How to register a Business in Canada.

Registering a business in Canada as a Canadian resident opens up all possible formats of business registration. To start a business, the preliminary step is to register it with the Government but before that you need to decide your business structure and a name for your business.
In Canada, businesses are registered as sole proprietorships, partnerships or corporations. Which business structure out of theses ones is right for you depends on your requirement and type of business activities.

Register a business as Sole proprietorship, Partnership or a Corporation -  Which is the right choice.

Sole proprietorship: This is the simplest way to run your business. Sole proprietorships are owned and run by yourself without a legal distinction between you and the business. Due to the lack of legal distinction, you receive all the profits personally and report these profits on your personal income tax return. You’re also personally liable for any risks you assume in your business.
If you are the single owner staring a business in a simple way then Sole proprietorship is the right choice of business registration. When you business and customer base expands you may convert it to a corporation.
Partnership: A partnership is run by two or more people. Each partner contributes money, labor, property, and other assets and is entitled to a share of the profits. You and your partner might draft a partnership agreement that dictates how profits are shared, responsibilities are divided, and more. You should inquire with a lawyer to draft such a document.
Corporation: This structure requires you to register or incorporate your business. Incorporation creates a separate legal entity, meaning that the company can take risks without affecting you personally. The corporation would also have its own legal contracts and tax returns distinct from yours. If you incorporate your business, you become the business’ shareholder.

 

Choosing a name for your business

Your business’ name is its identity. It’s an important marketing asset and determines how people find your company through search engines.
Using a common word as a name could create issues when people try to find you online. Other businesses, unrelated news articles, or memes might turn up instead. Before deciding on a name, you should also check whether website domains and social media handles are available.

How do I register a business for free and is it necessary to involve a third party to do it for you.
Except a sole proprietorship operating under the owner’s personal name, all businesses in Canada will have to go through a business registration process.

There is absolutely no requirement for a third part to get involved in the registration process. All third party business websites offering business registration services are nothing much other than filling online registration forms with the Government which is open and accessible to the public. There is absolutely nothing more that you cannot do directly with the Government that these third party registration sites can do. If you are comfortable to read and digest the instructions and help sections, you can register your business in any province in Canada. All you need to do is to follow the registration rules and complete the registration online from the Provincial Government registry website.

Register a business in Canada - Where to start and complete the registration process.

Registering a business in Canada, no matter in which Province you are aiming at, involves these simple steps:

1. Deciding on a name for the business. This name must be unique in such a way that your name won’t confuse the public with one business for another. In other words, your business name must be distinct from other business names, at least from business with same products or services.
2. Search business names in the Canadian corporate names and trademark databases to find if similar names exists which are potential conflicts. Once satisfied with your business name, many Provincial registries allow you to reserve it for a definite period of time, in the range of 50 days to 90 days, during which you can proceed to register your business with that name.
3. Afterwards, you would register your business with the name with your province’s business registry

All these steps are extremely simple and can be completed online from Government websites.

How much it costs to register a business
Incorporating federally costs between $200 and $250. Provincial incorporations vary by province. For example, incorporations in British Columbia or Ontario cost around $300 to $350.
Sole proprietorships and partnerships incur less registry fees usually in the range 0f $40 to $100.

Why should you consider Incorporating your business?
Although it cost more, incorporating a business make sense in many situations.

Incorporation provides many benefits, including business legitimacy and protecting your personal assets. If a client sues your business, your personal properties are protected from the lawsuit. A lawsuit against your company can only claim as much as your business owns and not what you personally own. In contrast, if you decide not to incorporate, you could be personally liable for any lawsuits against your business. Many entrepreneurs use a corporation to mitigate their risks to lawsuits.
Once your business is registered or incorporated, the next step would be to register with Canada Revenue Agency for business number and tax numbers namely GST, HST, PST etc. based on the provincial tax rules.

