Registering a business in Canada is an essential step for entrepreneurs looking to operate legally and efficiently. Here’s a straightforward guide to help you navigate the registration process.
Step 1: Decide on Your Business Structure
Before diving into registration, determine the type of business structure that fits your needs. Common options include:
- Sole Proprietorship: Owned by one individual.
- Partnership: Owned by two or more individuals.
- Corporation: A legal entity separate from its owners.
- Co-operative: Owned and operated by a group of individuals for a common purpose.
Each structure has different implications for liability, taxes, and ongoing compliance, so choose wisely.
Step 2: Choose a Business Name
Your business name is crucial for branding and legal identification. Ensure that the name you choose is unique and not already in use. You can check the availability of your desired name through provincial or territorial business registries.
Step 3: Obtain a Business Number (BN)
A Business Number (BN) is a unique identifier assigned by the Canada Revenue Agency (CRA) for tax purposes. You can obtain a BN through the Business Registration Online (BRO) service, which is the quickest method. Here’s how:
- Visit the Business Registration Online portal.
- Fill out the required information about your business.
- Submit your application and receive your BN instantly[1][3].