How to Start a Business:

1.    Prepare a Business Plan

A business plan is required when applying to any financial institution for assistance. The Business Plan is a written summary of what you hope to accomplish by being in business and how you intend to organize your resources to meet your goals. It is the road map for operating your business and measuring progress along the way. For information on how to prepare a business plan visit www.bsa.cbsc.org.

2.    Check Municipal Regulations

a)         Municipal Business Licenses

Many but not all types of businesses require a municipal business license. Check with the local City Hall to determine if a license is required. In Welland contact the Development Services Department at 905-735-1700; ext. 2251.

b)         Zoning

You will need to ensure that the building, land or establishment where you will be operating your business is appropriately zoned. In Welland contact the Development Services Department at 905-735-1700; ext. 2251.

3.    Register Your Business

Registration of your business name is mandatory under the Business Names Act if you operate under a name other than your own. This registration is also required to open a business bank account. Registration costs $60.00 and is good for 5 years.

In the case of sole proprietorships and partnerships, any business name other than the owner’s name must be registered. For example, if John Smith conducts business as “John Smith”, he won’t need to register the name. But if he operates as “John Smith’s Shoes”, he will have to register the name.

It is recommended that you have a name search done to ensure that your name has not already been chosen. You can do this at the same place of business registration for $8.00 per name searched.

You can register you business name at the following location:

Land Registry Office
59 Church Street, 1^st Floor
St. Catharines, Ontario L2R 3C3
Phone: 905-684-6351
Fax:      905-684-5874
Or register online at www.cbs.gov.on.ca/obc

4.    Register for Applicable Taxes

a)         Provincial Sales Tax (PST)

Businesses that sell taxable goods and some services are required to charge provincial sales tax on their sales. A vendor’s permit is required to charge, collect and remit provincial sales tax to the government. A vendor’s permit is also referred to as the PST or RST number. There is no fee for this registration.

You do not need a permit if:

• you sell only tax-exempt goods, such as fresh fruit and vegetables at a roadside stand
• you provide only non-taxable services, such as dry cleaning
• you are a wholesaler or manufacturer, and do not make retail sales

For information on vendor permits and exempt purchases contact:

Ministry of Finance
Retail Sales Tax Branch
119 King Street West, 15^th Floor
Hamilton, Ontario L8P 4Y7
Phone: 1-800-263-9229
            905-521-7504
Fax:      905-521-7868
www.trd.fin.gov.on.ca

b)         Goods and Services Tax

You are required to register, collect and remit GST if your gross annual sales are more that $30,000. If you register you can claim GST paid on items for the business against the GST collected from your customers. There is no fee for registration.

For more information regarding the Goods and Services Tax (GST) contact:

Canada Revenue Agency
32 Church Street, P.O. Box 3038
St. Catharines, Ontario L2R 3B9
Phone: 1-800-959-5525
Fax:      905-688-5996
www.cra.gc.ca

c)         Corporate Income Tax

If you have incorporated your business you are required to remit income tax to the federal government. In most cases, new corporations will receive a business number from Revenue Canada within 45 days of incorporating.

For more information contact:

Canada Revenue Agency
32 Church Street, P.O. Box 3038
St. Catharines, Ontario L2R 3B9
Phone: 1-800-959-5525
Fax:      905-688-5996
www.cra.gc.ca

d)         Employer Health Tax (EHT)

Employers with a payroll of less than $400,000 are exempt from the EHT. Otherwise, all employers with a permanent establishment in Ontario and a payroll in excess of $400,000 are required to pay the EHT. Payments can be made monthly or quarterly, based on total calendar year gross payroll.

For information contact:

Ministry of Finance
119 King Street West, 15^th Floor
Hamilton, Ontario L8P 4Y7
Phone:  1-800-263-9229
            905-521-7504
Fax:      905-521-7783
www.cbsc.org

5.    Other Government Regulations

a)         Business Number

If you are hiring employees you are responsible for collecting federal deductions on behalf of the government. Such deductions include Employment Insurance Premiums, Canada Pension Plan Contributions and Personal Income Tax. Employers must register with Canada Revenue Agency to obtain a Business Number under which these deductions must be withheld.

The federal government has developed one number streamline operations that allow businesses to access four accounts; G.S.T., Payroll Deductions, Corporate Income Tax and Import/Export.

