Ontario stands out as one of Canada’s most business-friendly provinces, offering a wealth of resources, infrastructure, and a streamlined registration process that supports entrepreneurs at every stage. Whether you’re a solopreneur launching your first venture or an experienced founder setting up a new company, understanding the cost implications of registering your business in Ontario is essential.
From choosing a business structure and understanding incorporation benefits to navigating the Ontario Business Registry and name searches, this guide breaks down everything you need to know about business registration costs in Ontario. We’ll also explain how Pacific Legal provides comprehensive legal support to help your business scale with confidence.
Why Incorporate Your Business in Ontario?
Deciding to incorporate is not merely a structural choice—it’s a strategic choice that provides many legal and financial benefits.
1. Limited Liability Protection
Incorporation provides a separate legal entity that isolates business liabilities from personal assets. What this means is that if there are lawsuits or debts, your personal property (such as your home or savings) is not affected.
Case Study: A Toronto e-commerce startup in 2022 had a serious data breach. Due to its incorporated status, the founder’s personal assets were left intact. The insurance policy of the company covered the financial impact, enabling business to carry on.
2. Tax Advantages
Corporations enjoy lower tax rates compared to individuals. They also have access to income-splitting opportunities, dividend planning, and the ability to defer personal taxes by retaining profits in the business.
Example: A consultant earning $150,000 annually as a sole proprietor would pay higher taxes than if they incorporated and drew a combination of salary and dividends.
Deciding to incorporate is not merely a structural choice- it’s a strategic choice that provides many legal and financial benefits.
3. Limited Liability Protection
Incorporation provides a separate legal entity that isolates business liabilities from personal assets. What this means is that if there are lawsuits or debts, your personal property (such as your home or savings) is not affected.
Case Study: A Toronto e-commerce startup in 2022 had a serious data breach. Due to its incorporated status, the founder’s personal assets were left intact. The insurance policy of the company covered the financial impact, enabling business to carry on.
Illustration: Tech startups incorporated in Ontario can apply for funding through the Ontario Centres of Innovation or Federal Industrial Research Assistance Program (IRAP), provided they meet specific criteria.
4. Business Continuity
Corporations have “perpetual succession,” meaning they can continue to exist even if the ownership changes or the original founders exit.
What Affects the Cost of Business Registration in Ontario?
Business registration costs depend on several variables, including your business structure, name choice, and whether you’re seeking legal help.
1. Type of Business Structure
|
Structure
|
Approximate Cost |
|---|---|
| Sole Proprietorship | $60 |
| Partnership | $60 |
| Incorporation (Online) | $300 |
| Incorporation with NUANS | $315 – $400 |
Note: NUANS (Newly Upgraded Automated Name Search) reports typically cost between $13 and $60. They’re mandatory if you want to register a named corporation, as opposed to using a numbered company.
2. Registration Method
There are two primary methods to register:
- ServiceOntario (Online): Fast, affordable, and efficient.
- Third-Party Providers: May charge additional fees (usually $100–$400) for assistance with registration and document preparation.
Illustration: A side-by-side comparison shows ServiceOntario to be the most cost-effective solution for those familiar with the registration process. However, startups looking to issue shares or apply for funding often prefer professional services to ensure accuracy and compliance.
3. Business Name Registration
If you operate under a name different from your legal name, you must register it. This rule applies to all business types, including corporations.
- Master Business License (MBL): Issued upon registration, valid for five years, and renewable.
Example: “Brampton Bakes” needs to register its name, even if the owner is a sole proprietor named Rahul Sharma.
4. Legal and Advisory Services
Legal support may seem optional at first, but it can save you thousands in the long run by avoiding compliance issues, especially if you’re issuing shares or drafting complex agreements.
Illustration: Jessica M., a Mississauga-based restaurant owner, paid $750 in legal fees for incorporation, shareholder agreements, and tax registration. That early investment helped her attract investors and secure commercial leases with favorable terms.
5. Federal vs. Provincial Incorporation
| Incorporation Type | Filing Authority | Cost | Key Benefit |
|---|---|---|---|
| Federal | Corporations Canada | $200 + ON registration | Nationwide name protection |
| Provincial | Ontario Business Registry | $300 | Ideal for Ontario-focused businesses |
Note: Federal incorporation requires extra-provincial registration in Ontario, meaning additional paperwork and cost. If you don’t plan to operate outside Ontario, provincial incorporation is simpler.
Also Read: Federal vs. Provincial Incorporation in Ontario: A Comprehensive Guide
Ontario Business Registry and Name Search Tools
Ontario Business Registry (OBR)
The Ontario Business Registry (launched in 2021) is a modern digital platform offering 24/7 access to:
- Business name registration
- Incorporation filings
- Annual returns
- Director changes
- Ontario corporation search
Real Example: Entrepreneurs can now register a business, obtain a Master Business License, and update corporate records all on a single platform—reducing wait times from weeks to minutes.
