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How to Start a Business
Do you have questions about how to start a new business in Toronto? Enterprise Toronto small business advisors can help you get your new business off the ground.
Learn about the process of starting a new business in Toronto with this nine step guide. The federal government’s starting a business guide Opens in new window and the provincial
government’s Small Business Access Opens in new window program can also help you through each step.
For a new business, market research can help provide answers to important questions, such as the following:
Primary Market Research – using data collected through surveys, observation, opinion polls.
Secondary Market Research – using existing data.
The following resources are available to help you complete your business plan:
Business Plan Boot Camp – attend our monthly Business Plan Boot Camp session
Online Training Resources – use our online training resources to complete your business plan
Enterprise Toronto offers free business plan review and consultation services. The prerequisite requirement for the business plan review is the completion of the Business Plan Boot Camp
program. Once you complete the course and prepare your business plan, you can book a one-on-one consultation with our team where we will review your business plan to ensure you
started in the right direction.
Executive Summary: Your executive summary should contain the key points of your marketing plan and, although it is written last, should be positioned at the front of the plan. The
executive summary should include highlights from each section, be interesting enough to motivate the reader and be concise.
Market Research: Collect and organize data about the market that is currently buying the product(s) or service(s) you will sell. Some areas you may wish to explore are listed below:
Target Market: Find niche or target markets for your product and describe them.
Product: Describe your product. How does your product relate to the market? What does your market need? What do they currently use? What do they need above and beyond current
use?
Competition: Describe your competition and develop your “unique selling proposition”. What makes you stand apart from your competition? What is your competition doing about
branding?
Mission Statement: Who you are selling to – key market? What you are selling – your company contribution? Your unique selling proposition – what makes your product/service so
distinctive?
Market Strategies: Outline the marketing and promotion strategies you plan to use:
Pricing, Positioning and Branding: From the information you have collected, establish strategies for determining the price of your product, where your product will be positioned in the
market and how you will achieve brand awareness.
Budget: Budget your dollars. What strategies can you afford? What can you do in-house and what do you need to outsource?
Marketing Goals: Establish quantifiable marketing goals. This means goals that you can turn into numbers. For instance, your goals might be to gain at least 30 new clients or to sell ten
products per week or to increase your income by 30% this year. Your goals might include sales, profits or customer satisfaction.
By researching your markets, your competition, and determining your unique positioning, you are in a much better position to promote and sell your product or service. By establishing
goals for your marketing campaign, you can better understand whether or not your efforts are generating results through ongoing review and evaluation of results.
Continually review the status of your marketing campaign against your set objectives to ensure ongoing improvements to your marketing initiatives and help with future planning.
Branch). Business name registrations or renewals can be completed in person or online at the ServiceOntario , or in person at the Enterprise Toronto offices (North York Civic Centre
or Scarborough Civic Centre).
Business Name Registration
Sole Proprietorship, General and Limited Partnerships
Business registration with the Ministry of Government Services for sole proprietorship and general partnerships is $80 for a paper copy or $60 if completed on the computer
terminal. The registration is valid for five years and must be renewed before it expires. Business name searches can be conducted for a fee of $8 to $26 depending on the type of
report.
Registrations for sole proprietorship and general partnerships can also be completed at Enterprise Toronto. The fee to register your business without a name search report is
$114.81, and with a name search is $129.59. Registrations are completed between 9 a.m. and 4 p.m.
Business Incorporation (Provincial/Federal)
Provincial Incorporation
Businesses wishing to incorporate provincially must do so through the Ministry of Government and Consumer Services (Government of Ontario ). To register as a Provincial
Incorporation , businesses need to complete a NUANS name search to determine if the name is available. The NUANS report is omitted for businesses wishing to
operate under a numbered company.
Articles of Incorporation must be filed within 90 days of completing the name search. The Articles of Incorporation can be filed at the Ministry of Government Services for a
cost of $360.
Enterprise Toronto offers provincial NUANS name searches for a fee of $74.98 and Articles of Incorporation filing services. Articles of Incorporation filing costs $448.43 (NUANS
included in price).
Federal Incorporation
Registering under Federal Incorporation provides name rights across Canada, which is important for companies considering the expansion of their business to other provinces or
territories.
Completion of a NUANS name search is required to federally incorporate a business. The NUANS name search can be completed through Corporations Canada for a fee of
$21.47 plus applicable taxes and is valid for 90 days, within which time you must file your Articles of Incorporation. The NUANS name search can also be completed online and
processed on the same day or following day for $200 through Corporations Canada by choosing the option “Incorporate a Business” .
Enterprise Toronto also offers Federal NUANS name searches for a fee of $74.98, and Articles of Incorporation filing services. Articles of Incorporation filing costs $259.89 (NUANS
extra if required). Please note, Ontario registration is also required for a total cost of $371.03.
Not-for-Profit Incorporation
When incorporating your not-for-profit business in Ontario, Articles of Incorporation can be filed at the Ministry of Government and Consumer Services (Companies and Personal Property
Security Branch).
Steps for incorporating a provincial not-for-profit corporation
1. Complete a name search called NUANS report. This can be completed at any Enterprise Toronto location for $74.98 (taxes included). This NUANS report is valid for 90 days.
2. Complete your Articles of Incorporation (Application for Incorporation of a Corporation without Share Capital Form 2 Corporations Act).
3. Once the NUANS name search and Article of Incorporation are complete you must file them at the Ministry of Government and Consumer Services.
4. Under the Income Tax Act, not-for-profit corporations should register for a Charitable Number. Registration provides charities with exemption from income tax and also authorizes
charities to issue official donation receipts for income tax purposes. T2050 Forms can be downloaded online and submitted to Ottawa for processing. For details please call:
1-800-267-2384.
