Doing Business in Canada

Start-up Visa Program (SUV)

Eligibility (prior to pause):

• Language: minimum CLB 5 in English or French (all four skills: reading, writing, listening, speaking)
• Must have a letter of support from a designated organization (venture capital fund, angel investor group, or business incubator)
• Must hold at least 10% of total voting rights in the business; applicants plus the designated organization together must hold more than 50%
• Up to 5 owners per startup can apply
• Settlement funds required [VERIFY ANNUALLY]:
  • 1 person = CAD $15,263
  • 2 people = $19,001
  • 3 people = $23,360
  • 4 people = $28,362
  • 5 people = $32,168
  • 6 people = $36,280
  • 7 people = $40,392

(source ↗)

Designated organizations include 22 venture capital funds (minimum $200,000 investment), 6 angel investor groups (minimum $75,000 investment), and approximately 44 business incubators (no minimum investment). Examples include BDC Venture Capital, Golden Venture Partners, Keiretsu Forum Canada, York Angel Investors, The DMZ, ventureLAB, Waterloo Accelerator Centre, and Techstars Canada. Full list \u2197

Processing time: Approximately 52 months for permanent residence as of 2025 [VERIFY ANNUALLY]. (source ↗)

Express Entry for Business Professionals

Express Entry is a points-based system that manages applications for permanent residence. You create an online profile and receive a Comprehensive Ranking System (CRS) score. If your score is high enough, you receive an Invitation to Apply (ITA) for permanent residence.

CRS points breakdown [VERIFY ANNUALLY]:

• Age: max 110 points (single) / 100 points (with spouse) — peak at ages 20-29
• Education: max 150 / 140
• First official language: max 136 / 128
• Second official language: max 24 / 22
• Canadian work experience: max 80 / 70
• Skill transferability: max 100
• Provincial nomination: 600 bonus points
• Note: Job offer points were removed on March 25, 2025 — arranged employment no longer adds CRS points
• French language skills: up to 50 bonus points
• Canadian education: 15 or 30 bonus points
• Sibling in Canada (citizen/PR): 15 bonus points

(source ↗)

How business professionals qualify: Work experience as managers or professionals (NOC TEER 0 or TEER 1 occupations) qualifies for Federal Skilled Worker (FSW) and Canadian Experience Class (CEC) streams. There is no separate “business owner” category within Express Entry. (source ↗)

Recent CRS cutoff scores: In 2025, no general all-program draws were held. Canadian Experience Class (CEC) draws had cutoffs of 515-547. French language draws went as low as 379. Provincial Nominee Program (PNP) draws showed cutoffs of 731-789+ (reflecting the 600-point PNP bonus). [VERIFY ANNUALLY] (source ↗)

Ontario Immigrant Nominee Program (OINP) — Entrepreneur Stream

Requirements (as last published):

• Inside GTA (Toronto, Durham, Halton, York, Peel): minimum net worth CAD $800,000, minimum personal investment CAD $600,000, must create at least 2 permanent full-time jobs for Canadians/PRs
• Outside GTA: minimum net worth CAD $400,000, minimum personal investment CAD $200,000, must create at least 1 permanent full-time job
• ICT/Digital Communications sector (anywhere): minimum investment $200,000, create at least 1 job
• Must control at least one-third (33.3%) of equity in the business
• At least 24 months full-time business or senior management experience in last 60 months
• Language: minimum CLB 4 at time of nomination

(source ↗)

Process: Register Expression of Interest (EOI) → Receive invitation → Submit application within 90 days → Mandatory interview → Sign performance agreement → Receive work permit support letter → Arrive in Ontario and establish business within 20 months → Submit final report → If approved, receive nomination → Apply to IRCC for PR within 6 months. (source ↗)

Intra-Company Transfer (ICT) Work Permit

Who qualifies: Employees of a multinational company transferring to a Canadian parent, subsidiary, branch, or affiliate in one of three categories: (1) Executives, (2) Senior managers, (3) Specialized knowledge workers. (source ↗)

• Must have worked full-time for the foreign company for at least 1 year in the past 3 years in a similar role. Both entities must be actively doing business. Transfer must be temporary. LMIA-exempt under the International Mobility Program.
• Duration: Established companies: up to 3 years per permit. New offices: initial 1 year, renewable. Maximum stay: 7 years for executives/managers, 5 years for specialized knowledge workers.
• October 2024 changes: Stricter requirements — must demonstrate physical office premises (no virtual offices), specialized knowledge workers must be in TEER 0/1/2 positions, remote work restrictions apply.

