Before October 18, 2021, any unincorporated business registrations in Ontario, including Sole Proprietorships, Partnerships, and Trade Names, were issued a document known as a Master Business License. However, as of October 18, 2021, the Master Business License was phased out and replaced with a new set of documents:

• Business Name Registration For a Sole Proprietorship
• Business Name Registration For a Corporation
• Firm Name Registration For a General Partnership
• Declaration of an Ontario Limited Partnership
• Firm Name Registration for an Ontario Limited Liability Partnership

The federal corporate registry, Corporations Canada, doesn’t permit the federal registration of unincorporated businesses. Such businesses, including sole proprietorships, can only be registered at the provincial or territorial level.

A Sole Proprietorship and an Operating Name are fundamentally similar, with the distinction lying in the nature of the owner. While a Sole Proprietorship is owned by an individual, an Operating Name is owned by a legal entity such as a Corporation or Not-For-Profit organization.

1. No, there are no residency requirements to incorporate in Ontario. Directors may be from other domestic or foreign jurisdictions. Incorporators must be individuals or other Ontario businesses.

Choosing between a General Partnership and a Limited Partnership depends on your specific business needs and circumstances.

General Partnership:

• Management: All partners have equal say in the business and are involved in the day-to-day operations.
• Liability: Partners agree to unlimited liability, meaning their personal assets are at risk for the business’s debts and obligations.
• Decision Making: All partners have the authority to make key decisions that affect the partnership.

Limited Partnership:

• Management: Limited partners do not assist with day-to-day operations. The general partner(s) manage the business.
• Liability: Limited partners’ liability is limited to the amount of money or property they invest.
• Profit Sharing: The general partner(s) gets a bigger share of the earnings in exchange for increased contributions and risk.

In summary, if you want all partners to be equally involved in management and decision-making, and they are willing to accept unlimited liability, a General Partnership may be the right choice. On the other hand, if you want to limit the liability of some partners and have a clear separation between management and investment, a Limited Partnership could be more suitable.

1. Simplified: An operating company does things, and a holding company owns things.

   • Operating Company: It is a company that operates its business activity. It undertakes day-to-day business activities and generates revenue and has assets and liabilities related to regular operations. It may then provide manufacturing products or rendering services, employing staff, etc.
   • Holding Company: It is a company holding investment assets in other companies and whose purpose is to own as well as control the investments. It does not operate any active business but holds and manages the assets from shares, real estate, intellectual property, and other investments in their possession. — Example: Here, the holding company which owns a subsidiary company will become the shareholder of that particular operating company.

A Limited Liability Partnership (LLP) in Ontario is a type of business structure where each partner’s liability is limited to the amount they put into the business. This means that if the business is sued or goes bankrupt, the partners are only responsible for the debts up to the amount they invested in the business. Unlike a general partnership, where all partners are personally liable for the debts and obligations of the business, an LLP provides some protection to the partners’ personal assets.

Here are some key points to consider before deciding if an LLP is the correct business structure for you.

• It offers limited liability protection to its partners, similar to a corporation.
• The Partnerships Act allows certain professionals to work in limited liability partnerships, but only if their profession’s specific laws also allow it. This is generally for Lawyers and Accountants.
• The name of the partnership should end with either “limited liability partnership”, “société à responsabilité limitée”, or the abbreviations “LLP”, “L.L.P.”, or “s.r.l.”.
• While an LLP can be a great choice for some businesses, it’s important to consider the potential drawbacks, such as personal liability for each partner and potential conflicts between partners.

We can have your business registered in just 2 BUSINESS HOURS!

1. Business Number: Once you’re registered, a business number from the CRA is created for your business. We can help you get this number through our service, which is available in all registration packages. It’s important to note that for sole proprietorships, the business number is linked to the individual, not the business registration. So, if you’ve registered a sole proprietorship before, you’ll have the same business number.
2. CRA Program Accounts: The Canada Revenue Agency (CRA) has several program accounts that businesses may need to register for, depending on their specific operations. Here are the 4 major CRA program accounts related to unincorporated businesses:
   • Goods and Services Tax/Harmonized Sales Tax (RT): This account is needed if your business collects GST/HST.
   • Payroll Deductions (RP): If your business pays employees, you’ll need to register for this account.
   • Import-Export (RM): If your business imports goods or services abroad, you’ll need this account.
   • Import-Export (RX): If your business sells goods or services abroad, you’ll need this account.
3. Additional Permits & Licences: After incorporating your business, you may need to obtain additional permits and licenses based on the nature of your operations. These are typically obtained through your local city hall or municipal office.

In Ontario, it’s mandatory for unincorporated businesses to renew their registration every five years. If they don’t renew within two months of the five-year anniversary, they’ll need to file a new registration.

Please see our packages for Business Registry By Non-Residents