Full Guide on How to Register a Business in Ontario (2022)

Congratulations on taking a step towards starting your own business! It’s an exciting time and one of the most important decisions you’ll ever make.

Starting a business is an excellent way to put your skills and knowledge to use, improve your financial situation, and start living the life you’ve always dreamed of.

However, before you jump into the world of entrepreneurship, you have to get legally set up, which may seem challenging.

Though this may seem like a complex and daunting task, it’s easier than you think- once you know what to do.

That’s why we’ve created this easy-to-follow guide on how to register a business in Ontario. This guide will explain the entire business registration process.

Step by Step Guide on How to Register a Business in Ontario

Registering a business name with the Government of Ontario is an important step you may take to avoid unnecessary confusion and protect your identity as a business owner.

MGCS’ Central Production and Verification Services Branch (CPVSB) registers business names and places them on the Public Record maintained by CPVSB for public view.

For a fee, anyone can search the Public Record for information on business names to locate the owners or principals.

Whether you need to file your security registration or are simply curious about another company, you can use this search tool to pull up all records.

Business registration in Ontario is simple. The Ontario government provides clear instructions on how to do it, and you can complete the process online.

But before you register your business, there are some things you should consider.

Here are a few things to know before you register a business in Ontario:

• What you propose to call your business
• A location for your main office
• Are you planning to expand into other provinces and territories
• Consider whether a corporation, partnership, sole proprietorship, or co-op will suit your needs

Let’s take you through how to register a business in Ontario step by step:

1. Name Your Business

The first thing you’ll need to do is decide on a business name. You’ll need to state it when you register the business.

Before registering a business name, you should determine if another company already holds that name.

You can use Ontario’s Enhanced Business Name Search database to see if other businesses use your proposed business name. You should also check domain names and Social Media platforms to see if others use the name online.

If your desired name is already taken, you will have to choose another one. It might help to play with different variations of the same word or mix and match words.

The important thing is that your company name reflects what you will be doing as a business or carries some other kind of meaning for you.

If your name is unique and you know that no other business has registered under it, all you have to do is register your business with the Ontario government.

Restrictions on Business Names

Every business needs a name, but not every name is suitable for every business. The following restrictions should be considered when choosing a name for your business:

• You can’t use a name that suggests your business is connected to a Government department unless you have the Government’s permission. A name like “The Ontario Horse Lovers Association” would not be acceptable because it does not have any distinctive elements.
• Names cannot include any profane language or objectionable words under federal or Ontario law.
• A business name that may mislead customers about the type of company. For example, putting “LLC” in the name of your sole proprietorship, for example.
• Without specific authorization, the terms “college,” “institution,” and “university” are forbidden.
• When choosing a business name, you must ensure that no other business has registered the same name or a similar name. However, you can use the name of a dead person if that person has been dead for at least 30 years.

2. Choose an Entity Type

There are three kinds of legal entities you can register as a business. Each requires different information and has additional requirements, depending on the entity type.

The three legal entities for business registration in Ontario are a sole proprietorship, partnership, and corporation.

A sole proprietorship is the simplest form of business organization owned by one person who has complete control over its operations.

It’s best for people who want to run their business with minimal legal obligations. With a sole proprietorship, you are entirely responsible for debts and liabilities.

A general partnership is one in which two or more people each have an equal stake in the business, but nothing like a joint venture agreement.

On the other hand, a limited partnership is similar to a general partnership, except that it has specific rules, such as how many partners can hold a share of the profits.

Partnerships are more flexible than sole proprietorships, as partners can take on more responsibility and liability.

A corporation is different from a sole proprietorship and a general partnership because it’s owned by shareholders (who can be individuals or other legal entities).

The shareholders vote on specific issues, such as hiring and firing employees, but usually don’t have any actual control over the business.

3. Register Your Business

After you’ve chosen your business name and legal structure, you can proceed to register your business. The type of registration depends on the kind of business.

Registering your business is typically a simple process, and once complete, your business will receive a business number from the Canada Revenue Agency.

This number acts as a file for all taxes, payroll deductions, benefit premiums, import/export transactions, and GST/HST remittances.

In addition to this number, you will also receive a program accounts list that outlines each account you need to pay into or claim credits against.

Depending on your specific industry, you may need a license or permission to operate in Ontario.

You will need to provide the following information to register your business in Ontario:

• Your business name
• A description of the business’s activities
• Address of the business
• The names and addresses of the owner(s) or partners
• An authority to register a business (usually the owner, but others can register businesses on their behalf)

When you register a business in Ontario, you have three options. You can do it online, by mail, or in person.

a. Registering Your Business Online

In just a few minutes, you can register your business online. A credit card (Visa or MasterCard) and an email address are required for the transaction.

