Business Registration in Canada: Sole Proprietorship, Partnership, and Corporation
Registering a business in Canada means two things, and most new business owners confuse them. The first is registering your business name, telling the provincial government what your business is called and that it’s operating. The second is registering your business number with the CRA, which gives you a federal tax account and unlocks GST/HST, payroll, and other CRA program accounts.
Both are required, and neither replaces the other. The process also differs significantly depending on whether you’re setting up a sole proprietorship or partnership or incorporating a corporation. The structure you choose is the most important decision you’ll make before registration; it affects your personal liability, how you’re taxed, and what documentation you’ll need.
Sole Proprietorship vs. Partnership vs. Corporation: Which Do You Register?
Before you register anything, you need to know what structure you’re registering.
A sole proprietorship is the simplest structure: one owner, no separate legal entity. You and the business are the same legal person, which means your personal assets are fully exposed to business debts and liabilities. Registration is minimal: if you operate under your own legal name with no additions, you don’t need to register a business name at all in Ontario. If you use a trade name, registration is required under Ontario’s Business Names Act.
A partnership is a business carried on by two or more people with a view to profit. Like a sole proprietorship, it’s not a separate legal entity from its owners all general partners are personally liable for the partnership’s debts, including debts created by other partners. Partnerships must register their business name under the Business Names Act unless operating under the full legal names of all partners.
A corporation is a separate legal entity; it exists apart from its shareholders, can own assets, enter contracts, and incur liabilities in its own name. Shareholders’ liability is generally limited to their investment. Corporations are incorporated (not just registered) under either the federal Canada Business Corporations Act (CBCA) or a provincial act such as Ontario’s Business Corporations Act (OBCA). Incorporation is a different and more involved process than business name registration.
For many entrepreneurs, the right question isn’t “how do I register?” but “should I incorporate?” Incorporation typically provides better liability protection, more favorable tax treatment once your business becomes profitable, and a stronger foundation for growth. At Kalfa Law most clients who come in to “register a business” end up incorporating a corporation once they understand the difference. See our guide to selecting the right business structure for a more detailed comparison.
Registering a Business Name in Ontario (Sole Proprietorship or Partnership)
If you’ve decided to operate as a sole proprietorship or partnership in Ontario, here’s the registration process.
Step 1: Choose a legally acceptable business name.
Your business name must comply with Ontario’s Business Names Act. Words like “Limited,” “Incorporated,” and “Corporation” and their abbreviations (Ltd., Inc., Corp.) are reserved for corporations; a sole proprietorship or partnership cannot use them. You also cannot choose a name that implies government affiliation or is misleading about the nature of your business. The name must be distinctive enough to avoid confusion with existing registered businesses.
Step 2: Conduct a name search.
Registering your business name does not give you exclusive rights to it. If you want exclusivity, you need to trademark the name registration and trademark are separate processes. That said, it’s still advisable to search for existing registrations before filing, because operating under a name that conflicts with another business can expose you to legal action even if registration proceeds.
Ontario requires a NUANS (Newly Upgraded Automated Name Search) report for corporations but not for sole proprietorships and partnerships. For a sole prop or partnership, you can search existing business registrations through the Ontario Business Registry directly.
Step 3: Register through the Ontario Business Registry.
Ontario launched its modern Ontario Business Registry in October 2021, replacing the older ServiceOntario online system. Registration for a sole proprietorship or partnership business name costs $60 and can be completed online at Ontario.ca. You’ll need a My Ontario Account to access the registry.
The registration requires the business name and address, a description of business activity, and the names and addresses of all partners (for partnerships with 10 or fewer partners).
In-person and mail applications are still accepted at the Ministry of Public and Business Service Delivery, Central Production and Verification Services Branch (375 University Avenue, 2nd floor, Toronto). Mail-in applications require an $80 fee payable to the Minister of Finance. In-person registration results in a same-day Master Business Licence; mail takes approximately 20 business days.
You can also register through authorized service providers Cyberbahn, ESC Corporate Services Ltd., and OnCorp Direct Inc. all of which are authorized by the Ministry.
Step 4: Renew every five years.
Business name registrations expire after five years. The government does not send renewal notices it’s your responsibility to track and renew before expiry. You can renew within 60 days after expiry. Failure to maintain a valid registration carries fines of up to $2,000 for individuals and up to $25,000 for corporations under the Business Names Act.
If you change your business name before the five-year term, you must re-register the new name.
Incorporating a Corporation in Ontario or Federally
Incorporation is more involved than business name registration. You’re not just registering a name you’re creating a new legal entity with its own rights and obligations.
