The legal requirements for starting a business in Canada vary depending on the type of business structure you choose. However, there are some general legal requirements that all businesses in Canada must comply with.
Register your business
All businesses in Canada must be registered with the government. This can be done as a registration in your province or federally. You will need to provide information about your business, such as its name, address, and type of business.
Obtain a business number
All businesses in Canada must have a business number. A business number is a nine-digit number that is used to identify your business to the government. You can obtain a business number online through the Canada Revenue Agency (CRA) website.
Register for GST/HST
If your business sells goods or services in Canada, you may be required to register for GST/HST. GST/HST is a value-added tax that is charged on most goods and services sold in Canada. You can register for GST/HST online through the CRA website.
Obtain business permits and licenses
Depending on the type of business you are operating, you may also need to obtain certain business permits and licenses. For example, if you are operating a restaurant, you will need to obtain a food service license from your local municipality. You can find information about the business permits and licenses required for your type of business on the website of your local municipality.
Comply with employment laws
If you have employees, you will need to comply with all applicable employment laws. This includes laws related to minimum wage, overtime pay, vacation pay, and termination of employment. You can find information about employment laws in Canada on the website of the Employment and Social Development Canada (ESDC) website.
Comply with tax laws
All businesses in Canada must comply with all applicable tax laws. This includes paying income tax, GST/HST, and other taxes. You can find information about tax laws in Canada on the website of the CRA.
Other legal requirements
In addition to the general legal requirements listed above, there may be other legal requirements that apply to your business, depending on the type of business you are operating and the industry in which you are operating. For example, if you are operating a healthcare business, you will need to comply with all applicable healthcare laws and regulations.
For most businesses, there are record keeping requirements, and for corporations, governance requirements for bylaws, resolutions, and other regulatory documents. A corporate lawyer will assist you in complying with all these requirements and set up an appropriate system of governance.
How can a Canadian lawyer help you with starting a business?
A Canadian lawyer can help you with all aspects of starting a business in Canada, including:
- Choosing the right type of business structure
- Registering your business
- Obtaining a business number
- Registering for GST/HST
- Obtaining business permits and licenses
- Complying with employment laws
- Complying with tax laws
- Setting up appropriate records for governance requirements
A Canadian lawyer can also help you draft and review contracts, negotiate with other businesses, and resolve any legal disputes that may arise.
This article is for informational purposes only and is not legal advice. Contact us today to discuss your specific situation.