Business license in Canada

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Business license in Canada

For a foreign company or investor to do business in Canada, one has to follow a couple rules and regulations and business license in Canada by the Canadian government. One of these rules and regulations involve obtaining a business license in order to operate the business legally. The type of licenses or business permits required may vary significantly based on the type of business activities the company is involved in; furthermore, the type of license may also differ based on the province the company is located in. With all that being said, listed below are some of the different kinds of license requirements that one may need to do business in Canada.

In order to apply or a license for the business one has to apply in person at the License and Permit Office. There the person will have to fill out the application forms which will ask for all the basic information along with certain documents that need to be submitted. There is usually a license fee that must be paid in order to get the license issued. This license fee can be paid online, or at the counter at the License and Permit office. The fees can be paid via cash or through debit or credit cards.

If the business license is for a corporation then the president or the director or even an office of the corporation must be present when applying for the business license in Canada. If any one of those people is unable to attend for some reason then a designated person can stand in their place but they will have to have the original letter of signing authority on the corporation letterhead. And the designated person should have sufficient identification as well. The corporation is expected to provide the following documents;

  • The address or location of the business
  • Copies of articles of incorporation
  • A copy of the provincial business name registration. This can be altered with the signed franchise agreement.
  • A notarized annual liability form.
  • A corporate profile report. This should be provided only if there has been a change in the directors or officers of the company
  • A notarized controlling interest form. This should be submitted if the shares in the company are 50/50 at the time of application.

Individuals or partnerships: When a business which is run by an individual or by partners then the license requirements may vary significantly from the requirements of a corporation. For instance, if the business is a sole proprietorship, then the owner has to provide;

  • The location or address of the business in question.
  • A copy of the provincial name of the business as well as the provincial name registration or franchise agreement.

When the business license in Canada application is for a partnership business then the following should be provided;

  • The address or location of the business.
  • A copy of the provincial business name registration. Or the franchise agreement. Private limited company registration process for non residents.
  • A notarized controlling interest form. This should be the updated information at the time of application.
  • The partnership agreement if there are any.

All these steps are very straight forward and can be one very easily. There are certain other business permits a business may require based on the type of business activities they are involved in. For instance,

Tobacco Retail Dealer’s Permit: As the name suggests, this type of permit is only required for businesses associated with buying and selling tobacco in Canada. More specifically, this permit is needed in Ontario based businesses.

Front Counter BC: If a foreign investor is willing to set up a business that deals with mining, forestry, agriculture or land and water then the Front Counter BC permit is required. Once again this type of permit is only applicable in the province of British Columbia.

Agriculture, fishing and food permits: These types of permits are needed to run a business in the agricultural field or for fishing businesses in Quebec. Any company engaging in commercial businesses in these fields should immediately apply for such a permit to operate legally and without any problems from the authorities.

Fuel tax permit: If the company is into the business activity of collection, importing, refining or carrying fuel in Quebec then they will need a fuel tax permit to legally carry on their operations.

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S & F CONSULTING FIRM LIMITED is a global business consulting firm. Services are: (1) Foreign company registration, formation, setup (2) Income tax (3) Accounting (4) Audit (5) Business advisory. Since 2012, we are providing professional services to the foreign investors. We try to develop our self everyday to satisfy honorable customers.


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