your T1. Losses reduce your other income. Incorporate when your profits go past your salary needs, about ~$80–120k. Then the extra profit is taxed at the small-business rate, not at your top personal rate.
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