Ontario is home to more than 400,000 small businesses, and a growing share of them are founded by newcomers who arrived with an idea and a plan (Statistics Canada, 2024). Registering your business is the first legal step — and it's far more straightforward than most people expect. Depending on the structure you choose, you can be operating legally within one business day for as little as $60.
This guide walks you through every stage: choosing your business structure, registering a name, incorporating if that's the right move, setting up your CRA accounts, and the five actions every new Ontario business must complete before taking customers.
Key Takeaways
- Registering a sole proprietorship business name costs $60 online through ServiceOntario — no lawyer needed (ServiceOntario, 2026).
- Incorporating in Ontario costs $360 provincially or $200 federally — both provide limited personal liability and a lower corporate tax rate.
- Annual revenue above $30,000 triggers mandatory HST registration with CRA — you must register before crossing that threshold (CRA, 2026).
- Ontario's small business corporate tax rate is 12.2% (federal 9% + provincial 3.2%), far below personal rates that reach 53.5%.
- Most newcomer founders start as sole proprietors, then incorporate once net income consistently exceeds $50,000 per year.
Which Business Structure Is Right for You in Ontario?
Ontario recognizes three main business structures for newcomers and small business owners: sole proprietorship, partnership, and corporation. According to Statistics Canada (2024), sole proprietorships account for the majority of new business registrations in Ontario each year — largely because they're the lowest-cost and fastest option. The right structure depends on your revenue level, personal liability comfort, and long-term plans.
Sole Proprietorship
You and your business are legally the same entity. Business income is reported on your personal tax return. There's no legal separation between your personal assets and your business debts. Registration costs $60 online through ServiceOntario. This structure suits freelancers, consultants, and anyone testing a business idea before committing further capital.
Partnership
Two or more people share ownership, profits, and unlimited personal liability. A general partnership registers a business name for the same $60 fee. A limited partnership lets some partners cap liability at their investment amount — but it requires additional legal filings. For most newcomers starting a business with a co-founder, a general partnership is the simplest entry point.
Corporation
A corporation is a separate legal entity. Your personal assets are shielded from business debts. Ontario's 12.2% small business corporate tax rate is significantly lower than personal income tax rates that reach 53.5% at higher income levels. The trade-off is cost and overhead: annual filings, formal shareholder records, and a dedicated business bank account are all required.
How Do You Register a Business Name in Ontario?
Under Ontario's Business Names Act, you must register a business name any time you operate under a name other than your own legal name. If your name is Priya Sharma and you operate as "Priya Sharma Consulting," no registration is required. But "Ontario Edge Solutions" or any other trade name requires a registered Master Business Licence (MBL) before you invoice a single client.
The registration process has four steps and typically completes within one business day:
- Check name availability — search the Ontario Business Registry at ontario.ca to confirm no other business is operating under the same name in your sector.
- Register online — go to ontario.ca/businessregistration. You'll need a valid credit card and your Social Insurance Number.
- Pay the $60 fee — your registration is valid for 5 years. Renewal costs another $60.
- Receive your Master Business Licence — this is your official registration document. Every Canadian bank will ask for it when you open a business bank account.
Should You Incorporate Provincially or Federally in 2026?
Incorporation makes your business a separate legal entity — distinct from you as a person. ServiceOntario processed approximately 60,000 new Ontario corporation filings in 2024 (ServiceOntario, 2024). You have two incorporation routes: provincial (Ontario) or federal (Corporations Canada), each with different fees, timelines, and geographic scope.
Ontario Incorporation (Provincial)
File Articles of Incorporation through ServiceOntario online at ontario.ca. The government fee is $360. If you want a named corporation rather than a numbered one (e.g., "1234567 Ontario Inc."), you need a NUANS name search first — approximately $25–30. Processing time is typically 3–5 business days online. An annual return under the Corporations Information Act costs $12.
Federal Incorporation
File through Corporations Canada at ic.gc.ca for $200 online — lower than provincial. Federal corporations get name protection across all of Canada, which matters if you ever expand beyond Ontario. You also need a free extra-provincial registration to operate in Ontario. Processing: 5–10 business days. Annual return to Corporations Canada: $20.
For most Ontario-based newcomer entrepreneurs, provincial incorporation is the practical choice — local banks, government grant programs, and accountants are most familiar with it. Choose federal if you plan to operate in multiple provinces or want Canada-wide name protection from the start.
What Tax Registrations Does Your New Ontario Business Need?
