Business licences and permits

Do I need a business licence?

Three questions decide it: where you operate, what you do, and what you sell or move across borders. The answer is rarely a single licence. A café in a mid-size city, for example, may need a municipal business licence, a food premises permit, a sign permit and a provincial liquor permit if it serves alcohol, on top of its corporate and tax registrations.

• Where: each municipality sets its own business licensing rules, zoning and building permits. Some cities license most businesses operating within their limits; others license only listed activities.
• What: many activities are regulated by the province or territory (construction, food, alcohol, real estate, transport, personal services, childcare and others) or by a professional order or college.
• What goods: importing, exporting or selling regulated goods (food, health products, controlled goods, alcohol, tobacco, cannabis) can require federal licences or registrations.

Municipal business licences

Municipal business licences are the ones most people mean when they search for a business licence. They are issued by the city, town or regional municipality where the business operates, and the rules differ widely from one place to the next. Large cities usually publish a list of licensed business categories and an online application.

Licences are tied to an address. A business that opens a second location, moves, or operates in several municipalities (a contractor working across a region, for instance) may need a licence in each one. Most municipal licences are renewed periodically, and fees and renewal dates are set by each municipality.

Home-based businesses are a common grey zone. Many municipalities allow them under conditions (no signage, limited client visits, no employees on site, no storage of goods), and some require a home occupation permit. The zoning by-law of your municipality is the reference.

Provincial and sector permits

Provinces and territories regulate activities that affect public safety, consumers or health. These licences follow the activity rather than the address, and some require training, insurance, a bond or a background check before they are issued.

• Construction and trades: contractor licences and trade certifications (in Quebec, for example, the Régie du bâtiment du Québec licenses construction contractors).
• Alcohol, gaming and cannabis retail: permits issued by the provincial regulator for each establishment.
• Food: food premises permits and inspections, often through provincial or regional public health, and provincial licences for some food processing.
• Consumer services: licences or registrations for activities such as travel agencies, motor vehicle dealers, collection agencies, door-to-door sales or payday lending, depending on the province.
• Real estate, mortgages, insurance and securities: registration with the provincial regulator for the firm and its representatives.
• Childcare, health and social services: licences for facilities and registration of regulated professionals.
• Transport: commercial vehicle registration and operating authorities.

Regulated professions, such as lawyers, accountants, engineers or health professionals, are licensed by their order or college, and can sometimes practise through a professional corporation. Ontario: Professions allowed by their governing Act, regulated health professions, CPAs, lawyers (Law Society Act), social workers, veterinarianssource. Quebec: Possible for members of a professional order, in an organization of any legal form, subject to Chapter VI.3 and Office/order regulationssource.

Federal permits (import, export, regulated goods)

Most small businesses never need a federal licence. Federal requirements come into play when a business imports or exports commercially, or deals in goods or services that Ottawa regulates directly.

• Importing and exporting: a business number with an import-export program account from the Canada Revenue Agency, used to account for commercial shipments with the Canada Border Services Agency.
• Controlled exports: export permits from Global Affairs Canada for goods on the export control list.
• Food: a licence from the Canadian Food Inspection Agency for certain food imports, exports and interprovincial trade.
• Health products: Health Canada licences or notifications for natural health products, medical devices, drugs and cosmetics.
• Excise goods: excise licences for producers of alcohol, tobacco, vaping products and cannabis.
• Telecommunications, broadcasting, aviation and transport: authorizations from the relevant federal regulator.

A federal corporation receives its business number at incorporation: BN and RC account issued automatically on federal incorporationsource. The import-export account is added to that number; it is not created automatically.

Do sole proprietors need a business licence?

Licensing follows the activity and the location, not the legal structure. A sole proprietor who runs a regulated activity, or operates in a municipality that licenses businesses, generally needs the same licences as a corporation doing the same thing.

What differs for a sole proprietor is the name. Operating under a name other than your own usually means registering that name with the province. Ontario: Required when operating under a name other than the owner's own namesource. Quebec: Required within 60 days when operating under a name other than the owner's first and last namesource. British Columbia: Required within 3 months of first using a business name other than one's ownsource. That registration is not a licence: it records the name and the owner, nothing more.

When a sole proprietor incorporates, licences held in the owner's name generally do not transfer automatically to the new corporation. The corporation applies in its own name, or the licence is transferred where the issuing authority allows it.

Keeping licences valid after you get them

A licence is not a one-time step. Most are renewed periodically, and many must be updated when something about the business changes. Missing a renewal can mean operating without authorization, with fines or a closure order set by the issuing authority.

• Renewal dates: each authority sets its own cycle; keep the expiry dates of all licences in one calendar.
• Change of address: a new location usually means new zoning checks and, often, a new municipal licence.
• Change of name or owner: a new corporate name, a sale of the business or a change of control can require an amendment or a new application.
• Incorporating an existing business: licences issued to a sole proprietor are generally reissued in the corporation's name.
• Display and records: some licences must be displayed at the premises or kept available for inspection.

How we help you apply

The hardest part of licensing is knowing what applies. Incorpo starts from what you tell us about your activity and your locations, and builds a list of licences and permits that may apply, each linked to the authority that issues it. The issuing authority always has the last word on what you need.

1. 1Your activity and locationsYou describe what the business does, where it operates, and whether it imports, exports or sells regulated goods.
2. 2A checklist of possible requirementsWe list the municipal, provincial and federal licences that may apply, with a link to each issuing authority's page.
3. 3Your corporate information, ready to reuseApplications ask for the same details: legal name, corporation number, business number, registered office, directors. Your Incorpo account keeps them in one place, with the certificate and articles.
4. 4Help with applicationsWhere an application can be prepared for you, we help with it. Some licences must be requested by the owner, involve an inspection or require proof of training, which only you can provide.