How to Get Business License in Canada
Canada is a country that has a boosting economy it is very rich and has many rich families which can afford many expenses to get each and every facility of life here one can get world class health care, quality education , amazing accommodation and can also enjoy world class tourist places. Canada is kind of a business hub for business lovers those who wants to establish their business then I think Canada will be a right choice for you because their are well established companies and families which can support your business a lot.
Before starting a business in Canada you should know about the ups and downs of business its requirements eligibility criteria and all the other options concerned with the business. Here we are providing a full guide to you about all the things you need to know before starting a successful business that can benefit you much.
Proper planning:
First of all one is needed to do proper planning about his business should do proper saving from his monthly payments so that you can utilize it for starting your business.
Financial support:
To start a business you must be having financial support that you have enough amount of money to start a business because before getting the profit first you have to spend some money on the business. If you don’t have enough funding then your business can not be successful.
Proper research:
Before starting a business you has to do proper research of that which business is trending around in Canada which can give you most profit then you should choose it according to the current business trending. The products which are most demanding that can be sell on great scale.
Business license:
Usually a business permit is a document that is needed to do a legal business in Canada and also in many other countries that is issues by government of that country to the business seekers to conduct business. As in Canada their are 10 provinces and 3 territories that has different government and rules so their are several requirements of business license in each province and territory.
The business license requirements depends on the location you are present and want to start business but it also depends upon the industry and sector you want do join while your business so you have to cross check each and every requirements to avoid any sudden surprises.
Need of license for business:
There are many consequences if you don’t get a business license for your business such as:
- * Your business may be fined.
- * Your business may be force stopped.
- * It will also ruin your reputation when you are caught doing a business with out a business license.
- * Customers will not buy your products.
- * Your level of professionalism will be affected.
There may be some exceptions where you don’t need a business license legally that can be decided according to your business type but there are many plus points of getting a business license that is access to business tax benefits, the ability to apply for business loans, and even industry discounts from suppliers.
Business license requirements:
We have already mentioned that a business license requirements are different according to your business structure, business location and business industry. Now we will explain that hair business structure and the business location can effect the business requirements.
Business requirements according to location:
As it is obvious that each province snd territory has its own business license rules that are to be follow by those who want to do business there thats why every one should be updated according their location. Thereay be some rules that are applicable in one province and in other province that rule is not applicable.
Business requirements according to type of industry:
The business license requirements also depends on the type of business or industry you want yo join. Example for business of minning, textile, food, and fishery their may be different rules and permits needed. There may be some other factors that will effect the business license requirements then you have to get some extra permits such as building permit, workplace insurance, employment insurance, or health permits.
BizPal:
This is a business related free service by federal government running online where you can easily find that which type of application you have to fill according to the business type you want to start. This will hep you to find which requirements you should meet according yo your location and business type also.
Types of business structure:
There are two types of business structure that you can choose that are:
- 1- Sole Proprietorship
- 2- corporation
Now when you are clear with the Canadian business license and about its requirements according to your location and industry type you need to know that which type of business structure you should choose for a better and successful business here we will describe advantages as well as disadvantages of both the business structure because everything has some positive aspects as well as some negative aspects also like two sides of a picture so you have to go through and then decide which type of business structure you should use.
1-Sole Proprietorship :
As clear from the name sole means lonely that you are planning to start a business on your own without any partner so let’s see its advantages and disadvantages to decide weather its better for you or not.
Advantages of sole proprietorship:
- * As in this type of business you are the only one in charge so all the decision are taken NY you and you are not answerable to any boss or partner.
- * As you are the only member so you don’t have to share the profit with any other member.
- * To register a sole proprietorship business the registration process is relatively easy and has a low cost of registration.
- * The tax process of this type of business structure is very straight forward.
Disadvantages of sole proprietorship:
There are also some disadvantages of sole proprietorship that are as follows:
- * If you are working lonely then you has to face every loss lonely without any partner.
- * The taxes all will be deducted from your persona profit income as you have not a separate company income.
- * In this business structure the growth capacity is low limited.
- * According to sole proprietorship the name of your business will be registered only in the province you are doing business means someone can use this name in the other provinve or territory.
2- Corporation:
This type of business structure means that doing business in partnership with other partners or government. Let’s see its advantages and disadvantages to decide it is better to choose it or not.
Advantages of corporation:
- * You should know that the business will ne a legal entity that you will not be only responsible for any ups and downs in the business.
- * With this business structure one can get access to fundraising options like angel investors or venture capitalists that can not be valid for sole proprietorship.
Disadvantages of Corporation:
There are also some negative aspects that can be kept in mind while choosing this business structure let’s have a look:
- * There are some extra charges imposed for this type of business and payment of these taxes is note complex.
- * This is a type of business that needs more investment to be started and its management tends to be more complex that consumes much time.
Now you have learnt about both the business structure its advantage and disadvantages of then so you can now choose the appropriate business structure according to your condition.
Steps to get a business license in Canada:
Now its the turn to get a business license that is important for both types of business structure so let’s go through it step by step:
* Step 1:
The first and important step is to choose the best business structure for your business that may sole proprietorship or corporation. As the business structure has a great role in business establishment it can greatly affect the profit and loss of the business. By choosing the right structure for the business will be the first step to growth of the company.
* Step 2:
The second step in the business license is to get an appropriate name for starting your business its mean you have to choose a unique name for your business that should be taken by any other business man or company in Canada. For this step you need to do proper research that will help you in finding a full unique name with no copy rights.
* Step 3:
Now the third step is most attention needed step that is before the submission of business license application you must have to complete all the documents required for the business structure you selected.
General document requirements:
In general a business license requires the following documents let’s check and arrange it if you are applying for a business license in Canada:
- * Business description
- * Corporate records
- * Ownership structure
- * Shareholding structure
- * State and local tax statue
- * At last you have to pay out the feeses related this too.
These documents are to be accompanied by the application form of business license.
Additional documents can also be requires for some special types business license that may be insurance bonds, educational qualification and the financial statement of the company is Also needed sometimes. After the completion of these documents one can forward an application of business license to the Canadian government.
Step 4:
Now when everything is finalized you have selected the business structure, research about name registration is done , documents are completed then now you are ready to move a step forward for business license that is business incorporation in which the registration of the company is done by federal or provincial corporation depending on your location. From the incorporation the applicant gets a business number and corporate income tax
account that will be used to pay the tax of the company and will be paid from the shares of all partners if the business structure is corporate one.
Step 5:
Now its time to apply for the business license at last. Types of business license also depends upon the business type you are operating for example:
Small business :
The operators of small business will apply for a legal permission.
Medium business:
Then the operators of medium business need to spent few hundred dollars to get the business license.
Giant business:
Now its the turn of giant and east business that will be ready to find both.
A business license is important to run a country without any interference and extra surprises you will be legally allowed to your business. Other licenses may also include municipal licensing , environmental and zoning permit , provincial registration or federal registstation.
Step 6:
At last if all the documents submitted were correct then the government of Canada will allow you to do business legally with approved Canadian business license that has also to be renewed on time so take of its renewal requirements so that it should be updated currently in time.
So in short Canada is a best place to do business but you also have to follow some rules to do business other wise your business may be seized by the Canadian government if you were caught doing business without a business license that would be embarrassing for you. So it is good to avoid any extra surprises you should know fully about the business rules and method to get the business license that is mandatory to business in Canada.
Follow these steps to get your business license in Canada that is must to do a business in Canada successfully.
Good luck to you to get a business license in Canada and enjoy the profit of your business to enjoy a luxury life.
