How to Register a Business in Canada (2026)

Starting a business in Canada is a two-step process: choose your business structure, then register it with the right authorities. The structure you choose — sole proprietorship, partnership, or corporation — determines your liability exposure, your tax rate, and how much paperwork you'll deal with every year.

This guide walks through each structure, where to register, and what happens after registration (CRA program accounts, GST/HST, payroll).

Step 1: Choose Your Business Structure

Sole Proprietorship

The simplest structure: you are the business. No separate legal entity, no incorporation fees. You report business income on your personal T1 tax return (Schedule T2125). Pros: cheap to set up, simple taxes. Cons: unlimited personal liability, taxed at personal marginal rates (up to 53% in Quebec), no access to the Small Business Deduction.

Partnership

Two or more individuals or corporations operating together. A general partnership splits liability among all partners. A limited partnership has at least one general partner (unlimited liability) and limited partners (liable only for their investment). Income flows through to partners' personal or corporate tax returns.

Corporation

A separate legal entity — the corporation can own property, sign contracts, and be sued. Shareholders are generally not personally liable for corporate debts. Incorporated businesses access the Small Business Deduction (9% federal rate on first $500,000 of active income) and can split income through salary/dividends. Incorporation costs $400–$1,500 depending on province and method. See our comparison: Sole Proprietor vs Corporation.

Step 2: Register Your Business

Sole Proprietorship Registration

If you operate under your own legal name (e.g., "Jane Smith Consulting"), you may not need to register anywhere. But if you use a business name (e.g., "Smith Consulting Services"), you must register a business name provincially. In Quebec, this is done at the Registraire des entreprises (REQ). In Ontario, at the Ontario Business Registry. Most provinces charge $60–$80 for a business name registration, renewable every 5 years.

Corporation Registration

You can incorporate either federally (under the Canada Business Corporations Act) or provincially. Choose based on where you operate:

• Provincial incorporation (simpler, cheaper ~$400–$800): best if you operate only in one province.
• Federal incorporation (~$200 online): gives you the right to use your corporation name across Canada. But you'll still need to register extra-provincially if operating in multiple provinces.

In Quebec, corporations must also register with the Registraire des entreprises du Québec (REQ) regardless of whether they incorporated federally or provincially.

Step 3: Register with the CRA

Once your business exists legally, you need CRA program accounts. These are separate from your personal SIN and the corporation's tax account.

Business Number (BN)

Your 9-digit Business Number is the foundation. You get one BN and then attach program accounts to it. Register at canada.ca or by calling the CRA at 1-800-959-5525.

GST/HST Account (RT)

Required once taxable revenues exceed $30,000 over any four consecutive quarters. You can register voluntarily before reaching the threshold to claim Input Tax Credits on your purchases. Register online at My Business Account.

Payroll Deductions Account (RP)

Required if you hire employees or pay yourself a salary as a corporate owner. This account is used to remit CPP, EI, and income tax deductions. Register before your first payroll date. See our guide: How to Set Up Payroll in Canada.

Corporate Income Tax Account (RC)

Corporations automatically receive an RC account when they incorporate federally or register with the CRA. Sole proprietors file corporation income on their personal T1 — no separate RC account needed.

Step 4: Register with Your Province (if Quebec)

Quebec businesses — sole proprietors using a business name, partnerships, and corporations — must register with the Registraire des entreprises du Québec (REQ) at registreentreprises.gouv.qc.ca. You'll also need to register for QST (TVQ) separately with Revenu Québec once revenues exceed $30,000.

After Registration: What You Need to Do

• Open a dedicated business bank account — never mix personal and business funds
• Set up bookkeeping software (QuickBooks, Xero, or Wave) from day one
• Register for GST/HST and QST as needed
• Set up payroll if you have employees or pay yourself a salary
• File your first T1 or T2 for the year the business starts