Almost 98% of Canadian companies are small businesses, employing up to 88.5% of the workforce.
But when it comes to launching your company in Canada, where do you start?
If you're wondering how to start a company in Canada, keep reading. In this brief biz guide, we'll give you the essential tips to get your Canadian business up and running in no time.
Choose Your Business Form
If you want to own a business in Canada, you have three options: purchasing a business that already exists, starting your own business, or buying the rights to a franchise.
Starting your own business gives you the most freedom to shape your company the way you want it, but it takes the most work. Buying an existing business lets you rely on the company's past success but gives you less freedom.
Buying a franchise has the least risk because the business plan has already been proven successful. (In fact, with a franchise, most of the business planning has already been done for you.) However, you'll have even less freedom to adapt your business.
Each of these types of Canadian companies has its pros and cons, so carefully consider which one is right for your company.
Draw Up Your Business Plan
Your business plan includes all the details that you need to know to successfully launch your business. You'll need to account for logistics such as:
• What costs you will incur
• What returns you will get
• How to source and develop your product
• Your target market
• Your marketing strategies
• Your business goals and how to meet them
Creating a business plan can feel tedious when you are eager to launch your Canadian small business. However, a business plan is the foundation of your company, and without it, you risk building a business that will collapse later.
With many popular business plan models out there, you'll be able to find one that makes it easy for you to define your logistics easily without getting bogged down.
Register Your Business
Each province has its own system of business registration. Since these systems can differ slightly from one another, you'll want to get familiar with the business registry system in your province.
For instance, Ontario uses a dual system of numbered and named businesses. Before approaching the registry board, you'll need a better understanding of how this system works and which option you'll want to choose.
Check Municipal Requirements
Some cities require you to get a municipal license in addition to your provincial registration. Check your municipality's business bylaws to see if your city requires this step.
You will also need to check your city's zoning laws to make sure your business's location falls within the commercial zones.
Register for Business Taxes
Finally, be sure to register your business for a taxation account with the Canada Revenue Agency. This allows you to pay the correct tax amount on all the sales you make.
Check the Canada Revenue Agency's requirements to see which taxes your business is required to register for.
Start Your Canadian Business
Are you intimidated by your ambition of opening a Canadian business? Starting a business in Canada isn't as complicated as you might think.
With this Canada business guide, you'll be able to navigate the practical challenges and legal hurdles so that you can start the small business of your dreams.
Was this article on Canadian business building helpful? Then don't forget to check out the rest of our company blog, where you'll find more tips on business, startups, and budgeting in Canada and beyond.
