how to start a small business
Essential insights to focus on for starting a business in Canada
The increasing rates of new businesses in this world have been promoted substantially by the inclination towards entrepreneurship. It may seem easier to start a new business but with the majority of implications proving true only on paper. It is imperative for every individual wishing to start a new business, to learn about the basic factors that have to be taken into account for establishing a profitable business firm.
Canada is one of the countries that show promising potential for new businesses and so it is essential to focus on how to start a business in Canada by referring to different steps involved in the process. Let us find out the various factors that have to be dealt with to start a new business in Canada. Furthermore, we shall also attempt to discover the different steps involved in the registration of a business in Canada in the following discussion.
Create an idea and a plan
The first concern that should be emphasized before wondering about how to register a business in Ontario or any other region in Canada is to develop a promising business idea. This factor stays the same for every case where the notion of setting up a small business arises. Many prolific business ideas can be accessed through the internet, and you could also try a few experiments to come up with a unique idea of your own.
Preparing a business plan is the next important thing on your agenda for how to start a small business in Alberta or other areas of Canada. The business plan is defined as a written statement or the blueprint of the operations of a business. The business plan acts as a formidable instrument to secure investments for your business from banks or potential investors.
Fix a name
The next crucial aspect that is a priority to start a business is the selection of a name for the business. The essential dimensions that should be taken into account while selecting the name of your business are the legal elements and the marketing potential of the name. You should also define the type of business ownership that you intend to adopt for your business.
It is recommended to reflect on the pros and cons of the different basic types of business ownership such as partnership, cooperative, proprietorship or corporation. After finalizing a business name and the type of ownership, you can now think of how to register a business in Alberta or other places in Canada. We shall explore the different steps to register a business in Canada in the later part of this discussion.
Many people start a business without thinking or planning the sources of funds. In such cases, the financing of the business is considerably dependent on the wallet of the owner. However, the recommended course of action is to find out the different options for financing a startup business which can also include grants and government aid to start a business.
Licenses are mandatory
Another profound element required for responding on how to start a business in Canada is to obtain a business license. A business license is required mandatorily for every business to operate in the jurisdiction of the concerned municipalities.
The need for other permits and licenses should also be taken into account by the business owner according to the type of business. You can use BizPaL by Industry Canada to find the requirements of permits and licenses to operate a business. It can provide an individual list to every business about the business documents required for all levels of governance.
Registration for GST, HST, and PST
Even if you are buying a small business in Canada or starting your own business, it is essential to note that if the gross income of the firm is above $30,000, then the business has to be registered for Goods and Services Tax or Harmonized Sales Tax. Small supplier businesses could find an exemption although, with the implementation of Canada Revenue Agency’s registration rules, the business has to be registered with GST/HST.
On the positive side, registration of your business with GST or HST could help in accessing Input Tax Credits on the purchases that have been made for business use. It is also essential to remember that certain provinces have not integrated their sales taxes with the federal GST. Therefore, a business has to register for provincial sales tax (PST) in provinces such as British Columbia, Manitoba or Saskatchewan.
Ready to take in employees
The foremost factor on the agenda of every new business is to be prepared to increase the number of employees as the business growth increases. In such cases, every business needs to register with the Worker’s Compensation Board in the respective province. Furthermore, it is also essential to register for the compensation insurance of workers and comply with employment standards and regulations in Canada.
The requirements of insurance in the case of a newly started business should be addressed effectively to provide a certain level of safeguards for the investments of the company. Therefore, it is recommended to procure different types of insurance such as property insurance, disability insurance, business interruption, liability insurance, and key people insurance. You could also try to find reliable guidance on saving money with the cost of business insurance.
Take note of accounting, taxes, and marketing
It is essential to note the importance of a good start to a business for receiving the best outcomes. The performance of a business is as good as the simplicity and flexibility of accounting and tax payments of the business. Other than the concerns of managing a business’ accounts and taxes, it is also essential to focus on the marketing and advertisement strategy of the company. The use of online media and innovative marketing campaigns could work efficiently for attracting the target audience for products and services of the company.
Registering your business in Ontario
The awareness of procedures on how to register a business in Ontario is highly important, and it can be presented in the following simple steps.
The first step is choosing the name for your business. It is recommended to choose a business name which can be easily distinguished from the others in the market.
The second step involved in this case refers to the filing of Articles of Incorporation. The Articles of Incorporation involve a set of documents that are mandatory to be filed with the government for legally starting a business. The Articles of Incorporation would include the verified corporate name, business purpose, address of the registered head office of the business, number of directors, borrowing restrictions on directors, limitations of the business, names and address of founding directors, rights of each class of shares, description of classes of shares and quantity of each class of share, restrictions on transferring the shares, signatures, voting rules and other relevant aspects.
The necessity of registering a business would also be observed when buying a small business in Canada. The step of application processing can be found as a common element when registering a new business or changing the details of the newly acquired small business. The turnaround times for different types of applications are variable according to the type of filing method chosen. Upon verification and accepting the application, you would receive the Certificate of Incorporation.
The next step in registering your business is associated with filing the Initial Return, and this had to be done within 60 days of incorporation of a business. This is applied to verify the address of the registered head office as well as the directors and also provides recognition of the elected officers.
The final aspect in the registration of a business in Canada is to maintain specific records such as a Corporate Minute Book. The Minute Books help in maintaining the organization of records that can support the growth of a business.
So, you can utilize the information mentioned above to register a business in Canada and give a new platform to your aspirations and dreams of becoming a businessperson.