Starting Strong: How to Get a Business License in Ontario

Did you know that Ontario is home to nearly 40% of all Canadian businesses, with over 400,000 small and medium-sized enterprises driving the province’s economy? If you’re considering joining this thriving entrepreneurial landscape, you’re in the right place. But here’s a question that might give you pause: are you prepared to navigate the sometimes complex world of business licensing?

Whether you’re a seasoned entrepreneur or a first-time business owner, obtaining the proper licenses and permits can seem daunting. But don’t let that discourage you! This comprehensive guide will walk you through the steps to secure your business license in Ontario, ensuring you start your venture on the right legal footing.

From understanding the different types of licenses required for various industries to learning about local municipal regulations, we’ve got you covered. By the end of this article, you’ll have a clear roadmap to obtaining your business license, saving you time, reducing stress, and helping you avoid potential legal pitfalls. So, let’s embark on this journey together and turn your business dreams into a properly licensed reality in the beautiful province of Ontario!

1. Understanding Business Licensing in Ontario

When starting a business in Ontario, one of the key steps is ensuring that you have the necessary licenses and registrations in place. One of the most important documents for many entrepreneurs is the Business Name Registration (BNR), previously known as the Master Business License (MBL). This registration is vital for businesses operating under a name other than their legal business owner’s name, and it forms an essential part of the compliance process.

What is a Business Name Registration in Ontario?

In Ontario, a BNR is the formal process of registering the name under which your business will operate. If you choose to run your business under a name different from your own legal name (e.g., a “doing business as” or DBA name), this registration ensures your business name is recognized by the provincial government.

The BNR provides essential information, including the business name, your personal name and address, as well as the nature of your business. The registration is valid for five years and can be renewed as necessary. It can be completed online through the Ontario Business Registry (OBR) or in person at ServiceOntario locations.

Why is a Business Name Registration Necessary?

Registering your business name is essential for establishing legal recognition and operating under a name other than your personal one. In Ontario, this process officially validates your business in the eyes of the government, ensuring compliance with legal requirements. It also boosts your professional image, helping to build trust with customers, suppliers, and potential investors. For many financial institutions, a registered business name is a prerequisite for opening a business bank account, securing loans, or establishing business credit.

Beyond these practical benefits, registration offers a layer of brand protection by preventing other businesses in Ontario from using the same or a similar name. However, it’s important to understand that this protection is limited to the province. To safeguard your business name on a national scale, you’ll need to apply for a trademark through the Canadian Intellectual Property Office. Additionally, a registered business name may be required to qualify for government contracts or participate in procurement processes, further emphasizing its importance.

Who Needs a Business Name Registration?

A Business Name Registration is required for individuals or partnerships operating under a name other than their legal personal name. Specifically, you’ll need to register your business name if you:

• Are a sole proprietor or partnership using a name that does not reflect your personal legal name.
• Are starting a new business or changing the name of an existing business.

However, if your business is a corporation, you are exempt from needing a BNR. Corporations are already required to register their business name as part of the incorporation process, which is handled separately.

Other Considerations

While the BNR is an important document, depending on your industry or business activity, you may need additional licenses, permits, or certifications. For example, if you’re opening a restaurant, operating a construction company, or offering health-related services, additional approvals from municipal, provincial, or federal authorities might be necessary.

2. Determining the Right Type of Business License

Selecting the appropriate business license is a critical step for legally operating a business in Ontario. The specific licenses required depend on the nature of your business activities and where your business is located.

Identifying Your Business Activity

The first step is to clearly define your business operations. Are you selling goods, providing services, or a combination of both? For instance, opening a restaurant requires a food premises license, while selling alcohol mandates a liquor sales license. Your business’s scale also matters—a home-based enterprise may have different licensing needs compared to a larger commercial operation.

Additionally, some professions are regulated and require specific licenses. Fields like real estate, healthcare, or financial advising often demand professional certifications alongside general business permits. The BizPaL tool is an excellent resource for identifying the required licenses and permits based on your location and type of business.

Differences Between Federal and Provincial Licenses

Federal and provincial licenses serve different purposes, with some businesses requiring both. Federal licenses apply across Canada and typically regulate industries like banking, transportation, and telecommunications. For example, launching an airline would necessitate federal approval.

