The majority of the people who immigrate to Canada do it in order to seek better opportunities, a better future, and financial stability. If you have an idea or a plan of starting a new business in Canada or launch yourself as an entrepreneur in Canada, you must go through this article on how to start a new business in Canada and consider all the rules and the regulations that come with it.
As someone who has recently immigrated to Canada, the rules, regulations, and all the legal aspects related to starting a new business can be all over the place. This may be a lot for the new immigrants.
In this article, we shall discuss your business entity, taxation, revenue services, limited liability, business license, and so much more. Read further to refer to the steps and the guidelines that we will carefully lay that id required to carry out a business in Canada.
Create a suitable business structure
Choose a decent and effective structure of your business plan, it should include tax return information, business liability, and other things. Canada da consists of five basic structures of business:
- Sole proprietors: The is the easiest way to set up a business. It means that it will only you who will have the ownership of the business. It also means that you will be responsible or the debt and the liability that comes along with your business.
- Partnership: When two people or more own a business together they are called partners in business. The person that both these individuals share in the business depends upon the investment they put it and the percentage of share they have got.
- Corporation: In a corporation a group of people own a business. This means that the business will be put through taxes and an individual will not be responsible for debts and losses of the business.
- Co-operative: A democratic group of individuals maintains this business model. In this type the owners do not keep all the profit of the company in fact it is shared between other members too.
- Non-profit: These are mostly charity, community with a clear objective to give to the society.
Register your business and its name
The first step into putting a thought into your business is that you will have to give it a name. You must take care that you choose the name ideally and anything that really represents your company, business, or the service that it is offering. Once you have a name you can then register it under the government.
The name of the business shall be incorporated with the registered process as the initial step.
How much time it will take to register a business in Canada?
To register your business, it will take five days considering all the revenue services and paperwork. You as a business owner can take care of these formalities and the business development by yourself. Register your business in an online portal. Register your business name and explain the kind of business you have; new businesses do not take a lot of time to get approved it will take a week or less. It also depends upon the province where you are registering. Approval on your business license can differ between one to thirty-five days.
What is the expense to register a business in Canada?
Different provinces have different costs of getting a business registered. Both of these vary from one another. In Ontario you should have a sole proprietorship or a partnership business, in order to register your business, you will have to pay 60 to 80$. For being a sole proprietor in B.C you will need around $32 (rounded off). Registering a business will only work out if you check the eligibility requirements of a province and the fee that is to be paid at the beginning of the process of registration.
Process of opening a business bank account
A bank account is needed to be opened for your small business personal liability and taxed responsibility. The account depends upon the type of business plan that you have. The type of business that you own is required to be registered under the name of your company.
You have to open a bank account that is legal and for your business according to the type of business you own. Also, include a registered business name. Doing business as a proprietorship and as a partnership is not needed to have a bank account. It is always advised to keep your personal and financial finances and accounts separate.
Business owners track their business liability through the CRA (Canada Revenue Agency). You must register your business for a business line of credit and business loan following the legal business structure.
Get your business permits and business license
It is not necessary for all businesses to get provincial licenses or a LIc corporation to separate legal entity for a business plan, you may be required to follow procedures to attain a business license and permit from the municipal. Child care facilities must require a license from the municipal jurisdiction and people with a food business must adhere to the guidelines which state that they must hold certification at a municipal level.
How can you benefit an entrepreneur or a small business owner?
Employment Insurance for self-employed people
40% or more part of your business is owned by you means that you share the voting of the corporation’s choice and rights. The special benefits of the Employment Insurance programs give you advantages to access for 12 months starting after the date of registration. Small business development helps greatly in this scenario.
Canada Recovery Benefit (CRB) for self-employment
Amidst the pandemic, the people who are employed by themselves are eligible for the CRB also known as the Canada Recovery Bank for a fortnight. You may also use this period if your average working income is 50 percent less than compared to the last year because of the pandemic. Small business development will lead to efficient business taxes and incorporate the need to qualify for CRB (Canada Recovery Benefit).
Understand tax regulations for entrepreneurs
Small business owners will be required to submit their taxes on the liabilities generated by the business. The structure of a business affects Canadian Income tax regulations and tax returns. This means that the sole proprietorship needs to be included or even a business partnership in the personal income tax returns. Although if the company or your business is incorporated you will need to incorporate tax returns.
Recruiting employees as entrepreneurs
Once the business cycle starts moving, the business will need more employees. Considering this there are certain criteria that need to be met that an employer in Canada has to fulfill.
The employment standards are generally regulated on behalf of the province. Business startups convert themselves into companies. In some organizations, the federal government is responsible for the management. The recruiter is answerable for providing its employees with a standard of employment that includes a proper work-life balance and fair treatment. They are even responsible to maintain the hours of office, wage, payroll, country clerk, layoffs and termination, absence and leaves, minimum hiring standards and so much more.
