You want to start your own business in the beautiful province of Ontario and not sure where to start? You're at the right place. At Little Dragon Media, we know a thing or two about registering a new business in Ontario, as we've been working with new Ontario business owners for over a decade now, helping them kickstart their marketing efforts with services such as Google Ads and SEO campaigns.

NOTE: We recommend Ownr by RBC to register and incorporate your business. Read our review of Ownr.

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Registering and incorporating a new business in Ontario involves several steps to ensure your business is properly set up and compliant with federal, provincial, and municipal regulations. Here's a simplified guide for those willing to take the plunge:

Choose a Business Structure:

Choosing your business structure is an important part of registering your business. This isn't a decision to be taken lightly, as the structure you choose will affect your taxes, liability, and day-to-day obligations. I highly recommend speaking to a business lawyer and accountant if you are unsure. Here are the most common business types in Ontario:

The most common structures include:

1. Sole Proprietorship: The business is not separate from the owner, meaning income and losses are generally reported on the owner's personal tax return.
2. Partnership: Involves two or more people. Profits and losses generally flow through to the partners and are reported on their personal tax returns.
3. Corporation: A corporation is a separate legal entity, which can provide liability protection and may offer tax-planning advantages depending on your situation.
4. Co-operative: Less common for small local businesses, but still an option in Ontario depending on how you want the business to be owned and governed.

If you are unsure which business structure to choose, I strongly recommend that you contact a business lawyer and set up a consultation to discuss your specific business model, goals, and risk profile.

Business Name Registration:

Choose a unique business name and check its availability through the Ontario Business Registry. Ontario also allows you to manage many filings online through your Ontario Business Account.

Register your chosen business name if it's different from your legal name. This is commonly required for sole proprietorships and partnerships operating under a business name.

While you're at it, you should register your domain name as well if you plan to launch a website for your brand. I generally recommend .com or .ca domain TLDs for Canadian businesses, depending on whether they plan to target Canadian or international markets. You can use a service like GoDaddy to register your domain name. The CIRA is also a great resource for Canadian domains.

Register for an HST/GST Number:

Determine if your business needs to collect and remit the Harmonized Sales Tax (HST) or the Goods and Services Tax (GST). In general, many businesses must register once they exceed the small supplier threshold, while others may choose to register voluntarily earlier. You can register through the Canada Revenue Agency.

Business License:

This may or may not apply to you. When starting a business, it's always recommended to verify whether you need a municipal business license or permit. This requirement can vary based on your business type, location, and local regulations. Here's a more detailed explanation:

• Local Regulations: Each municipality has its own rules and regulations for businesses. These can differ significantly from one area to another.
• Type of Business: Certain types of businesses, such as food services, health services, and construction, often have specific licensing requirements.
• Operating Legally: A municipal business license or permit helps ensure you're operating within the legal framework of your city or region. It's a form of regulation that helps maintain public safety and standards.
• Application Process: To obtain a license, you typically need to apply through your local city hall or municipal office. This process may include submitting business details, paying a fee, and passing inspections.
• Renewal and Compliance: Licenses and permits often have expiration dates, requiring regular renewal. Staying compliant with local laws and regulations is crucial to avoid fines or business closure.

Business Number (BN):

If you plan to hire employees, register for a Business Number (BN) with the CRA. This number is used for various federal programs, including payroll deductions.

Register with the Workplace Safety and Insurance Board (WSIB):

If you have employees, you may need to register with the WSIB to provide workplace insurance coverage for your workers in case of injuries or accidents. This helps protect workers in case of injuries or illnesses related to their work. Here's a general overview of the types of businesses that commonly need to look into WSIB registration:

• Employers with Workers: If you have employees, including full-time, part-time, seasonal, or contract workers, you may need to register depending on your industry and circumstances.
• Construction Industry: Businesses in the construction industry are commonly required to register with the WSIB. This includes general contractors, subcontractors, builders, and tradespeople involved in construction projects.
• Manufacturing and Industrial Businesses: Companies engaged in manufacturing, production, or industrial activities often need to register.
• Retail and Service Businesses: Retailers, restaurants, hotels, and businesses in the service industry with employees should verify whether registration is required.