Using the Integrated Business Services Application, you can register online. During the hours of 8:30 a.m. – 5 p.m., you can register online and print a temporary Master Business License.

b. Registering Your Business by Mail

You can register by mail by completing Form 1. Fill out the form and send it along with an $80 cheque or money order payable to the “Minister of Finance.”

To submit your completed forms and payment, please mail them to:

Ministry of Government and Consumer Services

Central Production and Verification Services Branch

393 University Avenue, Suite 200

Toronto, ON M5G 2M2

You will receive your Master Business License within 6 – 8 weeks.

c. Registering Your Business in Person

The following address is where you can register business names and search for business names on regular business days from 8:30 a.m. to 5 p.m:

Ministry of Government and Consumer Services

Central Production and Verification Services Branch

393 University Avenue, Suite 200

Toronto, ON M5G 2M2

If you wish to make an in-person payment, you can use cash, a check, or a MasterCard or Visa. The delivery of your Master Business License will take roughly 20 days.

Who Must Register Under the Business Names Act?

The Central Production and Verification Services Branch administers the Ontario Business Names Act, which covers:

• Businesses run by sole proprietors under the name of someone other than the business owner
• Partners conducting business under a name other than their full names
• Corporate entities that operate under a name different from their corporate name
• a previously formed general partnership or limited partnership that registers a company name that differs from the firm’s registered name
• Partnerships with limited liability
• Limited liability companies located outside a province

How Much Does It Cost to Register a Business in Ontario?

You may have started a small business with a limited budget, so it’s not surprising that you’re uncertain about the cost of registering your company.

Fortunately, business registration in Ontario is one of the province’s least expensive business start-up requirements.

There are three ways to register a business name in Ontario. You can do it online, by mail, or in person. Your business registration cost depends on whether you register online or not.

The total cost for filing a complete incorporation application online is only about $60. Registering in person or by mail will cost you $80.

Most people choose to register their company name online because it’s the most convenient way to do it and is just as effective as going through other means of registration.

You may also have to pay for a business name search in addition to the cost of registering your business.

It is best to check if a business exists with that name before registering.

Costs vary from $8 – $26 for searching Ontario’s Enhanced Business Name Search business registry.

Does Registration Protect my Business Name?

A registered business name is not an incorporated company. It’s simply a name that you register to use for your business.

Business names are registered under provincial legislation. The mere act of registering a company name does not ensure its exclusivity.

However, the Trade-marks Act may allow you to register a trademark to protect your business name.

If you’d like more information about trademarks, you can contact your lawyer or FedDev Ontario’s Small Business Services (SBS).

The Business Names Act does not prevent someone else from registering the same or similar name as yours.

The Act only allows you to use your registered name and sue anyone who uses it without your consent. It does not protect the exclusivity of a registered name throughout Ontario or Canada.

Additionally, you may want to analyze if incorporating a business is a better option for your firm. Ontario does not allow the incorporation of corporations with identical names.

You do not need to register a business name if you incorporate and conduct business under the name specified in the Articles of Incorporation.

Nevertheless, it is necessary to register the operating name under the Business Names Act if it differs from the corporate name.

Final Thoughts on How to Register a Business in Ontario

Incorporating your business can seem complicated, especially if you don’t know a lawyer on hand.

Registering a business doesn’t have to be intimidating. It’s a pretty straightforward process if you have the correct information to get started.

You can get it done more quickly and easily than you might think by following a simple process.

It also takes some preparation, understanding your business’s legal requirements, and obtaining the proper documents.

Hopefully, we were able to simplify the process for you. Use the steps learned to register a business in Ontario and complete the rest of your paperwork with confidence.

FAQs on How to Register a Business in Ontario

Can I start an online business without registering?

As a sole proprietor, you may operate legally without registering the company.

However, to use a business name, you must first register it with your local, provincial authority and the Business Names Act as an official business entity.

Do I need to register my small business in Ontario?

You must register your business name with the Ontario government within 60 days of opening.

You are exempt from this requirement by using your name for the business. However, adding another word requires registering the name.

What happens if you don’t register your business?

You cannot open a business account with a bank if you do not register your business. Furthermore, non-registered businesses have meager chances of attracting investors.

Do I need to register my business before I start?

If you want your business to be legally recognized, it is necessary when working with things like insurance.

Remember that to hire people, you need to register as an employer. However, you can only do this if you are already registered as a business.