How long does it take to register a business in Canada?

A sole proprietorship name registration and a CRA business number can often be done in a day or two online. Incorporation can also be quick online, but allow extra time for a NUANS name search, share structure decisions, and any shareholders’ agreement.

Do I need a business number if I am a sole proprietor?

You need a CRA business number once you register for GST/HST, hire employees, or import/export. A very small sole proprietor under the GST/HST threshold and with no employees may not need one at first — but many register voluntarily to claim input tax credits.

Can I run a business from home?

Often yes, but many municipalities require a home-occupation permit and have zoning rules about signage, traffic, and the type of activity allowed. Check your local bylaws before you start, and keep records to support any home-office expenses you claim.

Do I need a lawyer or accountant to register?

Not strictly. A simple sole proprietorship and BN can be set up yourself. For incorporation, share structure, shareholders’ agreements, and tax planning, professional help is well worth it and can prevent expensive mistakes.

What is the very first thing I should do?

Decide your structure, then check that your chosen business name (and ideally a domain) is available. Those two decisions shape every registration that follows.

How to register a business in Canada: step by step

Getting a business off the ground in Canada involves a handful of registrations that trip up many first-time founders. The good news is that the path is straightforward once you see it laid out. Here is a practical, step-by-step walkthrough — from choosing a structure to opening a business bank account — adapted from themes in Dale Barrett’s start-up guide and updated for today.

Step 1: Choose your business structure

Before you register anything, decide whether you will operate as a sole proprietorship, a partnership, or a corporation. This single choice drives almost everything that follows — what you register, what taxes you file, and how you are protected from liability.

If you are unsure, see our companion guide comparing sole proprietorship and incorporation. As a quick rule of thumb from the book: incorporate if you consistently earn more than you need to live on (and want liability protection); a sole proprietorship is the simplest way to start if you do not.

Step 2: Choose and register your business name

If you are a sole proprietor operating strictly under your own legal name, you may not need to register a name at all. The moment you use a trade name — anything other than your own name — most provinces require you to register it.

Before committing, search to make sure the name is available and not already in use, and consider whether a matching domain name and social handles are free. If you incorporate, you will either choose a named corporation (which usually requires a NUANS name search to confirm availability) or accept a numbered company.

Sole proprietor under your own name: name registration may not be required
Using a trade name: register the business name with your province
Incorporating with a name: expect a NUANS name search
Check that the matching web domain and social handles are available

Step 3: Incorporate (if you chose a corporation)

If you decided to incorporate, you will choose to incorporate either federally or provincially, file articles of incorporation, and set up your initial directors and share structure. Federal incorporation gives you name protection across Canada but usually still requires you to register in the provinces where you carry on business.

This is a step where many founders use a lawyer or an online incorporation service. If you will have more than one shareholder, negotiate a unanimous shareholders’ agreement at the same time, while everyone is still on good terms.

Step 4: Get your business number and tax accounts

Once your structure is in place, you obtain a business number (BN) from the Canada Revenue Agency. The BN is the single identifier that ties together your CRA program accounts — GST/HST, payroll, corporate income tax, and import/export.

You add the specific program accounts you need: a GST/HST account if you will charge sales tax, a payroll account if you will hire employees, and a corporate income tax account if you incorporated. See our dedicated guides on the business number and GST/HST registration, and on hiring your first employee, for the details.

Business number (BN): your master CRA identifier
GST/HST program account (RT): to charge and remit sales tax
Payroll program account (RP): to remit source deductions for staff
Corporate income tax account (RC): if you incorporated

Step 5: Get the licences and permits you need

Registering your business with the province is not the same as being licensed to operate. Depending on your industry and location, you may need municipal business licences, zoning or home-occupation permits, health or trade-specific permits, and professional licensing.

Requirements vary widely by city and sector, so check with your municipality and any regulator for your trade before you open your doors.

Step 6: Open a business bank account and set up bookkeeping

Open a dedicated business bank account before money starts moving. Mixing business and personal funds is one of the most common and costly mistakes new owners make — it makes bookkeeping painful and weakens your records if you are ever audited.

Set up bookkeeping from day one. As the book bluntly advises, "Consider using Quickbooks for your bookkeeping. All accountants are familiar with it." Keep every receipt and back up your records. See our guide on separating business and personal finances for a full checklist.

This is general information, not legal, tax, or accounting advice. Rules, rates, and thresholds change often and vary by province — verify current requirements with the Canada Revenue Agency, your province, and a qualified professional before you act.

Frequently asked questions

How long does it take to register a business in Canada?: A sole proprietorship name registration and a CRA business number can often be done in a day or two online. Incorporation can also be quick online, but allow extra time for a NUANS name search, share structure decisions, and any shareholders’ agreement.
Do I register federally or provincially?: It depends on your goals. Provincial registration covers you to operate in that province; federal incorporation gives you name protection across Canada but usually still requires you to register in the provinces where you actually do business. Get advice if you plan to operate nationally.
Do I need a business number if I am a sole proprietor?: You need a CRA business number once you register for GST/HST, hire employees, or import/export. A very small sole proprietor under the GST/HST threshold and with no employees may not need one at first — but many register voluntarily to claim input tax credits.
Can I run a business from home?: Often yes, but many municipalities require a home-occupation permit and have zoning rules about signage, traffic, and the type of activity allowed. Check your local bylaws before you start, and keep records to support any home-office expenses you claim.
Do I need a lawyer or accountant to register?: Not strictly. A simple sole proprietorship and BN can be set up yourself. For incorporation, share structure, shareholders’ agreements, and tax planning, professional help is well worth it and can prevent expensive mistakes.
What is the very first thing I should do?: Decide your structure, then check that your chosen business name (and ideally a domain) is available. Those two decisions shape every registration that follows.