Setting up a Laundry Business in Canada in 2023-24: Complete Guide

This article is about setting up a laundry business in Canada in 2023-24. You will also know about incorporation process, benefits, documentation and cost analysis.


    Note:This form is not for job seekers or salary employees. Thank you.


    Table of Contents

    Setting up a Laundry Business in Canada

    Within the dynamic realm of entrepreneurship, the laundry industry has emerged as a dedicated and successful venture. Canada’s flourishing market and stable economy present foreign business owners and investors with a fortunate opportunity to enter the lucrative laundry industry. This comprehensive guide will walk you through the essential steps, documents required, benefits, and costs of setting up a laundry business in Canada.

    Why Choose Laundry Business in Canada?

    Canada’s robust economy and diverse population make it an ideal destination for business ventures. The laundry industry, a vital component of the service sector, is witnessing steady growth due to the busy lifestyles of Canadians. Additionally, the country’s commitment to sustainability aligns well with the eco-friendly practices increasingly favoured by consumers.

    Process for Setting up a Laundry Business in Canada

    The list of steps to start a laundry business in Canada are as follows:

    Market Research and Business Plan

    Do an extensive market study prior to making the move. Determine who your target market is, research your competition, and find out how much demand there is for washing services in certain areas. Create a thorough business plan that includes your objectives, target market, and projected financials.

    Legal Structure and Registration

    It’s critical to choose the appropriate legal form for your washing company. Choose the business structure you wish to use: corporation, limited liability company (LLC), partnership, or Sole Trader. Register your company in accordance with Canadian legislation with the appropriate authorities.

    Location and Infrastructure

    Choosing the ideal site is crucial. Make sure the location of your laundry service is easily accessible and sees a lot of traffic. Invest in state-of-the-art equipment, such as effective washers and dryers, to provide superior services.

    Acquire Necessary Permits and Licenses

    Attention to regional laws is essential. Acquire the licenses and permissions required to operate lawfully. These might include commercial licenses, environmental permissions, and health permits. A smooth launch is ensured by a compliance check.

    Build a Reliable Supply Chain

    Form alliances with vendors to ensure a consistent and affordable supply of fabric softeners, detergents, and other necessary laundry supplies. Consistency in service quality is ensured by establishing a trustworthy supplier chain.

    Documents Required to Open a Laundry Business in Canada

    Here is the list of documents required to set up a laundry business in Canada:

    • Business Plan: A comprehensive document outlining your business goals, target market, and financial projections.
    • Proof of Identity: Valid identification for all business owners.
    • Permits and Licenses: Copies of permits and licenses obtained for legal compliance.
    • Tax Identification Number: Secure a business tax identification number.
    • Business Registration: Documents confirming the legal registration of your business.
    • Location Agreement: Proof of ownership or lease agreement for your chosen business location.

    Benefits of Starting a Laundry Business in Canada

    Some of the benefits of starting a laundry business in Canada are:

    • Strong and Powerful  Economy: Businesses may prosper in a safe atmosphere because of Canada’s steady economy. Because it is a service-oriented business, the laundry sector is less vulnerable to downturns in the economy.
    • Government Support: The Canadian government actively supports small businesses through grants, subsidies, and business development programs. Stay informed about available resources to maximise your business potential.
    • Diverse Customer Base: The population of Canada is multicultural, which guarantees a varied clientele. Adapting your offerings to the demands of various groups may greatly increase revenue.
    • Focus on Sustainability: Environmental consciousness is rising among Canadian customers. Using sustainable procedures in your laundry service can draw in eco-aware clients and improve the image of your company.

    Costs required for setting up a laundry business in Canada

    • Equipment and Infrastructure: Investing in high-quality washers, dryers, and other equipment is a significant upfront cost. However, modern and efficient infrastructure is essential for providing quality services.
    • Permits and Licensing Fees: Obtaining the necessary permits and licenses involves fees—factor in these costs when budgeting for your laundry business.
    • Location Expenses: Choosing a prime location comes with its expenses, such as rent and utilities. These expenses must be calculated to ensure they do not exceed your budget.
    • Operating Costs: Consider ongoing expenses like employee wages, laundry supplies, and maintenance costs when estimating your operational budget.


    Setting up a laundry business in Canada presents a promising venture for foreign entrepreneurs and investors. The stable economy, diverse customer base, and governmental support create an environment conducive to success. By following the outlined steps, understanding the required documents, and considering the associated costs and benefits, you can position your laundry business for prosperity.

    It may be difficult to navigate the complexities of opening a company in a foreign nation. OnDemand International exists to make the procedure easier. We can help you fulfil your ambition of starting a profitable laundry company in Canada with our in-depth knowledge of the Canadian industry and our proficiency in business formation. For a hassle-free company incorporation, get in touch with OnDemand International right now.



    Yes, foreigners can own and operate a laundry business in Canada. However, it is essential to comply with Canadian regulations and obtain the necessary permits and licenses.

    The most common legal structures for a laundry business in Canada are sole proprietorship, partnership, corporation, or limited liability company (LLC). The choice depends on factors like liability, taxation, and ownership preferences.

    The timeline for setting up a laundry business can vary based on factors such as location, regulatory approvals, and document processing. On average, it may take a few weeks to a few months.

    Yes, the Canadian government offers various grants, subsidies, and business development programs to support small businesses, including those in the laundry industry. It's advisable to explore these opportunities for financial assistance.