Elsie UdohDid you know that you can start and register your business in Canada regardless of your citizenship status?
As long as you’re a legal resident in Canada, then you can take your entrepreneurial and hustling Naija spirit all the way to Canada and start a business. Registering your business in Canada is the icing on the cake that will give your business legal protection and access to more opportunities.
Join our WhatsApp ChannelSo if you’ve been running a small-scale business in Canada, here’s how you can take your business to the next level by registering it.
Why You Should Register Your Business In Canada
Now, you already know that relocating is hard! Especially when you don’t have family abroad. Also, if you’re overseas, it’s up to you to survive and probably even provide for your family back home.
So if you’ve been an entrepreneur from home, then you might want to continue that even in Canada. After all, the entrepreneurial spirit never really leaves you—except it’s just not your thing.
Here comes the hard part: running a business in a new land is nothing close to easy. There are many restrictions that might put a strain on your business and even cause it to fold up sooner than you’d expect if you’re not careful.
However, there’s an effective leverage that can work for you and help your business to thrive, and that is, registering your business. Here’s why we think so:
- A registered business is the key to ensuring legal protection for your business operations.
- With a registered business, you can access government grants and loans from other financial institutions.
- You can also enjoy deductions from tax, which reduces the financial strain on your business.
So, should you register your business in Canada? Solid yes. And here’s everything you need to know to go about it.
How to Register Your Business in Canada
Follow these steps to seamlessly carry out your business registration from Canada:
Step 1: Choose a Suitable Business Structure
Whether your business is a startup or an extension of an existing one, you have to be clear about your business structure.
Are you running a corporation, partnership, or sole proprietorship? Here’s what we mean for each:
If your business is a corporation, then it means that you’re running a limited liability company with a separate legal entity from the owners. This kind of business structure is more expensive and has more regulations.
For a partnership, on the other hand, your business is co-owned with another person or group. This means that responsibilities and profits are shared.
While a sole proprietorship has you as the sole owner. You set up the business and maintain it.
If you run a small-scale business, then you’re most likely a sole proprietor. Plus, this business structure is best advisable if you’re just starting out.
READ ALSO: How To Get A New Zealand Work Visa For In-Demand Jobs
Step 2: Choose a Business Name
Now that you’re clear on your business name, you have to decide on a name. If your business is in operation already, you might wonder if this step is necessary since you probably already have what you’re known for.
Reviewing your business name or even choosing a new one entirely is very important for three reasons:
- To make sure that your business name is available.
- To ensure that your name doesn’t violate any local regulations.
- To have a unique business name that is not too similar to that of an existing business.
Let’s talk more about the first reason we mentioned: making sure that your business name is available.
You see, before moving your business to Canada or starting a new one there, other businesses in your niche have been around. It’s possible that one of them had a similar name or even the same name that you might have in mind.
You won’t be allowed to register an already existing business name, plus a “cliché” name might not do a great job at making your business stand out.
To check the availability of your business name, use NUANS (Newly Upgraded Automated Name Search) to check for existing names and trademarks.
Pro tip: When choosing a business name, avoid generic names and look for something that perfectly reflects your brand’s values.
Here’s another thing to note when choosing a business name:
- You can either use a numbered name or create your own unique name.
- A numbered name is assigned by Canada’s corporate registry. It is a set of numbers that the Registry gives to your company.
- A unique name, on the other hand, is one that you choose to give your business a special identity.
Note: If you go for a unique name, remember to be sure that it follows Canadian naming rules.
Step 3: Choose your Registration Location
One thing to keep in mind before registering your business in Canada is that there are two registration options:
- Federal registration
- Provincial registration
Your registration process differs depending on which of these locations you are carrying it out from. You can also choose to register for both locations.
Registering with the federal government (federal registration) allows you to operate your business across all provinces and territories in Canada. This kind of registration also requires an extra-provincial registration in each province where you plan on doing business. This will help you to pay taxes, open bank accounts, and get permits for your business if needed.
The provincial registration, on the other hand, limits you to a specific province.
For example, for Ontario, you’ll register via this link, and here for Alberta, etc.
Pro tip: If you plan to expand your business to multiple provinces in the future, then federal registration is a smarter choice.
Step 4: Prepare your Registration Documents
At this point, you should gather all the documents required for your business registration.
Draft your registration articles, including key details like your company name, objectives, and address.
You must also get the necessary permits and licenses (if required) for your business. This will require a permit if your business falls among one of these industries:
- Food industry
- Construction
- Retail, such as the sale of alcohol and tobacco.
You can use BizPal to check the specific license needed for your business type.
Step 5: Register your Business
This is where you carry out the registration for your business. After drafting your registration articles, then it’s time to register with the relevant provincial or territorial authority by submitting all the necessary details about your business.
This could be your company name and structure. Confirm with the location you choose to register your business, as the registration process varies by location.
Step 6: Appoint Directors
If you’re registering your business federally, then 25% of your company directors must be Canadian residents, but this doesn’t always apply to provincial registration.
Endeavour to always confirm this during the registration process.
Step 7: Obtain a Business Number (BN)
Your BN is a unique 9-digit identifier that is required for taxation and business operations. You can get this by registering through the Canada Revenue Agency (CRA)
Step 8: Register for Taxes
This is a mandatory requirement for most businesses in Canada. There are different tax registrations to apply for:
- Goods and Services Tax / Harmonised Sales Tax (GST/HST): This is required if your business earns more than CAD 30,000 annually.
- Payroll Tax: This is necessary if you hire employees.
- Provincial Taxes: This varies depending on your location and business type.
Step 9: Open a Business Bank Account
This will help you to manage your finances and build credibility, especially since you’re a stranger coming to do business in a foreign land.
To open a business bank account, you’ll need documents such as:
- Your business registration certificate
- Your Business Number (BN)
- Identification documents
Some banks to open a business bank account in Canada include:
- RBC
- Scotiabank
- CIBC
Step 10: Get Funding for your Business
After registering your business, you can access funds for it through:
- Government grants
- Loans offered by banks like RBC and BMO.
- Private investors.
Conclusion
This article has provided all the tools and knowledge that you will need to register your business in Canada successfully.
So whether you’re just starting a new business or you want your existing business to thrive better, you can follow the 10-step guide here to show you a simple way to register your business.
Elsie Udoh is an SEO content writer who specialises in writing engaging stories that resonates with diverse audiences. She studied mass communication at the Lagos State University.
