Budget for Hidden Expense: Cost of Registering a Business in Canada

One of the first steps in launching your business is registering it with the appropriate authorities. While the process of registering a business in Canada is relatively straightforward, the associated costs can vary depending on factors such as the type of business structure you choose, the province or territory where you’re operating, and the specific services you require.

In this article, we’ll break down the typical costs involved in registering a business in Canada, from sole proprietorships to corporations. We’ll explore federal and provincial fees, name reservation charges, and additional expenses you might encounter during the registration process. By understanding these costs upfront, you’ll be better prepared to budget for your new business venture and avoid any financial surprises along the way.

1. Overview of Business Registration in Canada

Business registration in Canada is a multi-faceted process that varies depending on the type of business structure and the location of operation. At the federal level, businesses can register with the Canada Revenue Agency for tax purposes and may need to register for GST/HST if their annual revenue exceeds $30,000.

Provincial or territorial registration is also required, which typically involves registering the business name and obtaining necessary licenses and permits. Choosing the right business structure before initiating the registration process in Canada is crucial for several reasons. The structure you select will have far-reaching implications on various aspects of your business, including taxation, liability, operational flexibility, and future growth potential. Each business structure – whether it’s a sole proprietorship, partnership, or corporation – comes with its own set of legal and financial obligations, as well as distinct advantages and disadvantages.

Therefore, carefully considering and selecting the most appropriate business structure from the outset can save you time, money, and potential legal complications down the road, while also ensuring that your business is set up in a way that best supports your long-term goals and operational needs.

2. Cost of business registration in Ontario

When you’re looking to register a business in Ontario, you’ll encounter various fees based on the type of registration you need. Here’s a quick overview of the costs involved:

  • Sole Proprietorship/General Partnership: $60
  • Incorporation: $300 when done online or by mail
  • Amalgamation: $330
  • Dissolution: $25

For not-for-profit corporations, the fees are slightly different:

  • Incorporation: $155
  • Amalgamation: $155
  • Dissolution: Free

If you’re considering a cooperative corporation, costs can be higher:

  • Incorporation with shares: $335
  • Incorporation without shares: $155

Payments can be made in several ways:

  • Online: Accepting debit, Visa, or Mastercard
  • By mail: Only cheques made out to the Minister of Finance
  • By email: For cooperative corporations, using credit cards with follow-up for secure processing

Processing times vary. For instance, incorporation is immediate when done online, but may take 15 business days by mail. Make sure to plan accordingly for your business registration!

3. Cost of business registration in Quebec

Starting your business in Quebec involves various registration fees, depending on the structure you choose. Here’s a breakdown of costs associated with common business types:

  • Sole Proprietorship: Registering as a sole proprietorship costs $38 CAD for a basic declaration. If you opt for registration through Ownr, it’s now just $49 CAD, including government fees. Plus, you may receive a $100 CAD refund if you open an RBC business account within 60 days.
  • Federal Incorporation: The fee for federal incorporation starts at $200 CAD, along with a $35 CAD charge for a NUANS name search if done independently.
  • Provincial Incorporation: For incorporating under Quebec’s Business Corporations Act, the fee is $367 CAD.

Consider additional costs for legal fees, especially if you’re handling filings yourself. Also, keep in mind the capital required for launching your venture, which may include equipment, inventory, or marketing expenses.

By knowing these fees upfront, you’ll be more prepared for your entrepreneurial journey in Quebec.

4. Cost of business registration in Nova Scotia

Registering your business in Nova Scotia involves various costs that depend on the type of business structure you choose. Here’s a breakdown of some common registration fees:

  • Sole Proprietorship Registration: $68.55
  • Partnership Registration: $68.55
  • Renewal Fee: $68.55
  • Incorporating a Company: $200

It’s essential to consider these fees when planning your budget. The registration process usually takes about 1 to 2 weeks. However, if there are issues or additional information is needed, it could take longer. When registering, you may also need to think about additional costs, such as name reservation and any professional fees.

Make sure to check all requirements and fees on the official Government of Nova Scotia website to have the most accurate and up-to-date information.

5. Cost of business registration in New Brunswick

Registering your business in New Brunswick involves various costs depending on your business structure. Here’s a breakdown of expected fees for different setups:

Sole Proprietorship:

  • One-time Government Name Registration Fee: $112.00
  • Renewal Fee (every 5 years): $62.00

Corporation:

  • One-time Government Name Reservation Fee: $13.80
  • One-time Government Registration Fee: $262.00
  • Annual Government Fee: $60.00

Additional Costs:

  • Legal Fees: Expect to pay $1,000 or more for legal assistance if needed.
  • Accounting Fees: Budget around $300 for tax return preparation each year.

It’s crucial to ensure you register within the required timeframe. Corporations must register before starting operations, while sole proprietorships only need to register if using a business name different from the owner’s name. Understanding these costs and requirements helps keep your business compliant and running smoothly.

6. Cost of business registration in Manitoba

When you’re looking to register a business in Manitoba, understanding the costs involved is essential. Here’s a breakdown of the main fees you can expect.

