A Quick Guide to Starting a Business in Canada
In Canada, there were 1.23 million employer businesses in 2019 alone. Of these, 1.2 million were small businesses, which means the economy offers great conditions for growth.
Whether you want to launch an online-only business or prefer the proven model of a physical store, you have great chances for success in Canada’s marketplace.
Read on to learn how to open a new business in Canada and what you need to know before you do.
Write a Business Plan
The one thing all successful companies have in common is a good business plan. This is the document that can lead you to success and help you accomplish all your business goals.
It can also help you get funding if you want to apply for venture capital and keep you on track so you always remember what the next steps are in your business growth.
Register A Company
The first step to starting a business in Canada is to register a company and choose a business entity. You can open a sole proprietorship, a partnership, a corporation, or a cooperative.
Each business ownership model has a different application process and conditions so make sure you research the one for you ahead of time.
Find a Location
If you want to open a store, you’ll need to find a location with a lot of visibility, foot traffic, and easy access for pedestrians and vehicles. If you operate exclusively online, you’ll still need a location to register your company and receive mail to, in the form of a virtual address and mailbox.
Find Small Business Financing
One of the most important small business tips is to find funding. Will you invest your own money into the business or look for external investors or venture capital firms? Will you have a partner who will invest some percentage or offer equity for everyone that comes on board?
You’ll need to decide on your financing model before you begin so you can register the right business entity for the type of financing.
Get The Necessary Business Licenses
Depending on your industry and the types of businesses you want to open, you may need to obtain certain licenses and permits to do business legally. Check your province or visit the official Canada government website to see which – if any – licenses you need to obtain. You may need to apply for these licenses and pay a fee in order to get them.
Get Business Insurance
Though you have a legal obligation for insuring a business, you may need extra insurance to cover some additional things. For example, an Ontario small business insurance policy is essential for trade workers like electricians, contractors, restaurants, bed and breakfasts, and even some home-based businesses.
Opening a New Business in Canada Is Easy if You Follow These Tips
Whether you want to open an online business in Canada or a brick-and-mortar store, these tips will help you complete your business application in no time. From registering a legal entity to getting the business licenses you’ll need, starting a business in Canada can be simple and easy.
Discover more business tips over on our blog where we share the latest news and trends from the world of business and entrepreneurship to help you build and grow your company.
