Business Licences and Permits: What Your Canadian Small Business Needs

Business Licences and Permits in Canada

Starting and running a small business in Canada means navigating a complex web of licences and permits. The specific requirements depend on your industry, location, and business structure — and they span federal, provincial, and municipal levels. Missing even one can lead to fines, delays, or forced closure.

Why Business Licences Matter

Operating without the required licences puts your business at serious legal and financial risk. Fines for non-compliance can be steep, and in some cases, authorities can shut your business down entirely. Beyond penalties, having the proper licences builds credibility with customers, partners, and financial institutions.

Types of Licences and Permits

The licences your business needs fall into several categories, depending on what you do and where you do it.

Common Licence Types

• Business Registration — Required in all provinces to legally operate
• GST/HST Registration — Required if your revenue exceeds $30,000 annually
• Provincial Sales Tax Licence — In provinces with separate PST (BC, Manitoba, Saskatchewan)
• Professional Licences — Required for regulated professions (lawyers, accountants, etc.)
• Health Permits — Required for restaurants and food-related businesses
• Building and Zoning Permits — For construction, renovation, or specific land use
• Import/Export Licences — For businesses importing or exporting goods

Three Levels of Government Requirements

Federal Requirements

A Business Number (BN) from the Canada Revenue Agency is almost always required for tax purposes. Industries like broadcasting, telecommunications, and aviation may need additional federal licences.

Provincial Requirements

Provincial licences fall into two categories: general business licences and professional licences specific to individuals. You may need to determine which provincial laws apply to your business and whether licences from other provinces are valid in yours.

Municipal Requirements

Many cities and towns have local ordinances requiring additional permits and licences, including one-time permits for special events, general business permits, and zoning approvals.

How a Small Business Legal Service Plan Can Help

With a Small Business Legal Service Plan, a lawyer can help identify exactly which federal, provincial, and local licences your business needs. They can guide you through filling out and submitting applications correctly, review your documents and applications at no additional cost, and help resolve issues like rejected applications, expired licences, or fines.