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Everything You Need to Know About Business Licences in Canada

by Logan

To operate a business in Canada, you will need to obtain the proper licenses and permits from the federal, provincial, and municipal levels of government. 

The type of business you are operating will determine which licenses and permits you require. This can be a complicated and confusing process, so we’ve put together this overview to help you get started. 

Federal Business Licenses and Permits 

If you are operating a business that is regulated by a federal statute or regulation, you will need to obtain the appropriate federal license or permit. Examples of businesses that may require a federal license or permit include: 

  • banks and other financial institutions; 
  • broadcasting companies; 
  • grain elevators; 
  • companies engaged in interprovincial or international transportation;
  • nuclear facilities. 

If your business falls into one of these categories, you’ll need to obtain a federal licence from the corresponding government agency. 

For instance, if you’re planning on importing goods into Canada, you’ll need to obtain an import licence from the Canadian Border Services Agency. If you’re running a television or radio station, you’ll need to apply for a broadcast licence from the Canadian Radio-television and Telecommunications Commission. 

Provincial Business Licenses and Permits 

In addition to any necessary federal licenses or permits, you will also need to obtain any required provincial licenses or permits. The type of business you are operating will determine which provincial licenses and permits you need. 

Provincial licences are required for businesses that sell alcohol, offer certain professional services, run a daycare, or harvest timber. 

For example, if you are running a restaurant, you will need to obtain a food service establishment license from your province’s public health department. 

Municipal Business Licenses and Permits 

Depending on the municipality in which your business is located, you may also need to obtain a municipal business license or permit. 

Municipal licences are required for businesses that operate in: 

  • physical location (e.g., storefronts), 
  • offer certain professional services (e.g., taxi services), 
  • hold public events (e.g., concerts). 

The specific licence requirements vary from municipality to municipality; depending on where your business is located, you may need to obtain one or more municipal licences. 

These requirements vary depending on the municipality, so it is important to check with your local city hall or Chamber of Commerce to determine what is required. 

For instance, if your business is located in Toronto and employs workers, you’ll need to obtain a business licence from the City of Toronto. If your business is located in Vancouver and offers taxi services, you’ll need to apply for both a taxi business licence as well a taxi driver’s licences from the City of Vancouver.

The Procedure for Getting the Business Licences in Canada

The procedure will also differ depending on the government authority.

  • For federal licences, you’ll need to contact the specific department or agency that is responsible for regulating the type of business you’re planning to operate. You can find a list of federal agencies and their contact information on the Government of Canada’s website.
  • For provincial licences, you may need to contact the Small Business BC for information on how to obtain the licence you need.
  • And finally, for municipal licences, you’ll need to contact your city or town hall.

Before you apply for any licences, it’s important to make sure that you meet all of the requirements set out by the government authority. For example, you may need to have your business premises inspected by a fire safety officer before you can be issued a municipal business licence.

Once you’ve gathered all of the required information and documents, you can submit your application for a business licence. The application process will vary depending on the government authority, but in general, you’ll need to fill out an application form and submit it, along with the required documents and fees.

After your application has been reviewed and approved, you’ll be issued a business licence.

It’s important to note that in some cases, you may need to renew your business licence on an annual basis.

So, be sure to keep track of the expiration date and renew your licence promptly.

Conclusion

Applying for business licenses and permits can be a complicated process, but it is important to make sure that you comply with all applicable laws and regulations. We hope that this overview has helped get you started on the process of obtaining the licenses and permits your business needs to operate in Canada.