How to Register a Business in Canada

Starting a business in Canada is an exciting milestone — but before you open your doors, you need to make sure your business is properly registered. The registration process varies depending on your business structure, province, and whether you want federal or provincial registration. This guide walks you through the key steps.

Step 1: Choose Your Business Structure

Before registering, decide how your business will be legally structured. Your options include:

  • Sole Proprietorship: Simplest and cheapest to register; you and the business are legally the same entity.
  • Partnership: Two or more people share ownership and liability.
  • Corporation: A separate legal entity that offers liability protection and tax advantages.
  • Cooperative: A member-owned organization structured around shared goals.

Your choice will determine which registration steps apply to you.

Step 2: Choose and Search Your Business Name

Your business name must be unique and not misleading. Before registering, conduct a NUANS (Newly Upgraded Automated Name Search) report to ensure your desired name isn't already taken. This is especially important for corporations. Sole proprietors operating under their own legal name may not need a formal name search.

Step 3: Register Provincially or Federally

You have two main options for registration:

  • Provincial Registration: Required if you plan to operate only within one province. Each province has its own registry (e.g., Ontario's ServiceOntario, BC Registry Services, Alberta's CORE system).
  • Federal Registration: Handled through Corporations Canada. Offers name protection across all provinces but requires extra-provincial registration in each province you operate.

Most small businesses start with provincial registration. If you plan to expand nationally, federal incorporation may be a better fit.

Step 4: Obtain a Business Number (BN)

Once registered, you'll need a Business Number (BN) from the Canada Revenue Agency (CRA). This 9-digit number is your unique identifier for all federal tax accounts, including:

  • GST/HST
  • Payroll deductions
  • Corporate income tax
  • Import/export accounts

You can register for a BN online through the CRA's Business Registration Online (BRO) service, by phone, or by mail.

Step 5: Register for Provincial Taxes and Licenses

Depending on your province and industry, you may also need to:

  • Register for provincial sales tax (PST in BC, Manitoba, and Saskatchewan; QST in Quebec)
  • Obtain a municipal business license
  • Apply for industry-specific permits or certifications

Step 6: Open a Business Bank Account

While not a registration requirement, opening a dedicated business bank account is strongly recommended. It simplifies bookkeeping, makes tax time easier, and keeps your personal and business finances separate.

Key Takeaways

  1. Choose your structure before registering — it affects your liability, taxes, and compliance obligations.
  2. Search your business name before committing to it.
  3. Decide between provincial and federal registration based on your growth plans.
  4. Register for a Business Number with the CRA as soon as possible.
  5. Check for additional provincial or municipal licensing requirements.

Getting your business registration right from the start saves you time, money, and headaches down the road. If you're unsure which path is right for you, consult a lawyer or accountant familiar with Canadian business law.