Ontario Taxes and Business Registrations
1. Do I have to register my trade name after my company has been incorporated?
2. Which sales taxes does my company need to register for?
3. What is the Federal Business Number (BN)?
4. If my company was not incorporated in Ontario, what formalities do I need to complete in order to carry out business in Ontario?
5. How do I register for these business and tax registrations?
Q: Do I have to register my trade name after my company has been incorporated?
Yes - If your company intends to operate under a name other than its legal corporate name, then you must register this name under the Business Names Act. For example, if your corporate name is ABC Ltd. and you wish to open a restaurant called ABC Diner, then the latter name must be registered. As well, if you are entering into a partnership or sole-proprietorship you will need to register your business name.
Master Business License (MBL) - You will obtain an MBL valid for 5 years upon registration.
Business Identification Number (BIN) - You will be issued with a BIN by the Companies and Personal Property Security Branch (CPPSB).
Q: Which sales taxes does my company need to register for?
GST/HST - Effective July 1, 2010 Ontario has moved to a harmonized sales tax thus eliminating the PST. Instead, your corporation will apply for GST/HST. The HST will be applied on most supplies of goods and services made in Ontario at a rate of 13%, consisting of the 5% federal portion and an 8% provincial portion.
Q: What is the Federal Business Number (BN)?
Definition - The BN is issued by the Canada Customs and Revenue Agency (CCRA) and is used to unify all accounts a business may have with the federal government.
Purpose: The BN is used to operate corporate income tax, import/export accounts, payroll deductions and GST/HST.
Q: If my company was not incorporated in Ontario, what formalities do I need to complete in order to carry out business in Ontario?
Procedure - Within 60 days of commencing business in Ontario (establishing a business address in Ontario), the corporation must file an Initial Return complete with a photocopy of the most recent Articles of Incorporation in order to receive an Ontario Corporation Number.
Q: How do I register for these business and tax registrations?
One Form - IncorpDirect will prepare the relevant forms and submit them to the government for processing on your behalf. You will just have to fill out ONE form. To apply, please click here.