Provincial licenses, on the other hand, are specific to Ontario and are more common for local businesses. These include general business registrations, industry-specific permits, and professional certifications. Municipal licenses may also be necessary, depending on your city or town. These often involve zoning approvals, signage regulations, and other local compliance requirements.

3. How to Get a Business Name Registration in Ontario

Obtaining a BNR in Ontario involves a straightforward process that can be completed online. You’ll need to create an account, research requirements, prepare documents, and file your application.

Creating an Account on the Ontario Business Registry

To start, visit the OBR website. You’ll need to create a My Ontario Account and a ServiceOntario Account, which allow you to access a range of government services securely. Here’s how to proceed:

1. Go to the OBR page and click the “Register Now” button.
2. Follow the prompts to create a My Ontario Account using your email address and a secure password.
3. You will also need to create a ServiceOntario Account, which allows you to access various services related to business registration.

After setting up your accounts, you can log in to the OBR website to start your application.

Researching License Requirements

Before beginning your application, take time to research the specific requirements for your business. The OBR provides detailed information for various business structures. Most small businesses, particularly sole proprietorships and general partnerships, will need to pay a registration fee of $60. However, fees may vary depending on the business structure and the services you choose (e.g., paper or online processing).

You can also use the free search tool on the OBR website to check if your desired business name is available. This step is crucial to ensure your name isn’t already in use, which could lead to conflicts or delays.

Preparing Required Documents

Before starting the online application, gather the necessary information and documents. You will need:

• Personal identification: This can be a driver’s license or passport.
• Business name: The name you wish to register.
• Business address: The physical address of your business.
• Business activities: A brief description of what your business will do.
• Owner information: Contact information for all business owners.

If you are registering a partnership, you will also need a partnership agreement. For corporations, you need to have your articles of incorporation ready, but note that corporations are not typically requred to have a BNR as incorporation follows a different registration process.

File for Your Business License

Once your accounts are set up and your documents are ready, log in to the OBR website and follow these steps:

1. From your dashboard, select “Register a New Business”.
2. Choose your business type (sole proprietorship, partnership, etc.) and fill in the required details, such as your business name, address, and description of activities.
3. Double-check all information before submitting to ensure accuracy.
4. Pay the applicable fee via credit card or online banking.

Once submitted, your application will be processed, and you’ll receive a confirmation of registration.

4. How to Renew a Business Name Registration in Ontario

Renewing your BNR in Ontario is a straightforward process that helps keep your business compliant. The renewal procedure involves specific timelines and potential updates to your business information.

Regular Renewal Cycles

BNRs in Ontario are valid for five years. You can renew your BNR up to six months before it expires, allowing plenty of time to complete the renewal process. If you miss the expiration date, don’t worry—there’s a 60-day grace period after the expiration during which you can still renew your registration without facing penalties.

The renewal fee depends on your business type and you can make the payment through several methods:

• Online: Pay with debit, Visa, or Mastercard.
• Mail: Send a cheque made payable to the Minister of Finance.
• Email: Use a credit card to make your payment.

To begin your renewal, visit the OBR website. You will need your business registration number to complete the process.

License Amendments and Updates

Renewing your BNR is a good opportunity to review and update any business details. You can amend information such as:

• Business name: If you’ve changed your business name or made adjustments.
• Business address: Update your physical or mailing address.
• Owner details: Update contact information for the business owners.
• Business activities: Revise or clarify your business description.

It’s important to keep your business information current in the OBR. This ensures that your business records are accurate and up-to-date, which can help avoid potential legal issues or confusion. If you need help with amendments, contact ServiceOntario:

• Phone: 416-326-1234
• Toll-free: 1-800-267-8097

Remember, your business name registration is separate from other licenses or permits you might need. Always check local regulations to stay fully compliant.

5. Understanding Regulations Related to Your License

Complying with regulations is a vital aspect of obtaining and maintaining a business license in Ontario. Business owners must navigate municipal zoning bylaws, public health standards, and workplace safety requirements to operate legally and safely.

Municipal Zoning Bylaws

Zoning bylaws determine where certain business activities can be conducted within a municipality. Before applying for a license, verify that your desired location is zoned appropriately for your type of business. This can be done through your local city or town hall.

