Starting a business in Canada

The process of starting a business in Canada isn’t too complicated, and there’s lots of help out there to allow you to register your new enterprise and start to trade.

So – what do I need to start a business in Canada? How do I choose the right entity type, and get a business bank account ready before I start to trade? And what help is there from start up business loans in Canada?

Here’s what we’ll explore in this guide:

Business culture in Canada

Before we look at how to start your own business it helps to understand a little about Canadian business culture. Global business culture can vary a lot, so getting to grips with the etiquette before you dive in can help avoid unnecessary issues or headaches.

Canadian government statistics show that an astonishing 99%+ of all businesses in Canada are classified as small or medium sized businesses, employing over 60% of the country’s workforce. Small and medium sized businesses are the backbone of the economy, so you won’t be alone once you start your business in Canada.

When it comes to business etiquette, Canadians don’t tend to build personal relationships with colleagues – although they may be very professionally friendly. Meetings run efficiently, and ideally reach a consensus after all views have been aired. Once decisions have been made in Canadian businesses, action is expected quickly.

It’s also important to be prompt if you have an appointment set. Time keeping is important, and considered respectful, although you won’t be expected to take a gift along to a business meeting or event as you may in some cultures.

Who can start a business in Canada?

Before we look at how to open a physical business, or how to start an online business from Canada, let’s focus on who is entitled to start a business in the country.

It’s important to note that having a business in Canada isn’t enough on its own to get you a visa or right to reside there.

If you’re planning on moving to Canada, you’ll need to look at the visa and permits which could work for your situation carefully before you move. Getting a visa to set up a business in Canada isn’t necessarily straightforward and will require you to go through a rigorous application and assessment process.

To own a business in Canada you may consider Canadian business visa options like:

• Provincial Nominee Program (PNP) – programs are managed on a province level with varying requirements depending on the location you choose
• Quebec investors, entrepreneurs and self-employed persons visa – for eligible candidates supported by the Quebec government
• Start up visa – applications for this federal program have been paused at the time of research, but do check availability as this may change

Getting a visa agent to help may be a quick way to narrow down your options, and make the process of choosing and applying more straightforward.

Beyond this, you’ll need to make sure you’re able to legally and financially start the business entity type you intend to run in Canada – we’ve got more on the different legal structures you may select coming up next.

Once you’ve picked an entity type and checked you’re practically able to open your business, registering is a fairly straightforward process, particularly for sole traders and people working in a partnership arrangement.

If you’re opening a company and have foreign directors it’s important to check the residency requirements for your chosen location. Usually corporations in Canada can have up to 25% foreign directors, but there may be some variance at a provincial level, or based on industry segment.

Legal structures for businesses in Canada

One of the first decisions when you choose to start a business in Canada is the entity type which suits your needs.

Different countries have different legal business structures, and while they’re often quite similar from one country to the next, it’s worth getting to know the most common entity types used in Canada before you register. Here’s a summary.

Sole proprietorship

Registering as a sole proprietor is the simplest way to start to do business in Canada. You’ll need to be the sole owner, and you’re then considered to be legally responsible for all aspects of the business, including any debt incurred.

You must register for a trade name with your provincial or territorial government if you do business in a name other than your own, or if you earn over 30,000 CAD annually. Registration means you’ll get a business number and pay sales tax.

As a sole trader you can not sell stock, and may therefore find that securing funding for your company is harder compared to other entity types.

General partnership

A partnership is 2 or more people who share responsibility for a business together, and is very similar to a sole proprietorship in structure. In a General Partnership there’s usually a contractual agreement between partners which covers sharing of profit and loss.

You may need to register your partnership with your provincial authorities depending on where you’re based.

Corporation (company)

A Corporation (company) is a limited liability model which means that the owners of the business are considered as separate to the business itself. Owners and directors have important obligations but may not be obliged to pay any company debt from their own funds in the event the business runs into trouble.

Corporations must be registered in the province or territory in which they’re based and do business.

How to start a business in Canada as an expat

So – how do you start a business in Canada as an expat? This process will vary for different individuals and entity types, but is likely to include:

How to obtain a business visa in country

Let’s look in more detail at how to get a visa for business in Canada under the Provincial Nominee Program (PNP).

Under this program you’ll apply to the specific province or territory you want to live and work in, and you’d be eligible ultimately to become a permanent resident of Canada if successful. Different areas have their own eligibility criteria and application processes – usually you can apply for non-express entry which may take 13 months to process, or express entry if eligible. Express applications can take around 7 months.

Different requirements are in place to decide who is eligible for these programs – for example you may need to have studied in Canada, or have specific skills that are in shortage in the area you’re applying to. Not all PNP applications entitle you to start a business – some may only be to work for another employer.

You’ll need to review the details for your preferred province carefully to decide how to proceed – this process may be easier if you work with an immigration lawyer who can help you navigate your options.

Registering your business in Canada

The next step is choosing a name and registering the business. The process for registration depends on the entity type you’ve selected. If you decide to register a corporation you can either incorporate your business at the federal level with Corporations Canada or in your province or territory with the provincial/territorial government.