Corporation Search and NUANS
Before registering a business, it’s critical to ensure your desired name is unique and not already in use.
- OBR Search Tool: Check if your name is available in Ontario.
- NUANS Report: Required for named corporations at the federal or provincial level.
Illustration: A Guelph-based wellness brand discovered a near-identical business name during a preliminary NUANS search, allowing them to rebrand early and avoid a future trademark dispute.
Step-by-Step: How to Register a Business in Ontario
- Decide on a business structure (sole proprietorship, partnership, or corporation).
- Conduct a name search using the OBR or NUANS (if incorporating with a name).
- Register through ServiceOntario or a licensed third-party service.
- Pay applicable fees online.
- Receive a Business Number (BN) from the CRA.
- Apply for municipal licenses, zoning permits, or special approvals (e.g., liquor licenses).
How Pacific Legal Supports Ontario Entrepreneurs
At Pacific Legal, we provide more than just registration support—we walk with you through the entire lifecycle of your business, from day one to scaling with investors.
1. Incorporation and Legal Setup
We take care of:
- Provincial or federal incorporation
- NUANS name searches
- Shareholder agreements
- Appointment of directors and officers
- Registered office services
Also Read: Articles of Incorporation: The Blueprint for Your Business’s Legal Structure
2. Private Equity and Funding Advisory
Looking for capital? We help:
- Structure early-stage funding rounds
- Prepare financials and due diligence documents
- Negotiate term sheets with PE and VC firms
3. Venture Capital Fundraising
We specialize in:
- Preparing SAFE agreements or convertible notes
- Drafting equity agreements that comply with Ontario securities law
- Assisting with pitch deck legal reviews
4. Ongoing Corporate Legal Support
Our monthly legal plans include:
- Annual filing reminders and compliance tracking
- Corporate minute book maintenance
- Employment contract drafting
- Intellectual property protection
Contact Pacific Legal for Business Registration
Knowing business registration fees in Ontario allows entrepreneurs to make smart choices, effectively budget, and maintain long-term compliance. Whether starting a sole proprietorship, incorporating a company, or seeking venture capital, the proper foundation is critical.
At Pacific Legal, we have expertise in assisting Ontario entrepreneurs through all stages of the business process—formation, funding, and beyond. Our customized legal services mean you’re not only compliant but also investor-ready.
Ready to build your business on a solid legal foundation? Contact Pacific Legal today and let’s make your entrepreneurial vision a reality.
FAQ
1. How much does it cost to register a business in Ontario?
The cost to register your business in Ontario depends on your business structure. Registering a sole proprietorship, general partnership, or limited liability partnership (LLP) currently costs $60 through the Ontario Business Registry, and it’s valid for five years before renewal is needed.
2. How much does a small business license cost in Ontario?
In Ontario, the Master Business Licence effectively registers your small business and costs $60 when done online (or $80 by mail). This MBL is necessary if you’re using a business name rather than your name.
3. Do I have to register my small business in Ontario?
Yes, if you’re operating under a business name (other than your own), you must register for a Master Business Licence in Ontario. This applies to sole proprietors, partnerships, and LLPs, and is essential for opening a business bank account or marketing under that name.
4. What types of business registrations are available in Ontario?
Ontario offers several registration types: sole proprietorship, general partnership, limited liability partnership, and provincial incorporation. Each has distinct legal and tax implications, and the choice depends on your liability tolerance, growth goals, and need for name protection.
5. How do I search for a business name in Ontario?
Before registering, you’re advised to conduct a NUANS name search to ensure your desired business name isn’t already taken. NUANS reports are needed for incorporations and cost around $13.80 each.
6. How much does it cost to incorporate a business in Ontario?
Incorporation in Ontario requires paying a government filing fee of $300, whether filing online or by mail.
7. What are the incorporation fees in Ontario?
The core provincial incorporation fee stands at $300. Still, you must also budget for additional expenses such as a NUANS name search (~$13.80), annual filing costs, and optional professional services like legal or accounting support.
8. Can I register a business in Ontario myself, or do I need a lawyer?
You can register your business yourself via the Ontario Business Registry or tools like OWNR. For straightforward sole proprietorships, most entrepreneurs do it themselves. However, if you’re incorporating or require complex structuring like shareholder agreements, it may be advisable to consult a lawyer or accountant.
9. Is it necessary to register my business in Ontario?
Yes. Operating under a business name without registering can lead to fines. The Business Names Act allows for penalties up to $2,000 for individuals or $25,000 for corporations that fail to register correctly.
10. What’s the cost difference between registering as a registered business name vs incorporating in Ontario?
Registering a business name (for sole proprietorships or partnerships) costs $60, while incorporating provincially costs $300 plus any associated name search fees.
