Incorporate in Ontario
With Bizincs Expertise

The key difference lies in the scope of name protection and operation. Provincial incorporation in Ontario provides a unique name and the right to operate only within the province. Federal incorporation, on the other hand, offers stronger, nationwide name protection and the right to operate across all of Canada, though you must still register in each province where you have a physical presence.

The government fees for incorporation vary depending on whether you choose provincial or federal. Typically, the government fee for provincial incorporation in Ontario is around $300, while federal is around $200. It's important to remember that additional costs for a name search (NUANS report) or professional services from a firm like Bizincs should also be factored in.

Yes, you can. Incorporating in Ontario online is a fast and efficient process. Online filing services, like those offered by Bizincs, streamline the entire procedure, from the business name search to the final document filing, making it a simple and convenient way to get your business started.

For provincial incorporation in Ontario, there are no Canadian residency requirements for directors. This makes it an ideal choice for foreign-owned businesses. However, federal incorporation requires at least 25% of the directors to be Canadian residents.

After you incorporate, your business becomes a separate legal entity with its own tax obligations. This means you must file a corporate tax return (T2) annually with the Canada Revenue Agency (CRA), in addition to your personal income tax return (T1). Professional services like those from Bizincs can help ensure accurate and compliant tax filings.

A NUANS (Newly Updated Automated Name Search) report is a search that checks for similar or identical business names and trademarks across Canada. It's a required step to ensure your proposed corporate name is unique and not already in use. This helps prevent legal issues and brand confusion.

Bizincs provides end-to-end support for business incorporation in Ontario. Our services include expert guidance on choosing the right incorporation type, conducting the necessary name searches, preparing and filing all required documents, and providing ongoing support for corporate and personal tax filing, bookkeeping, and other essential business services. 

Renewing Business Name

In Ontario, businesses must renew their Business Name Registration (formerly known as the Master Business License) every 5 years. This renewal must occur within 60 days of the registration's expiration. Your registration document will show the business commencement date and the expiration date.

If the registration has expired, you must register the business as new. If you're within the renewal period, you'll need to provide the Business Identification Number (BIN) from your expiring registration.

When renewing, you'll enter the same information as on your original registration. Once renewed, you will have another five years before needing to renew again. If there have been any changes to your business information, you must initiate an amendment to update those details either before or after the renewal.

Amendment of Business Name

If you wish to amend the Business Name Registration, you will need the business BIN number. If you do not have the BIN number, we can look it up and provide it as part of our service to amend your business registration. The Ontario Government allows these amendments to the existing registration:

• Business Address in Ontario
• Individual Address
• Description of Business Activity
• Adding/removing business partners, as long as 2 always remain.

However, you cannot change an individual's name or a business name by amendment. If you require this change, the existing registration must be cancelled, regardless of whether it is a Sole Proprietorship, General Partnership, or even a Trade name. A new Business Registration must be verified with a new name or new ownership.

When completing the business registration form, you must provide the same information as when you originally registered your business name. Once the form is completed, the amendment will continue throughout the remainder of the five years.

Cancellation of Business Registration

To cancel your Business Registration, start the process with the Ontario Government. Provide the same information as your original registration, including your business name, the names and addresses of individuals, the business activity, and the authorized person's name. You must also include your Business Identification Number (BIN), which is on your original registration.

After filing the cancellation, the Ontario Business Name Registration cancellation document will be the last document for that business, and the registration will become a historical record.

BIN number not known

If you do not have a copy of your original registration to renew, amend, or cancel your registration, we can search your registration by completing a corporate search with the Ontario government to find the registration, including all details. An additional fee will be required.

Choosing a business name

Choosing the right name for your business registration is an important decision. However, it can be tricky. The name should be unique and memorable, and draw potential customers. It should also provide quick information about your business and build a brand image.

In Ontario, an individual doesn't need to do business under their own name. Under the "Business Names Act", if a descriptive element is added to the name, the registration must be completed.

The person registering the business is responsible for any risk of confusion with an existing corporation or business name. While choosing a name for your business, it is very important to prioritise uniqueness. The Ontario Government will recognize any name submitted by the registrant, since small businesses do not have name protection. Selecting a name that is misleadingly similar to an already existing one could expose you to potential legal action from the other party.

Restriction on name use

Certain words and expressions are not permitted in Ontario business registration. They are:

• Objectionable or offensive words.
• The words "Institute, College, University" are strictly prohibited without the written consent of the Ministry of Education.
• Words that suggest an association with a government body or are restricted under the Ontario Law.
• Sole Proprietors are not allowed to use words that imply more than one individual (Groups, associates, team).
• The sign @ is prohibited for any business registration.
• You may use the symbols: (! " # $ % & ' ( ) * + ; : { } / ^ \ ); but not as the first character of your business name.

Business Name Search

It's best to choose a business name personalised to you and your business. Infringement can be an obstacle to finding a suitable business name. Your name should be specific to you, what you do, what you offer, the area you serve in, etc. These identifiers help in choosing a name that is unique to you and your business.

