Canadian business ecosystem is one of the best in the world attracting hundreds of thousands business experts from the world around the year. Starting a business in Canada is not a tough or tedious job, its easy and simple. You just make your final decision to start the business in Canada and follow the step-by-step guide composed of a quite few steps to the process as given below which is designed to transform your dream of becoming an entrepreneur in Canada into reality.
Before registering your company or starting a business in Canada, you need to consider all items about the business you want to establish, here we are clarifying all steps to you:
1. Having a Good Business Idea
Whether you’re in Canada or anywhere else—a successful business starts with a very good idea.
2. Writing a Business Plan
The best way to test your idea is turning that into a business plan. This allows you to examine everything about the industry, products, and market for your business. It also gives you something to present to investors and lenders—the ultimate testing ground for your business idea.
3. Choosing a name for your business
For choosing a proper name for your business you must keep in mind that the name should be unique, it’s better to choose a name that is pronounced easily and it reflects the products of business.
4. Choosing a Form of Business type
When starting a business in Canada, there are three basic forms of business ownership that you can choose from for a business structure:
- the sole proprietorship (federal or provincial/territorial)
- the partnership
- the corporation
There are a few options within those, such as a cooperative corporation or the limited partnership, but they all fall under these three structures. Deciding which one is right for your business will depend on different factors, from your comfort level with liability to the tax deductions that you want for your business.
5. Finding Small Business Financing
While some owners can finance their new businesses out of their own pockets, many others need funds from other sources to succeed. There are lots of options to consider, from debt financing to sharing equity to government grants. Consider the differences between each kind of financing, and be sure you’re prepared to deal with the obligations of what you choose.
6. Getting a Business License
Depending on what business you’re starting, you might need licenses and permits. Industry Canada’s BizPaL is a useful website for finding out what permits and licenses you’ll need to do business.
7. Registering for the GST/HST
In most cases( unless your new small business’s gross income stays under $30,000 for four continuous quarters) you will have to register for the Goods and Services Tax (GST) and Harmonized Sales Tax (HST).
*Some provinces have not harmonized their sales taxes with the federal GST, and in those provinces, you have to register to collect and remit the appropriate provincial tax. If you are starting a business in Alberta, British Columbia, Manitoba, or Saskatchewan, you need to register as a collector of Provincial Sales Tax (PST).
In Quebec, you need to register for Quebec Sales Tax (QST).
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Prepare to Have Employees
When you’re starting a business, hiring employees is an important process too which includes handling payroll deductions, worker’s compensation insurance, and employment insurance.
In case of any assistance to setup a business in Canada, our consultancy team is just an email away. Please send us an email at ask@academicinsight.ca and you will get a response within 24-48 hours.