How do I register a Business number, GST/HST number?
For GST/HST Numbers, Payroll accounts, import export accounts and so on, just contact Canada Revenue Agency by phone. It is free service, In Most cases, a business number is automatically generated for you along with your business registration with the Provincial Registry or the Federal system.
You can register for a GST/HST number online, by fax or mail, or by telephone. Any business that makes over $30,000 a year has to register for a GST/HST number and collect the affiliated sales taxes, depending on the province. If your business is under $30,000 of revenue, you can still register for a GST/HST number, but it’s not mandatory.
As a GST/HST registrant, you’ll also have to complete and regularly file a GST/HST return and remit your collected sales tax to the government. On the brighter side, you can usually claim back the GST/HST you’ve paid on business purchases.

Is it really required to register your business ?
It’s entirely possible to start a business in Canada without any form of registration. However, it comes with severe limitations. You would have to do the following:
• Use your own name as your business name.
• Maintain revenues under $30,000. As long as your revenues are under $30,000 per year, you remain a small supplier and are not required to collect GST/HST unless you choose to register.

How to Register a Business in a Province – Where to begin for ‘Do-it-yourself

Alberta: For Information about starting a business in Alberta, visit the Official Service Alberta website. The other option is to visit an Alberta Registry office located throughout the province. Service Alberta website provides additional information to entrepreneurs: https://www.alberta.ca/service-alberta.aspx

British Columbia: If you are considering the British Columbia province for starting a business in Canada, all the information you need is on the British Columbia official website called BC Online: https://www2.gov.bc.ca/gov/content/employment-business/business/managing-a-business/starting-a-business

Manitoba: The procedures to be followed in Manitoba, just as in other provinces, are different. You need to request a name reservation and approval, complete the Articles of Incorporation and provide other relevant information to the Manitoba Companies Office: https://www.gov.mb.ca/business/startingsmart/index.html

New Brunswick: if you are starting a business in Canada in the New Brunswick province, the procedures to be followed are filling out forms, payment of fees, and submittin forms to the Corporate Registry. Use the Corporate Registry division of the Service New Brunswick website for more details you may visit the Government website: https://www2.snb.ca/content/snb/en/sites/corporate-registry.html

Newfoundland and Labrador: There are three file forms to be filled, forms 24, 25, and 26. The Newfoundland and Labrador province website has detailed information on starting a business: https://www.findnewfoundlandlabrador.com/invest/doing-business-in-nl/setting-up-a-business/

Northwest Territories: Another best place to start a business in Canada is the Northwest Territories.  Submit the name of your business for approval with Corporate Registries, provide a certificate of compliance/ good standing, and pay the registration fees: https://www.investnwt.com/sites/default/files/howtostartbusinessnwt.pdf

Nova Scotia: Apply through Access Nova Scotia Centre. The rest of the procedure is listed on the Nova Scotia website or Access Nova Scotia from where you can submit name for approval as well as complete the registration process: https://novascotia.ca/sns/access/business/ready-register-business.asp

Nunavut: Visit the website of Nunavut Territory, for your business name approval and complete the process with the Corporate Registries office, and make payment: https://atuqtuarvik.com/financing/starting-business

Ontario: As stated on the Ontario website, it is required to register your business name and this registration must be renewed every five years in Ontario. Make the payment, and the acquired business registration document (previously known as Master business License) should be proof of name registration. The Ministry of Finance should be contacted to ensure registration.

Prince Edward Island: Visit Prince Edward Island website for more information. (note that the link may redirect your search to the latest extra-provincial resources because they often update their documents).

Quebec: In case you don’t speak or understand French, employ a French translator. Navigate the Démarrer une entreprise service, which is only provided in French. Check the Quebec website for more information.

Saskatchewan: When starting a business in Canada for foreigners and looking at operating from Saskatchewan, just visit the official Saskatchewan website for detailed information on how to go about it.

Yukon: Visit the Yukon website and then submit a Name Reservation form and a Periodic Report (if applicable).

If you wish to avoid the hassle and technicality of the registering process, click the button below. Your business will be registered and you will receive the Government documents today.