How much does it cost to register a business in Canada?

Sole proprietorship registration costs $60–$100 (provincial). Federal incorporation costs $200 (online) or $250 (paper). Provincial incorporation costs $150–$400 depending on the province. Additional costs include business name search ($15–$30), GST/HST registration ($0), and optional legal/accounting fees ($500–$3,000).

Do I need to incorporate my business in Canada?

Not necessarily. Sole proprietorship is simplest and cheapest for small businesses. Incorporation is beneficial when your business earns over $50,000–$75,000/year in profit (tax deferral), you want liability protection, or you plan to raise investment. Many freelancers and small businesses operate as sole proprietorships for years before incorporating.

What is the difference between federal and provincial incorporation?

Federal incorporation (through Corporations Canada) gives you the right to operate under your business name across all provinces but requires extra-provincial registration in each province you operate. Provincial incorporation is simpler and cheaper if you only operate in one province. Both provide the same liability protection and tax benefits.

How to Register a Business in Canada in 2026

Registering a sole proprietorship in Canada takes one to three days and costs as little as $35 (Quebec) to $100 (Manitoba), making it the fastest and cheapest way to start operating legally. Incorporation is a bigger commitment — $200 federally or $150–$400 provincially, plus $1,000–$3,000 if you use a lawyer — but it unlocks the small business tax rate (roughly 12–13% on the first $500,000 of profit versus your marginal personal rate of 30–50%), provides personal liability protection, and makes your business more credible to larger clients.

The general rule of thumb: stick with a sole proprietorship until your business consistently earns $50,000–$75,000 in annual profit, at which point the tax deferral from incorporation starts to meaningfully outweigh the added accounting costs ($1,000–$5,000/year for a corporate return versus $200–$800 for a T2125). Either way, get your Business Number from the CRA on day one, register for GST/HST once you cross $30,000 in revenue, and open a dedicated business bank account to keep personal and business finances cleanly separated.

Business Registration Quick Guide

Business Type	Registration Cost	Time to Register	Complexity	Best For
Sole proprietorship	$60–$100	1–3 days	Very easy	Freelancers, side hustles
General partnership	$60–$100	1–3 days	Easy	Two or more partners
Federal incorporation	$200	1–5 days	Moderate	Multi-province businesses
Provincial incorporation	$150–$400	1–5 days	Moderate	Single-province businesses
Cooperative	$200–$500	2–4 weeks	Complex	Member-owned organizations

Step-by-Step: Register a Sole Proprietorship

Step	Action	Cost	Where
1	Choose a business name	$0	—
2	NUANS name search (Ontario)	$15–$30	nuans.com or Service Ontario
3	Register business name	$60–$100	Provincial registry
4	Get a Business Number (BN)	$0	CRA (online or phone)
5	Register for GST/HST (if revenue > $30K)	$0	CRA
6	Open a business bank account	$0–$5/mo	Any bank
7	Set up bookkeeping	$0–$50/mo	Wave, QuickBooks, etc.
Total cost	—	$75–$185	—

Step-by-Step: Incorporate a Business

Step	Action	Cost	Where
1	NUANS name search	$15–$30	nuans.com
2	Prepare articles of incorporation	$0–$500	Yourself or lawyer
3	File incorporation (federal)	$200	Corporations Canada (online)
4	File incorporation (provincial, e.g., Ontario)	$300	ServiceOntario
5	Create corporate bylaws and resolutions	$0–$1,000	Yourself or lawyer
6	Get Business Number + program accounts	$0	CRA
7	Register for GST/HST	$0	CRA
8	Register for payroll (if employees)	$0	CRA
9	Open corporate bank account	$0–$10/mo	Any bank
10	Set up corporate bookkeeping	$30–$100/mo	QuickBooks, Xero
Total (DIY)	—	$515–$830	—
Total (with lawyer)	—	$1,500–$3,500	—

Provincial Business Registration Costs

Province	Sole Prop Registration	Provincial Incorporation	Extra-Provincial (Federal Corp)
Ontario	$60	$300	$300
British Columbia	$40	$350	$350
Alberta	$75	$275	$275
Quebec	$35 (NEQ)	$375	$375
Manitoba	$100	$400	$400
Saskatchewan	$60	$265	$265
Nova Scotia	$75	$400	$400
New Brunswick	$80	$262	$262
PEI	$75	$230	$230
Newfoundland	$100	$250	$250

CRA Business Accounts You Need

Account	When Required	How to Register	Cost
Business Number (BN)	All businesses	CRA online, phone, or mail	$0
GST/HST account	Revenue > $30,000/year or voluntary	CRA Business Registration Online	$0
Payroll account	When you have employees	CRA Business Registration Online	$0
Corporate income tax	All corporations	Automatic with incorporation	$0
Import/export account	If importing/exporting goods	CRA	$0

Business Licences and Permits

Type	Examples	Cost	Level
Municipal business licence	Home-based business, retail, restaurant	$50–$500/year	City/municipality
Provincial licence	Contractors, food service, liquor, tobacco	$100–$5,000/year	Provincial
Federal licence	Firearms, broadcasting, aviation	Varies	Federal
Health & safety permits	Food handling, fire inspection	$50–$500	Municipal/provincial
Professional licence	Real estate, accounting, engineering, medical	$200–$2,000/year	Provincial regulator
Zoning approval	Home-based or new location	$0–$300	Municipal

Ongoing Annual Requirements

Requirement	Sole Proprietorship	Corporation
Annual tax filing	Personal T1 (+ T2125)	Corporate T2 + personal T1
HST/GST filing	Annually, quarterly, or monthly	Annually, quarterly, or monthly
Business name renewal	Every 5 years ($60–$80)	N/A (perpetual)
Annual corporate filing	N/A	Annual return ($12–$40 federal)
Bookkeeping	Basic (income/expenses)	Full (double-entry)
Accounting fees	$200–$800/year	$1,000–$5,000/year

The Bottom Line

Start as a sole proprietorship unless you have a specific reason to incorporate (liability exposure, profit above $50K–$75K, investors, or credibility requirements). Register your business name provincially, get a CRA Business Number, open a separate bank account, and set up basic bookkeeping from day one — retrofitting messy records at tax time costs far more than doing it right from the start.