• Benefits of registering your business
• How to register your business in Ontario
• What to expect: Registration fees and processing times
• Kick-start your business with the right tools
• FAQ

You’ve got a great idea for a new business — and now it’s time to make it official. This guide will walk you through the essentials of registering your business in Ontario, so you can take the first step in turning your dreams into reality and begin your entrepreneurial journey on a solid foundation. 

Benefits of registering your business

Whether you're running a small, one-person operation or planning to one day take your business public on the TSE 300, registering your business provides legal recognition for your business as well as several other perks that can give you a leg up.

Here are some of the reasons why it pays to register your business:

• Secures your business name. Your registered business name is yours alone in Ontario, which means no other business operating in the province can use it.
• Builds credibility and trust. Whether it's customers, suppliers, lenders, or investors, a registered business is generally perceived by others as more professional, reliable, and trustworthy.
• Establishes your business financially. Having a registered business lets you maintain a separate financial identity so you can open business bank accounts and process transactions, and more easily secure financing.
• Offers potential tax incentives. Depending on your business structure, registration may offer tax advantages, such as eligibility for certain benefits and deductions.
• Supports future growth. If you have expansion plans, registering your business will help you scale your business more efficiently, whether you'd like to open multiple locations, hire employees, or attract investors. 

How to register your business in Ontario

Registering your business in Ontario is a straightforward process that you can complete in a step-by-step manner:

Step 1: Choose your business structure

First, you'll need to choose the right framework for your new business: your business structure. In Ontario, your options include a sole proprietorship, a partnership, or a corporation. 

So how do you select the structure that’s the right fit for your venture? It’s worth exploring each type of structure more thoroughly, as each caters to different business needs and personal circumstances. The structure you choose also determines if and how you need to register your business, and how you run your day-to-day operations after you’ve made your business official.

Here’s a quick overview to help you get started:

• Sole proprietorship. As its name indicates, with this structure you’re the sole owner. A sole proprietorship is the simplest option for starting a business. It’s easy to set up, and you have full control. On the flip side, you’re also personally liable for the business’s debts and obligations.
• Partnership. This structure is also easy to set up. It lets you share the load with partners, which has the benefit of bringing diverse skills and more resources to your new business. But, as with a sole proprietorship, you and your partners are personally liable for the partnership’s liabilities (unless you’re setting up a limited partnership or a limited liability partnership). 
• Corporation. A corporation is a separate legal entity, which means you’ll get liability protection with this structure. The separate legal entity aspect of corporations offers several advantages, but it also means there are drawbacks, such as more complicated set-up, regulatory compliance, and higher initial and ongoing costs. 

It’s important to understand the unique features and requirements each structure offers so you can make an informed choice and lay a solid foundation for your business’s future. 

Step 2: Choose your business name

The next step, naming your business, involves more than just creativity. Your name sets the stage for your brand’s identity — and it also needs to meet legal requirements. Here’s a checklist to help you choose the perfect name:

• Catchy and unique. Ensure the name you pick is engaging and easy to recall.
• Relevant. Does the name reflect your products or services? 
• Restricted or prohibited terms. Make sure your business name doesn’t include any restricted or prohibited terms. 
• Legal. Use the Ontario Business Registry to check for the availability of your name.
• Trademark conflicts. Run your business name through the Canadian Trademarks Database and Nuans to ensure it doesn’t infringe on any trademarks. 

Step 3: Register your business/business name

Do you need to register your business?

Your registration requirements will vary depending on the type of business structure you've chosen and, if you're setting up a sole proprietorship, whether you'll be operating under your legal name or a business name.

Here are the business and business name registration requirements for each of the three main business structures:

• Sole proprietorship. You don’t need to register your sole proprietorship in Ontario, but if you’ll be using a business name that’s not your legal name, you’ll have to register your business name (this is known as a business name registration).
• Partnership. You’ll need to register your partnership’s business name (business name registration). If you’re forming a limited partnership, you’ll also need to file a declaration of an Ontario limited partnership. 
• Corporation. When you register your business as a corporation in Ontario, you're incorporating it. To register as a corporation, you’ll need to file articles of incorporation. Be sure to obtain an Ontario Nuans name search report if your business name isn’t a number name, as you’ll need that to complete your registration. 

You can register your business online at the Ontario Business Registry. Select the type of business you’re registering, and the Ontario Business Registry platform will take you through the registration process. Note that if you don't already have a My Ontario Account and a ServiceOntario Account, you’ll be guided through the creation of these accounts as part of the process. 

Your registration includes a 9-digit Ontario Business Identification Number (BIN) from ServiceOntario. Be sure to keep a record of this number, as you’ll need it to register an account for your business with the Canada Revenue Agency. 

Step 4: Obtain licences and permits

Depending on the type of business you’re starting, you may need different licences and permits. To find out what licences and permits you need, head over to BizPaL, a free online tool created through the collaboration of the various levels of government in Canada. 

To use BizPaL, select the activities your business will be engaging in, and the tool will give you a list of all the federal, provincial, and municipal permits and licences you’ll need to apply for, complete with links to government sites where you can get more information. 

Step 5: Register for a GST/HST account

Once you’ve registered your business and obtained all the necessary licences and permits, you’ll need to register for a GST/HST account with the federal government if your business will generate revenue of more than $30,000 annually. You can register for the account online (you’ll need your BIN or SIN — Social Insurance Number — if you’re a sole proprietor and you don’t have a BIN). 

Once you’re registered, you’ll need to charge and collect GST/HST and file an annual GST/HST return. 

What to expect: Registration fees and processing times

Understanding both the costs and time involved in registering your business in Ontario helps you plan ahead and avoid unpleasant surprises.

Business registration costs

Your registration fee will depend on the type of business structure you're registering. Here's a breakdown of the current fees for the three main types of business structures:

Sole proprietorship: $60

Partnership:

• General partnership: $60
• Limited partnership: $60
• Limited liability partnership: $210

Corporation: $300

Expected processing times

The time it takes to register your business depends on the registration method you choose. If you register online, your application will be processed immediately. Registration forms that are submitted by mail take 15 business days to be processed. 

Kick-start your business with the right tools

Staying on top of your business finances is just as important as getting your new business registered. Simplify your accounting and ensure accuracy with QuickBooks Online’s intuitive solutions designed to grow with your business. Equip your business with the tools it needs to thrive in today’s competitive market. Visit QuickBooks Online and see how easy managing your finances can be.