Thinking of Starting a Business in Ontario? Step by Step Guide

Whether you’re a newcomer to Canada or a first time entrepreneur, this guide will walk you through everything you need to know in plain language.

Step 1: Do Your Research

• Understand your market and local demand
• Create a basic business plan with your goals and services
• Decide what products or services you will offer

Step 2: Choose the Right Structure

You’ll need to decide on a legal business type:
• Sole Proprietorship Simple, low cost, perfect for freelancers
• Partnership Two or more people share ownership
• Corporation For more protection and future growth

Step 3: Choose and Register a Name

• Use your legal name or choose a unique business name
• Check if the name is available using Ontario’s Business Name Search
• If using a different name, register it online via Ontario Business Registry

Cost:

• CA$60 for sole proprietorship
• CA$300 for incorporation

Step 4: Register Online with the Province

• Create a “My Ontario” account
• Register your business through the official Ontario Business Registry
• You’ll receive your Business Identification Number (BIN)

Official registration link:

4. Register your business online
👆Click here to register your business

Step 5: CRA Business Number & HST

• Revenue over $30,000/year? You need to register for HST (sales tax)
• This is done through the Canada Revenue Agency (CRA)
• You’ll also need a Business Number (BN) for payroll, imports/exports, etc.

Step 6: Municipal Permits (if needed)

Depending on your business type, you may also need:
• A local business license
• Zoning or signage approval
• Health inspection (for food services)
Use BizPaL to check your city’s requirements.

Step 7: Banking & Bookkeeping

• Open a dedicated business bank account
• Choose an accounting system (spreadsheet, QuickBooks, or a local accountant)
• Track every dollar from Day 1 it’ll save you later