Registering your business for the first time? Here's what you need to know

Who needs to register a business?

Wondering whether you need to register your business? While requirements vary across provinces and territories, the general rule is this: you must register your business if you operate under a name that is not your own legal name. This applies to sole proprietorships who are operating under a trade name, partnerships (unless the name includes only partners’ legal names), corporations and other business types.

Additionally, if your taxable revenue exceeds $30,000 over four consecutive calendar quarters, you are generally required to register for the Goods and Services Tax/Harmonized Sales Tax (GST/HST) with the CRA. Under that amount, you’re usually considered a small supplier and registration isn’t typically necessary. This is an entirely separate process from registering your business name with the government.

Charities are always required to register with the CRA to gain official charitable status and issue donation receipts, but the rules for other non-profit organizations are a bit different. For GST/HST purposes, many non-profits are deemed public service bodies by the government. This means that they’re generally treated as small suppliers unless their taxable revenue exceeds $50,000 over four consecutive quarters. So, under that threshold, they typically aren’t required to register.

Again, it’s important to stress that registering your business with the government and the CRA are two distinct processes that are often both necessary. Also, remember that these are general guidelines, as registration requirements vary across all the provinces and territories, as well as at a federal level.

Benefits of registering a business

Even if it’s not a legal requirement for your business right now, taking the time and effort to register is a good idea for several reasons. Let’s explore them.

Legal protection

Registering your business name with your provincial or territorial government helps keep you protected by creating a formal record of your business and establishing your legal right to operate under that name. It also prevents others from using it within the same jurisdiction.

If you plan to hire employees or open a physical location outside of your home – such as an office, retail space or factory – registering your business with the government and the CRA is also typically required to comply with local laws and obtain necessary permits.

Tax benefits and requirements

CRA business registration is often a necessary step that also comes with several tax advantages. When you register, you receive a business number, which you can use to access essential tax accounts, including those for:

• GST/HST
• Payroll
• Corporation income tax
• Import/export activities

If your organization is for-profit and earns more than $30,000 over four consecutive calendar quarters, this process is legally required. But, it also lets your business claim expenses and deductions that can reduce your overall income tax. Not to mention, it makes tax management and compliance simpler and more efficient.

Access to financing

Whether it’s to buy supplies and inventory or invest in growth, new businesses usually need some sort of financing.

To qualify for government grants and tax credits, you’ll generally need a business number from the CRA to apply for federal, provincial/territorial or municipal funding.

The same applies for banks and lenders, as they typically require registration before granting access to banking products you might need to operate. Examples include business bank accounts, loans, lines of credit and business credit cards.

Business discounts

When you're running your own business, every dollar counts! Many vendors and suppliers offer discounts or preferential pricing on their goods and services to registered businesses. Once you can provide proof of registration, you may be able to qualify for discounts on everything from office supplies to hotels and travel.

Some banks will have special offers for business bank accounts, as well as offers from partners.

Scalability

You want your business to grow, right? Registering your business as early as possible helps make that happen by laying the legal groundwork you need for key steps such as hiring employees and managing payroll. Plus, being registered better positions you to pursue larger contracts and adapt easier as your operations evolve.

Establishing credibility

Finally, registering your business helps establish your presence as a legitimate and professional operation in the eyes of customers, suppliers and partners. As a result, you can drive trust and encourage others to do business with you. This is especially important for new businesses looking to build a reputation and compete effectively.

Requirements for registering a business

Now that you know why you should register a business, let’s look at how to make it happen. As mentioned, depending on which province or territory you live in, the requirements vary. That said, there are a number of requirements that are the same from coast to coast.

Here are a few common requirements you can expect:

Contact information

You’ll need to provide current contact details for your business, including a phone number and email address where you and any other business owners can be reached.

Business name

Choosing a business name is an important step in registration, particularly if you are operating under a name other than your own. Most jurisdictions require you to complete a name search and registration process to ensure your business name isn’t already taken before you can register with the CRA. If you’re incorporating, you’ll also need to follow specific naming rules outlined by your province or territory, or by the Canada Business Corporations Act if it’s a federal corporation.

