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Business Registration in Ontario

Business Registration is the process of registering a business name. It allows you to operate your business under a recognized name. This step is essential for sole proprietorships, partnerships, and corporations.

Types of Business Name Registration in Ontario

What is Ontario Sole Proprietorship?

Ontario sole proprietorship is a single individual owner business structure. In Sole Proprietorship single owner owns and operates the business. it is a simple business structure. The owner is called Sole proprietor. Sole proprietor is responsible for all his debts and obligations generated from Sole proprietorship. In a sole proprietorship, there is no legal distinction between Sole proprietor and the business. Sole proprietorship setup is easy and inexpensive. 

What is a Trade Name

A trade name, also known as a business name or operating name. It is also known as DBA (doing Business as).  Trade name operates its business under a corporation.

For example, a corporation might have a legal name like “ABC Inc.,” but it could operate under a trade name like “Superstore.”

What is a Master Business License

Since Oct. 19, 2021, there have been no more Master Business Licenses in Ontario.  It is now called Business Name Registration. Formerly, Ontario Sole Proprietorship, Ontario Partnerships, and Ontario Trade Name all together were called Master Business License Ontario. Now all are separate Business Registration and now called-

Ontario Sole Proprietorship is Called” Business Name Registration for a Sole Proprietorship”

Ontario General Partnership is called “Firm Name Registration for a General Partnership “

Ontario Trade Name is called” Business Name Registration for a Corporation. “

If you have a previous Master business license you still can renew it. But it will convert into “Business Name Registration “. Every Master Business License (MBL) has expiry date same “every “Business Name Registration ” has expiry date as well. It must be renewed every five years.

What is a General Partnership

A General Partnership is a simple business structure in which two or more individuals or entities share ownership and management responsibilities. Each partner equally contributes their capital, skills, or labor. They also share their profits and losses equally or pre-agreed portion. In a general partnership, all partners have unlimited personal liability.

What is a Limited Partnership (LP)

A Limited Partnership (LP) is a business structure where two types of partners exist: a general partner and a limited partner. It consists of at least one general partner who has unlimited liability and at least one limited partner whose liability is limited to their investment in the partnership.

General partners manage the business, and he has unlimited personal liability.

Limited partners contribute capital but have limited liability. He is only liable for the amount he invested in the partnership. Limited partners typically do not participate in day-to-day management.

What is Limited Liability Partnership (LLP)

A Limited Liability Partnership (LLP) is a business structure where all partners have limited liability. It is basically for professional services such as lawyers, accountants, architects, etc. In an LLP, partners can participate in managing the business without being personally liable for malpractice or negligence committed by other partners.

Benefits of Business Registration:

Legal Recognition: Business Registration gives your business a legal identity, which is necessary for contracts, opening bank accounts, and building credibility with customers and suppliers.

Liability Protection: Business Registration can protect you from personal liability. for example: Limited Liability Partnership (LLP), and Limited Partnership (LP)

Funding opportunities: Registered businesses are often eligible for grants, loans, and investor funding that are unavailable to unregistered businesses.

Tax Benefits: Many Registered businesses can take advantage of various tax deductions and benefits.

Required for certain activities: Some activities, such as hiring employees or opening a bank account, may require a registered business

Requirements to register a Business Registration:

Business registration Requirements depend on the structure of a business. However, there are some general Registration Requirements-

Select Your Business Structure: First, you should decide the Business structure (e.g., sole proprietorship, partnership, etc.) that you want to register in Ontario.

Choose a Business Name: In this stage, you should choose a unique name for your business. You must ensure that the business name does not conflict with any existing business names in Ontario. To make sure your business name availability check our nuans pre-search. If you want you can conduct a NUANS (Newly Upgraded Automated Name Search) report to confirm that the name is not already in use in Ontario.

Obtain a Business Number (BN): A Business Number is required if you need to register for GST/HST, payroll deductions, import/export accounts, or corporate income tax.

Register for Workplace Safety and Insurance Board (WSIB): If you have the intention to hire employees including yourself, you are required to register with WSIB to provide workplace insurance coverage to your employees.

Business Registration vs. Company Registration: A Clarification:

Business registration and company registration both are used interchangeably terms, but they have distinct meanings.

Business Registration:

The general term is used for registering a business. It applies to all kinds & types of business structures. Business registration may include sole proprietorship, partnership, corporation, and any other legal forms.

Company Registration:

Company registration means the formation of a corporation. It is a term that is used more specifically for registering a corporation. So, we can say that company Registration is the process of forming a corporation or a limited liability company (LLC). A corporation is a legally separate entity from its owners and has limited liability.

When to renew business registration in Ontario

In Ontario, business registration renewal depends on the type of business you have.

Renewal Period: Business name registration (formal Master Business License) must be renewed every five years.  Business name registrations include sole proprietorship, Partnership (general partnership, LP, & LLP), or trade name.

Renewal Notification: The Ontario government does not send out renewal reminders, so it is the business owner’s responsibility to track the renewal date. But no worries, when you register your business with Business Ontario, we will track your renewal date and will remind you of the renewal date.

How to Renew Business Registration in Ontario

There is no option for renewing your business name registration through the Service Ontario website. You need to get assistance from any of Service Ontario’s official Intermediaries like Business Ontario. It’s a simple process to renew your Business name Registration with Business Ontario. You just need to complete a renewal form and pay the renewal fee. That’s it! We will send your renewal documents in 1 business day.

Failure to Renew business registration in Ontario

If you fail to renew your business name registration, your business name will be canceled. But does not mean dissolving the business itself. You can still operate under your legal name but will lose the right to use the registered business name.

How to find business registration number

Business Number, also known as a BN. You need to register a Business number with CRA. If you do not have it, you can register a Business Number with us by submitting a secure form.

How to cancel business registration in Ontario

Canceling a business registration (Sole Proprietorship or Partnership Registration) depends on the type of business structure you have.  If you think you are no longer operating your business, want to change your business structure, or want to change your business name, you should cancel your business registration. You can cancel your business registration by completing the Business Name Cancellation Form through our website.