Career Advice Detail

Starting a business in Canada is a great way to enter the country’s strong economy and benefit from its business-friendly environment. Whether you're a local entrepreneur or a foreign investor, you can register a company in Canada entirely online. This guide will walk you through the process, requirements, costs, and best practices.

Why Register a Business in Canada?

✅ 100% Foreign Ownership – Non-residents can own Canadian businesses (except for certain regulated industries).

✅ Strong Economy – Canada ranks among the best countries for business growth and innovation.

✅ Easy Online Registration – The entire process can be done online from anywhere in the world.

✅ Access to Global Markets – Canada has trade agreements with the U.S., Europe, and Asia, making it a great hub for international business.

Step 1: Choose a Business Structure

Before registering your company, you must decide on a legal structure. The three main types are:

1️⃣ Sole Proprietorship

✔ Best for solo entrepreneurs

✔ Easy & low-cost registration

✔ Business income is taxed as personal income

✔ Personal liability for business debts

2️⃣ Partnership

✔ Best for two or more people starting a business together

✔ Shared profits, losses, and responsibilities

✔ General Partnerships (all partners share liabilities) or Limited Partnerships (one partner has limited liability)

3️⃣ Corporation (Recommended for Foreign Investors & High-Growth Businesses)

✔ A separate legal entity from the owners

✔ Limited liability (personal assets are protected)

✔ Can raise capital by selling shares

✔ Tax advantages & credibility for investors

Which is best? If you're a foreign investor, a corporation is usually the best option as it offers liability protection and makes it easier to get work permits and permanent residency.

Step 2: Choose a Business Name & Check Availability

Business Name Rules:

✅ Must be unique and not similar to existing businesses

✅ Can be in English or French

✅ Must end with “Inc.,” “Ltd.,” or “Corp.” if incorporated

How to Check Name Availability:

1. Use NUANS Name Search (NUANS Website)
2. Check the Corporations Canada database (Corporations Canada)
3. If using a sole proprietorship, you can use your own name (e.g., "John Smith Consulting")

Pro Tip: You can also register a numbered company (e.g., "1234567 Canada Inc.") if you don’t need a custom name.

Step 3: Register Your Business Online

✅ Federal vs. Provincial Registration

• Federal Incorporation: Registering with Corporations Canada allows you to operate in all provinces.
• Provincial Incorporation: Required if you only plan to operate in one province (e.g., Ontario, British Columbia).

Online Registration Portals

Federal Registration: Corporations Canada Online

Ontario Business Registration: Ontario Business Registry

British Columbia: BC Registries

Alberta: Alberta Corporate Registry

Registration Fees:

• Sole Proprietorship: $60 - $80 CAD (varies by province)
• Corporation (Federal): $200 CAD
• Corporation (Provincial): $300 - $400 CAD

Step 4: Get a Business Number (BN) & Tax Registration

Once registered, you’ll receive a Business Number (BN) from the Canada Revenue Agency (CRA). This is required for:

✔ Opening a business bank account

✔ Filing taxes

✔ Registering for GST/HST (Goods & Services Tax/Harmonized Sales Tax) if revenue exceeds $30,000 CAD/year

Apply for a Business Number Here: CRA Business Registration

Step 5: Open a Business Bank Account in Canada

To operate your business, you’ll need a Canadian business bank account. If you're a non-resident, you might need to visit Canada in person or work with a financial institution that offers remote account setup.

Top Banks for Business Accounts:

✅ RBC – RBC Business Banking

✅ TD Bank – TD Business Banking

✅ Scotiabank – Scotiabank Business

✅ CIBC – CIBC Business

Step 6: Apply for Business Licenses & Permits

Certain industries require additional permits & licenses, such as:

✔ Restaurants (Food & Beverage License)

✔ Import/Export Businesses (Customs License)

✔ Construction Companies (Trade Licensing)

Check License Requirements Here: BizPal Canada

Step 7: Apply for a Work Permit (For Foreign Business Owners)

If you're a non-resident and want to actively manage your business in Canada, you may need a work permit.

Best Options for Business Owners:

✅ Owner-Operator LMIA – If you're buying an existing business

✅ Start-Up Visa – If you're launching an innovative startup

✅ Intra-Company Transfer (ICT) – If expanding an international business to Canada

Apply for a Work Permit: IRCC Work Permits

Final Thoughts & Next Steps

Key Takeaways:

✔ Choose the right business structure (Corporation is best for foreign investors)

✔ Register your business online at the federal or provincial level

✔ Obtain a Business Number (BN) and register for taxes

✔ Open a business bank account in Canada

✔ Apply for licenses & work permits if needed

Ready to start your Canadian business?

✅ Register now: Corporations Canada Online

✅ Get a Business Number: CRA Business Registration

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