Canadian Government Regulations for Small Business

Regulations for Business Registration, Taxation, Employment, Health & Safety and Other Issues

Canadian government regulations for business consist of regulations at three government levels - federal, provincial and local.

To find out which business regulations apply to you, you can visit the following informational websites:

• The Government of Canada - gc.ca - website has a Regulations for Small Business page that contains links to basic small business and other business regulations.
• The Canada Business - canadabusiness.ca - website has a link labeled "Regulations" that lead to different views, including one that has numerous links to regulations applicable to different businesses and business topics.
• The Canadian Revenue Agency - CRA - has provided a Guide for Canadian Small Businesses that explains tax regulations.
• The BizPal "is an online service that simplifies the business permit, licence and other compliance regulation process for entrepreneurs, governments, and third party business service providers."

You can also find a nearby Canada Business Location to meet a competent person who can help you with compliance issues.

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Common Business Regulations

Forms of Business

You can do business as a sole proprietorship, in partnership with others or by incorporating a separate business entity, a corporation. Each of these forms of business has its own advantages and disadvantages, as discussed in the relevant Canada Business page.

Taxation

You have to obtain a Business Number from the Canada Revenue Agency. Taxes are paid under different regulations as under:

• Federal Income Tax on your business income minus business expenses and allowances
• Provincial/Harmonized Sales Tax on your turnover as determined under the relevant tax laws
• Goods & Services Tax and Excise Tax if you come under the ambit of these
• Corporation Capital Tax if applicable in your province

You can get details of these tax regulations at the CRA and CBSC websites.

Licenses and Permits

The BizPal "provides Canadian businesses with one-stop access to permit and licence information for all levels of government." Some governments are yet to join this Industry Canada project, however.

Employment Related Regulations

As an employer you have certain additional responsibilities, which include:

• Observe certain standards, as regulated by federal and provincial laws, in employing people. These include maximum number of working hours, minimum wages and such fair practices.
• Deduct taxes, pension contributions and employment insurance from employee pay, and hand these over along with your own contributions to the government.
• Ensure a safe workplace for employees, and contribute to a workmen's compensation fund to compensate for any accidents or illnesses caused by work.

Other Statutory Obligations

You have to register your business name. You also have to observe land use and zoning regulations while locating your business.

Tax and employment regulations stipulate that you should keep accounts of your business transactions, employee attendance and payroll and work accidents. You might have to maintain other statutory records under different laws.

The Canada Business website has a startup checklist to help you comply with your statutory obligations. You can also consult a CBSC center near you in person, or if you prefer, a business lawyer or even an experienced business person.

Return to Section Main Page Industry Overview of Canada

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