Step 1: Confirm what your immigration status allows
Before you register anything, check that your status lets you run a business. Canadian citizens and permanent residents can generally start and operate a business without extra permission. Temporary residents are different. The conditions printed on a work permit or study permit decide whether you can be self-employed, own a corporation and work in it, or only work for a named employer.
Many employer-specific work permits and study permits do not authorize self-employment. Owning shares as a passive investor can be treated differently from actively running the business. Rules also change, so do not rely on a friend's experience or an old forum post.
- Read the conditions on your permit line by line.
- Check the IRCC website or ask IRCC directly if a condition is unclear.
- If your plan is borderline, speak to a licensed immigration consultant (RCIC) or an immigration lawyer before you invoice your first client.
If you are still outside Canada, IRCC also runs a Self-Employed Persons Program for people with qualifying experience in areas such as cultural activities or athletics.
Step 2: Choose a business structure
Most newcomers choose between a sole proprietorship and a corporation. A partnership applies when two or more people share ownership without incorporating.
| Structure | Legal status | Personal liability | How income is taxed |
|---|---|---|---|
| Sole proprietorship | Same person as the owner | You are personally responsible for business debts | Reported on your personal T1 return |
| Partnership | Owners share the business | Generally shared among partners | Each partner reports their share on a personal return |
| Corporation | Separate legal entity | Generally limited to what you invested, with exceptions | The corporation files its own T2 return |
A sole proprietorship is cheaper and simpler to start. A corporation costs more to set up and maintain, but it can offer liability protection and tax planning options once profit grows. If you are unsure, read our guide on Ontario vs federal incorporation, or ask for a structure recommendation through our business registration service.
Step 3: Register your business in Ontario
The Ontario Business Registry handles most provincial filings online. According to Ontario.ca, as of September 2026 the online fees and timing are:
- Sole proprietorship or general partnership business name: $60, processed immediately online. You only need to register if you operate under a name other than your own.
- Ontario business corporation: $300, processed immediately online.
Search for your name first, since a name that is too similar to an existing one can be refused. If you plan to operate across Canada, a federal corporation may be worth considering, and the trade-offs are covered in the guide linked above.
Step 4: Get your CRA Business Number and program accounts
The Business Number (BN) is a nine-digit number the Canada Revenue Agency uses to identify your business. You then add program accounts to it, depending on what you do:
- GST/HST account, for collecting and remitting sales tax
- Payroll account, if you will pay employees
- Corporate income tax account, if you incorporate
- Import/export account, if you bring goods into Canada
The CRA has moved registration online. New BN and program account registrations must be done through Business Registration Online, and from July 14, 2026 that service is accessed through a CRA account. A sole proprietor registering for GST/HST must provide a Social Insurance Number (SIN), so apply for one early if you do not have it. See the CRA's registration page for current steps.
Step 5: Decide when to register for GST/HST
You are a small supplier, and not required to register, if your worldwide taxable sales stay at or below $30,000 over four consecutive calendar quarters. Once you go over, you have a short window to register, 29 days from the effective date under CRA rules. Many new businesses register earlier voluntarily so they can claim input tax credits on startup costs. Our guide to GST/HST registration explains the decision in more detail.
Step 6: Open a business bank account
Keep business and personal money separate from day one. Banks typically ask for government ID, your business registration or incorporation documents and your Business Number. Newcomers sometimes face extra questions because of a short Canadian credit history, so book an appointment and bring your documents rather than trying to open the account online at the last minute.
Step 7: Licences, permits and insurance
Registration does not replace licensing. Depending on your activity and location, you may need a municipal business licence, a trade or professional licence, health or safety approvals, or a zoning check if you work from home. Some activities are federally regulated. For example, money transfer and currency exchange businesses must register with FINTRAC, which is covered in FINTRAC as a money services business.
Ask an insurance broker about general liability and, where relevant, professional liability or property cover. Some clients and landlords will ask for proof of insurance before signing.
Step 8: Set up bookkeeping early
Choose accounting software, record every sale and expense, and keep receipts. The CRA generally expects you to keep business records for six years from the end of the last tax year they relate to. Clean books make tax season faster and make it easier to qualify for loans. Our accounting and bookkeeping team can set this up for you.
Step 9: Know your tax obligations
- Sole proprietors: report business income on your personal return. For self-employed individuals, the filing deadline is June 15, but any balance owing is still due by April 30.
- Corporations: file a T2 return within six months of your year-end. See our guide to the T2 return and small business deduction.
- Employers: register a payroll account before your first remittance is due. See hiring your first employee.
Common mistakes newcomers make
- Starting to invoice before confirming that their permit allows it.
- Mixing personal and business money in one account.
- Missing the GST/HST registration deadline after crossing $30,000.
- Assuming a corporation removes all personal risk.
- Treating a worker as a contractor when the relationship looks like employment.
- Waiting until the T2 deadline to find out the books are incomplete.
A quick checklist
- Confirm status and permit conditions with IRCC or a licensed adviser.
- Choose a structure.
- Register the business name or incorporate.
- Get your Business Number and the right CRA program accounts.
- Decide on GST/HST registration.
- Open a business bank account.
- Obtain licences and insurance.
- Set up bookkeeping.
- Put filing and payment dates on a calendar.
If you would rather hand this over, our newcomer business starter package bundles registration, CRA accounts and accounting setup with advice in your language.