Open a Business Bank Account:

One of the best things you can do from a tax and bookkeeping perspective is to separate your business finances from your personal finances by opening a dedicated business bank account. This makes accounting and financial management much easier. I also highly recommend hiring an accountant early on so you don't end up dealing with avoidable tax headaches later.

Pro tip: you can often hire a part-time accountant or bookkeeping firm for a relatively reasonable monthly cost, especially when your business is just getting started.

Register for Payroll Deductions (if applicable):

If you hire employees, you'll need to register for payroll deductions with the CRA. This involves deducting income tax, Canada Pension Plan (CPP), and Employment Insurance (EI) contributions from employees' paycheques.

Register for Import/Export (if applicable):

If your business involves importing or exporting goods, you may need to register with the Canada Border Services Agency (CBSA) and obtain the necessary permits and licenses.

Comply with Health and Safety Regulations:

Ensure your business complies with health and safety regulations specific to your industry. This may involve workplace inspections and obtaining relevant permits.

Get Business Insurance:

Consider obtaining business insurance to protect your business from potential risks, including liability insurance, property insurance, and other types of coverage.

Business Planning:

Create a comprehensive business plan that outlines your business objectives, strategies, target market, financial projections, and more. A well-thought-out plan can help guide your business's growth and success. Your business plan can also help you acquire funding and/or government grants if needed.

Ontario New Business FAQ

1. Who can register a business in Ontario? Eligibility depends on the type of business you are starting, but many Ontario businesses can be registered online through the Ontario Business Registry.
2. What are the benefits of registering a business in Ontario? Registering a business in Ontario can help you operate under a business name, set up tax accounts properly, and create a more formal legal and operational foundation for growth.
3. Is it necessary to register my business in Ontario? It depends on your structure and how you operate. For example, using a business name other than your personal legal name often requires registration. This is separate from GST/HST registration, which is tied to tax rules and revenue thresholds.
4. When should I register my business in Ontario? In my opinion, it makes sense to register as early as possible once you've decided on your structure and name. That way, you can open accounts, handle compliance properly, and avoid unnecessary delays.
5. How long does it take to register a business in Ontario? Timing varies depending on the business type and the filing method you use. Many online registrations can be completed fairly quickly, while incorporations and more complex filings can take longer.
6. What information is required to register a business? This usually includes your business name, address, contact information, ownership details, and in some cases supporting legal documents depending on the structure you choose.
7. How do I register my business name? You should first make sure your desired business name is available, then complete the registration through the Ontario Business Registry or an authorized service provider.
8. What types of business registrations are available in Ontario? Ontario business owners commonly choose between a sole proprietorship, partnership, corporation, or in some cases a co-operative.
9. How do I register a sole proprietorship or partnership in Ontario? In most cases, both involve registering a business name and filing the required information through the Ontario Business Registry.
10. What is the cost to register a sole proprietorship or partnership in Ontario? Costs can change over time, so I recommend checking the current official Ontario fee schedule or confirming pricing directly with the service provider you plan to use.
11. How do I incorporate a business in Ontario? Incorporation generally involves choosing a name, preparing and filing Articles of Incorporation, and maintaining proper corporate records. You can do it directly or use a service like Ownr if you want a simpler online process.
12. Do I need to register my business with the Canada Revenue Agency (CRA)? You may need CRA program accounts depending on your situation, such as GST/HST, payroll, or corporate tax accounts. The exact requirements depend on your structure and revenue.
13. How do I get financing for my business in Toronto or anywhere in Ontario? There are various government programs, grants, and local business loans in cities such as Toronto, Mississauga, Ottawa, Sudbury, London, Windsor, and Hamilton that may be worth exploring depending on your situation and industry.

Amine Rahal

Tech Entrepreneur, Author, and CEO of Little Dragon Media. Passionate about entrepreneurship, philanthropy, digital marketing, blockchain, finance, investing, health fitness & nonprofits.