The process of establishing a small business is both thrilling and frequently daunting. Such inquiries as “How to register a business in Ontario?” are among the many that must be contemplated. Furthermore, “How do I obtain an original certificate of my Ontario business registration certificate?” A substantial amount of documentation and legal verbiage may initially appear to be in the way, which can be quite daunting. Remember that you are not alone: over half of the over one million firms registered in Canada are small enterprises in Ontario. These small businesses employ over 10 million people, or nearly two-thirds of the entire labour force in Canada. If you want to become a successful entrepreneur, we’ll show you how to register a business in Ontario.
How to Register a Small Business in Ontario, Canada?
The process to register a small business in Ontario, Canada are listed below:
Market Research
Market research must be conducted in order to gain a deeper comprehension of the industry and market in which one intends to operate. Market research must be conducted in the subsequent sectors:
- Location
- Demographics
- Target Audience
- Business Name
- Online Presence
Make a comprehensive Business Plan
A business plan describes your business concept, immediate and long-term business goals, and the resources available to establish and run your company.
Determine your company’s ownership structure
In Ontario, there are four types of business structures, each of which serves a different legal and tax purpose.
- Sole Proprietorship: A sole proprietorship is a one-person business. It is the most frequent and easiest approach to starting a business. You can choose to incorporate later if your company grows.
- Corporation: A corporation is a legal entity that distinguishes a company from its owner. You may incorporate either federally or provincially, and each has benefits and drawbacks. If you opt to register your company at the provincial level, you can always switch to federal incorporation later.
- Co-operatives: A co-operative is a business that its members manage and organize. It can be set up as a for-profit or non-profit organization. It can be registered provincially or federally, much like a company, and each option has advantages and disadvantages.
- Partnership: A company that has two or more owners is a partnership. You can set up your limited partnership in Ontario.
Select a Business Name
Before you can register or incorporate your company, you must first choose a business name, and it is well worth your time to select one that is both original and memorable.
You should examine your proposed company names in the NUANS database of incorporated firms and the Canadian trademark database to confirm that they are not covered. When forming a firm in Ontario or federally, a NUANS report from a registered search company is also necessary. You can save money on search fees by pre-searching up to 30 unique names using OnDemand International.
In Ontario, you may incorporate a company with a name in both English and French. If you want to have an English and a French version of your company name, you must have a separate NUANS report for each. You may also include a translation of your company name in any other language.
Open a business bank account
Open a business account to isolate any of your business’s financial activities from your personal spending. It is a legal obligation for firms to have a bank account in their name. It is simple and quick to open a business bank account with ICICI Bank. You can apply online and acquire your business bank account number in less than 15 minutes.
Documents Requirement:
- Certificates and Articles of Incorporation/Certificate of registration
- Business Registration Number with Canada Revenue Agency
- Shareholder/ownership agreement, copy of share certificates, or letter from accountant or law firm confirming shareholders of Canadian entity and ultimate parent company
- Two IDs of each authorized signatory for the account (Passport, Driving License, PR Card or Pan card, etc.)
Acquire your business License
Many sorts of enterprises require certain licenses and permits. As previously stated, BizPal gives a comprehensive list of the licenses and permits you may require for your firm. You may narrow down the results by area, industry, and business activities. It is vital that you understand and secure the relevant licenses for your company.
A typical license necessary for sole proprietorships and partnerships is the registration of a business name (sometimes known as a Master Business License, or MBL). This part includes basic firm information such as its name, address, phone number, and a description of its activities.
Apply for GST/HST Number
You must also determine whether or not to apply for a GST/HST number. The CRA considers most sole proprietorships, partnerships, and corporations with total annual revenues of less than $30,000 to be small suppliers and are not required to collect GST/HST. You must register for a GST/HST number and begin collecting sales tax on all goods and services if your worldwide business revenues exceed $30,000 in a single calendar quarter or four consecutive quarters.
Read More: Set up a branch/subsidiary in Ontario of your parent company.
Benefits of Setting up a Business in Ontario
Some of the benefits for setting up a business in Ontario
- 1. Access to Major Markets: Ontario provides seamless access to North American markets, thanks to trade agreements such as CUSMA (Canada-United States-Mexico Agreement). Companies in Ontario can reach over 480 million consumers in North America.
