{"id":27896,"date":"2023-06-26T16:23:45","date_gmt":"2023-06-26T16:23:45","guid":{"rendered":"https:\/\/avocat-montreal.ca\/?p=27896"},"modified":"2023-11-17T17:15:27","modified_gmt":"2023-11-17T17:15:27","slug":"how-to-start-a-business-in-canada","status":"publish","type":"post","link":"https:\/\/avocat-montreal.ca\/en\/business-law\/how-to-start-a-business-in-canada\/","title":{"rendered":"How to start a business in Canada"},"content":{"rendered":"\r\n<p><strong>Starting up a business<\/strong> can take a few months or several years, depending on the scale of the activity and the resources at hand. So how do you get your business off to the best possible start? Here are the procedures and advice you need to get your business off to a good start.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_stages_involved_in_starting_up_a_business\"><\/span>What are the stages involved in starting up a business?<span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/avocat-montreal.ca\/en\/business-law\/how-to-start-a-business-in-canada\/#What_are_the_stages_involved_in_starting_up_a_business\" >What are the stages involved in starting up a business?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/avocat-montreal.ca\/en\/business-law\/how-to-start-a-business-in-canada\/#Choosing_the_right_business_structure\" >Choosing the right business structure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/avocat-montreal.ca\/en\/business-law\/how-to-start-a-business-in-canada\/#Drawing_up_a_business_plan\" >Drawing up a business plan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/avocat-montreal.ca\/en\/business-law\/how-to-start-a-business-in-canada\/#Choose_and_register_your_company_name\" >Choose and register your company name<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/avocat-montreal.ca\/en\/business-law\/how-to-start-a-business-in-canada\/#Finding_financing\" >Finding financing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/avocat-montreal.ca\/en\/business-law\/how-to-start-a-business-in-canada\/#Completing_administrative_and_legal_formalities\" >Completing administrative and legal formalities<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/avocat-montreal.ca\/en\/business-law\/how-to-start-a-business-in-canada\/#Starting_up_a_business_best_practices_and_mistakes_to_avoid\" >Starting up a business: best practices and mistakes to avoid<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/avocat-montreal.ca\/en\/business-law\/how-to-start-a-business-in-canada\/#Surround_yourself_with_the_right_people\" >Surround yourself with the right people<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/avocat-montreal.ca\/en\/business-law\/how-to-start-a-business-in-canada\/#Conserve_cash\" >Conserve cash<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/avocat-montreal.ca\/en\/business-law\/how-to-start-a-business-in-canada\/#Impatience_the_enemy_of_entrepreneurs\" >Impatience: the enemy of entrepreneurs<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\r\n\r\n\r\n\r\n<p>Starting up a business can be like an obstacle course. It requires patience and effort.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Choosing_the_right_business_structure\"><\/span>Choosing the right business structure<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>You can choose between a sole proprietorship, a general <a href=\"https:\/\/avocat-montreal.ca\/en\/family-law\/understanding-the-operation-of-the-partnership-of-acquests\/\">partnership<\/a> or a corporation.<\/p>\r\n\r\n\r\n\r\n<p>A<strong>sole propri <\/strong>etorship puts you at the heart of responsibility. You&#8217;ll be responsible for your company&#8217;s obligations and debts. The structure has a number of advantages: affordable start-up costs, control over decision-making, tax benefits&#8230; However, it also has its drawbacks: taxable income based on sales, unlimited liability of the owner disrupting the continuity of the business in his absence..<\/p>\r\n\r\n\r\n\r\n<p><strong>General partnerships<\/strong> require a partner to combine financial resources. Advantages include affordable start-up costs, tax advantages and shared profits and management. However, you need to find the right partner, and will be held responsible for his or her business decisions.<\/p>\r\n\r\n\r\n\r\n<p>A <strong>corporation<\/strong> transforms your business into a legal entity separate from its shareholders and owners. It offers limited liability, transferable ownership, tax advantages, and quick and easy capital raising. Nevertheless, a joint-stock company is costly to set up and requires complex incorporation formalities.