Federal incorporation (CBCA) through Corporations Canada is available to businesses that want to operate under the same corporate name across all provinces. Federal corporations must also register extra-provincially in each province where they carry on business.
Provincial incorporation (OBCA) is appropriate for businesses operating primarily in Ontario. Ontario OBCA incorporations are done through the Ontario Business Registry.
Both require Articles of Incorporation, which set out the corporation’s name, share structure, restrictions on business activities (if any), and other constitutional provisions. A NUANS name search is required. Once incorporated, the corporation receives a Certificate of Incorporation and must maintain a corporate minute book, hold annual meetings, file annual returns, and comply with ongoing corporate governance obligations. For more on what’s involved after incorporation, see our overview of annual corporate obligations.
Most founders benefit from working with a lawyer to incorporate, not because the paperwork is unmanageable, but because the share structure decisions made at incorporation types of shares, who holds what class, and whether a family trust or holding company belongs in the structure affect tax outcomes years later. A lawyer also ensures the minute book is properly organized from day one, which matters when lenders, investors, or acquirers conduct due diligence down the road. Kalfa Law Firm handles Ontario and federal incorporations, including advising on share structure design, shareholder agreements, and tax-driven structuring from the outset.
CRA Business Number Registration
Separate from your provincial business name registration, you’ll need a Business Number (BN) from the Canada Revenue Agency. This is the federal tax identifier for your business and is required to open CRA program accounts.
The BN is the root of several CRA program accounts you may need: GST/HST (required once your annual taxable supplies exceed $30,000), payroll (required when you hire employees), corporate income tax (required for incorporated businesses), and import/export (for businesses crossing the border). You can register for a BN and multiple program accounts simultaneously through CRA’s Business Registration Online.
For GST/HST specifically, once your business’s taxable revenues exceed $30,000 in a single quarter or in four consecutive quarters, you must register for and collect GST/HST. You can also register voluntarily before hitting that threshold, which allows you to claim input tax credits on business expenses. For more on how GST/HST registration works and what rate applies when selling across provinces, see our GST/HST registration guide.
Registering a Business in Other Canadian Provinces
Each province has its own business registration regime. An Ontario business that carries on business in British Columbia, Alberta, or Quebec may need to register extra-provincially in those provinces.
In British Columbia, businesses register through BC Registry Services (bcregistry.gov.bc.ca). A sole proprietorship or partnership operating under a business name must register through the BC Business Registry.
In Alberta, business registration is handled through Service Alberta (servicealberta.gov.ab.ca). Partnerships and sole proprietorships operating under a trade name must register a Trade Name.
In Quebec, businesses register with the Registraire des entreprises (REQ). Quebec’s registration requirements differ from other provinces, and there are French language obligations for business names.
For federal CBCA corporations operating in multiple provinces, extra-provincial registration is required in each province where the corporation carries on business. The definition of “carrying on business” varies by province but generally includes having employees, maintaining an office, or soliciting customers in the province.
When to Involve a Lawyer
Business name registration itself is straightforward and doesn’t require legal help. But the decision of which structure to register and how to structure your ownership from the outset is where legal advice pays for itself.
The structure you start with affects your personal liability exposure, your ability to split income with family members, your eligibility for the Lifetime Capital Gains Exemption on a future sale, and how much restructuring is required if you want to bring in investors or partners later. Restructuring after the fact is possible through Section 85 rollovers and other reorganization tools but it’s more complex and more expensive than getting the structure right at the start. Kalfa Law Firm advises founders on incorporation and structure at the formation stage, ensuring the legal and tax foundation is built correctly from day one.
Contact us to speak with a business lawyer about your structure before you register.
Speak With a Business Lawyer at Kalfa Law Firm
Kalfa Law Firm advises entrepreneurs and business owners on incorporation, business structure, shareholder agreements, and ongoing corporate compliance across Ontario and Canada.
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-Shira Kalfa, BA, JD, Partner and Founder
Shira Kalfa is the founding partner of Kalfa Law Firm. Shira’s practice is focused in corporate-commercial and tax law including corporate reorganizations, corporate restructuring, mergers and acquisitions, commercial financing, secured lending and transactional law. Shira graduated from York University achieving the highest academic accolade of Summa Cum Laude in 2012. She graduated from Western Law in 2015, with a specialization in business law. Shira is licensed to practice by the Law Society of Ontario. She is also a member of the Ontario Bar Association, the Canadian Tax Foundation, Women’s Law Association of Ontario, and the Toronto Jewish Law Society.
© Kalfa Law Firm 2020. Updated August 26, 2026.
The above provides information of a general nature only. This does not constitute legal advice. All transactions or circumstances vary, and specified legal advice is required to meet your particular needs. If you have a legal question you should consult with a lawyer.
