Business Registration and Identification
Essentially all businesses in Canada must complete a business name registration unless it’s a sole proprietorship. When you take these steps, you receive a unique business identification number from the federal or your provincial government.
Most businesses need to register with the provinces and territories where they plan to do business. To legally start a business in Canada as an individual, you need to be a Canadian citizen or a landed immigrant (permanent resident).
Options for Foreign Entrepreneurs
There are 5 options that foreign business owners and entrepreneurs can use when starting a business in Canada:
- Entrepreneur Work Permits (C11)
- Business immigrant program, including the start-up visa program, and a program for self-employed persons.
For most small business owners, the start-up visa program is the best option.
Business Registration Threshold
How much money can you make before you have to register as a business in Canada? You can start a small business in Canada and make thousands in profit before you ever have to register. Registering your business could include various steps like obtaining licenses and permits, aside from receiving a business identification number.
Financial Considerations for New Businesses
It is often recommended to start a business with $5,000 to $10,000 to cover initial costs.
Remember:
- Open a separate savings account and stash 20–35% of all your side hustle money for taxes.
Self-Employment and Taxation
What qualifies as self-employed in Canada? If the worker operates a business and is engaged in a business relationship with the payer.
The amount of income your small business needs to earn before you pay taxes in Canada depends on the profit you generate.
Requirements for Starting a Business in Canada
- You will need to find out how much money you need to start a business.
- Prospective entrepreneurs must demonstrate they possess enough funds to set up and operate their businesses, often at least $100,000 for small startups.
Canada is a great place to start a business due to its skilled workforce and other benefits.
Business Licensing and Regulations
Licensing and Permits
In Canada, you must obtain the proper licenses and permits for your business. Licensing requirements vary by location and industry.
Establishing a Business as a Foreign Entrepreneur
As a foreign entrepreneur, there are 5 main options to start a business in Canada, which include permits and various immigration programs. Registration fees charged by provincial governments start around $450.
The easiest way to keep track of your startup money and what you use for business expenses is to create a business bank account.