Student-to-Entrepreneur Pathway

A popular and well-established route. Canadian education also adds 15-30 CRS points for Express Entry.

• Apply for study permit
• Study at a Designated Learning Institution (DLI)
• Graduate and apply for Post-Graduation Work Permit (PGWP)
• Gain 1+ year of Canadian work experience
• Apply through Express Entry (CEC stream) or OINP
• Receive PR and register your business

(source ↗)

Note on IEC for Mongolians

Mongolia does not have a bilateral Youth Mobility Agreement with Canada under International Experience Canada (IEC). Mongolian citizens are not eligible for IEC Working Holiday, Young Professionals, or International Co-op permits. (source ↗)

SIN (Social Insurance Number)

A 9-digit number you need to work in Canada, file taxes, and access government programs. It is free to apply — there is no charge.

• In person at any Service Canada office (usually same-day)
• Online via the eSIN portal (5 business days)
• By mail (20 business days)

Documents needed: PR card or work permit plus valid passport. All documents must be in English or French (or include certified translation). Plastic SIN cards are no longer issued — you receive a Confirmation of SIN letter. (source ↗)

Bank Accounts for Newcomers

All major banks offer special programs for newcomers. Documents needed at all banks: passport, PR card or work permit, proof of Canadian address.

• RBC Newcomer Advantage: No monthly fees for 12 months, credit card with up to $15,000 limit (no Canadian credit history needed), free safety deposit box for 1 year. (source ↗)
• TD New to Canada: No monthly fees for 6 months, up to $1,930 in value including cash bonus, access to credit cards and loans. (source ↗)
• Scotiabank StartRight: No monthly fees for 12 months, up to $2,200 in value, Scene+ Visa Card with up to $5,000 limit without Canadian credit history, pre-arrival account opening available. (source ↗)
• BMO NewStart: No monthly fees for 2 years, up to $2,200 in value including up to $700 cash bonus, no-annual-fee credit card with no credit history required, pre-arrival application available. (source ↗)

Building Credit

Canada uses credit scores (300-900). You need good credit to rent apartments, get a phone plan, or get a mortgage. Foreign credit history does not transfer to Canada — you start from zero.

• Credit bureaus: Equifax Canada and TransUnion Canada — you can request free copies of your credit report. Equifax Canada \u2197 and TransUnion Canada \u2197
• Secured credit cards (good for newcomers): Capital One Guaranteed Secured Mastercard (minimum $75 deposit, no annual fee) and Home Trust Secured Visa (minimum $500 deposit, no annual fee option).
• Timeline: About 6 months to get a basic credit score, 12-18 months for improvement, 2+ years to build a “good” score (680+) for mortgages.

OHIP Health Insurance

What it covers: Doctor visits, hospital care, most lab tests and X-rays, medically necessary surgeries. Does not cover dental, prescription drugs (except OHIP+ for under 25), vision (except certain ages), ambulance (has a co-pay), or private hospital rooms. (source ↗)

How to apply: In person at a ServiceOntario centre. Bring three documents: (1) proof of immigration status (PR card, work permit), (2) proof of Ontario residency (lease, bank statement), (3) proof of identity (passport). Free to apply.

If you need coverage during any gap: Private insurance options include Manulife CoverMe and Blue Cross — typically $100-$300/month. Manulife CoverMe \u2197 and Blue Cross \u2197

Toronto Housing [VERIFY ANNUALLY]

Average monthly rent (2025):

• 1-bedroom downtown Toronto: approximately CAD $2,050-$2,200
• 1-bedroom Scarborough/North York: approximately $1,800-$2,100 (North York can be higher)
• 1-bedroom outside Toronto (Brampton, Hamilton): approximately $1,600-$1,900
• Rents decreased 8-12% in 2025 compared to 2024 due to increased supply.