For more information on how to obtain your business number please contact:

Canada Revenue Agency
32 Church Street, P.O. Box 3038
St. Catharines, Ontario L2R 3B9
Phone:  1-800-959-5525
Fax:      905-688-5996
www.cra.gc.ca

b)         Workplace Safety and Insurance Board (WSIB)

Most businesses in Ontario that have employees must register and make remittance to the Workplace Safety and Insurance Board (WSIB). Employers are required to contact the Board within 10 days of hiring their first full or part time worker.

For further information on WSIB contact:

Workplace Safety and Insurance Board
301 St. Paul Street, 8^th Floor
St. Catharines, Ontario L2R 7R4
Phone:  1-800-263-2484
            905-687-8622
Fax:      905-687-7117
www.wsib.on.ca

c)         Employment Standards Act

The Employment Standards Act (ESA) is administered and enforced by the Ontario Ministry of Labour Employment Standards Program. The Act provides for minimum terms and conditions of employment including minimum wage, statutory holidays and hours of work.

For more information on the Employment Standards Act contact:

Ontario Ministry of Labour
Phone:  1-800-531-5551
            416-326-7160
www.gov.on.ca

6.    Provincial Business Licenses

The Province of Ontario has regulatory and licensing requirements for certain types of businesses. Some of the more common ones are listed below.

• Liquor License – Alcohol and Gaming Commission of Ontario
  1-800-522-2876
  www.agco.on.ca

• Day Care Services – Ministry of Children and Youth Services – Hamilton Niagara Region
  1-800-263-5413
  www.children.gov.on.ca

• Garage Licenses – Ministry of Transportation – Driver and Vehicle License Issuing
  416-325-8650
  www.mto.gov.on.ca

7.    Find out about Sources of Funding

Approach your bank for financing products that meet your needs. In addition several government funding programs exist.

For more information on how to obtain funding click on one of the following below:

Government Funding

Financial Institutions

8.    Other Information

a)         Patents/Trademarks

A person or business may want to protect “intellectual property” which can include an image, identity, newly created product, innovative design or creative work. You can receive legal recognition and protection for these endeavours through the Canadian Intellectual Property Office.

A trade name is the name under which a business is operated.  A trademark is a word, symbol, design, phrase, logo, picture, shape, mode of wrapping or packaging, or a combination of any of the above used to specifically distinguish the goods or services of one person or organization from others in the marketplace.

A patent gives the inventor the right to exclude others from making, selling or using the invention for a maximum of 20 years after the patent application is filed. Patents can be sold, licensed or used as an asset to negotiate funding.  A patent is valid in Canada only and therefore patents must be applied for in various countries you wish the item to be protected from duplication.  It is advised that persons contemplating obtaining a patent should consult a patent agent or patent lawyer, as the process is complex and can take anywhere up to two and one-half years before the patent is granted.

Copyright is the exclusive right of the holder to reproduce a work or to allow someone else to do so. The owner of a copyright has the sole right to control any publication, production, reproduction and performance of a work or its translation. Generally, if you are the creator of the work, you own the copyright. However, if you create a work in the course of employment, the copyright belongs to your employer unless there is an agreement to the contrary. You can also choose to register a copyright with CIPO's Copyright Office. No one is obliged to do so, but it can be a useful proof of ownership.

For more information, please contact:                 

Canadian Intellectual Property Office
51 Younge Street, 4^th Floor
Toronto, Ontario M5C 2W7
(416) 973-5000
www.cipo.gc.ca

b)         Incorporating your Business

Incorporation of your business establishes it as a distinct, legal entity. Advantages of incorporation include business name protection, transferability of business ownership, limited liability and possible tax advantages.

A business may incorporate either provincially or federally, depending on whether the business will operate primarily in one province or a number of provinces. There are three steps when incorporating your business:

1. A name search, done by a Searcher of Records.
2. Obtaining Articles of Incorporation, government approved legal documents that establish your business.
3. The fee required to file your application for incorporation. Fees very according to the level of government to which you are applying.

For more information on Provincial Incorporations contact:

Ministry of Governments Services
Companies and Personal Property Security Branch
375 University Avenue, 2^nd Floor
Toronto, Ontario M5G 2M2
Phone:  1-800-361-3223
            416-314-8880
www.cbsc.org/ontario

For more information on Federal Incorporations contact:

Corporations Canada
Industry Canada
9^th Floor, Jean Edmonds Towers South
365 Laurier Avenue West
Ottawa, Ontario K1A 0C8
Phone:  613-941-9042
Fax:      613-941-0601
www.strategis.ic.gc.ca