For additional information, please see the FedDev Ontario Small Business Services Not-for-Profit Guide .
You may need a business license to operate a business in Toronto. Use the online business permits and licences service – BizPaL , to search for permits and licences (municipal,
provincial and federal) you may need to start or grow your business.
Municipal Licenses
Within the city of Toronto, licenses are required for many types of businesses. Municipal licensing requirements may differ outside the city of Toronto and it is advisable to contact the
municipality where you are doing business. In Toronto, operating licenses are issued by the Municipal Licensing and Standards Division of the City of Toronto.
Provincial Licenses
The Business Practices Act requires registration and licensing in many areas such as drug, forestry, motor vehicle, real estate, travel, day-care, liquor sales, gas stations and
transportation.
Federal Licenses
A few types of businesses do require federal licensing in order to start a business in Toronto. Use the permits and licences search tool to find out which ones may apply to your
business.
Canada Revenue Agency is the office responsible for taxation issues for individuals and businesses. Canada Revenue Agency issues a Business Number (BN) which is a reference
numbering system covering four business accounts:
1. Business Accounts: Businesses with gross annual sales of $30,000 or more are required to register for Harmonized Sales Tax (HST) and remit it to the Canada Revenue Agency.
There is no charge for this application. Businesses that have gross annual revenue of under $30,000 are not required to register for HST, and therefore, do not need to charge their
clients the HST tax.
2. Importer/Exporter Account: Canadian individuals, businesses, non-residents or foreign based importers are required to obtain this number.
3. Corporate Income Tax: When you incorporate with the Government of Ontario, you will automatically be registered for a business number (BN) and a corporation income tax
program account. You should receive your BN number within 45 days of incorporation.
4. Payroll Deductions: Deductions include Canada Pension Plan (CPP), Unemployment Insurance Contributions (UIC) and Employee Income Tax Deductions.
Canada Revenue Agency also has other useful information on their website that includes individual and business taxation, taxable benefits and allowances, business and professional
income, HST registration, payroll and more.
o The EHT is a payroll tax applied to all employers in Ontario. Unless exempted, all employers with a permanent establishment in Ontario must register for the EHT.
For the first $400,000 of the payroll, eligible private-sector employers are exempt from paying the EHT.
Ontario Health Premium
o Since July 2004, employees in Ontario have paid an additional tax, the Ontario Health Premium . The tax is deducted from pay as part of personal income tax.
Workplace Safety and Insurance Board (WSIB)
o The law requires all businesses in Ontario that employ workers (including family members and sub-contractors) to register with the WSIB within ten days of hiring
their first full- or part-time worker.
Import & Export
Importer/Exporter Number
o Canadian individuals, businesses, non-residents or foreign-based importers are required to obtain the importer/exporter number. Online registration is available.
Export and Import Controls
o The Foreign Affairs and International Trade Canada office is responsible for administering the Export and Import Permits Act . The office provides market
access and trade policy information, supports the application, approval and processing of import/export permits.
Duties, Tariffs, Quotas and Restrictions
o For general inquiries on duties, tariffs , quotas and restrictions visit Canada Border Services Agency (CBSA) website.
Intelligence and Advice on Foreign Markets
o The Canadian Trade Commission Service provides you with intelligence and advice on foreign markets to help you make better, timely and cost-effective decisions.
National Import Services Centre (NISC)
o Operated by the Canadian Food Inspection Agency (CFIA) in cooperation with the Canada Border Services Agency (CBSA), the Centre processes import requests and
documentations, and coordinates inspections for import shipments.
Customs and E-Business – Electronic Data Interchange (EDI) System
o The CBSA commercial importation process including cargo reporting, release, entry and accounting can be done through EDI applications .
Export Development Canada (EDC)
o EDC provides trade financing and risk management services for Canadian exporters.
New Substances in Canada
o Any person who wants to import or manufacture a new substance must contact the New Substances Information Line or visit the Evaluating New Substances
website for information to determine if it is a new substance, and how to prepare and submit a notification package.
Health Inspections & Regulations
Food preparation, water and sanitation facilities need to be compliant with the Ministry of Health regulations. To ensure your establishment is in compliance with the Ministry of Health
regulations, please contact Toronto Public Health.
Intellectual Property Rights
Canadian Intellectual Property Office offers intellectual property (IP) services and educates business owners on how to use IP more effectively. Intellectual Property includes
Trademarks, Patents, Copyright and Industrial Designs.
Ontario Accessibility Laws
The Province of Ontario has action plans and progress reports that will help us make Ontario a more accessible province for people with disabilities. We strongly recommend that you
In Canada, most businesses must comply with the Personal Information Protection and Electronic Documents Act (PIPEDA) which regulates how you may collect, use and disclose the
personal information you gather when conducting business. Originally, the Act applied to those private sector organizations regulated by federal laws such as banks, airlines,
telecommunications companies, while conducting commercial activities. Now the Act applies also to the retail sector, the publishing industry, the service industry, manufacturers and
provincially regulated organizations.
Canadian privacy legislation comprises two federal laws – The Privacy Act and PIPEDA. Provincial legislation includes Freedom of Information and Protection of Privacy Act
(FIPPA), Municipal Freedom of Information and Protection of Privacy Act (MFIPPA) and Personal Health Information Protection Act (PHIPA).
Canada’s Anti-Spam Legislation (CASL) protects Canadians while ensuring that businesses can continue to compete in the global marketplace. If your business uses electronic means
of promoting your business, products and services this may affect you.
The responsibility of business is to limit the use and disclosure and retention of collected information. Business must also obtain consent to collect the information and be responsible for
the accuracy of the information.
Insurance
It is always a best practice to contact your insurance broker to confirm that your business and you are adequately protected. For example: if you are a sole proprietorship and working out
of your home, you may need additional property insurance.