How to register a business in Canada

Buisness

How to register a business in Canada

How to register a business in Canada – If you are in Canada and looking to start a small business, this guide will walk you through every necessary detail and procedure to get started.

The ideal thing to do is to register your business with the Canadian government, this will get you the necessary approval to run and operate a business with every legal requirement.

What should I consider before I register a business in Canada?

If you ask the right questions, you are likely to avoid possible pitfalls going into business in Canada, kindly take a careful look at some questions you may find answers for ahead.

1. Where do you intend to site your main business office?

2. Do you plan to operate in other provinces or territories, if yes, I’ll advice you go with Federal incorporation.

3. You should have a proposed business in mind.

4. Have you cared to understand the type of business that best suits your needs? These include; 

Sole Proprietorship, Partnership, Corporation, or Corporative as the case may be.

Choose a business name

To get started, you are required to choose a business name, however, be sure your preferred name meets the following metrics; The name should reflect the product or service you intend to offer, pick a name that is easy to pronounce, as well as memorable, your business name should be unique and must not interfere with that of an existing business, this will save you legal tussles.

Haven chose a name, find out if it has been taken, if yes, kindly drop it and search for something else.

Be sure to check if your preferred business name has a website domain and social media handles available since this is the promotional phase of your business considered necessary as well.

How do I register my business name in Canada?

All businesses in Canada must be registered as a rule, except Sole Proprietorship which allows you to use your name as the business name. You can start your business name registration on the Canadian corporate names and trademarks database.

Businesses are registered according to the province or location you are looking to operate, and to search and register a business in different provinces attracts certain fees.

How to incorporate your business

Incorporation of business with the Canadian government refers to filing your articles of incorporation.

If you choose the Federal incorporation, it provides better name protection, as well as the ability to do business across the country without further registrations irrespective of the province.

Federal incorporation comes with a lot of paperwork, however, incorporation with a province status is straightforward, however, provides limited protections.

Provincial incorporation also requires you to register in each province you are looking to do business with, unlike Federal incorporation, provincial incorporation offers less protection as well as less area of business coverage.

Both the Federal and Provincial incorporations cost a few boxes, Federal incorporation goes for $200 to $250, where Provincial incorporation differs according to Province.

If you are looking to register a complex business, kindly get the help of a corporate Lawyer, you can incorporate Federally through the Government of Canada website.

What do you stand to benefit from as an incorporated business?

  • Protection of personal assets and business legitimacy, in case your business gets sued
  • A lawsuit against the company can only claim as much as the business owns, where you could be personally liable for any lawsuits against your business if the business is not incorporated.
  • However, with the right business insurance, you can retain similar protection if you choose not to incorporate it.

How to register a GST/HST number

By law, any business that makes over $30,000 a year is liable to register for the GST/HST number and collect the affiliated sales taxes, this, however, depends on the province.

A GST/HST number is part of a business number required in Canada.

Businesses under $30,000 a year can still register for the GST/HT, however, it’s not compulsory to do that. You are mandated to always remit your collected sales tax to the government as a registered business.

Read how to register a GST/HST number step by step.

Can I register a business in Canada as a foreigner?

If you want to start a brand new business in Canada but you live abroad, there’s no need to immigrate to Canada. The In Investment Canada Act was designed to govern non-Canadians who choose to establish a new Canadian business, as well as acquire control of a Canadian business.

What is required for business in Canada?

When establishing a business in Canada, a non-resident should decide whether to conduct its business in Canada through a branch or a Canadian subsidiary. General considerations include; capital taxes, taxation of individuals, tax matters for partnerships, joint ventures, and sales and commodity taxes.

How much does it cost to register a company in Canada?

It costs $250 and will take 30 days. However, the prices vary according to Federal or Provincial incorporation.

Do I need to register a business in Canada?

Most businesses are required to register with the provinces and territories where they plan to do business. However, in some cases, sole Proprietorships operating under the name of the business owner do not need to register.

Can I immigrate to Canada by starting a business?

There’s a permanent residence under the Business Immigration Program. Both the Federal and Provincial governments welcome business immigrants and offer services to help immigrants start a business and settle in Canada. You will need to apply under the start-up business class.

Can I do business in Canada without PR?

You do not have to be a Canadian Permanent Resident or citizen to register your company in Canada, however, you are not allowed to work in your business without having a legal work permit.

How much money do I need to start a business in Canada?

While it can be possible to start a business in Canada without money, it is often much more difficult to navigate.

It depends on the type of business you wish to start, but most businesses do require $5,000 to $10,000 to start.

What are the types of business structures in Canada?

There are four types of business structures, however, choose what suits you

  • Sole Proprietorship
  • Partnerships
  • Corporations and
  • Cooperatives

Conclusion

There you have it on how to register a business in Canada, you can either incorporate on the Federal or provincial level, however, understand that Federal incorporation comes with a lot of protections as well as allows you to carry out your business in any province, while Provincial incorporation limits your business to a province.

Follow financengr on Twitter

Subscribe via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.