How to register a business in Ontario: Step-by-step guide

Published Thursday 23 July 2026

Table of contents

• Do you need to register a business in Ontario?
• Benefits of registering your business in Ontario
• Which business structure should you choose?
• How to register a business online in Ontario
• What does it cost and how long does it take?
• What licences, permits, and tax accounts do you need?
• What to do after registration
• Simplify your Ontario business finances with Xero
• FAQs on registering a business in Ontario

Key takeaways

• You register online through the Ontario Business Registry, then add federal CRA tax accounts as needed. Most registrations complete the same day.
• Pick your structure first. Sole proprietorships and partnerships are quick and low-cost, while corporations cost more but limit liability.
• Fees start around $60 for business name registrations and $300 for Ontario incorporation. Name searches such as the Newly Upgraded Automated Name Search (NUANS) report may be needed for named corporations.
• After registering, set up invoicing, payments, and paperless record keeping so you stay compliant and make confident, real-time decisions.

Do you need to register a business in Ontario?

If you operate in Ontario using a name other than your exact personal name, you must register your business. You can do this online via the Ontario Business Registry.

The following situations are common exceptions where registration may not be required:

• You operate under your exact personal name only with no additions.
• You run a hobby with no commercial intent.
• You are testing an idea without trading yet.

Most sole proprietors, partnerships, and corporations need to register. The type of registration depends on your business structure and whether you use a business name.

If you're a sole proprietor trading as "Jane Smith," you won’t need to register. But name variations "Jane Smith Consulting" or "Smith & Associates" triggers the requirement. Partnerships and corporations always register, even if using owner names.

Registration gives you legal standing to open business bank accounts, apply for permits, and invoice customers. It also protects your business name within Ontario and creates a public record that builds trust with suppliers and clients.

Stay compliant by registering before you operate

When you register before you start trading, you stay compliant with Ontario law and avoid fines or disruptions to your business.

Specific risks include:

• Fines and penalties: Ontario's Business Names Act allows for fines against unregistered businesses operating under a business name
• No legal recourse: An unregistered business cannot sue to enforce contracts in Ontario courts until it registers and pays any outstanding penalties
• Inability to open a business bank account: Banks require registration documents before opening a business account, limiting your ability to accept payments professionally
• Loss of business: In serious cases, authorities can require you to cease operations until you comply

Benefits of registering your business in Ontario

Registering your business in Ontario gives you legal standing to operate, build credit, and protect your name. Here's what registration makes possible:

• Open a business bank account. Most Canadian banks require a Master Business Licence or certificate of incorporation before opening a business account in a business name
• Protect your business name. Registration prevents others from registering the same name provincially. However, be mindful this does not guarantee trademark protection
• Invoice clients and sign contracts. Registered businesses can enter into contracts and issue invoices under their business name, which builds credibility with clients and suppliers
• Apply for licences and permits. Many municipal licences, professional permits, and government programs require proof of business registration before you can apply
• Establish business credit. Lenders and suppliers use your Ontario Business Identification Number (BIN) or Canada Revenue Agency (CRA) Business Number (BN) to assess creditworthiness and set up trade accounts
• Access government programs. Registered businesses can apply for grants, financing, and provincial support programs that are unavailable to unregistered operators

Which business structure should you choose?

Your structure affects liability, tax, cost, and paperwork. Pick the one that fits your goals and risk.

Each business structure offers different advantages and requirements:

Sole proprietorship

You are the business. It's simple and low-cost but you have unlimited personal liability. Income is taxed on your personal return.

• Best for: Freelancers, consultants, and solo service providers testing an idea or keeping overhead low.
• Key considerations: Your personal assets are at risk if the business faces legal claims or debts. You report business income and expenses on your T1 personal tax return using Form T2125.

Partnership

Two or more owners share profits and responsibilities. A partnership agreement helps manage roles, contributions, and exits. Certain limited forms reduce liability for specific partners.

• Best for: Co-founders launching together, professional practices, or family businesses.
• Key considerations: Draft a written partnership agreement covering profit splits, decision rights, and exit terms. General partners have unlimited liability, while limited partnerships can protect passive investors.

Corporation

A separate legal entity that limits owners' liability. Costs and admin are higher. You can incorporate as an Ontario corporation or federally, then register in Ontario to operate here.

• Best for: Businesses with significant liability risk, multiple shareholders, or plans to raise investment.
• Key considerations: Corporations file separate tax returns and require annual filings and corporate records. Shareholders' personal assets are generally protected from business debts. Federal incorporation offers name protection across Canada, while Ontario incorporation is simpler and lower cost if you operate only in-province.

How to register a business online in Ontario

You complete filings in the Ontario Business Registry with a My Ontario Account. Follow these steps to finish in one sitting.