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Drawing_up_a_business_plan\"><\/span>Drawing up a business plan<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>To <strong>launch<\/strong> a new business, you need to draw up a <a href=\"https:\/\/www2.gouv.qc.ca\/portail\/quebec\/trousse?lang=fr&amp;g=trousse&amp;e=557954595:3129796225\">business plan<\/a>, a document detailing your entrepreneurial project:<\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li style=\"list-style-type: none;\">\r\n<ul>\r\n<li>an introduction ;<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul>\r\n<li style=\"list-style-type: none;\">\r\n<ul>\r\n<li>a general presentation of the company;<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul>\r\n<li style=\"list-style-type: none;\">\r\n<ul>\r\n<li>a market study;<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul>\r\n<li style=\"list-style-type: none;\">\r\n<ul>\r\n<li>a list of the company&#8217;s missions;<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul>\r\n<li style=\"list-style-type: none;\">\r\n<ul>\r\n<li>explanations of communication and marketing strategies;<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul>\r\n<li style=\"list-style-type: none;\">\r\n<ul>\r\n<li>a description of the target audience;<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul>\r\n<li style=\"list-style-type: none;\">\r\n<ul>\r\n<li>a timetable of objectives and the means to achieve them;<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul>\r\n<li style=\"list-style-type: none;\">\r\n<ul>\r\n<li>an operating plan describing the company&#8217;s management and short- and long-term development prospects;<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul>\r\n<li style=\"list-style-type: none;\">\r\n<ul>\r\n<li>an explanation of the specific features of the project..<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p>This tool opens the door to private and public financing (credit, loans or subsidies).<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Choose_and_register_your_company_name\"><\/span>Choose and register your company name<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>Your company&#8217;s name plays a vital role in your business. It describes your product or service. It reflects your company&#8217;s values. It stands out from the crowd and is easy to remember.<\/p>\r\n\r\n\r\n\r\n<p>Make sure you can legally use the chosen name, knowing that it cannot match that of another company or an existing trademark. A careful search is therefore essential before validation.<\/p>\r\n\r\n\r\n\r\n<p>Once the name has been chosen, it must be registered with the appropriate levels of government (Registraire, Canada Revenue Agency, etc.). The process at the Registraire <a href=\"https:\/\/www.google.com\/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=&amp;cad=rja&amp;uact=8&amp;ved=2ahUKEwiNnc6ViL__AhUWX_EDHczWAxwQFnoECBkQAQ&amp;url=https:\/\/www.registreentreprises.gouv.qc.ca\/RQAnonymeGR\/GR\/GR03\/GR03A2_19A_PIU_RechEnt_PC\/PageRechSimple.aspx?T1.CodeService=S00436&amp;usg=AOvVaw2uHWYDmmWxQ3RUZ_ucpP0M\">des entreprises<\/a> will result in the issuance of a <strong>Num\u00e9ro d&#8217;Entreprise du Qu\u00e9bec<\/strong> (NEQ).<\/p>\r\n\r\n\r\n\r\n<figure class=\"wp-block-image size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1000\" height=\"667\" class=\"wp-image-26888\" src=\"https:\/\/avocat-montreal.ca\/wp-content\/uploads\/2023\/06\/demarrage-entreprise-1.jpg\" alt=\"Entourez-vous des bonnes personnes lors du d\u00e9marrage de votre entreprise.\" srcset=\"https:\/\/avocat-montreal.ca\/wp-content\/uploads\/2023\/06\/demarrage-entreprise-1.jpg 1000w, https:\/\/avocat-montreal.ca\/wp-content\/uploads\/2023\/06\/demarrage-entreprise-1-300x200.jpg 300w, https:\/\/avocat-montreal.ca\/wp-content\/uploads\/2023\/06\/demarrage-entreprise-1-768x512.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/figure>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Finding_financing\"><\/span>Finding financing<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>A dreaded stage for entrepreneurs, the search for financing seems complex. You have a choice between public and private sources.<\/p>\r\n\r\n\r\n\r\n<p>On the one hand, the government provides project leaders with special assistance. These take the form of grants, contributions, loans and loan guarantees.<\/p>\r\n\r\n\r\n\r\n<p>On the other hand, the private sector, i.e. Canada&#8217;s financial institutions, offer their support depending on the type of project. You can turn to the <a href=\"https:\/\/www.google.com\/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=&amp;cad=rja&amp;uact=8&amp;ved=2ahUKEwjwvZnTiL__AhV0bPEDHZuoDN0QFnoECAsQAQ&amp;url=https:\/\/www.bdc.ca\/fr&amp;usg=AOvVaw0rB3gheWnzG8lX0qK-c7gY\">Business Development Bank<\/a> of Canada, the <a href=\"https:\/\/www.sadc-cae.ca\/fr\/\">Community Futures Development Corporation &amp; Business Development Centre<\/a>..<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Completing_administrative_and_legal_formalities\"><\/span>Completing administrative and legal formalities<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>The final step is to complete the administrative and legal formalities. Register for <strong>Provincial Sales Tax<\/strong> (PST) if you offer a taxable service to British Columbia. Also register for the <strong>Goods and Services Tax<\/strong> (GST) in Canada. This formality applies to companies with annual sales in excess of $30,000. Other tax formalities require the intervention of a tax expert or a <strong><a href=\"https:\/\/avocat-montreal.ca\/avocat-droit-des-affaires\/\">lawyer specialized in business law<\/a><\/strong>. He or she will regularize your tax situation at the <strong>start of<\/strong> your business.<\/p>\r\n\r\n\r\n\r\n<p>A company with several employees registers with <strong><a href=\"https:\/\/www.canada.ca\/fr\/agence-revenu.html\">the Canada Revenue Agency<\/a><\/strong> (CRA). This leads to payments of income tax, Canada Pension Plan and <a href=\"https:\/\/avocat-montreal.ca\/en\/employment-lawyer-montreal\/\">Employment<\/a> Insurance.