Starting a Small Business in Canada as a Newcomer: 5 Steps From Legal Eligibility and Registration to Taxes and Funding

Are you thinking about starting a business in Canada? This is an exciting step, with some new processes to explore.

If you’re a newcomer, it is helpful to learn how businesses are structured, what rules apply, and where to find support. In this article, we’ll cover five steps you may take to plan your business and understand the requirements in Canada.

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1. Make Sure You Can Legally Start a Business

Before you begin, it is important to confirm that as a newcomer you are allowed to operate a business in Canada. You may need to be a Canadian citizen, a permanent resident, or hold a valid work permit that allows self-employment.

Your immigration status will likely shape what is possible. Some professions are also regulated, meaning you may need a license or certification before you can offer certain services. Requirements vary by province.

You may wish to review Government of Canada resources to better understand what applies to your situation.

2. Plan How Your Business Will Work

Once you’re ready to move forward, a helpful tip would be to map out how your business will operate. This usually starts with choosing a structure, such as a sole proprietorship, partnership, or corporation. Each option comes with different responsibilities, costs, and tax considerations.

Another suggestion is to take a closer look at your market. Understanding your customers, competitors, and local demand may help you assess your idea and refine your approach. TD’s Starting a Business in Canada page offers market research guidance that may provide a helpful place to begin.

Some newcomers explore programs designed to support new businesses. For example, Canada’s Start-up Visa Program connects entrepreneurs with organizations that may offer guidance or funding if their ideas are approved.

Putting your ideas into a written plan may help bring these pieces together. This may include your goals, expected costs, and how you plan to manage and grow your business over time.

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3. Set Up Your Business and Required Registrations

With a plan in place, you may be ready to make your business official. This often begins with registering your business and getting a business number from the federal or provincial government.

Depending on what you plan to offer, additional permits or licenses may be required. These vary by industry and location, so it is helpful to check what applies in your province.

If you are unsure about legal details, you may wish to seek guidance. Some services in Ontario, such as Pro Bono Ontario or the Law Society Referral Service, may help you connect with the right people to better understand contracts, liability, or intellectual property.

You can visit the TD Business Banking page for information regarding business registration

4. Understand Taxes and Employer Responsibilities

Running a business comes with tax obligations. In many cases, you may need to register for and collect Harmonized Sales Tax (HST), depending on your revenue and the type of business you operate.

The Canada Revenue Agency offers support through its Liaison Officer Initiative, which may help small business owners better understand their tax responsibilities.

If you plan to hire employees, there may be additional steps to follow. This includes setting up payroll and meeting workplace health and safety requirements. Each province sets its own employment standards, which may outline wages, hours, and working conditions.

For additional information on tax payments, please visit the TD Business Banking page.

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5. Look at Funding Options and Trade Requirements

If your business involves selling goods or services across borders, there may be additional rules to follow. Canadian government resources outline what is required for importing or exporting, along with support available to businesses working internationally.

You may also want to consider how you will fund your business. Common options include personal savings, loans, lines of credit, or support from family and community networks. Some entrepreneurs often explore government programs or grants that support small businesses.

Keeping your finances organized may be another helpful step. It is important to separate business and personal transactions. Opening a dedicated business account can help ensure business transactions are managed independently from personal finances. TD offers small business banking solutions designed to support newcomers hoping to do business in Canada.

Looking for more helpful resources? TD’s New to Canada learning hub also provides resources to help you learn more about banking and financial services in Canada.

Launching a new business as a newcomer to Canada can be a unique journey for everyone. Taking time to understand the steps involved—from eligibility to planning, registration, and finances—can help you feel more prepared as you move forward with your vision.

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Why Choose TD?

More than 160 years of helping Canadians:

TD has a proud history of delivering financial solutions to Canadians for more than 160 years. TD also brings a century of experience helping newcomers navigate the unique challenges of the Canadian banking system.

With over a thousand branches, and the ability to also serve you in more than 80 different languages, TD has become one of the largest and most trusted banks in Canada, now serving 16 million Canadians.

TD offers online support and resources of interest to newcomers on topics such as banking basics, moving to Canada, credit score essentials, and more. TD is open longer hours for your convenience and has thousands of ATMs across Canada to help you take care of your everyday banking needs quickly and easily.

Ready to Start Your Business Banking?

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Information provided by TD Bank Group and other sources in this article is believed to be accurate and reliable when placed on this site, but we cannot guarantee it is accurate or complete or current at all times. The information in this article is for informational purposes only and is not intended to provide financial, legal, accounting or tax advice, and should not be relied upon in that regard. This information is not to be construed as a solicitation to buy. Products and services of the TD Bank Group are only offered in jurisdictions where they may be lawfully offered for sale. All products and services are subject to the terms of the applicable agreement. The information in this article is subject to change without notice.

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Sources:

1. Government of Canada, “Business guide for newcomers to Canada”, Canada.ca, Ottawa, Government of Canada, 2025, https://sbs-spe.feddevontario.canada.ca/en/business-guide-newcomers-canada, (accessed 22 April 2026).
2. Government of Canada, “Planning a business”, Canada.ca, Ottawa, Government of Canada, 2025, https://www.canada.ca/en/services/business/start/planning.html, (accessed 22 April 2026).
3. Government of Canada, “Starting a business”, Canada.ca, Ottawa, Government of Canada, 2025, https://sbs-spe.feddevontario.canada.ca/en/starting-business, (accessed 22 April 2026).
4. TD Bank Group, “Market research: Starting a business in Canada”, td.com, Toronto, The Toronto-Dominion Bank, 2025, https://www.td.com/ca/en/business-banking/small-business/starting-your-business/market-research, (accessed 22 April 2026).
5. Government of Canada, “Start-up Visa Program”, Canada.ca, Ottawa, Immigration, Refugees and Citizenship Canada, 2025, https://www.canada.ca/en/immigration-refugees-citizenship/services/immigrate-canada/start-visa.html, (accessed 22 April 2026).
6. Government of Canada, “Registering your business with the government”, Canada.ca, Ottawa, Government of Canada, 2025, https://www.canada.ca/en/services/business/start/register-with-gov.html, (accessed 22 April 2026).
7. Canada Revenue Agency, “Liaison Officer Initiative”, Canada.ca, Ottawa, Government of Canada, 2025, https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/liaison-officer-initiative-loi.html, (accessed 22 April 2026).
8. TD Bank Group, “Small Business Bank Accounts”, td.com, Toronto, The Toronto-Dominion Bank, 2025, https://www.td.com/ca/en/business-banking/small-business/bank-accounts, (accessed 22 April 2026).
9. TD Bank Group, “Learning resources for newcomers to Canada”, td.com, Toronto, The Toronto-Dominion Bank, 2025, https://www.td.com/ca/en/personal-banking/solutions/new-to-canada/learning-resources, (accessed 22 April 2026).