Tenant rights under the Residential Tenancies Act:

• Landlords cannot cut off essential services (heat, water, electricity)
• Landlords must give minimum 24-hour notice before entering your unit (except emergencies)
• A standard lease is required by law
• Rent control 2025: Maximum 2.5% annual increase for most units first occupied before November 15, 2018. Units first occupied after November 15, 2018 are exempt from rent control — the landlord can raise rent by any amount with proper 90-day notice. [VERIFY ANNUALLY] (source ↗)
• Landlord and Tenant Board (LTB): Settles disputes between landlords and tenants. LTB website \u2197

Sole Proprietorship

The simplest option. You and the business are the same legal entity — you are personally liable for all debts. Register your business name with Ontario: $60 online (valid for 5 years). Income is reported on your personal tax return with no separate corporate tax rate. (source ↗)

Partnership

Similar to sole proprietorship but with 2+ owners who share profits, losses, and liability. Register with Ontario ($60 online). A written partnership agreement is strongly recommended. (source ↗)

Corporation — Ontario (Provincial)

• Limited liability — your personal assets are generally protected from business debts.
• Lower tax rate on first $500,000 of active business income (see Taxation section).
• Cost: approximately $300 to incorporate through the Ontario Business Registry, plus NUANS name search ~$13.80 (unless using a numbered company).
• Must file annual returns.

(source ↗)

Corporation — Federal

• Incorporated through Corporations Canada: $200 online ($250 by paper).
• Can operate in any province. Must also file an Initial Return in Ontario (no additional fee for federal corporations registering in Ontario).
• More complex name search requirements.

(source ↗)

Business Number (BN)

You get a BN automatically when you incorporate, or you can register for one at CRA if you are a sole proprietor or partnership. Needed for HST, payroll, corporate tax, and import/export accounts. Free to register. (source ↗)

HST Registration

Mandatory when your annual worldwide taxable revenue exceeds $30,000 (over 4 consecutive calendar quarters or in a single quarter). You can register voluntarily before that threshold to claim input tax credits.

• Ontario HST rate: 13% (5% federal GST + 8% Ontario provincial portion)
• Filing frequency: Annual (revenue under $1.5M), Quarterly ($1.5M-$6M), Monthly (over $6M) [VERIFY ANNUALLY]
• Input Tax Credits (ITCs): Registered businesses can reclaim HST paid on business expenses.
• As of November 2025, all new HST registrations must be done online via CRA’s Business Registration Online.

(source ↗)

WSIB (Workplace Safety and Insurance Board)

Required for most Ontario businesses with employees. Register when you hire your first worker.

• 2025 average premium rate: $1.25 per $100 of insurable payroll (rates vary by industry). [VERIFY ANNUALLY]
• Maximum insurable earnings ceiling: $117,000 per worker in 2025. [VERIFY ANNUALLY]

(source ↗)

Toronto Business Licenses

Not all businesses require a City of Toronto licence. Required for: restaurants, food trucks, personal services (barber shops), tow trucks, taxis/limos, entertainment venues, pet services, tobacco retailers, and others. City of Toronto \u2197

Use BizPaL to find which federal, provincial, and municipal permits your specific business needs: bizpal.ca \u2197

Corporate Income Tax [VERIFY ANNUALLY]

(source ↗)

2025 Federal Personal Income Tax Brackets [VERIFY ANNUALLY]

(source ↗)

2025 Ontario Personal Income Tax Brackets [VERIFY ANNUALLY]

Ontario also has a surtax on higher incomes. (source ↗)

HST for Businesses

Businesses registered for HST can claim Input Tax Credits (ITCs) to get back the HST they paid on business expenses (office supplies, equipment, professional services, etc.). This is a major benefit of voluntary HST registration even if you are under $30,000 in revenue.

