How To Open An IT Company In Canada?: Procedure & Legislations

In this article, we will cover the steps to open an IT company in Canada from early planning to operational success. Further, we would also cover the legislations pertaining to the IT sector.


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    Open an IT Company in Canada in 2023

    An intriguing opportunity to prosper in a developing IT sector is to launch an Information Technology (IT) business in Canada. Canada’s robust economy, skilled population, and supportive entrepreneurial ecosystem all contribute to the country’s favorable business environment for IT companies. For an IT company to be established in Canada, it is essential

    open an it company in canada

    to comprehend the constantly changing tech ecosystem. Many strong digital centers, including those in Toronto, Vancouver, and Montreal, are situated in Canada. These cities are perfect sites for an IT firm since they draw top people, resources, and investment.

    From early planning to operational success, we’ll lead you through the process of establishing an IT company in Canada in this article.

    Canadian legislation pertaining to the IT sector

    A Canadian information technology firm has to abide by an extensive set of laws. The privacy of customers is one of the primary issues when starting an IT firm, so the enterprise must abide by the Criminal Code.

    Other legislation that Canadian IT companies are required to abide by include:

    • Computer component sales are covered by the Commercial Law.
    • The Intellectual Property Law, which protects trade secrets, software, and other things.
    • The Electronic Commerce Law permits the selling of products and services via the Internet.

    Procedure to Open an IT company in Canada

    procedure to open an it company in canada

    Opening an IT company in Canada involves several steps.

    The following general procedure will help you with the process:

    Business Idea and Plan:

    Identify your niche within the IT industry and develop a comprehensive business plan. The objectives, target market, services/products, marketing plan, financial forecasts, and organizational structure of your company should all be included in this document.

    Choose a Corporate Entity:

    Select the legal framework of your company. Options in Canada include sole proprietorship, limited partnership, corporation, or a limited liability partnership (LLP). Consult with experts from OnDemand International to determine the best structure for your needs.

    Choose a Company Name:

    Select a distinctive and appropriate name for your IT company. Ensure that the name isn’t already registered by checking with the appropriate provincial or territorial business registry.

    Register Your Company:

    Depending on the chosen structure, register your company with the relevant government agencies. For corporations, this entails submitting articles of incorporation with the federal or provincial government.

    Obtain the Required Licenses:

    To find out if you need any particular licenses to run an IT firm, check with your local municipality and provincial/territorial authorities.

    Open a Business Bank Account: 

    Set up a business bank account to keep your company finances separate from individual finances.

    Secure Financing:

    Find out how much money you’ll need to launch and run your IT company. Your firm can be financed by personal savings, loans, grants, or investors.

    Register for Taxes:

    Obtain a Business Number (BN) from the Canada Revenue Agency (CRA). This number is employed for various tax purposes. You may also need to register for the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) based on your revenue.


    Starting an IT business in Canada is an exciting venture with lots of room for growth in a stable IT ecosystem. One of Canada’s most prosperous industries and a major contributor to the country’s economy is the information technology sector. This is mostly because there are many aid programs available, which have further aided in the expansion of IT enterprises.

    You can speak with experts from OnDemand International to open an IT company in Canada. At every level, our devoted professionals are ready to assist you and make sure that your business is set up in precise accordance with legal requirements.


    The length of time needed to launch an IT firm varies depending on the type of business, the applicable laws, and the level of preparation. To finish all required stages, it often takes a few weeks to a few months.

    Yes, foreign nationals can open an IT company in Canada. They might have to fulfill particular business and immigration requirements, such as getting a work visa or permanent residence.

    Showcase your company’s vision, core principles, and cutting-edge initiatives to draw top employees. Provide possibilities for professional progress, competitive salary packages, and a positive work environment.

    Innovation, adaptability, strong leadership, customer-centricity, and a dedication to ongoing learning and growth are all characteristics of a successful IT organization.