- 2. Supportive Business Ecosystem: Ontario offers various resources, including small business development centers and incubation hubs that help startups thrive. According to Invest Ontario, the province invests billions annually in initiatives aimed at enhancing business infrastructure and technology.
- 3. Skilled Workforce: With more than 67% of Ontarians aged 25–64 holding a post-secondary degree or diploma, Ontario has a highly skilled and diverse labor pool.
- 4. Government Incentives and Grants: Small business grants and loans, particularly through the Ontario Small Business Support Grant and Canada Small Business Financing Program, provide financial assistance to help new businesses get established.
Documents Required to Incorporate a Business in Ontario
The essential documents required to incorporate your business in Ontario includes:
- Articles of Incorporation – The legal document required to establish a corporation.
- NUANS Report – To ensure a unique business name.
- Business Number Registration – To register for tax and payroll purposes.
- Corporate By-laws and Resolutions – Required by many financial institutions for bank accounts.
- Shareholder Agreements – If there are multiple stakeholders, a shareholder agreement is beneficial to establish roles and ownership.
Requirements to Start a Business in Ontario
Some of the essential requirements to start a business in Ontario are:
- Permits and Licenses: Based on your industry, you may require specific permits or licenses. The BizPaL service, a joint effort by the federal and Ontario government, simplifies the process by outlining the necessary permits based on your business type.
- Zoning Approval: For brick-and-mortar establishments, ensuring your business is in the correct zoning area as per municipal regulations is critical. You may need a municipal license as well.
- Insurance: Business insurance is strongly recommended, especially if you’re starting in fields with liability risks, such as food services or construction.
Best Businesses to Incorporate in Ontario
Some of the best business to incorporate in Ontario are mentioned below:
- Technology and Software Development: With Toronto being Canada’s tech hub, Ontario offers ample opportunities for software companies, app developers, and tech startups.
- Real Estate and Property Management: The high demand for real estate services makes property management and real estate investing lucrative businesses in Ontario.
- Healthcare and Wellness: Health and wellness services are rapidly expanding. There is strong demand for mental health services, physiotherapy clinics, and wellness coaching.
- Green Energy and Sustainability: Ontario’s government encourages eco-friendly initiatives, making green energy solutions a prosperous business choice.
Small Business Grants in Ontario
Ontario provides a variety of grants to support small businesses at different stages of growth. Here are a few key programs:
- Ontario Small Business Support Grant: This grant offers up to CAD 20,000 to eligible small businesses to help cover expenses and keep operations running smoothly.
- Starter Company Plus: This program provides mentorship and up to CAD 5,000 in funding for new businesses, including guidance on business planning and marketing.
- Digital Main Street Grant: Ideal for businesses transitioning online, this grant provides up to CAD 2,500 to adopt digital technology solutions.
- Northern Ontario Heritage Fund Corporation (NOHFC): Specifically for businesses in Northern Ontario, this fund supports new businesses with capital costs and operational expenses.
Conclusion
Starting a business in Ontario presents a world of opportunity for both local and international entrepreneurs. From a supportive business ecosystem to a skilled workforce, Ontario’s business landscape is primed for success. Whether you’re launching a tech startup in Toronto or a green energy business in Ottawa, Ontario has the resources and support to foster growth.
OnDemand International offers professional guidance for entrepreneurs looking to establish a business in Ontario. With expert knowledge of Ontario’s regulatory and business environment, we ensure a smooth and efficient business setup process. Contact us today to get your Ontario business off the ground and running.
Frequently Asked Questions
Can I register my business in Ontario as a non-resident?
Yes, non-residents can register and operate a business in Ontario, but there are specific guidelines and options for non-Canadian citizens or residents.
Can I register my business online in Ontario?
Yes, you can register a business online in Ontario, making the process efficient and accessible.
Do I need to get a GST/HST number in Ontario?
In Ontario, you may need to get a GST/HST number, depending on your business’s revenue and activities. If your business has earned more than CAD 30,000 over four consecutive quarters, you are required to register for a GST/HST number with the Canada Revenue Agency (CRA).