<\/p>\r\n\r\n\r\n\r\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"640\" height=\"427\" class=\"wp-image-26890\" src=\"https:\/\/avocat-montreal.ca\/wp-content\/uploads\/2023\/06\/demarrage-entreprise-2.jpg\" alt=\"Le d\u00e9marrage d'une entreprise requiert la pr\u00e9sence d'un avocat en droit des affaires.\" srcset=\"https:\/\/avocat-montreal.ca\/wp-content\/uploads\/2023\/06\/demarrage-entreprise-2.jpg 640w, https:\/\/avocat-montreal.ca\/wp-content\/uploads\/2023\/06\/demarrage-entreprise-2-300x200.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/figure>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Starting_up_a_business_best_practices_and_mistakes_to_avoid\"><\/span>Starting up a business: best practices and mistakes to avoid<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p>The road to business start-up is strewn with pitfalls. Here are a few best practices to help you avoid the pitfalls.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Surround_yourself_with_the_right_people\"><\/span>Surround yourself with the right people<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>Professionals who can contribute to the success of your project are most welcome at the start of your business. The first step is to seek the expertise of a <strong><a href=\"https:\/\/avocat-montreal.ca\/avocat-droit-des-affaires\/\">business lawyer<\/a><\/strong>. He or she will advise you on the best legal steps to take to legalize your activities.<\/p>\r\n\r\n\r\n\r\n<p>When it comes to financing, choose the best financial institutions to serve as your business partners.<\/p>\r\n\r\n\r\n\r\n<p>Launch a recruitment campaign to find the nuggets who will become your future employees. Specify your needs and detail the ideal profile.<\/p>\r\n\r\n\r\n\r\n<p>Create a business network and expand your contacts. Don&#8217;t hesitate to surround yourself with entrepreneurs who are also at the start-up stage. Nevertheless, keep in close touch with influential players who can share their knowledge and experience.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conserve_cash\"><\/span>Conserve cash<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>The success of your business depends on the resources you have on hand. Before you start your business, build up your savings and create sufficient cash for your activity. This will help you avoid the big debts that can sink your business before it even starts. Building up savings is also essential, bearing in mind that you won&#8217;t receive a salary for several months at a time.<\/p>\r\n\r\n\r\n\r\n<p>Here are a few tips to help you save reasonably. Limit your spending and concentrate on the essentials. Avoid accumulating credit. Hire only the people you need.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impatience_the_enemy_of_entrepreneurs\"><\/span>Impatience: the enemy of entrepreneurs<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>Patience is essential when starting up a business. Don&#8217;t give in to panic, discouragement or weariness. Stay calm and clear-headed. Seek comfort from those close to you. Stay alert to constructive criticism that can improve your business.<\/p>\r\n\r\n<p>&nbsp;<\/p>","protected":false},"excerpt":{"rendered":"<p>Starting up a business can take a few months or several years, depending on the scale of the activity and the resources at hand. So how do you get your business off to the best possible start? Here are the procedures and advice you need to get your business off to a good start. What [&hellip;]<\/p>\n","protected":false},"author":53,"featured_media":26891,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2016],"tags":[],"class_list":["post-27896","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-law"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How to start a business in Canada | AM<\/title>\n<!-- Admin only notice: this page does not show a meta description because it does not have one, either write it for this page specifically or go into the [Yoast SEO - Settings] menu and set up a template. -->\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/avocat-montreal.ca\/en\/business-law\/how-to-start-a-business-in-canada\/\" \/>\n<meta property=\"og:locale\" content=\"fr_FR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to start a business in Canada | AM\" \/>\n<meta property=\"og:description\" content=\"Starting up a business can take a few months or several years, depending on the scale of the activity and the resources at hand. So how do you get your business off to the best possible start? Here are the procedures and advice you need to get your business off to a good start. What [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/avocat-montreal.ca\/en\/business-law\/how-to-start-a-business-in-canada\/\" \/>\n<meta property=\"og:site_name\" content=\"AM\" \/>\n<meta property=\"article:published_time\" content=\"2023-06-26T16:23:45+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-17T17:15:27+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/avocat-montreal.ca\/wp-content\/uploads\/2023\/06\/demarrage-entreprise-2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"640\" \/>\n\t<meta property=\"og:image:height\" content=\"427\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Geoffrey Pin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" 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