1. Create a My Ontario Account

Create or sign in to your My Ontario Account to access the Ontario Business Registry. This is where you file registrations, incorporations, and updates.

If you don't have an account, you'll need an email address and basic personal information. The account is free and gives you access to multiple Ontario government services. Setting up your account takes just a few minutes and provides secure access to all your business filings.

2. Search and confirm your business name

Before you file, check if your proposed name is available and complies with naming rules. This step prevents delays and ensures your chosen name meets legal requirements.

• For named corporations: Order a NUANS name search report and keep it handy. The report shows similar names already registered in Ontario and federally. Your name must be distinctive and not confuse consumers.
• For sole proprietorships and partnerships: Search the Ontario Business Registry to avoid conflicts. Your name can't suggest a corporation (avoid "Inc." or "Ltd.") and must include your legal surname if you're a sole proprietor.
• For numbered corporations: No name search is needed. You'll receive a numbered name like "1234567 Ontario Inc." You can add a trade name later.

3. Prepare your information

Have this ready before you start your filing. Gathering everything in advance ensures you can complete the process without interruption and avoid errors that require amendments later.

You'll need the following information:

• legal names, addresses, and contact details for owners, partners, or directors
• business activity description and start date
• share structure and officer details if incorporating
• preferred name and NUANS report details if applicable
• payment method for fees (credit card or debit)

For corporations, you'll also need to identify at least one director who is a Canadian resident and specify share classes and any restrictions. Having all documentation organized beforehand streamlines the filing process significantly.

4. File your registration or incorporation in the Ontario Business Registry (OBR)

Complete your filing through the Ontario Business Registry system. The process varies slightly depending on your business structure but follows clear prompts throughout.

• Sole proprietorship or partnership: File a business name registration and receive a Master Business Licence. This confirms your business name is registered and provides your Ontario Business Identification Number (BIN).
• Corporation: File articles of incorporation and receive incorporation documents and a company key to manage records. You'll also get a certificate of incorporation confirming your legal entity status.

The online system guides you through each field. Review carefully before submitting, as corrections later require amendments and fees.

5. Get your Ontario BIN and register CRA accounts

Complete your business setup by obtaining your provincial and federal identification numbers. These numbers are essential for banking, tax compliance, and business operations.

Ontario Business Identification Number (BIN): The Ontario Business Registry issues your BIN automatically when you complete registration. This nine-digit number identifies your business in Ontario government systems.

Canada Revenue Agency (CRA) accounts: Register separately with the CRA for:

• Business Number (BN) for federal tax purposes
• Goods and services tax/harmonized sales tax (GST/HST) account if your revenue exceeds $30,000 annually or you choose to register voluntarily
• Payroll deductions account if you hire employees
• Import/export accounts if you trade internationally

Keep all confirmations safely stored. You'll need them for banking, licensing, and future filings.

What does it cost and how long does it take?

Know the typical fees and timelines so you can plan your budget and launch timing. Costs vary based on your business structure and filing method.

Fees by structure

Registration fees depend on your business type and whether you file online or by paper. Online filings are typically faster and less expensive:

• Sole proprietorship or partnership registration: Commonly around $60 for a business name registration. Renewals are required every five years at a similar cost.
• Ontario incorporation: Commonly around $300 for articles of incorporation. The same fee applies whether filed online or by mail. Annual filings and corporate record maintenance add ongoing costs.
• NUANS name search: Typically $75 to $100 for a name search report required for named corporations.
• Municipal licences or sector permits: Vary widely by location and activity. A Toronto business licence ranges from $120 to several hundred dollars depending on business type.

Budget for extras like legal advice, accounting setup, and professional memberships if required for your industry. For example, a consulting business might budget $400 total: $60 for registration, $200 for accounting setup, and $140 for professional association membership.

Processing times

Most registrations complete quickly when filed online, but processing times vary by filing method and government workload:

• Online filings in the Ontario Business Registry: Typically same-day. You'll receive confirmation and documents electronically within hours.
• Mail or in-person options: Longer, depending on the filing type and volume. Allow two to three weeks for paper filings.
• CRA account registration: Usually processed within 10 business days. You can start operating before receiving your BN, but you'll need it to file returns and claim credits.
• Municipal permits: Processing times vary. Some municipalities issue licences immediately online, while others require inspections and take several weeks.

What licences, permits, and tax accounts do you need?

After your registration or incorporation, confirm municipal and sector requirements and set up tax accounts to stay compliant. Additional permits and accounts ensure you can operate legally and manage taxes properly.

Business Number vs Ontario BIN

Understanding the difference between provincial and federal business numbers helps you navigate government requirements and avoid confusion when dealing with different agencies.

