How to Open a Business in Canada

Opening a Business in Canada requires a clear understanding of the country’s legal, tax, and regulatory environment to ensure a smooth market entry. As an experienced global advisory firm, we guide entrepreneurs and foreign investors through every stage of the process—from choosing the right business structure and meeting provincial requirements to navigating corporate tax obligations and compliance standards. With Canada’s stable economy, strategic trade agreements, and skilled workforce, establishing your company here can be a powerful step toward expanding your international operations.

Starting a business in Canada

Starting a business in Canada isn't just about registering your company; it's about strategically positioning it for success. Below, we detail the steps you should carry out:

1. Choosing a business name

Here are some important considerations when choosing a name for your business: First, ensure the name accurately reflects the product or service you offer, as this helps avoid confusion among potential customers. Second, consider how you want the public to perceive your business. Then, choose a name that's easy to pronounce and remember.
Tip: Look for a unique and distinctive name to avoid confusion and legal issues.

2. Registering your business with the government

Before registering your business, you need to determine the following: the location of your main office, the provinces and territories where you plan to operate, your proposed business name, and the type of business that best suits your needs.

3. Choosing the business structure

To understand your registration requirements and begin the registration process, please select your intended business type:

1. Corporation (federal or provincial/territorial)

To register as a corporation, you must incorporate your business through a federal or provincial/territorial incorporation. Then, obtain a federal business number and a corporate income tax account from the Canada Revenue Agency. Finally, apply for any permits and licences your business may need.

In some instances, the registration process for these accounts is streamlined, meaning you may obtain your business number, tax accounts, and provincial registrations during the incorporation process. However, this is not the case for all provinces and territories.

2. Sole proprietorship or partnership

To register as a sole proprietor or partnership, you may need to register your business with the provinces and territories where you plan to do business. In some cases, sole proprietorships operating under the business owner's name do not require registration.

For partnerships, the company must register in the provinces and territories where it plans to do business, obtain a federal business number, and file a tax account.

3. Cooperative

You can create a cooperative under the Canada Cooperatives Act (Coop Act) by applying to Corporations Canada.  

To incorporate a cooperative, you must file an application that includes a cover letter, including contact information for the person applying. In this letter, indicate whether or not your cooperative is a non-profit housing cooperative or a worker cooperative. A completed and signed copy of Form 3001 - Articles of Incorporation, and a completed and signed copy of Form 3002 – Initial Registered Office Address and First Board of Directors. A Nuans name search report for the proposed name that is not more than 90 days old. If your name has been pre-approved by Corporations Canada, attach a copy of the Corporations Canada letter approving your name, along with a copy of the Nuans name search report.

4. Applying for business permits and licences

Your business will require various permits and licenses from all three levels of government. On the official Bizpal website, you can check the requirements by state and industry.

5. Getting business support and financing

National and regional business support services are available, including financial assistance specifically designed for immigrant entrepreneurs. Utilize the Business Benefits Finder to receive a tailored list of programs and services that can assist your business, or consult the organizations listed on this page for guidance in starting a business.

6. Free tax help for your business

Meet with a liaison officer to learn about common errors, best practices for bookkeeping, and deductions.

How to open a bank account?

You have the right to open a bank account, also known as a 'deposit or personal account'. This includes accounts at federal credit unions and authorized foreign banks. Additionally, you can open a bank account at any provincially regulated financial institution or other types of federally regulated financial institutions that provide this service.

You can open a bank account even if you:

• don't have a job

• don't have the money to put in the account right away

• have been bankrupt.

When the bank must report an increase in charges

When a bank increases a fee or introduces a new charge, it is required to provide you with written information about the change. They must do so at least 30 days before it takes effect.. If you were not informed about these fee changes or new charges before they took effect, you have the right to file a complaint.

Opening a business bank account

Establishing a business bank account in Canada is an essential step following the formation of your company, as it enables the effective management of revenue, expenses, and tax obligations. To facilitate the opening of an account, it is imperative to select a Canadian bank that aligns with your specific business requirements. Additionally, one must prepare the necessary documentation, which generally includes:

• the company’s incorporation documents, 

• Business Number (BN), 

• corporate resolutions, and 

• identification for authorized representatives. 

Furthermore, a business bank account streamlines international payments and ensures integration with accounting solutions, thereby providing robust financial oversight from the outset of your operations in Canada.

How H&CO Can Support Your International Expansion

We understand that expanding into a new market such as Canada involves more than just registering a company—it requires a strategic approach to compliance, taxation, and operational setup. 

Our team of international tax advisors, accountants, and business consultants provides end-to-end guidance, from selecting the right corporate structure and ensuring tax compliance at both federal and provincial levels, to setting up banking, payroll, and accounting systems aligned with local regulations. With a presence in over 29 countries, we leverage our global expertise to help you minimize risks, optimize your tax position, and streamline your entry into the Canadian market, so you can focus on growing your business with confidence.