How to Start a Business In Canada - A Guide for New Canadians

Starting a business in a new country can be both exciting and challenging. If you're a newcomer to Canada and dreaming of starting your own business, you're in the right place. This guide is here to help you navigate the process and set you up for success.

Bisola Tijani

We've teamed up with Bisola Tijani, an experienced business owner and financial educator, to bring you practical advice and insights.

Prior to moving to Canada, Bisola managed a successful business in her home country and is now running her own business as a Finance & Travel Creator.

We’ve summarized Bisola’s tips below on how to launch a successful business as a new Canadian.

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Jaime Bell

We've also included expert guidance from Jaime Bell of Contracts Market on the legal requirements in each province. 

Jaime is a BC based business lawyer who helps entrepreneurs with big dreams by providing them with the legal support they need to take their business to the next level.

You can find that section below under the heading “Business Registration in Each Province.”

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7 Day Business Starter Course

Looking for some clear guidance to help you turn your idea into a thriving business? Our 7 Day Business Starter Course will guide you through EVERY step of launching a business in Canada. With our proven checklist, a real-life example, and an online community to support you through all the steps, you'll be better equipped to get your idea off the ground. Don't wait any longer - start building your dream business!

Without further adieu, let's get started on turning your business dreams into reality in Canada.

Key Considerations for New Canadians When Starting a Business in Canada

Cultural and Market Understanding

Understanding the business culture in Canada is crucial for your success. Canadian business practices might differ from those in your home country, so it's important to take the time to learn about them. 

Research the local market to understand customer preferences, buying habits, and the competitive landscape. This knowledge will help you tailor your products or services to meet the needs of Canadian customers.

Networking and Community Building

Building a strong network can provide valuable support and open up new opportunities. You can achieve this by attending local business events, joining business associations or participating in online communities.

Networking can help you find mentors, partners, and customers. It can also connect you with other entrepreneurs who have gone through similar experiences and can offer advice and support.

Legal and Regulatory Environment

Familiarize yourself with the legal and regulatory environment in Canada. This includes understanding the requirements for business registration, tax obligations, and any industry-specific regulations. Knowing the legal landscape will help you stay compliant and avoid any potential issues down the road.

Financial Planning and Funding

Develop a solid financial plan for your business. This includes understanding your startup costs, operating expenses, and potential sources of funding. 

Explore options such as government grants, loans, and investors. Having a clear financial plan will help you manage your resources effectively and set realistic financial goals.

Adaptability and Resilience

Starting a business in a new country comes with its own set of challenges. Being adaptable and resilient will help you navigate these challenges and stay focused on your goals. 

Embrace the learning process, be open to feedback, and be prepared to make adjustments as needed.

How to Start Your Canadian Business in 4 Easy Steps

The first step is to make sure you have a solid plan for your business. This doesn’t mean spending weeks building a business plan that you’ll never look at again. It’s all about outlining your business and goals and then taking action.

Step 1: Planning Your Business

Define Your Business Idea

Identify what product or service you want to offer. Consider what makes your business unique and why customers would choose you over competitors. Clearly define your target market and understand their needs.

Market Research

Conduct thorough market research to understand the demand for your product or service. Analyze your competitors and identify what they are doing well and where there are opportunities for you to stand out. This research will help you refine your business idea and strategy.

Business Plan

Create a concise business plan outlining your business goals, target market, marketing strategy, operational plan, and financial projections. 

A thoughtful and concise business plan will serve as your roadmap and will help you keep moving towards your goals as your business changes.

Check out Avalon Accounting’s business planning guide to learn more.

Step 2: Registering Your Business

After planning your business, you can move on to the registration process.

Business Structure

Choose the appropriate legal structure for your business. Common options include Sole Proprietorship, Partnership, and Corporation. Each structure has its own legal and tax implications, so consider which one best suits your needs.

Need help figuring out whether to incorporate or not? Check out Avalon’s guide to incorporation and decision framework.

Business Name

Select a unique business name that represents your brand. Make sure the name is not already in use by conducting searches on social media, domain registrations, and trademarks.

Business Registration

Register your business name with the appropriate provincial or territorial authority. This step is necessary if you are operating under a name different from your personal name. 

See the “Business Registration by Province” section below for more details on this.

See Avalon’s guide to business registrations for a more in-depth look into the subject.

International Student Business Registration

It’s important to note that international students in Canada are able to start a business, but there are specific rules they must follow. 

During regular school semesters, international students are allowed to work up to 20 hours per week on their business. This limit must be followed to maintain their student status. During scheduled school breaks, such as winter or summer holidays, they are allowed to work on their business full-time without a cap on the number of hours​ 

Step 3: Master Small Business Finances

Next, we recommend mastering the basics of your small business finances, including knowledge of tax laws and regulations, bookkeeping and accounting practices and available financing opportunities.

