5 steps to obtain a business registration in Ontario
Starting a business in Ontario comes with a bunch of responsibilities and legalities. From raising the starting capital to hiring the right employees, there are several requirements that you have to fulfill to make your business a success. Obtaining a business registration is one of them. This task can be a bit complex and time-consuming, but with proper guidance, you can quickly complete it in a couple of months.
Here’s what you need to do to obtain a business registration:
1. Check your legal obligations
When starting a business in Ontario, it’s essential to understand your legal obligations. Depending on your line of business, there may be different registration requirements. For example, if you’re starting a sole proprietorship, you’ll need to register your business name with the provincial government, but if you’re starting a partnership, you’ll need to register your Partnership Agreement with the province. If you’re incorporating your business, you’ll need to put in place your Articles of Incorporation with the government.
Failure to comply with these legal requirements can result in significant penalties, including fines and even jail time. So, before you start your business registration in Ontario, ensure you understand what registration requirements apply to your business. It’s the first step in ensuring that your new business complies with the law.
2. Choose an appropriate name for your business
When starting a business, choosing the right name is crucial. Your business name is the first thing potential customers will have of your business, so choosing a catchy, easy-to-remember name that reflects your products or services is crucial. The best way to create a memorable business name is to brainstorm with family and close friends and get as many ideas as possible. Once you have a list of potential names, you can then start to narrow down the list by considering factors such as whether the name is available as a domain name, whether it’s available as a trademark, and whether it’s likely to be confused with another business’ name. Taking the time to choose an appropriate name for your business will pay off in the long run by helping you to attract customers and build a strong reputation.
3. Register with employer accounts
When registering your business in Ontario, you need to create employer accounts with the Canada Revenue Agency (CRA) and the Ontario Health Insurance Plan (OHIP). This is crucial because it ensures that your business complies with federal and provincial regulations. The CRA account will allow you to remit withheld taxes, such as income tax and CPP contributions. The OHIP account will allow you to bill the province for health care services provided to your employees. You must register these accounts to avoid penalties and interest charges. So, take care of this critical step when you’re working your way to register a business in Ontario.
4. Get the necessary licenses and permits
When you’re starting a business, there are a lot of things to think about. One of the things you should do is ensure you have all the correct licenses and permits. Depending on your line of business, you might need different licenses and permits. For example, you’ll need a food handler’s license if you’re selling food. If you’re running a daycare, you’ll need a childcare license. If you’re driving a taxi, you’ll need a taxi license. The list goes on.
Getting the proper licenses and permits shows you’re serious about your business and following the rules. It also shows potential customers that they can trust you to do things correctly. So, before you open your business doors, get all the licenses and permits you need. Acquiring these permits and licenses can cost you a lot, but if you want to save money during the process, you can apply for government grants or seek other funding opportunities.
File your application
With all the necessary paperwork in place and the licenses and permits obtained, you’re now ready to file your business registration application. To do so, you’ll typically need to submit an application form with your business name and information about the type of license or permit you’re applying for, as well as proof that you completed any required training courses.
Depending on the nature of your business, there may also be other paperwork that needs to be included in your application, such as building permits if you’re opening a storefront or tax returns if you’ve been operating another business in the past. Once everything is submitted, it usually takes around four to six weeks for your application to be approved by the government. So, plan and allow enough time to process your application before you open for business and start working your way to success.
Final thoughts
While starting a new business in Ontario can be a lot of work, it’s well worth the effort. With these steps, you can successfully navigate through the registration process and start building your business from the ground up.