• CRA Business Number (BN): A federal nine-digit number used with GST/HST, payroll, and import/export accounts. You apply through the CRA's Business Registration Online service.
• Ontario Business Identification Number (BIN): A provincial number tied to your OBR filings and updates. You receive it when you register in the Ontario Business Registry.

You may have both. Each serves different systems. The BN is essential for federal tax compliance, while the BIN tracks your provincial business records.

GST/HST registration

Register for GST/HST with the CRA if you exceed the small-supplier threshold ($30,000 in revenue over four consecutive calendar quarters) or choose to register earlier. Early registration can provide business advantages even before you reach the threshold.

Benefits of early registration: Claim input tax credits on business purchases, appear more established to clients, and simplify accounting if you expect to cross the threshold soon.

How to register: Use the CRA's Business Registration Online service. You'll receive your GST/HST account number and be required to file returns based on your reporting period (monthly, quarterly, or annually).

Set correct tax rates in your invoices from day one. Ontario charges 13% HST on most goods and services. For example, if you invoice $1,000 for consulting services, you'd add $130 HST for a total of $1,130.

Municipal and industry permits

Use BizPaL and your municipality's website to check for licences, zoning, signage, health, or sector-specific permits. Many cities require a local business licence before opening.

Common permits include:

• municipal business licence (required by most cities)
• zoning approval for your business location
• health permits for food service or personal care
• building permits for renovations or construction
• sign permits for outdoor advertising
• alcohol licences for serving or selling alcohol
• professional licences for regulated trades (electricians, plumbers, real estate agents)

Check early. Some permits take weeks to process and you need them in place before you start operating.

What to do after registration

Proper financial infrastructure prevents compliance issues and gives you real-time visibility into your business performance.

Set up invoicing and payments

Create professional invoices, accept online payments, and automate reminders so cash flows in faster. Turn on bank feeds to see daily movements and reconcile in minutes.

Connect to major Canadian banks, pulling transactions automatically so you spend less time on data entry. Customize invoice templates with your logo and payment terms, then send directly from your platform. This professional approach builds client confidence and speeds up payment collection.

Capture receipts and bills digitally

Photograph or forward bills and receipts and let digital tools extract the details. Transactions flow into your accounting system for paperless, audit-ready records.

Digital receipt capture eliminates the shoebox of receipts. It stores documents securely in the cloud and matches them to transactions, so you're always ready for tax time or CRA audits. This system saves hours during tax season and ensures you never lose important expense documentation.

Connect payroll or point-of-sale tools

Add a payroll or point-of-sale app to handle employees and in-person sales. Keep data synced to reduce manual admin.

Popular integrations include payroll services, ecommerce platforms, and retail systems. Sales and wage data flows into your accounting system automatically, giving you real-time financial visibility. This integration prevents double data entry and reduces errors that can cause compliance problems.

Work with an accountant or bookkeeper

A qualified professional can help you set up GST/HST, build simple cash flow reports, and keep you on track through your first year.

Find certified advisors who know cloud accounting platforms. They can guide you on tax planning, business structure, and compliance to help protect and grow your business. Having professional support early prevents costly mistakes and ensures you take advantage of all available tax deductions.

Simplify your Ontario business finances with Xero

Use Xero to track your invoices, HST, payroll, and expenses in one place so you always know where your business stands. Get one month free.

FAQs on registering a business in Ontario

Here are answers to common questions about Ontario business registration, from name requirements to timelines and costs.

Do I need to register if I use my personal name only?

If you operate as a sole proprietor using your exact legal name with no additions, you don't need to register. As soon as you add any extra words or start using a different business name, you must file a business name registration in the Ontario Business Registry.

Can I run a business without registering in Ontario?

If you trade under any name other than your exact legal name, you need to register under Ontario's Business Names Act. Registering on time helps you avoid fines, protect your ability to enforce contracts, and keep operating without interruption.

What is the difference between a CRA Business Number and an Ontario BIN?

The Canada Revenue Agency Business Number (BN) is a federal nine-digit identifier used for GST/HST, payroll, and import/export accounts. The Ontario Business Identification Number (BIN) is a provincial identifier from the Ontario Business Registry for your registration or incorporation, so you may have both.

Do I need a NUANS report to register in Ontario?

You need a NUANS name search report only if you're incorporating with a named corporation; numbered corporations, sole proprietorships, and partnerships don't need one. However, it's still smart to search the Ontario Business Registry to avoid name conflicts.

How long is a Master Business Licence valid?

A Master Business Licence for a sole proprietorship or partnership is valid for five years, and you'll receive a renewal notice before it expires. Corporations don't receive a Master Business Licence but must file annual returns to stay in good standing.