Key Tax Dates

• April 30: Personal income tax return due + any tax balance owing due
• June 15: Extended filing deadline for self-employed individuals (but any tax owing is still due April 30)
• Corporate returns: Due 6 months after your fiscal year-end. Tax payments due 2-3 months after year-end.
• HST: Based on your filing frequency (annual, quarterly, or monthly)

(source ↗)

Common Business Deductions

• Home office expenses (if you work from home)
• Vehicle expenses for business use
• Business phone/internet
• Software and subscriptions
• Professional fees (accountant, lawyer)
• Employee salaries and benefits
• Advertising and marketing costs

CRA My Business Account

Register to manage your HST, payroll, corporate tax, and other CRA accounts online. CRA My Business Account \u2197

Futurpreneur Canada

• Core Startup Program: Up to $75,000 in collateral-free financing ($25,000 from Futurpreneur matched with up to $50,000 from BDC). (source ↗)
• Newcomer Program: Up to $25,000 ($12,500 from Futurpreneur + $12,500 from BDC) for newcomers in Canada less than 60 months with limited Canadian credit history. (source ↗)
• Age range: 18-39 years old
• Includes: Up to 2 years of one-on-one mentorship with all programs
• Requirements: Must be Canadian citizen or permanent resident, have a business plan and 24-month cash flow projection.

Canada Small Business Financing Program (CSBFP)

• Government-backed loans through regular banks and credit unions — up to $1.15 million total per borrower (up to $1,000,000 for term loans; up to $150,000 for lines of credit).
• Fees: 2% registration fee on loan amount + annual 1.25% administration fee on lines of credit.
• Interest rates: Lender’s prime rate + 3% maximum (floating) for term loans.
• How to apply: Through any bank or credit union in Canada. The government guarantees 85% of losses — this makes it easier for startups to get approved.

(source ↗)

BDC (Business Development Bank of Canada)

Canada’s development bank for entrepreneurs. Offers loans from $10,000 (Small Business Loan) up to $2 million+, plus advisory services. (source ↗)

• Small Business Loan: Up to $100,000 over 5 years, 6-month payment deferral, no personal assets as collateral, no prepayment penalties.
• Also offers startup financing, technology loans, and special programs for women, Indigenous, and Black entrepreneurs.

Ontario Self-Employment Benefit

Through Employment Ontario, for EI-eligible individuals starting a business. Provides income support and business training while you launch your business. (source ↗)

Toronto Business Development Centre (TBDC)

Non-profit business incubator. Offers 9-month incubation programs, one-on-one mentorship, access to investors, and office space. Also runs a Startup Visa/Soft Landing Program for international entrepreneurs. FedDev Ontario invested $3.3M to support newcomer entrepreneurs through TBDC. tbdc.com \u2197

Windmill Microlending

Affordable loans for skilled immigrants and refugees for credential recognition and career advancement. Many IRCC-funded settlement organizations (like COSTI, WoodGreen) also provide free referrals to financial literacy programs and small business support. windmillmicrolending.org \u2197

Ontario Minimum Wage (as of October 1, 2025) [VERIFY ANNUALLY]

• General: $17.60/hour
• Student under 18 (working 28 hrs/week or less during school): $16.60/hour
• Homeworkers: $19.35/hour
• Note: The separate liquor server rate was eliminated in 2022. Liquor servers earn the general minimum wage ($17.60/hour).

(source ↗)

Overtime

After 44 hours/week, the employer must pay 1.5 times the regular rate (“time and a half”). Employees can agree in writing to bank overtime as time off instead. (source ↗)

Vacation

• After 1 year: 2 weeks vacation time (4% of wages as vacation pay)
• After 5 years: 3 weeks vacation time (6% of wages as vacation pay)

(source ↗)

Statutory Holidays in Ontario: 9 per Year

New Year’s Day, Family Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving, Christmas Day, Boxing Day. (source ↗)

Termination and Severance

• Termination pay (notice or pay in lieu): 1 week per year of service, up to 8 weeks maximum (after at least 3 months of employment). (source ↗)
• Severance pay (separate from termination): Applies if employee has 5+ years service AND employer has global payroll of $2.5M+. Amount: 1 week per year of service up to 26 weeks. (source ↗)
• Common law may require more notice/pay than these minimums. Consult an employment lawyer for significant terminations.

Payroll Deductions [VERIFY ANNUALLY]

(source ↗)

LMIA (Labour Market Impact Assessment)

Required to hire most foreign workers. The employer must prove that no Canadian citizen or permanent resident is available for the job. Fee: $1,000 per position (paid by employer, non-refundable). Processing time: typically 2-5 months. (source ↗)

Employee vs. Independent Contractor

CRA examines: level of control, ownership of tools, chance of profit/risk of loss, and integration into the business. Misclassifying employees as contractors results in penalties including back-payment of CPP, EI, and tax. (source ↗)