Owner name (or names)

You’ll need to provide the full names and details of every individual with an ownership stake in the business. If any owner is a non-citizen of Canada, you may need to provide some additional documentation. The same goes for any owners under the age of 18, as minors typically need a parent or guardian to sign registration paperwork on their behalf.

Business structure

Will you be opening a sole proprietorship, partnership, cooperative or corporation? Declaring your business type is essential, as it determines how you’re taxed, your personal liability and your ongoing reporting obligations. If you’re unsure which structure best suits your needs, it’s worth consulting a legal or financial advisor, as this decision can shape your business operations and growth over time.

Location

Plumbing business in P.E.I.? Tech start-up in Saskatchewan? You’ll need to register your business in the province or territory where you plan to operate, as each jurisdiction sets its own requirements. Most registration forms also require a mailing address to receive official physical documents. Some jurisdictions accept a P.O. box, while others require a street address. Note that if you intend to operate in more than one province or territory, you’ll likely need to register separately in each.

Business description

Finally, whether you’re a freelancer or opening a factory with 100 employees, you’ll need to submit a brief description of the products or services your business offers. This helps government agencies understand your operations and determine if you require any additional licences or permits.

In addition to these requirements, you’ll need to follow a few specific steps to register your business that depend on the province or territory where you plan to operate.

If you’re registering a sole proprietorship or partnership, here’s what those steps consist of across Canada.

How to register a business in Ontario

1. Register with the Ontario Business Registry: Create both a My Ontario Account and a ServiceOntario Account.
   
   
2. Complete your online registration: Search the Ontario Business Registry to ensure your chosen name is available, select your business structure and complete your registration online. Note that you will need to pay a $60 fee to complete this step.
   
   
3. Get your Business Identification Number (BIN): Once registered, you’ll receive a nine- or ten-digit Business Identification Number, which serves as your provincial identifier for communicating with the Ontario government and managing your business within Ontario. It’s important to note that this is not the same as a federal business number, which is issued by the CRA.

How to register a business in Quebec

1. Register online: Access and complete your registration form through the official Registraire des enterprises Quebec website.
   
   
2. Get your Quebec Enterprise Number (NEQ): Once registered, you’ll receive your 10-digit Quebec Enterprise Number (NEQ), which serves as your unique business identifier within the province of Quebec.
   
   
3. Register for taxation with Revenu Quebec: After receiving your Quebec Enterprise Number (NEQ), use it to register with Revenu Quebec for tax accounts such as the QST, GST/HST and payroll. This lets you report revenue and pay business taxes.

Note: If you hire employees, you must also register as an employer with the Commission des normes, de l'équité, de la santé et de la sécurité au travail, known as CNESST, within 60 days of your first employee’s start date.

How to register a business in British Columbia

1. Get your name approved: Before registration, you’ll need to submit a Name Request. This costs $31.50 online and can also be done at a Service BC Centre for a higher fee. Once approved, you’ll get a Name Request (NR) Number, and your chosen name will be reserved for 56 days.
   
   
2. Register with BC Registries and Online Services: Register your business online using your Name Request Number. If this is your first time registering a business, you’ll need to create an account with BC Registries and Online Services first.

How to register a business in Alberta

1. Register your business name: Register your business name with the Government of Alberta. This can be prepared online, but you must finalize the process in person at a Corporate Registry service provider.
   
   
2. Fill out an application form: The application form you need to fill out depends on your business structure:
   • Sole proprietor: Use the Declaration of Trade Name form
   • Partnership: Use the Declaration of Partnership form

Once completed, you’ll need to bring your forms to an authorized Corporate Registry agent, along with valid ID and fees.

Registering a business in other provinces and territories

If you’re registering a business in any other province or territory in Canada, you can check out the Government of Canada website, which outlines all the various requirements.