Tax Laws and Regulations

Understand the tax obligations for your business. This includes knowing when to register for GST/HST, how and when to file tax returns, and making tax payments. Familiarize yourself with both federal and provincial tax requirements.

Bookkeeping and Accounting

Set up a reliable bookkeeping and accounting system to keep track of your finances. Consider using a free bookkeeping template or accounting software to manage your income, expenses, and financial reports. 

Accurate financial records are crucial for making informed business decisions and staying compliant with tax laws.

Government Grants and Funding

Explore available government grants and funding opportunities for small businesses. The Canadian government offers various programs to support entrepreneurs, including grants, loans, and tax credits. Research which programs you may be eligible for and apply accordingly.

Check out Avalon’s guide to mastering your small business finances for more information.

Step 4: Market Your Business

To make sales, you’ll want to ensure that you get your marketing fundamentals straight. You’ll want to fully understand your offer, your target market and why they’re going to buy from you before promoting your business.

Core Offer

Define your core offer and what makes it unique. Clearly articulate the benefits of your product or service to your target market.

Target Market

Identify your target market and understand their needs, preferences, and behaviors. Tailor your marketing efforts to reach and engage this audience effectively.

Lead Generation

Develop strategies to attract potential customers and generate leads. This can include digital marketing, social media campaigns, content marketing, and networking.

For example, you can create a valuable resource that potential customers can download in exchange for their contact information. This could be anything from a downloadable guide, an e-book or even a template. 

This allows you to build an email list that you can then nurture into paying customers by building trust, providing value and then offering your product or service.

Promotion

Promote your business and brand through various channels. This can include online advertising, public relations, partnerships, and community involvement. Consistent and strategic promotion will help you build brand awareness and attract customers.

For a more detailed look on this topic, read Avalon’s small business marketing guide.

Keys to Long-term Success in Business

Once you’ve established your business, there are a few important considerations that will help you continue to grow and succeed.

Continuous Learning and Adaptation

Stay Updated

The business landscape is always evolving, so it's important to stay informed about the latest trends and changes in your industry. Subscribe to industry newsletters, follow relevant blogs, and attend conferences and seminars. 

Continuous learning will help you adapt to new challenges and opportunities.

Education and Training

Invest in your professional development and that of your team. Take advantage of online courses, workshops, and training programs to enhance your skills. 

Encourage your employees to do the same, fostering a culture of continuous improvement within your business.

Leveraging Technology

Use the Right Tools

Technology can greatly enhance your business's efficiency and scalability. 

Use accounting software to manage your finances, customer relationship management (CRM) systems to track interactions with clients, and project management tools to keep your projects on track. 

Embracing the right technology can streamline operations and save you time and money.

Check out our tools directory to learn about our personal favorites. 

Stay Ahead with Innovation

Keep an eye on emerging technologies and consider how they might benefit your business. This could include anything from new marketing tools to automation software that can handle repetitive tasks. 

Being open to innovation will keep your business competitive.

Building a Support Network

Join Local Business Groups

Networking with other business owners can provide valuable insights and support.

 Join local business associations, chambers of commerce, or industry-specific groups. These networks can offer mentorship, collaboration opportunities, and access to resources.

Attend Seminars and Workshops

Participate in local business seminars and workshops to learn from experts and connect with other entrepreneurs. 

These events can provide new ideas, strategies, and inspiration for growing your business.

Find Mentors

Having a mentor can be incredibly beneficial for your business journey. Look for experienced entrepreneurs who are willing to share their knowledge and guide you. 

A mentor can provide advice, support, and a different perspective on your business challenges.

Financial Health and Planning

Regular Financial Reviews

Regularly review your financial statements to monitor the health of your business. Keep an eye on key metrics such as cash flow, profit margins, and expenses. 

Regular financial reviews will help you make informed decisions and identify potential issues before they become problems.

Grab Avalon’s Financial Foundations Guide to find out which numbers to look at in your business.

Budgeting and Forecasting

Create a budget and financial forecast to plan for the future. This will help you allocate resources effectively and prepare for potential challenges. Regularly update your budget and forecast based on your business performance and changes in the market.

Customer Focus

Understand Customer Needs

Continuously seek feedback from your customers to understand their needs and preferences. Use surveys, interviews, and customer feedback tools to gather insights. 

Understanding your customers will help you improve your products or services and build stronger relationships.

Excellent Customer Service

Providing excellent customer service is key to retaining customers and generating positive word-of-mouth. 

Train your team to be responsive, helpful, and courteous. Go the extra mile to ensure your customers are satisfied and feel valued.

Business Registration in Each Province 

Registering a business in Canada involves adhering to specific requirements, which can vary by province and territory. 

Jaime Bell, from Wild Coast Law and Contracts Market has helped us with some of the general steps you need to follow to register your business in various provinces or territories across Canada.