In cases where your business doesn’t align with existing zoning regulations, you may need to obtain a zoning certificate or request a zoning amendment. For example, home-based businesses often face specific restrictions, while retail operations may be limited in residential zones.

Industrial activities, especially near sensitive areas like schools or parks, may require special permits or compliance measures. Be prepared to submit detailed information about your operations, including hours, parking requirements, and any environmental impacts.

Public Health Requirements

Businesses in industries like food service, personal care, or childcare are subject to stringent public health regulations to protect both customers and employees. For food-related businesses, obtaining a food handler certification and scheduling regular health inspections are mandatory. Additionally, these businesses must follow precise food storage, preparation, and hygiene protocols.

Personal care services, such as salons or spas, need to maintain approved sterilization practices and ensure all equipment and products meet regulatory standards. Childcare providers must adhere to staff-to-child ratios, provide safe facilities, and establish emergency procedures. Regular inspections are common across these industries, so maintaining detailed compliance records is essential for retaining your license.

Workplace Safety Standards

Meeting workplace safety standards not only protects your employees but is also a key requirement for your business license. The government outlines safety expectations, including proper employee training, equipment maintenance, and access to personal protective equipment.

All businesses must develop and display a workplace safety policy and conduct routine safety meetings. Larger businesses, with 20 or more employees, are required to form a joint health and safety committee to identify and mitigate potential hazards. Hiring a safety consultant can be beneficial for ensuring full compliance and avoiding penalties, creating a safer environment for everyone.

6. Tax Registration and Implications

Understanding your tax obligations is an essential aspect of starting a business in Ontario. Proper registration ensures compliance with provincial and federal laws while supporting the smooth operation of your business.

Harmonized Sales Tax (HST) Account

Businesses generating over $30,000 in annual revenue must register for an HST account. This requirement applies to sole proprietors, partnerships, and corporations. To begin, you’ll need your business number and company details, and you can complete the registration online through the Canada Revenue Agency’s website.

After registration, you’re responsible for charging HST on taxable goods and services at the current Ontario rate of 13%. These funds must be remitted to the government on a regular basis. It’s equally important to maintain detailed records of the HST you collect and pay, as these records allow you to claim input tax credits for eligible business expenses. These credits help offset the HST you owe, reducing your tax burden.

Employer Health Tax (EHT) Registration

If you plan to hire employees, you may be required to register for EHT, which contributes to funding Ontario’s healthcare system. Registration becomes mandatory for businesses with an annual payroll exceeding the exemption threshold of $1,000,000.

Registering for EHT requires your business number and payroll details, which you can submit through the Ontario Ministry of Finance’s online platform. The tax is calculated as a percentage of your total Ontario payroll, with employers subject to rates ranging from 0.98% to 1.95%. As with HST, keeping precise payroll records is vital to ensure accurate calculations and compliance.

7. Special Permits and Endorsements

Obtaining the right permits and licenses is crucial for operating your business legally in Ontario. Depending on your industry and activities, you may need specialized endorsements beyond a basic business license.

Liquor Licenses

If you plan to sell or serve alcohol, obtaining a liquor sales license from the Alcohol and Gaming Commission of Ontario is necessary. To apply, you’ll need to create an account on the iAGCO portal and provide detailed information about your business and premises. Floor plans and adherence to safety standards are crucial parts of the application process.

For temporary events, such as private parties or public gatherings, a special occasion permit allows you to serve alcohol on a short-term basis. Ensuring responsible service is critical, so you’ll be required to complete proper alcohol service training and display appropriate signage about the risks associated with alcohol consumption.

Professional and Trade Licenses

Certain professions and trades require specific licenses or certifications to ensure industry standards and public safety. For instance, if you’re starting a construction business, registration with the Workplace Safety and Insurance Board is mandatory. Similarly, electricians, plumbers, and other skilled trades must meet specific licensing requirements.

Healthcare professionals, including doctors and nurses, must obtain licenses through their respective regulatory bodies. Similarly, professions like lawyers, accountants, and real estate agents must maintain their licenses by meeting ongoing education and renewal requirements.

Resources for Getting a Business License In Ontario

Government Resources

Industry Resources

Other Resources