Federal registration can offer increased protections for your trading name and allows you to do business anywhere in Canada.

You can then get your federal business number and Corporation income tax account from the Canada Revenue Agency and register in the provinces or territories in which you expect to trade.

Licenses and permits

Some Canadian businesses may need licenses or permits. The requirements depend on your industry, business type, and the location you register in. You can also get help from a relevant industry body or a professional advisor if you need to.

Managing international business finances

Before you start to make or receive payments on behalf of your business in Canada you’ll need a business account. You can open a business account online for convenience, which may also offer you business friendly perks and low costs.

As an expat business owner you may find you need to manage international transactions frequently. You may also find there are currency exchange challenges in international payment processing – particularly when it comes to costs.

If you open an account which can hold CAD only, any incoming foreign payments must be converted to dollars for deposit, which might not be practical if you need to then use your balance to pay contractors or suppliers overseas.

Getting a business multi-currency account from a provider like Wise instead offers benefits to anyone trading internationally or working with overseas suppliers and staff.

You can open a Wise Business account online or in the Wise app, to hold 40+ currencies and make easy, low cost cross-currency payments to 140+ countries using the mid-market exchange rate.

Your account also offers ways of receiving funds from other countries in a selection of currencies. This means you could get paid by a customer in GBP, USD or EUR, and leave the balance in that currency until you need it for a payment yourself. Or convert back to CAD to withdraw, and access the mid-market rate with low, transparent fees.

Starting up an online business in Canada

To open an online business in Canada you’ll need to register your company in the same way as you would a physical store or other business type. You may also need to get permits and licenses depending on the type of company and niche you work in.

Since online businesses often deal with international clients you’re more likely than ever to have international payment processing needs, which makes it important to get a multi-currency account which can handle your incoming and outgoing payments smoothly.

Foreign companies opening up a branch or subsidiary in Canada

The rules for registration of a branch or subsidiary in Canada, and the obligations of the company owners or directors depend on the details of the business registration.

Many of the required steps to open a branch or subsidiary of an existing foreign company in Canada are similar to those required when forming a new Canadian business. However, if you’re not physically present in the state in which you intend to do business, you’ll usually find that you need a legal representative there as part of the registration process.

You’re likely to find that getting individual professional advice is essential, to make sure you get the process right in your own unique situation.

Starting up a non-profit company in Canada

If you’re opening a not for profit company in Canada you’ll need to incorporate it which can be done online. You’ll then need to register as a charity and complete any other required steps which can depend on your specific entity type and your plans. For example you might decide to register at a local level which can offer some advantages – and you may need additional licenses depending on what you intend to do.

The process here is pretty strict and complex, so you may benefit from professional advice to make sure you register in the most beneficial way, and can access any tax concessions or support which may help your new charity.

Administering your business in Canada

It’s not often the most exciting part of your to do list as a business founder, but the business administration aspects of starting a business are still essential to its success. Here are some main aspects to consider:

• Insurance – some business insurance is mandatory. Other insurance types may be optional but can give you peace of mind and protection if things go wrong.
• Banking – open a business account before you start to trade to keep your personal and business money separate. Even if having a dedicated account isn’t mandatory it can make it far easier to run your business, file your taxes and analyse your profits.
• Accounting and taxes – having cloud based accounting tools is a common choice for Canadian businesses, when your company isn’t quite complex enough to need a dedicated full time in house accountant. Whichever option you choose, keep on top of your accounting and tax liabilities to stay on the right side of the law.
• Hiring staff – if you’re hiring employees in Canada you’ll have to comply with employment law, and follow other duties such as reporting and paying tax. As hiring can be complicated many companies have agency support when starting out.

Support and advice when starting up a business in Canada

The Canadian government has a comprehensive list of links that can help you find information, advice, details of the law and plenty of help for new business owners looking for support.

The Canada Small Business Financing Program (CSBFP) is also a good place to go for details of business loans or grants to help get your enterprise off the ground.

Outside of these national options there are also many local level support options which you can find by getting in touch with the provincial authorities wherever you’re based.

Corporate social responsibility in Canada

In Canada, many local businesses comply with local, national and global initiatives to ensure they are responsible entities.

Some Canadian listed companies – and particularly large multinationals – report on CSR matters annually, with detail of any CSR risks in their business model and information of how they intend to manage it.

Topics which are commonly discussed in the wider CSR debate in Canada include:

• Climate change
• Corruption
• Human rights issues, including modern slavery
• Diversity
• Data and privacy
• Sustainability reporting

The Canadian government offers useful insights into Canada’s CSR landscape which can help you get a feel for what is important in the minds of small business owners.

Useful resources

Information last checked 13th of March, 2026.

• Wise – multi currency accounts for international businesses
• Canadian government – business links across all government services
• Provincial Nominee Program (PNP) – common route for business visa applications
• Canadian government – register a corporation
• Business Development Bank of Canada – resources for new business owners including education and financial insights
• Canada Small Business Financing Program (CSBFP) – details of business loans or grants
• Canadian government – not for profits
• Canadian government – CSR