Background
Canada is an ideal place to start and grow a business. The government actively supports small and medium-sized enterprises (SMEs) through favorable policies and funding programs.
For immigrant entrepreneurs, especially those entering through Canada's Start-up Visa (SUV) program, incorporation is a crucial first step. It provides significant advantages—including limited liability protection, access to government grants or venture funding, and greater credibility with customers and partners. However, for those new to the Canadian legal environment, the process can be unfamiliar. This blog outlines the seven essential steps for incorporating your business in Canada.
Step 1: Choose a Business Structure
The first step in incorporating a business in Canada is choosing the right business structure. There are three main business structures in Canada: sole proprietorship, partnership, and corporation.
- A sole proprietorship is the simplest form of business, where the owner is responsible for all aspects of the business and is also responsible for all the liabilities of the business.
- A partnership is a business structure where two or more people share ownership and responsibilities.
- A corporation is a separate legal entity from its owners, offering limited liability and potential tax benefits.
Choosing the right business structure is critical, as it will impact your liability, tax obligations, and fundraising potential. For applicants of the Canada's Start-up Visa (SUV) immigration program, you will need to choose corporation as the entity form.
Step 2: Choose a Business Name
Select a unique business name that complies with government naming regulations. Before registering, check for conflicts by searching:
- The Canadian Trademarks Database, and
- The NUANS (Newly Upgraded Automated Name Search) database.
You can also choose a numbered company format (e.g., 1234567 Canada Inc.) if a descriptive name isn’t required.
Step 3: Register Your Business
Once your structure and name are finalized, register your business. The process varies by province or territory. In most cases, it can be completed online in a few days. You’ll need to provide:
- The chosen business structure
- Registered business name
- Business address and contact details
If incorporating federally, you’ll register with Corporations Canada. For provincial registration, consult the relevant provincial registry.
Step 4: Obtain a Business Number
After registering your business, you will receive a business number from the Canada Revenue Agency (CRA). This number is unique to your business and is used to identify you for tax purposes. You can register for a business number online, and the process usually takes less than an hour.
Step 5: Register for GST/HST (if required)
If your business earns more than CAD 30,000 in annual revenue, or you anticipate reaching that threshold, you must register for a GST/HST account with CRA. This account enables you to collect and remit goods and services tax (GST) or harmonized sales tax (HST).
Even if under the threshold, voluntary registration may be beneficial if you want to claim input tax credits.
Step 6: Obtain Licenses and Permits
Your business may require local, provincial, or federal licenses or permits, depending on the sector and location. For example:
- Restaurants need food and safety permits.
- Construction companies may need municipal zoning permits.
Use the BizPal tool to determine what’s required for your business.
Step 7: Open a Business Bank Account
Once you have registered your business and obtained all necessary licenses and permits, you can open a business bank account. A business bank account will allow you to keep your personal and business finances separate, which is essential for tax and accounting purposes.
In Summary
Incorporating a business in Canada sets a solid legal foundation for future growth. From liability protection to enhanced fundraising options, the advantages are clear. While the steps may seem technical, they are manageable with careful planning—and professional help can make the process much smoother.
Whether you're a new immigrant entrepreneur or expanding internationally, legal guidance is highly recommended to ensure compliance and strategic structuring.
How Can Trustiics Help?
Through Trustiics, you can access vetted, experienced business lawyers in Canada without leaving your office—wherever you are in the world. Your selected lawyer can support you with:
- Federal or provincial incorporation filings and documentation, tailored to your business goals and jurisdiction of choice
- Shareholder agreements and other key corporate documents to clearly define rights and responsibilities from day one
- Legal review of name selection, registration forms, and business setup steps to ensure full compliance with Canadian regulations
- Advice on Start-up Visa (SUV) program requirements, if you are incorporating as part of an immigration application
You can get started by selecting a lawyer, sending a request that describes your needs, and receiving a free, no-obligation quote. Once approved, you make a secure online payment held in escrow until the service is completed.
Alternatively, contact us at support@trustiics.com, and our support team will coordinate the legal services you need to successfully incorporate and launch your business in Canada.