Starting a Business in Canada as a Newcomer: The Complete 2026 Guide

Starting a business in Canada as a newcomer is more achievable than most people expect. In Ontario, you generally do not need to be a Canadian citizen or permanent resident to register a business or incorporate. This step-by-step guide takes you from choosing a structure all the way to funding — so you can build with confidence.

Starting a Business in Canada as a Newcomer: You May Already Qualify

One of the biggest myths new immigrants hear is that you must wait for citizenship or permanent residency before you can own a business. In Ontario, that is not the case. In July 2021, Ontario removed the Canadian-resident director requirement from its Business Corporations Act. That means all directors of an Ontario corporation can be non-residents of Canada — a real advantage for newcomers who want to start right away.

You can register a sole proprietorship or incorporate provincially in Ontario without holding Canadian citizenship or permanent resident status. What you will need is an address for your business, a way to identify yourself with the Canada Revenue Agency, and a plan for banking and taxes. The rest of this guide covers each piece in order.

One important note: your immigration status can still affect the type of work you are permitted to do in Canada. If you are on a specific visa or permit, confirm your work eligibility with an authorized immigration professional. Our focus here is the business-registration process itself.

Step 1: Choose Your Business Structure

Your first real decision is how your business will exist in the eyes of the law. Two structures cover most newcomers:

• Sole proprietorship — You and the business are the same legal entity. It is the cheapest and fastest way to start, but you are personally responsible for the business's debts.
• Incorporation — You create a separate legal entity. It costs more and adds paperwork, but it gives you limited liability and tax flexibility as you grow.

Many newcomers begin as a sole proprietor to keep things simple, then incorporate once profits and risk increase. There is no wrong first choice here — a sole proprietorship you can convert to a corporation later, so it is fine to start lean and formalise as you grow. If you are weighing the two, our guide on sole proprietorship vs. incorporation breaks down the costs, liability, and the profit level where incorporating starts to pay off.

Step 2: Register or Incorporate in Ontario

Once you have chosen a structure, you register with the province.

• A business name registration (for a sole proprietorship) costs a $60 government fee and is valid for five years.
• Ontario incorporation costs a $300 government fee and usually processes in about five business days online.
• Federal incorporation costs a $200 government fee and is often processed the next business day — but it still requires at least 25% of directors to be resident Canadians, which can be a hurdle for newcomers. For that reason, provincial incorporation is frequently the more practical route.

If the filing feels overwhelming in a new country, this is exactly the kind of task Markham Office can register for you, so it is done correctly the first time.

Step 3: Get a Business Number and Register for HST

After you register, the Canada Revenue Agency (CRA) assigns your business a Business Number (BN) — a nine-digit identifier used for your tax accounts. When you incorporate in Ontario, a BN is typically generated automatically; sole proprietors can request one from the CRA.

You add program accounts to your BN as you need them, including:

• An HST/GST account for collecting sales tax.
• A payroll account if you hire employees.
• An import/export account if you move goods across the border.

HST registration becomes mandatory once your revenue exceeds $30,000 over four consecutive calendar quarters. Below that, registering is optional — though some newcomers register early so they can claim input tax credits on startup purchases.

Step 4: Open a Business Bank Account

Keeping business and personal money separate is essential — for clean bookkeeping, for tax time, and for credibility. To open a business account in Canada, most banks ask for:

• Your business registration or articles of incorporation.
• Your Business Number.
• Government-issued ID (a passport is usually accepted, which helps newcomers who do not yet have Canadian ID).

Call ahead and ask each bank what they require for newcomers and non-residents — requirements vary, and several banks offer accounts designed specifically for new-to-Canada entrepreneurs. A dedicated business account also makes your bookkeeping far simpler at tax time, and it is often the first place you begin building a Canadian financial track record for your company.

Step 5: Get a Professional Business Address

Here is a challenge unique to many newcomers: when you register a business in Ontario, the address you provide becomes public record. If you are still settling in — living with family, renting short-term, or between homes — you may not want your personal address published, and it may change soon anyway.

A professional business address (through a virtual office) solves both problems. It gives you a stable, commercial address for your registration, mail, and marketing — without exposing where you live. Your mail is received at a real business location and can be forwarded or scanned to you.

This is one of the most popular first steps for newcomers, and we cover it in depth in why newcomers use a virtual office. You can also see how a virtual office from Markham Office works.

Step 6: Build Business Credit from Zero

Arriving in Canada usually means starting your credit history from scratch — and your business does too. You cannot borrow against years of Canadian history you do not have yet, but you can build credit deliberately:

• Open a business bank account and keep it active and in good standing.
• Get a business credit card and pay it off in full each month.
• Ask suppliers for net-30 trade accounts that report your on-time payments.
• Keep your personal credit healthy too, since early on lenders often look at both.

Credit builds with time and consistency. Starting these habits in your first months gives you options later.

Step 7: Explore Funding Options for Newcomers

You do not need a long Canadian credit history to access startup capital. Several paths are open to newcomers:

• The Canada Small Business Financing Program (CSBFP) — a government-backed loan program that shares risk with lenders, making banks more willing to lend to new businesses.
• Community and newcomer-focused lenders that specialize in entrepreneurs without established Canadian credit.
• Grants and startup programs for specific industries or regions.

Whichever path you pursue, a clear, well-prepared business plan makes a real difference — lenders want to see how the money will be used and how it will be repaid. If bank loans feel out of reach today, our guide on business loans for newcomers with no credit walks through realistic options. You can also learn how Markham Office helps with funding — from choosing a program to preparing a lender-ready business plan.

Your Newcomer Startup Checklist

Step	What to Do
1. Structure	Choose sole proprietorship or incorporation based on risk and growth
2. Register	File your business name ($60) or incorporate in Ontario ($300)
3. Business Number	Get your BN and register for HST if revenue tops $30,000
4. Bank account	Open a business account with your registration, BN, and passport
5. Address	Set up a professional business address to keep your home private
6. Credit	Open a business card and trade accounts, and pay on time
7. Funding	Explore the CSBFP, newcomer lenders, and grants

Where Markham Office Fits In

Starting a business in a new country means learning a new system while everything else in life is also new. You do not have to piece it together alone. Markham Office helps newcomers register a business, set up a professional business address that protects their privacy, and prepare for funding — all in one place, in plain language.

Reach out when you are ready, and we will help you take the first step with confidence.