Business Name Availability

Though it's not mandatory, it is strongly advised to check business name availability to ensure you're not infringing on another business name and to verify that you have a unique name that sets you apart from your customers. Here are 2 ways to search for available business names during the registration process:

Ontario Business Name Search: This search is done with the help of the Ministry of Consumer and Commercial Relations. This database searches for exact matches of existing business names in Ontario and does not check for similar names. It also does not ensure that you are not infringing on another corporation's name or trademark in Ontario or elsewhere.

NUANS Name Search: The NUANS database covers most of Canada and shows corporations and business registrations with similar names. This search effectively assesses name availability, and a preliminary check is done to confirm availability before ordering the official printout.

Yes, you are legally obliged to register your business, whether it’s Sole Proprietorship, General Partnership, or Trade name under Corporation or General Partnership. The only exception is when a Sole Proprietorship choose their own personal legal name as a business name. This is never applicable for partnerships or corporation.

How does Ontario registered business work for taxation?

1. Federal and Provincial Taxes: Residents of Ontario are subject to both federal and provincial income taxes, which are administered by the Canada Revenue Agency (CRA). Taxpayers file a single tax return; however, federal and provincial taxes are calculated separately.
2. Tax Rates: Ontario has multiple tax brackets with progressive rates. This means that as your income increases, the percentage of tax you pay on income within each bracket increases too.
3. Tax Credits: Ontario provides various tax credits that can help reduce the amount of tax to be paid by residents. Notable tax credits include the Ontario Trillium Benefit, which combines the Ontario Sales Tax Credit, the Ontario Energy and Property Tax Credit, and the Northern Ontario Energy Credit. Additionally, there’s Children’s Activity Tax Credit.
4. Property Tax: Property tax is a municipal tax rather than a provincial one. Homeowners in Ontario must pay property taxes to their respective municipalities, and the rates can vary from one municipality to another.
5. Health Premium: This premium is not considered a separate tax; instead, it is deducted from income earned to help ensure the sustainability of the province's health services.

Do I need to register my business name if my business is online only?

Yes, even if your business is solely online, you are required to register it. An Ontario business license ensures your business is legally recognized and protected. The registered business name and the domain name are not required to be the exact same name; however, most individuals choose to operate in this way, maintaining consistency in both registries.

When operating an online business, it's crucial to remember that the Business Name Registration, formerly the Master Business License renewal process, is just as essential as the initial registration. This ensures that your current master license keeps your online business compliant with Ontario's regulations and allows you to continue operating smoothly.

Yes, if you've registered a business name instead of using your personal name, you'll need a separate bank account. Don't worry, since the bank fees are a deductible business expense, the out-of-pocket costs are a short-term investment for you and your business.

Startup resources

Business Opportunities

Considering a new business venture, there are two main options: starting a business from scratch or buying a business.

Starting a business from scratch takes a lot of time and effort to build sales, build a brand, build a social media presence, build a supply chain, and build a team. On the other hand, buying a business gives you a chance to earn money right away and a chance to build on a business that already has a loyal customer base and a loyal team.

The other option is investing in a franchise. This option gives you a chance to invest in a business with a business model that already has a marketing strategy. This option, however, takes a lot of money in terms of buying a franchise and paying royalties to the franchisor.

Each option, therefore, has its advantages and disadvantages, and the potential business owners can choose the option that suits them best.

Market Research

Market research is vital before venturing into business. Through market research, you will be able to understand your competitors, their products, and how they market their goods. Through this, you will have a clear idea of the market niches available. All these insights will help you understand the challenges you might encounter in your business venture.

Business Plan

A business plan is important in clarifying your business concept. It provides the services or products to be offered, the market analysis, and the strategy for success. It also provides the financial overview, the advertising budget, the investment opportunities, and the risk management strategies. It is important to regularly update your business plan to take advantage of new opportunities and changes in the market.

Finding Investors

New business owners mostly seek alternative financing sources in Canada, like angel investors, which can help in achieving their entrepreneurial aspirations. Venture capital has a significant role in assisting new startups, which start small before becoming successful businesses. This support can significantly enhance the business owner's journey.

Brand Awareness

The development of a brand is a significant yet challenging aspect of establishing a business, which has a major impact on the business's connection with its customers. The key aspects to concentrate on in the development of a brand are the business name, choice of font, colours, and logo. The business name should be simple to pronounce, spell, and remember. It is also essential to avoid common names such as "enterprise" or "services" in your business name. Instead, it is vital to add a descriptive word that explains the nature of your business. Not only does this help in clarifying your business to potential customers, but it also plays a significant role in search engine optimisation.

Social Media Setup

However, it is very important to consider the availability of the name for a domain and social media platforms such as Facebook, Google My Business, Instagram, and even TikTok. Having a consistent brand name and identity is important for a business. Ensure that your business name is consistent on your domain and social media platforms.

Revenue Canada

It is important to know what the Canadian Revenue Agency (CRA) is, particularly if you're a business owner in Canada. Instead of considering them a hindrance, you should consider them a guide to what you're obliged to do. The CRA checks if you have established a business when you register. There's a big difference when you register a business compared to incorporating a business. Registered businesses add their income to their personal income, allowing them to claim deductions on their expenses, such as rent and supplies.

