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Registering and Licensing a Business in Toronto

A Toronto business answers to three levels of government: the Province of Ontario for business names and corporations, the CRA for tax accounts, and the City of Toronto for licences, zoning and municipal taxes. Here is what applies, and where we take it off your plate.

Province of Ontario

Business Name & Incorporation

  • A sole proprietorship or partnership operating under any name other than the owner's legal name must register that name in the Ontario Business Registry. The government fee is $60 and the registration lasts five years, so it has to be renewed.
  • An Ontario corporation is created by filing Articles of Incorporation in the Ontario Business Registry for a $300 government fee. A named corporation needs an Ontario-biased NUANS name search; a numbered company does not.
  • A federal corporation (Corporations Canada) that carries on business in Toronto must also file an Ontario Initial Return within 60 days, so it appears on the Ontario public record.
  • We help Toronto owners choose between a sole proprietorship, an Ontario corporation and a federal corporation based on liability, tax rate and name protection, then set the fiscal year-end that suits your cash flow.
Ongoing corporate filings

Keeping an Ontario Corporation in Good Standing

  • Every Ontario corporation files an Annual Return in the Ontario Business Registry within six months after its fiscal year-end. It is separate from the T2 corporate tax return, and repeated misses can lead to the corporation being dissolved.
  • Changes to directors, officers or the registered office address are reported on a Notice of Change within 15 days.
  • Private Ontario corporations must keep a register of individuals with significant control (generally 25% or more of votes or value) at the registered office and update it as ownership changes.
  • We track these dates beside your T2 and HST deadlines so a Toronto corporation never falls out of good standing because of a missed provincial filing.
CRA tax accounts

Business Number, HST & Payroll

  • A corporation receives a CRA Business Number (BN) on incorporation; program accounts are then opened for HST (RT), payroll (RP), corporate income tax (RC) and import/export (RM) as needed.
  • HST registration becomes mandatory once taxable sales pass $30,000 in a single calendar quarter or over four consecutive quarters. Toronto sales are charged the 13% Ontario HST.
  • A payroll account must be in place before your first source-deduction remittance, which is due by the 15th of the month after you pay staff for most small employers.
  • We open each account, choose the right HST reporting period and set up the remittance schedule so CRA penalties never start.
Employers in Ontario

WSIB & Employer Health Tax

  • Businesses in industries covered by WSIB must register within 10 calendar days of hiring their first worker. In construction, independent operators and sole proprietors generally need their own coverage, and general contractors check WSIB clearance certificates before paying subcontractors.
  • Ontario's Employer Health Tax (EHT) applies to Ontario payroll above the $1 million annual exemption for eligible private-sector employers. Employers whose associated group's Ontario payroll is over $5 million do not get the exemption.
  • Associated corporations must share the single EHT exemption, so we allocate it across Toronto groups of companies to avoid a reassessment.
City of Toronto

Toronto Business Licences & Permits

  • The City of Toronto does not issue a general business licence. Licences come from Municipal Licensing & Standards (MLS) under Toronto Municipal Code Chapter 545 for specific business types, which the City puts at more than 50.
  • Examples include eating establishments and take-out food businesses, nightclubs and entertainment venues, payday lenders, pawnbrokers, tow trucks, driving schools, holistic and body-rub centres, and multi-tenant (rooming) houses. Vehicle-for-hire businesses are licensed separately under Chapter 546.
  • Food premises are also inspected by Toronto Public Health under the DineSafe program, and licensed liquor sales need an AGCO licence from the province.
  • Short-term rental operators must register with the City, and short-term rentals are only allowed in the operator's principal residence.
  • Most office-based, professional, consulting and online businesses need no City licence, but they still have to comply with zoning (City-wide Zoning By-law 569-2013) and the sign by-law (Chapter 694).
Municipal taxes & levies

Toronto-Specific Taxes That Hit the Books

  • Municipal Accommodation Tax (MAT): charged on hotel and short-term rental stays. The rate returned to 6% on August 1, 2026, after a temporary 8.5% rate that ran from June 1, 2025 to July 31, 2026.
  • Vacant Home Tax: 3% of a residential property's Current Value Assessment if it is vacant for more than six months of the year. Every owner must file an occupancy declaration each year, including for occupied homes.
  • Municipal Land Transfer Tax: Toronto charges its own land transfer tax on property purchases, in addition to Ontario's land transfer tax.
  • Business Improvement Area (BIA) levies: commercial properties inside one of Toronto's many BIAs pay a levy on top of property tax, which is usually passed on to tenants under the lease.
  • We record these correctly for income tax: deductible operating costs, amounts added to the cost of property, and amounts collected from guests and remitted to the City.

Fees and rates above are government amounts as of November 2026 and do not include agent or professional fees. Licence categories change; confirm a specific licence with the City of Toronto before opening. Starting a new venture? See our guide on how to start a business in Toronto.

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