  1. Registration Fees:
    • To register a new corporation, the government fees are $350.
    • Additionally, a $50 name search report is required before registration.
  2. Name Reservation:
  3. Sole Proprietorships and Partnerships:

    • If you are registering a sole proprietorship or partnership, costs may vary based on permits and licenses required in your specific sector.
  4. Additional Fees:

    • Keep in mind that there might be other expenses related to permits and local licenses depending on your business type.

7. Cost of business registration in British Columbia

When you’re considering registering a business in British Columbia, it’s important to be aware of the costs involved. Fees can vary based on the type of business structure you choose. For a sole proprietorship or partnership, the basic registration fee is typically around $30. This is a straightforward option for those starting small. If you opt for incorporation, costs increase. Here are some of the fees you might encounter:

If you’re planning to register an amalgamation that results in a B.C. unlimited liability company, be prepared for a total of around $1,030. This includes the name approval fee. Additionally, after registering, you will receive a Business Number that is essential for various tax purposes.

Remember, if you’re filing documents through a Service BC location, you’ll need government-issued ID and a completed filing form along with the applicable fees. This ensures your registration process goes smoothly!

8. Cost of Business Registration in Prince Edward Island

Registering a business in Prince Edward Island comes with different costs depending on the type of business entity. Here are some key costs to consider:

  • Sole Proprietorship or Partnership: The cost starts at $130 for registering these types of businesses.
  • Corporation or Co-operative: The registration fee is $305, including the mandatory name search.

If you need to publish your business name publicly, an additional fee of $15 applies. When registering, you may also encounter costs related to annual returns. All businesses must re-register annually in the new Online Corporate Business Names Registry, which simplifies the process.

It’s important to have everything in order to meet corporate transparency requirements. Be prepared with the necessary information when you complete your registration online. Starting your business journey in PEI can be straightforward when you know these costs in advance.

9. Cost of business registration in Saskatchewan

The cost of business registration in Saskatchewan varies depending on the type of business structure and the specific services required. According to the Saskatchewan government fee schedule, registering a business name for a sole proprietorship or partnership costs $65 for a standard 3-year registration period.

For corporations, the fees are more substantial. Incorporating a Saskatchewan corporation comes with a $330 fee, which includes the cost of name reservation. If you need to reserve a name separately, it costs $55. For extra-provincial corporations (those incorporated outside Saskatchewan but operating within the province), the registration fee is $235. Online annual returns for corporations can be filed for $45, while paper filings cost $80. It’s important to note that these fees are current as of the last update to the ISC website and may be subject to change.

Additional costs may also be incurred for services such as rush processing, certificate requests, or amendments to existing registrations. Always consult the official ISC website or a local business advisor for the most current and comprehensive fee information when planning to register a business in Saskatchewan.

10. Cost of business registration in Alberta

When registering a business in Alberta, expect to pay both a government fee and a service fee. These fees can vary based on the type of business structure you choose:

  • Sole Proprietorship (Trade Name): Generally lower fees, often around $60 to $100.
  • Partnerships: Usually a bit more, typically in the $100 range.
  • Limited Partnerships: Expect fees upwards of $150, depending on the specifics of your partnership.
  • Limited Liability Partnerships: Generally around $200, reflecting additional protective measures.

There are some additional costs to consider:

  1. Business Name Report: It’s a good idea to obtain this report. It costs around $30, helping you ensure that your desired name isn’t already in use.
  2. Legal and Professional Fees: If you choose to consult with a lawyer or a business specialist, factor in their fees, which can vary widely.
  3. Extra Charges: Be aware of potential extra charges for name searches and other administrative actions.

11. Cost of business registration in Newfoundland and Labrador

Business registration in Newfoundland and Labrador also comes with associated costs. The primary expense is the incorporation fee. The current incorporation fee is $300. This fee applies to most types of businesses that require incorporation within the province.

In addition to the incorporation fee, consider other potential costs, such as:

  • NUANS Name Search: To confirm the availability of your business name, you may need a NUANS report. This typically costs around $30 to $60.
  • Additional Documentation Fees: If you require specific licenses or permits, additional fees may apply.

It’s beneficial to check with the local government resources for the most up-to-date information and any possible reductions for non-profits or specific business types.

You can find detailed guidance on incorporating a company on the Digital Government and Service NL website.

12. After Registration: Ongoing Requirements

After successfully registering your business in Canada, there are several ongoing requirements you must fulfill to maintain your company’s legal status and compliance. Renewal requirements vary depending on your business structure, with sole proprietorships and partnerships often needing periodic renewals.

For corporations, you’ll need to complete the internal organization of the corporation, which includes tasks such as issuing shares, appointing directors, and creating corporate bylaws. All businesses must maintain proper financial records and file annual tax returns. Depending on your revenue, you may need to register for GST/HST. It’s crucial to stay informed about any industry-specific licenses or permits required for your operations, as these may need regular renewal.

Additionally, corporations must file annual returns and keep their corporate records up to date. As your business grows, you may need to obtain additional licenses or permits to conduct certain activities. Staying on top of these ongoing requirements is essential to avoid penalties and ensure your business remains in good standing with Canadian authorities.

Resources for Business Registration in Canada

Maurice

About the author

Maurice

Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Canada to identify and maximize funding to grow their business.

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