Business number, GST/HST and payroll account registration

Business number (BN): what it is and when you need one

The business number is the identifier the Canada Revenue Agency assigns to a business. Every corporation needs one, because every corporation files a corporate income tax return. The BN stays the same for the life of the corporation; each tax program then adds its own account to it, identified by two letters and a reference number.

• RC, corporate income tax: opened for every corporation. For a federal corporation: BN and RC account issued automatically on federal incorporationsource.
• RT, GST/HST: when the corporation must or chooses to collect sales tax.
• RP, payroll: when it pays salaries, including to its own shareholders.
• RM, import-export: when it imports goods commercially or exports goods for which a number is required.

Depending on the jurisdiction, the BN is issued at incorporation or requested from the CRA afterwards. In Quebec, the corporation also has its NEQNEQNumber assigned by Quebec’s enterprise registrar on registration. Separate from the federal business number (BN).See definition →, the enterprise number assigned by the Quebec enterprise register, which is a different number from the BN.

Business account registration through Business Registration Online (BRO)

BRO is the CRA's online service for registering a business number and program accounts. Two recent changes shape how it works:

In practice, the person registering signs in to a CRA account, either their own as owner or director, or a representative account authorized for the business, and answers questions about the corporation, its owners, its activity and its expected revenue. The CRA then issues the BN and the program accounts requested. The information has to match what the registry holds: same legal name, same address, same directors.

GST/HST: the small supplier threshold (sourced)

A corporation that makes taxable sales in Canada generally has to register for GST/HST once it is no longer a small supplier. The CRA's threshold: $30,000 over four consecutive calendar quarters (or in a single quarter)source. Below that amount, registration is optional.

• Mandatory registration applies once revenue passes the threshold, by the deadline set by the CRA, and tax must be charged from the supply that crosses it.
• Voluntary registration below the threshold lets the corporation claim input tax credits on its business expenses, but it must then charge tax and file returns.
• Some activities must register regardless of revenue, such as taxi and ride-sharing services; the CRA lists them.

Whether a given activity is taxable, zero-rated or exempt is a question for an accountant; the answer changes how and when registration applies.

Payroll and import-export accounts

A payroll (RP) account is needed before the first salary is paid, including when the only employee is the owner-manager. The corporation then withholds income tax, Canada Pension Plan contributions and, where applicable, Employment Insurance premiums and remits them to the CRA on schedule. A corporation that pays its shareholders only in dividendsdividendsShare of profits paid to shareholders by board resolution.See definition → does not need a payroll account for those payments; it reports them on a separate slip. Many owner-managers weigh salary against dividends with their accountant.

In Quebec, employers also register with Revenu Québec for provincial source deductions, which replace some of the federal ones.

An import-export (RM) account is needed to import goods commercially into Canada, and to export goods in the cases set out by the Canada Border Services Agency. Online sellers who ship goods from outside Canada and couriers acting as importers often ask about it; the account is opened with the same BN.

Which accounts a new corporation typically opens

The right set of accounts depends on what the corporation does, not on its size. Three common profiles, for illustration only:

• Consultant or freelancer, incorporated: corporate income tax from day one; GST/HST once billing approaches the threshold, or earlier by choice; payroll only if the owner takes a salary.
• Online store selling physical goods: corporate income tax, GST/HST (often registered voluntarily from the start to recover tax on inventory and equipment), and import-export if products come from abroad.
• Restaurant or retail business with staff in Quebec: corporate income tax, GST and QST with Revenu Québec, and payroll accounts with both the CRA and Revenu Québec before the first pay.

Opening an account that is not needed yet creates filing obligations, sometimes nil returns, so the timing of each registration is worth discussing with an accountant.

Non-residents without a SIN

Founders who live outside Canada often have no social insurance number (SIN), which BRO uses to identify the person registering. For a corporation owned only by non-residents: Not possible through BROsource. The CRA offers other routes:

• Online: Non-Resident Business Registration online formsource, for businesses incorporated or located outside Canada, or registrants without a SIN.
• On paper: Form RC1, sent to the Non-Resident Tax Centresource.

A Canadian corporation owned by non-residents is still a Canadian corporation for tax purposes: it registers for GST/HST, payroll and other accounts under the same rules once it has its BN.

How we register for you

1. 1We use your incorporation fileLegal name, address, directors, fiscal year-end: the information you gave at incorporation is reused, so it matches the registry.
2. 2We identify the accounts that may applyFrom your activity, expected revenue, employees and imports, we show which accounts are commonly opened and which are optional. The decision stays yours, with your accountant if you have one.
3. 3Registration through the right channelBRO for most corporations, Revenu Québec for GST and QST in Quebec, or the non-resident form or RC1 for founders without a SIN. Depending on the channel, we file as your authorized representative or prepare the submission for you to send from your own account.
4. 4Numbers in your dashboardYour BN and program account numbers are stored with your corporate record, and tax deadlines appear alongside your other filings.