Check out her website, the Contracts Market, for lawyer-drafted contracts to help your business succeed. 

Disclaimer
These steps and information are for informational and educational purposes only and should not be relied upon as legal advice. We always recommend you seek independent legal advice from a lawyer local to you when starting your business. 

General Steps for All Provinces

1. Choose a Business Structure - Decide whether you want to operate as a Sole Proprietorship, Partnership, or Corporation. Each structure has different legal and tax implications.
2. Select a Business Name - Ensure your business name is unique and not already in use. Conduct a thorough search including social media, domain names, and trademarks.
3. Register the Business Name - If you are operating under a name different from your personal name, you must register it with the appropriate provincial or territorial authority.
4. Get a Business Number (BN) - Obtain a Business Number from the Canada Revenue Agency (CRA) for tax purposes.
5. Register for PST/GST/HST - Register for Provincial Sales Tax (PST), Goods and Services Tax (GST), or Harmonized Sales Tax (HST) if your business's revenue exceeds $30,000 annually.
6. Obtain Necessary Permits and Licenses - Depending on your industry and location, you may need specific permits and licenses to operate legally.
7. Open a Business Bank Account - Keep your business finances separate from your personal finances by opening a dedicated business bank account.

Specific Steps by Province

Alberta

• Business Name Search and Registration - Conduct a NUANS name search and register with Alberta Registries.
• Incorporation (if applicable) - File Articles of Incorporation with Corporate Registry.
• Register for Provincial Taxes - If applicable, register with the Workers' Compensation Board.

British Columbia

• Name Approval Request - Submit a name approval request to BC Registry Services.
• Business Registration Register the business name and obtain a Business Number.
• Incorporation (if applicable) - File an incorporation application online through BC Registry Services.

Manitoba

• Name Reservation - Reserve a business name through the Companies Office.
• Register the Business Name - Register the name with the Companies Office.
• Incorporation (if applicable) - Submit Articles of Incorporation to the Companies Office.

New Brunswick

• Name Search Report - Obtain a NUANS report and register the name with Service New Brunswick.
• Business Registration - Register with Service New Brunswick for a Business Number.
• Incorporation (if applicable) - File Articles of Incorporation with Service New Brunswick.

Newfoundland and Labrador

• Name Reservation - Reserve a business name with Digital Government and Service NL.
• Business Name Registration - Register the business name.
• Incorporation (if applicable) - Submit Articles of Incorporation to Service NL.

Nova Scotia

• Name Reservation - Reserve a business name with NS Online Services.
• Register the Business - Register with the Registry of Joint Stock Companies.
• Incorporation (if applicable) - Prepare and file required documents with Joint Stock Companies.

Ontario

• Name Search - Conduct a NUANS name search.
• Business Name Registration - Register the business name through Ontario Business Registry.
• Incorporation (if applicable) - File Articles of Incorporation with ServiceOntario.

Prince Edward Island

• Name Reservation - Reserve a business name with PEI Business Registry.
• Business Name Registration - Register the name.
• Incorporation (if applicable) - Submit Articles of Incorporation to PEI Corporate Services.

Quebec

• Business Name Search - Ensure the name is unique through the Registraire des entreprises.
• Business Registration - Register the business with the Registraire des entreprises.
• Incorporation (if applicable) - File Articles of Incorporation.

Saskatchewan

• Name Reservation - Reserve a business name with Information Services Corporation (ISC).
• Business Registration - Register the business name.
• Incorporation (if applicable) - Submit Articles of Incorporation to ISC.

Northwest Territories

• Name Search - Conduct a name search with Corporate Registries.
• Business Registration - Register the business name.
• Incorporation (if applicable) - File Articles of Incorporation.

Nunavut

• Name Search - Conduct a name search with Legal Registries Division.
• Business Registration - Register the business name.
• Incorporation (if applicable) - Submit Articles of Incorporation.

Yukon

• Name Search - Conduct a name search with Corporate Affairs.
• Business Registration - Register the business name.
• Incorporation (if applicable) - Submit Articles of Incorporation.

Additional Resources

Starting a business in Canada as a newcomer can be an exciting and rewarding journey. We hope this guide has provided you with the knowledge and resources you need to get started. 

To continue learning, check out the resources below.

Bisola Tijani

For more information on running a successful business, mastering your finances and living your ideal life, we recommend following Bisola Tijani, AKA Whiz Queen, on Instagram.

The Contracts Market

For lawyer-drafted contracts for Canadian freelancers, coaches and service providers, check out Jaime Bell’s Contracts Market.

The Seven Day Business Starter Course

If you're looking for a more detailed, step-by-step approach to launching your business, we invite you to check out our Seven Day Business Starter Course. 

This comprehensive course is designed to help you start your successful Canadian business in just seven days.

Get 40% off the Seven Day Business Starter course when you use the coupon code new2canada at checkout.