How to start a business in Canada
Starting a business in Canada takes six steps: choose a structure, register your business name or incorporate, check the licences and permits your business needs, set up CRA tax accounts when you need them, open a business bank account, and find the funding you can apply for. In Ontario, for example, registering costs $60 for a business name in Ontario, $300 to incorporate in Ontario or $200 to incorporate federally. 778 of the 882 funding programmes GrantCompass tracks set no minimum time in business, so being new rules you out of very few of them (as of September 28, 2026).
The six steps, in order
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Choose a structure
A sole proprietorship is the cheapest and simplest; a corporation separates the business's debts from yours, can keep profit at a lower tax rate and opens the 234 funding programmes that only accept corporations. Compare them, including what incorporating would unlock where you are.
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Register your name or incorporate
A sole proprietor trading under their own legal name usually needs no registration. Otherwise you register with your province: $60 for a business name in Ontario, $300 to incorporate there, or $200 to incorporate federally with Corporations Canada.
- Ontario: our step-by-step guide with the ministry fees
- British Columbia: BC Registries
- Quebec: Registraire des entreprises
- Alberta: Alberta business names
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Check the licences and permits you need
Licences depend on your city, province and industry: a food business, a contractor and a home-based consultant need different ones. BizPaL, run by the federal government with the provinces and municipalities, lists the permits and licences for your business type and location.
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Set up your CRA accounts when you need them
Get a business number to deal with the CRA, and a GST/HST account once your taxable sales pass $30,000 (CRA rules). A sole proprietor reports business income on Form T2125 with their personal return.
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Open a business bank account
Keep business money separate from the start. It makes your tax return simpler, and many funding applications ask for business financial statements that a mixed account can't produce cleanly.
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Find the funding you can apply for now
Most programmes don't make you wait: see the time-in-business split below, then check which programmes fit your business.
The funding you can get in your first year
The question founders ask is "can a new business get anything?" The answer is yes. What programmes do check is your province, your industry, what you'll spend the money on and, for 27% of them, whether you're incorporated.
88% of the 882 programmes we track set no minimum time in business. A brand-new business is ruled out of very few.
- No minimum 778
- Under a year 6
- A year or more 98
Show these numbers as a table
| Time in business the programme requires | Programmes | Share |
|---|---|---|
| None stated: you can apply from day one | 778 | 88% |
| Less than a year (usually 6 months) | 6 | 1% |
| One year or more | 98 | 11% |
| Programme | Type | Amount | Where |
|---|---|---|---|
| Canada Small Business Financing Program | Loan | Up to $1.15M | Canada-wide |
| Futurpreneur Side Hustle Program | Loan | Up to $25K | Canada-wide |
| Scale AI Acceleration Program | Grant | Up to $50K in accelerator support | Canada-wide |
| Blue Action Canada Oceantech Accelerator | Program | Up to $345K | Canada-wide |
| Microsoft for Startups | Program | Up to $150K USD in credits | Canada-wide |
From the 882 programmes in the GrantCompass catalogue that are open or between intakes, as of September 28, 2026. "None stated" means the programme's own rules set no minimum.
The quiz below counts only programmes taking applications today and narrows them to your answers, so its number is smaller than the totals above.
Questions people ask
How much does it cost to start a business in Canada?
The registration part is small: nothing for a sole proprietor using their own name, $60 for a business name in Ontario, $300 to incorporate in Ontario, or $200 to incorporate federally. Everything else, such as equipment, inventory, a website or premises, depends on the business.
Can I get free money to start a business in Canada?
Yes. 580 of the 882 programmes GrantCompass tracks are grants or awards you don't repay; the rest are loans, tax credits and support programmes. 778 set no minimum time in business. Which ones fit depends on your province, industry and what the money is for, so check your own match before counting on any of it.
Do I need to incorporate to start a business?
No. Most small businesses start as sole proprietorships. Incorporate when you need limited liability, want to keep profit in the company, plan to take investment, or want one of the 234 funding programmes that require a corporation.
How long do I need to be in business to get a grant?
Usually no minimum: 778 of 882 programmes state none. 6 ask for less than a year, and 98 ask for a year or more.