Once your business is registered or incorporated, you need to set up your federal tax accounts with CRA. According to CRA (2026), failing to register for HST on time — or mismanaging payroll deductions — are the two most common and costly errors new Ontario businesses make in their first year.
Business Number (BN) — Free
Your Business Number is a 9-digit CRA identifier that ties together all your federal program accounts. Register free at canada.ca/cra-register or by calling 1-800-959-5525. Once you have a BN, you add program accounts (HST, payroll, corporate tax) as your business needs them.
HST/GST Account — Mandatory at $30K
Once your worldwide taxable revenues exceed $30,000 in any rolling 12-month period, you must register for HST before crossing that threshold — not after. Once registered, you collect 13% HST on most Ontario sales, file periodic returns, and remit the net amount to CRA. You also claim input tax credits for HST paid on business expenses, which reduces what you owe.
Payroll Account — Required When You Hire
If you hire even one employee in Ontario, you need a Payroll Program Account (RP account) from CRA. You're responsible for deducting CPP contributions, EI premiums, and income tax from each paycheque and remitting these on schedule. Late remittances carry penalties — set up payroll software or an accountant before your first hire.
5 Steps to Register Your Business in Ontario (2026 Checklist)
These five steps cover everything from choosing your structure to your first operating day. Most new Ontario businesses complete all five within two weeks.
Choose Your Business Structure
Decide between sole proprietor, partnership, or corporation based on income level, liability risk, and growth plans. If revenue is under $50,000 per year and personal liability risk is low, start as a sole proprietor. If you're building a team, taking on significant contracts, or want the tax advantages of a corporation from day one, incorporate immediately.
Register Your Business Name or Incorporate
Sole proprietors: register at ontario.ca/businessregistration for $60. Corporations: file Articles of Incorporation at ontario.ca ($360) or through Corporations Canada at ic.gc.ca ($200). Numbered companies don't need a NUANS search — named corporations do. Either way, your paperwork comes back digitally and can be used the same day it's received.
Open a Business Bank Account
Canadian banks require your Master Business Licence (for sole proprietors) or your Certificate and Articles of Incorporation (for corporations) to open a dedicated business account. Keeping personal and business finances separate is legally required for corporations and is critical for clean tax reporting for any business. Most major banks offer newcomer business banking packages.
Register for CRA Accounts
Obtain your Business Number at canada.ca/cra-register. Register for HST immediately if your revenue will reach $30,000 within 12 months — voluntary early registration avoids penalties and lets you claim input tax credits sooner. If you're incorporating, your Corporate Income Tax (T2) account is set up at the same time as your BN.
Obtain Required Licences and Permits
Most Ontario businesses need a municipal business licence from their city or region. Mississauga home-based businesses require a home occupation permit. Professional fields — engineering, law, healthcare, accounting — need additional regulatory registration with their governing body. Use BizPaL at bizpal.ca to generate a personalized list of required federal, provincial, and municipal licences for your industry and location.
Frequently Asked Questions: Registering a Business in Ontario
Can a newcomer to Canada register a business in Ontario?
Yes. Permanent residents and work permit holders can register a business in Ontario. You'll need a valid Social Insurance Number (SIN) to register with CRA. Visitor visa holders generally cannot legally operate a business without work authorization, and international students on study permits may face restrictions depending on permit conditions.
Do I need a lawyer to register a business in Ontario?
No. Sole proprietorship registration is entirely self-serve online at ServiceOntario for $60. Provincial and federal incorporation can also be completed without a lawyer through government portals. That said, legal advice is recommended if you have multiple shareholders, complex share structures, or a significant initial investment requiring a shareholders' agreement.
How long does it take to register a business in Ontario?
A sole proprietorship business name typically processes within 1 business day when filed online. Ontario provincial incorporation takes 3–5 business days. Federal incorporation through Corporations Canada takes 5–10 business days. Visiting a ServiceOntario location in-person does not speed up the incorporation timeline — standard processing applies regardless.
What is the difference between a Master Business Licence and a corporation?
A Master Business Licence (MBL) registers your trading name for a sole proprietorship or partnership — it does not create a corporation or a separate legal entity. A corporation is created by filing Articles of Incorporation and gives you limited personal liability, a distinct corporate tax number, and a separate legal identity from its owners.
When should I switch from sole proprietor to corporation in Ontario?
The common threshold is when net business income consistently exceeds $50,000 per year. At that level, Ontario's 12.2% small business corporate tax rate produces real savings compared to personal rates reaching 53.5%. Also consider incorporating if you're hiring employees, carrying client liability risk, or seeking investors who expect a corporate structure.