If you earn more than 30,000 dollars a year, you're obliged to register for the Harmonised Sales Tax (HST), although you're allowed to voluntarily register if you earn less than 30,000 dollars a year. Payroll taxes, on the other hand, will be necessary if you plan to hire employees.

Taxation

When you register your business, you will have to pay taxes on the income earned, deducting the business expenses. For efficient management of taxes, it is recommended that one hire a bookkeeper. The tax year for a registered business runs from January 1 to December 31, and taxes must be paid by April 30.

Permits and Licenses

Once you have registered your business, there are other licenses you might need to obtain from the province or your municipality. BizPal is a useful resource that can assist you in determining other licensing requirements for your business.

Business Insurance

As a business owner, there are new risks involved in the registration of your business. You are liable for any damages that may occur in connection with your business. Therefore, it is essential to take out business insurance to cover your business and your personal assets.

As a registrant of Ontario Business Central, you will receive the freeBiz guide. The freebiz guide provides essential information and support for your business, such as information on the Government of Canada, market access, income tax, associations, mentor programs, and other resources.

The next step to complete the Business Registration is to register your new business in Ontario. You will be prompted to provide the following information:

• Choose Your Business Structure
• Pick a Business Name
• Conduct a Name Search (NUANS)
• Register your business
• Get a Business Number (BN)
• Register for taxes
• Obtain Licenses & Permits
• Open a Business Bank Account
• Get Business Insurance
• Set Up Record-Keeping & Compliance

Do you require a Name Search?

You don’t need a NUANS report to register your business. However, you can choose to do a name search for $13-$15 during registration. We will look up your business name in the NUANS database to check for any similar or conflicting names, including businesses, corporations, or trademarks. This search returns better results than a simple Business Name Search and helps clarify any potential issues with your proposed name. If we find a name that conflicts with yours, you can suggest a new business name at no extra cost.

Is this a New Business, a Renewal Amendment, or a Cancellation?

With our guidance, you can either create a new registration or renew a business license for an existing registration.

You can amend or even change your current registration, including changing your business activity, address, or type. You can also cancel an existing registration by initiating and filing a business cancellation.

If you wish to change from a Sole Proprietorship to a team, or vice versa, you need to register again.

Once registration is complete, the business is registered with the Ontario Government and receives a Business Identification Number (BIN) that differentiates it from others. This registration is valid for five years, as noted on the form. If you need to change or cancel your registration during this period, you will need the BIN number. If you don’t have it, we can look it up for you. After five years, you must renew your business license in Ontario. If you registered through Ontario Business Central, we will email you about the renewal.

Step 1- Ordering Page

• Choose between renewing registration for existing business or a new registration.
• Select the Time Frame most convenient to you.
• Choose the type of your business.
• Optionally, do a name search to ensure the availability of your name.
• If required, choose .ca or .com domain.
• Add tax accounts if your business requires it.

Step 2- Provide Registration Details

• Provide the name of the business owner or director.
• Provide the name of your business.
• Add corporate details if it’s applicable to your business.
• Provide Add-on details if applicable.
• Read the terms and conditions and click to agree.
• Enter the Business Address.
• Provide a short description of your business activity.

Step 3- Payment Information

• Review order details before confirming.
• Enter contact and bank details.
• Credit Card Payment Including Visa, MasterCard, American Express, Visa Debit, MasterCard Debit
• Tick the box “I’m not a robot”.
• Click “Complete Order”.

In terms of business taxation, a "write off" reduces taxable income. In Canada and the US jurisdiction, businesses can write off a wide range of expenses if they are ordinary and necessary for the operation of the business. Here's a general summary:

Common write-offs include:

Rent or Lease: Payments for using the property for business operations.

Utilities: The cost of utilities such as electricity, water, and internet.

Salaries and Wages: Salaries, wages, and commissions paid to employees.

Office Supplies: Office supplies are those goods required on a daily basis for office use.

Travel: Travel expenses include spending on business trips.

Professional Fees: Expenses paid to professionals such as lawyers and accountants.

Advertising and Marketing: Costs of business promotion and ads. 

Loan Interest: Interests charged on business loans and credit. 

Employee Benefits: Expenses for benefits provided to workers, such as health and retirement plans. 

Vehicle Expenses: Deductions for fuel, repairs, and insurance on vehicles used for business. 

Education and Training: Costs for training to improve important business skills. 

Bank Fees: Fees associated with business bank accounts or credit cards.

Licenses and Permits: Costs of business licenses and permits.

Important Considerations:

Ordinary and Necessary: An expense is required to be ordinary, which means it is common to your trade or business. It is also required to be necessary, which means it is helpful to your business or trade.

Documentation: It is important to maintain records of business expenses, including receipts, bills, and invoices, to support the write-off in case of auditing or inspecting.

Personal and Business: Only business-related portions of expenses can be written off. If an expense is split between personal and business use, only the business portion is deducted.

Changing Regulations: Tax laws and regulations may change very frequently over time. A practical approach is to consult a tax professional and understand the current regulations and how to maximize deductions.