In most cases, registering a small business is one of the tasks you'll need to complete when starting a business in Ontario. Fortunately, registering a business is a relatively simple and inexpensive process. You can do it online, in-person, or by mail.
If you are thinking about registering your Ontario business, there are several details you need to be aware of. For starters, you might not even need to register!
Do I Need to Register My Business in Ontario?
If you are doing business in Ontario you will likely need to register your business with one exception. If you are operating your business as a single individual under your own name, you don't need to register your business. Otherwise, you’ll have to register.
And if you previously had a registered business but your business name has expired, you need to register again.
What happens if I don’t register?
You could be fined up to $2,000 if you fail to register your business, or if you register with false information.
How Much Does It Cost to Register a Business in Ontario?
The cost of registering your business depends on whether or not you do it online.
Business Name Search cost – In addition to the cost of registering your business, you will likely need to pay for a business name search. Before registering your business, you should see if there is already a business with that name. To search Ontario’s Enhanced Business Name Search business registry, the cost ranges from $8 - $26 depending on the search report. See the section below for more on using the database.
Ontario Business Registration and Master Business License
In Ontario, a registered small business is officially known as an "Ontario Business Registration." You might also hear people call it a "Form 1," because of the form number you need to complete, or a Master Business License (MBL).
When you register your business name you will receive a Master Business License (MBL) that includes your Business Identification Number (BIN). The BML is proof of your legal business name registration. You can use it when dealing with the Ontario government or financial institutions.
Business registration is managed by the Central Production and Verification Services Branch of the Ministry of Government and Consumer Services.
Steps to Register a Business in Ontario
Name Your Business
The first thing you’ll want to do is settle on the business name, you’ll need to state it when registering.
Check if an existing business has the name
Before registering, it’s a good idea to know if there are already existing businesses with that name. While Ontario does not prohibit more than one non-incorporated business from having the same name, to avoid confusion and protect yourself from legal liability it’s usually a good idea to have a unique name.
Ontario’s Enhanced Business Name Search
You can use Ontario’s Enhanced Business Name Search database to see if there are already businesses with that name. There is a per-search fee to use the business search service.
When you perform a search on a name, you will be provided with a report:
The search service is only available from 8:30 a.m. – 6 p.m. Monday – Friday excluding holidays.
Note that you can also do a business search in-person, with immediate results, or by mail, which will take between 4 – 6 weeks. See the registering your business section below for address information.
Additional ways to check for a business name
In addition to Ontario’s business name search, you might also want to check for trademarks with the Canadian Intellectual Property Office (CIPO) and search the Nuans database, which contains business and trademark information for all of Canada.
Restrictions on business names
When deciding on a name, there are a few restrictions on naming your business you should be aware of:
It is your responsibility to make sure your business name doesn’t violate these rules. Even if you are granted a registration, it could be revoked at any time if it is in violation.
Choose an Entity Type
When registering your business, you need to understand what kind of legal entity you are registering. You can register a business name as a sole proprietorship, a general or limited partnership, or for an existing corporation.
Most small businesses register as either a sole proprietorship or a partnership.
Protecting your business name
One aspect you might want to keep in mind when deciding whether to incorporate is protecting your business name. Registering does not give you exclusivity to that name. To prevent others from using the name of your business, you will have to either register a trademark or incorporate your business, as Ontario prohibits corporations with identical names.
Register Your Business
Once you know your business name and the type of entity you want to form, you can apply for business registration with the government.
You will need to provide:
Will you have employees or hire contractors?
During the application process, you’ll have to answer if you have, or plan to have, employees or hire contractors. If you answer yes to either of those, you’ll need to register with the Workplace Safety and Insurance Board within ten days of hiring a worker. This provides employees with workplace insurance coverage. Note that you will still be able to register your name if you haven't yet registered for insurance.
Do you need Employer Health Tax?
During the registration process, you'll be asked if your estimated annual payroll is greater than $450,000. If so, you need to file for an Employer Health Tax number. Note that you will still be able to register your name if you haven't filed yet.
Online, In-Person, or By Mail?
When you are ready to register your business, you can do it online, in person, or by mail.
Registering Your Business Online
Registering your business online can be done in as little as five minutes. You'll need a Visa or MasterCard credit card for payment, as well as an email address.
To register online you use the “Integrated Business Services Application” service. You can register online at any time, however, if it's done between 8:30 am. - 5 p.m. you’ll get a temporary printable Master Business License you can use right away.
You’ll receive your MBL via email within 2 days if you provide an email address. If you don’t provide an email it will arrive by mail within 10 business days.
If you need access to a computer you can use ServiceOntario centre to find a public computer near you
Registering Your Business by Mail
To register by mail or in person, fill out Form 1. Complete the form and mail it with a payment of $80 in check or money order made out to “Minister of Finance.” Mail your completed forms and payment to:
Ministry of Government and Consumer Services
Central Production and Verification Services Branch
393 University Avenue, Suite 200
Toronto, ON M5G 2M2
It will take 6 – 8 weeks to receive your MBL.
Registering Your Business in Person
You can register and search business names in person from 8:30 a.m. – 5 p.m. on normal business days at the following address:
Central Production and Verification Services Branch
Ministry of Government and Consumer Services
Second floor, 375 University Avenue
Toronto, ON M5G 2M2
For in-person payment, you can write a cheque or money order, cash, or a Visa or MasterCard. Service time is immediate and your Master Business License will arrive within 20 days.
Call for Help
If you need help or have questions about registering or conducting business in Ontario, you can call ServiceOntario at 416-314-9151 in Toronto or Toll-Free 1-800-565-1921.
For how long does my registration last?
When you register your business, it is good for five years before it needs to be renewed.
Potential Issues When Registering a Business in Ontario
While you are in the process of completing your business registration there are several potential issues to keep in mind.
Make Sure You Renew
Business registration expires in five years. The expiration date will be printed on your MBL. It is your responsibility to make sure you renew it, CPVSB does not provide a reminder. Note that you can renew your business up to 60 days after it expires, but don't let it get to that point!
Checklist for Registering a Business in Ontario
Registering your business is a straigtht-forward process. To register a business, you’ll need to do the following:
While it can be intimidating to comply with federal and provincial laws when operating a business, registering your business name in Ontario is a simple process.
Sources:
Ministry of Government and Consumer Services
