There are many differences between how to start a business in Canada and the way you would do it back home. You’ll get some of the same rules that apply, including a mandatory three-month waiting period before filing your Income Tax declaration. Most importantly though, each of the eleven provinces that make up the country have different business laws that they apply to all businesses. In this article, we look at some of these differences so that you can get a clear understanding of how to get started.
Where you live: All of the provinces that make up Canada use names with either a “M” or an “L” in their names. That’s not because the name is prescribed by the government (it isn’t) – but because there is no official language anywhere in the country that you need to know the difference between one or the other. Therefore, most business names end up being a variation of one or the other. You need to do some research to find out which provinces require you to use your current business name instead of your new business name.
Name: The first part of the name of the business that you register in Canada should really be your brand. This is where you can use your “personality” as a way to distinguish your business from any others in the marketplace. You will need to include your name in every document that you create for your business, so make sure that you register your business name as well. For example, you will want to use your “personality” when you file income statements, bank accounts, and credit card receipts. Be sure to include the name of your business too, as well as your personal details and contact details.
Contact information: All business owners need to register their businesses with the Canadian Business Registry so that they can receive all the protection and services that they are entitled to. The registry also acts as a referral system, so it is important that you build up a good relationship with the bureaus and companies that register your business. Your contact information should include your phone number and email address so that you know that clients can reach you easily and understand your business. In addition, it is important that you have a website for your business, so that clients can learn more about the products and services that you offer.
Income statements and accounts: When you start to learn how to start a business in Canada, you will need to submit all of your financial records for tax purposes. In particular, you need to ensure that your employees’ wages and commissions are correctly stated in your income statement. If this information is incorrect, you could find that you do not receive the tax benefits that you are entitled to. Your account details should also be up to date and accurate, as this will also help you keep abreast of your business’s financial health. It will be required that you file an annual return with the CRA, so make sure that you submit all of the relevant forms by the deadline. Your most important financial document is your credit report, so you will also need to ensure that it is updated at all times.
Business permits and licenses: When you learn how to start a business in Canada, you will need to register your business with the provincial government. For example, when you are dealing with the sale or purchase of a building or property, you will need to get a business license. Likewise, when you are putting up a store to sell your goods or services, you will need to apply for a business permit. As long as you follow the laws and regulations of the jurisdiction, these things will not be difficult to accomplish.