How to start a business in Ontario (2026 guide)

The lowest-cost start in Ontario is a $60 business name registration as a sole proprietor; incorporation is $300. Register for HST after you pass $30,000, charge 13% on Ontario supplies, and file your corporate and information returns on time.

By Billsera EditorialLast reviewed October 30, 202611 min read

You can start for $60 by registering a business name as a sole proprietor. Incorporation costs $300. You must register for GST/HST once you pass $30,000 in worldwide taxable supplies, charge 13% on Ontario supplies, and meet Ontario’s information returns: the Initial Return within 60 days and the annual return within 6 months after your tax year end. Monthly or quarterly GST/HST returns are due 1 month after the period end. In Toronto, check permits with BizPaL and bring the right papers to open a business bank account.

1Check you are allowed to work and run a business in Canada

• International students: if eligible to work off campus, you can work up to 24 hours per week in regular academic terms. Self‑employed hours count. If you exceed the limit, you risk losing student status and future permit approval.
• Open work permits let you work for any employer in Canada (with standard exceptions). A visitor visa or eTA alone does not allow you to work.
• This is immigration status, not business law. Speak to a licensed immigration lawyer or Regulated Canadian Immigration Consultant (RCIC) for advice on your situation.

2Choose your business structure and name

• Sole proprietorship: if you use a business name other than your full legal name, you must register under Ontario’s Business Names Act. Toronto notes these registrations are valid for 5 years and must be renewed before expiry.
• Corporation: Ontario incorporation costs $300 to file Articles of Incorporation. A named corporation needs an Ontario‑biased NUANS report dated within 90 days. A numbered corporation does not need NUANS.

Cheapest correct path for most: start as a sole proprietor using a business name ($60), and incorporate later when liability, taxes, or partners make it worthwhile.

3Register a business name or incorporate (Ontario)

If using a business name (sole proprietor or partnership)

• New registration: $60 online. Renewal: $60. Amendments or cancellations: $0. Renew every 5 years. Ontario allows a 60‑day grace period after expiry; after that you must file a new registration and you will get a new Business Identification Number (BIN). Manage authority with your 9‑digit company key.

If incorporating in Ontario

• File Articles of Incorporation: $300.
• If using a name, order an Ontario‑biased NUANS report no more than 90 days before you file. Numbered corporations do not need NUANS.
• After Ontario incorporation, the CRA assigns your Business Number (BN) and corporation income tax (RC) account and sends you a notice by mail. Ontario corporations must file a Corporations Information Act Initial Return within 60 days.

4Open your business bank account

• TD states that if you are operating a business, they require a business account. For a sole proprietorship, TD typically asks for a Certificate of Business Registration, Trade Name Registration (if used), and one piece of photo ID. Banks have their own policies; treat one bank’s list as guidance, not a guarantee.

5Set up GST/HST correctly

• Most businesses must register when worldwide taxable supplies exceed $30,000 in 4 consecutive calendar quarters or in a single quarter. Public service bodies have a $50,000 threshold. When you cease to be a small supplier, you must register within 29 days. For reporting periods that begin in 2024, most businesses must file electronically.
• Ontario HST rate is 13% for supplies made in Ontario. Use the place‑of‑supply rules to determine which province’s rate applies. If you file monthly or quarterly, your GST/HST return and payment are due 1 month after the period end.

6If you will have payroll (or pay yourself a salary)

• Open a CRA payroll account before the first remittance due date. The first remittance is generally due on the 15th of the month after you begin withholding. Monthly remitters pay by the 15th of the next month. T4 information returns are due by the last day of February.
• Ontario Employer Health Tax (EHT): the annual return and any amount owing are due on or before March 15. Employers with more than $5 million in annual Ontario payroll are not eligible for the EHT exemption. Ontario’s general EHT exemption is $1,000,000. Monthly EHT instalments are required if total Ontario remuneration is over $1.2 million. Beginning December 1, 2026, financial institutions will no longer accept paper remittance vouchers for in‑person payments. For 2026, after an amalgamation, a final EHT return is due within 6 months of the amalgamation date or by March 15 of the following year, whichever is earlier.

7Workplace safety: WSIB

• Most Ontario businesses with employees must register with WSIB within 10 calendar days of hiring the first employee. Coverage is not mandatory for every business—some industries are exempt or optional. Check your industry before you hire.

8Keep up with annual filings and corporate records

• Ontario corporations: file a Corporations Information Act annual return within 6 months after the corporation’s taxation year end. Keep a register of individuals with significant control (beneficial owners) on file and review it at least once a year (in force January 1, 2023). Corporations must file a T2 corporate income tax return within 6 months after each tax year. If you incorporated in Ontario, the CRA will mail you your BN and program account details.

If you are a federal corporation

• Federal corporations must file an annual return with Corporations Canada within 60 days after their anniversary date. Extra‑provincial or federal non‑share corporations use Ontario’s Initial Return/Notice of Change (Form 5286); this filing serves as registration in Ontario.

9Renew or change your business name on time

• Business name registrations for sole proprietorships/partnerships are valid for 5 years. Renew before expiry. Ontario allows a 60‑day grace period after expiry; after that, you must file a new registration and will get a new BIN. Renewals are $60. Amendments and cancellations are $0. Keep your company key safe.

10Taxes: sole proprietor vs corporation (dates and rates)

• Sole proprietors (self‑employed) file personal returns by June 15, but any balance is due by April 30. Corporations file T2 within 6 months after the tax year end. CRA’s Ontario small business deduction overview reflects a lower Ontario small business corporate income tax rate of 2.2% effective July 1, 2026 (prorated for straddle years).

11Permits, licences and zoning (Toronto and Ontario)

• Use BizPaL to search permits and licences across federal, provincial, and municipal levels by business activity. In Toronto, many business types need a municipal licence, and zoning may restrict your use. Check before you sign a lease.

Sole proprietorship vs corporation in Ontario

Startup checklist (Ontario)

How Billsera can help

Billsera offers practical advice, a free 20‑minute call, payments‑ready setup (website policies, Stripe/Shopify onboarding, bank account paperwork prep) and monthly bookkeeping. We focus on guidance and setup, not compliance paperwork. Need a hand getting payments‑ready and your books set up? Book your free 20‑minute call.

This article is general information, not legal, tax or immigration advice. Billsera is an independent business advisory firm, not affiliated with any government.