If you’re a budding entrepreneur in Canada, Ontario is one of the best places to start and grow your business. Its high population makes it one of the richest markets in the country. The province makes it easy for entrepreneurs to access the information they need to register their businesses.
There are three primary forms of businesses that entrepreneurs can register in Ontario. These are a partnership, sole proprietorship, and limited liability partnership (LLPs). LLP registration is limited to professional companies like chartered accountants, lawyers, and general accountants.
Registration processes differ depending on the type of business you choose to set up. Below is a guide to the registration of business in Ontario.
How To Register Partnerships Or Sole Proprietorships In Ontario
Registering a partnership or sole proprietorship business in Ontario is pretty straightforward. These kinds of enterprises are issued with a master business license (MBL) as proof of registration.
If you decide to establish a partnership or a sole proprietorship business, here are the steps to follow:
Step 1: Get A Business Name
In Ontario, business owners can operate sole proprietorships in their name without any additions. People who choose to do this don’t need to register the business. However, if you pick a different name, you must register it with the relevant government department. Registration of a business name doesn’t give you exclusive ownership of the name itself. However, it’s essential to register it to avoid a $2000 fine.
When choosing a name, ensure that it’s legally acceptable. Avoid words that imply your business is incorporated, like Inc. and Limited, or those that suggest an association with any government branch. Focus on getting a name that’s not identical to that of another business. Although it’s not illegal to register identical or similar business names in Ontario, you can get entangled in a lawsuit if you do.
Step 2: Run A Name Search
Once you’ve identified a business name, you need to subject it to a name search. There are two ways of doing this in Ontario. You can search for it through the Integrated Business Services Application (IBSA) or the New Upgraded Automated Name Search (NUANS).
An IBSA search is sufficient in most instances because it focuses on the Ontario database only. The NUANS checks the business name and corporate registry for the entire country. If you’re interested in checking whether there are business names, corporations, and trademarks similar to your proposed name, a NUANS report will be ideal.
Step 3: Register The Business Name
Once you have the business and search results, you can proceed to register it. You’ll need to provide the business’s name, its address, and a brief description of the activities you’ll be undertaking. You’ll also expect to provide your name and your residential address where the government can send legal papers.
If you decide to register a partnership with ten or fewer partners, include each partner’s name and home address. In Ontario, applications can be submitted in person or via email. If you plan to register a partnership or sole proprietorship business, consider presenting your application in person. In-person applications are processed immediately, while email applications can take up to 20 working days to process.
A master business license will be issued to you once the process is complete. The MBL serves as evidence of business name registration and is renewable every five years.
How To Register A Corporation In Ontario
When considering the registration of business in Ontario, entrepreneurs can incorporate their enterprises as companies. There are many benefits of registering a corporation. The most obvious ones are access to financing and cushioning directors and employees against personal liability if the company gets sued.
If you decide to register a company in Ontario, here are the steps to follow:
Step 1: Determine What To Name Your Corporation
The first step to incorporating a company in Ontario is determining what to call the company. Like partnerships and sole proprietorships, incorporators cannot use terms that imply a connection with the government, the Crown, territory or province, or municipality. Company names can comprise numerical digits, plain words, or a combination of both. Most entrepreneurs adopt word-digit combinations to give their companies unique identities.
Step 2: Undertake A Name Search
Check whether another entrepreneur has already registered the name you’ve picked. Although no law prohibits non-incorporated businesses from using the same name, it’s safe to ensure that your corporation doesn’t share similar names with any other entity. To determine this, submit your selected names to a name search and get a Newly Upgraded Name Search (NUANS).
Step 3: Prepare Articles Of Incorporation
Get a lawyer to prepare Articles of Incorporation for your company. This document explains how your corporation will run. Get a lawyer to prepare this document for you to ensure the correct presentation within a short time.
In addition to the Articles of Incorporation, prepare a cover letter complete with the incorporators’ names, addresses, and phone contacts. There is an option to prepare these documents online. If you choose to file your application digitally, ensure that you complete the Articles of Incorporation and cover letter online.
Step 4: File A Registration Application
Submit the cover letter, Articles of Incorporation, and the NUANS search result, including the reservation reference number, to the Central Production and Verification Services Branch for registration and pay the required registration fee. You may submit the application by mail or in person. It takes three to four days to register a business in Ontario. A Business Identification Number (BIN) and certificate of incorporation will be issued to you once your enterprise is incorporated.
Final Thoughts
In Ontario, budding entrepreneurs have to register their businesses to operate. Entrepreneurs can register their businesses as sole proprietorships, partnerships, or corporations. The requirements for registering sole proprietorships and partnerships vary from those of incorporating companies. Each form of business registration has its pros and cons.
Registration of corporations in Ontario is much more costly and tedious than registering a sole proprietorship or partnership business. Sole proprietorships or partnerships that are named after their owners are not required to register. It is not the case with corporations. If you’re looking to file a business in Ontario, following the steps presented above will enable you to do so faster.
