All businesses, large and small, are
subject to laws and regulations in Ontario
Published by Paragon Legal on 25th June, 2021
In most cases, registering
a small business is one of the tasks you'll need to complete when starting a
business in Ontario. Fortunately, registering a business is a relatively simple
and inexpensive process. If you are thinking about registering your Ontario
business, there are several details you need to be aware of. For starters, you
might not even need to register!
Before you register your business, you must decide on the legal form
for your company - Sole proprietorship, Partnership or Corporation. In Ontario,
you are required to register your business name within 60 days of opening your
business. You are exempt from this requirement if you use your own name for the
business. Contact a professional consultant before registering.
In Ontario, as
registered business you will receive a Master Business License (MBL) that
includes your Business Identification Number (BIN), which is proof of your
legal business name registration. You can use it when dealing with the Ontario
government or financial institutions.
Business registration is managed by the Central Production and
Verification Services Branch of the Ministry of Government and Consumer
Services.
There is a per-search fee to use the business search service. When you
perform a search on a name, you will be provided with a report. Detailed
Business Names Report – If your search resulted in a match, meaning one or more
businesses with that name where found, you will receive a Detailed Business
Names Report. If no match is found, you will receive a Statement of No Match
Found report. Have a qualified consultant conduct your research.
When deciding on a name, there are a few restrictions on naming your business. Obscene or objectionable words or expressions, or words prohibited under federal or Ontario law. A business name that could deceive regarding the type of business it is in your business name if you are a sole proprietorship. Abbreviations are prohibited, unless "limited" is used in the name of a limited liability partnership.
The words “college,”
“institute” and “university” are prohibited without special permission.
Business names cannot imply a connection with the Canadian government or the
Crown. Using another person’s name is prohibited without their permission
unless the person has been dead for more than 30 years. It is your
responsibility to make sure your business name doesn’t violate these rules.
Even if you are granted a registration, it could be revoked at any time if it
is in violation.
Once you know your business name and the type of entity you want to
form, you can have a certified specialist apply for business registration with the government. You will need to
provide - the name of your business, business address, the name of the owner or
partners and addresses (you can’t use a PO Box), business activity – giving a
brief description, example - operating a restaurant, house painting, et cetera.
You’ll have to
indicate if you have or plan to have, employees or hire contractors. If you
answer yes to either of those, you’ll need to register with the Workplace
Safety and Insurance Board within ten days of hiring a worker. This provides
employees with workplace insurance coverage. If your estimated annual payroll
is greater than $450,000, you need to file for an Employer Health Tax number. Paragon Legal can assist with your business registration.