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Starting a business as a newcomer in Canada in 8 steps (checklist)
Thinking of starting a business in Canada?
You’re not alone. The majority of businesses in Canada are small businesses. Many newcomers arrive with entrepreneurial spirit, fresh ideas, and a desire to build something of their own. Whether you’re starting small or planning something big, this guide can help you confidently take your first steps.
Why entrepreneurship appeals to newcomers
Starting a business in a new country takes courage. As a newcomer, you may bring global experience, sought-after skills or ideas that reflect your home culture - all of which can be powerful business advantages in Canada.
At the same time, we know there are hurdles. You might be unfamiliar with Canadian regulations, have limited access to credit, or feel unsure of where to begin. These are common challenges.
With the right tools, support and planning, your business idea can grow into something great.
Before investing time or money, step back and validate your business idea.
- What needs are you meeting? What is the gap you have identified in the market?
- Are there similar businesses in your area or sector? What makes yours different?
- Is this something people are willing to pay for?
Talk to people: family, friends, colleagues, and neighbours to gather feedback and perspectives. Join local business groups to gain insights into the process. Use data from Statistics Canada to research your market and sector. Check out the Business Benefits Finder, which connects you with federal government programs and tools based on your business type and goals.
A clear business plan helps you organize your ideas and build your roadmap. It’s also essential when applying for funding or loans.
At a minimum, include:
- A short summary of your business idea
- Who your customers are
- Your product or service
- Your marketing plan
- Your estimated costs and revenue
- How much funding you need
The Business Development Bank of Canada (BDC) offers free business plan templates to get started.
A sole proprietorship is an unincorporated business that is owned by one individual. It can be the easier option that can be lower cost. As you grow, you can always change your structure.
Set-up difficulty |
Taxes |
Best for |
|
|---|---|---|---|
Sole proprietorship |
Easy |
Personal tax return |
individuals looking for the simplest kind of business structure |
Partnership |
Moderate |
Shared income |
Two or more owners |
Corporation |
More complex |
Separate tax return |
separating the business from its owners |
To register your business with the government of Canada, you’ll need:
- A business name
- A business number from the Canada Revenue Agency (register online here)
- GST/HST registration (required once you earn $30,000 in 12 months)
- Local licenses or permits
You can register federally (protects your name across Canada) or provincially (lower cost, but limited to one province).
Even if you’re starting with limited savings, there are funding options designed for newcomers:
- Government programs: The Canada Small Business Financing Program and BDC offer loans for equipment or business needs
- Grants: Some provinces and municipalities offer grants for new businesses
- Futurpreneur Canada: Offers up to $60,000 for entrepreneurs aged 18 to 39 — including newcomers
- TD Bank: Offers small business loans and lines of credit to purchase business assets or finance expansion plans.
You can also consider using a TD business credit card to track spending and build credit in Canada. TD offers rewards and insurance options for business travel.
Keeping business and personal finances separate is key. It helps you stay organized at tax time, manage your cash flow, and look professional.
TD offers small business accounts built for newcomers and new business owners that provide a variety of features and benefits tailored to help you manage your money and grow your business.
To open a business account, bring:
- Personal information for all owners along with identification, such as a driver’s license or passport
- A document proving your company's business name
- Your business registration number (if applicable)
For a more detailed list of what you should bring to open a business account, click here.
Even small businesses benefit from insurance. Here are a few common options:
- General liability: Protects against accidents or property damage
- Property insurance: Covers tools or inventory
- Business interruption: Helps replace lost income if your business can’t operate
If your name or logo is core to your brand, you may also want to consider trademarking it through the Canadian Intellectual Property Office.
There are free and affordable tools that can help your business run more smoothly:
- Bookkeeping software
- Payment processing: TD Merchant Solutions can help you accept debit and credit payments
- Digital banking: TD’s online tools make it easier to track spending and prepare for tax season
Need support? TD bank's Business Banking Specialists are here to help - many speak multiple languages and understand the newcomer experience.
FAQs
Can I start a business without permanent residency?
Yes. Many work permits allow self-employment. Always check your specific visa conditions.
How much can I earn before registering?
You should register your business before offering services or products. GST/HST registration is required once you earn $30,000 in any 12-month period.
What if I don’t have much money?
That’s OK! Start small. Service-based businesses often have lower startup costs. Look into microloans and newcomer funding programs.
Do I need a lawyer or an accountant?
For simple businesses, you may not. But it's worth speaking to a professional for contracts, incorporation, or tax planning. Some community groups offer free legal clinics for newcomers.
Your small business launch checklist
Use this list to stay on track:
- Research your business idea
- Validate it with real people
- Write a business plan
- Choose your structure (sole proprietor, partnership, corporation)
- Register your business and get a CRA business number
- Register for GST/HST (if earning $30,000+)
- Apply for licenses or permits
- Open a business bank account
- Set up bookkeeping
- Get business insurance
- Build a website and social media presence
- Network with other small business owners
- Talk to a TD Business Banking Specialist
Want to learn more?
Explore TD Bank’s small business banking options or meet with a TD Business Banking Specialist to discuss your plans.
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