Start a Business in Canada as an Immigrant | Step-by-Step
- Lisa Shaw
- 3 days ago
- 3 min read
Starting a business in a new country can feel overwhelming—but Canada is one of the most immigrant-friendly places in the world to become an entrepreneur. Whether you’re a permanent resident, on a work permit, or newly arrived, it’s absolutely possible to start a business in Canada as an immigrant—and succeed.
This guide breaks down everything step-by-step, including legal requirements, costs, common mistakes, and insider tips most websites don’t explain.
Can Immigrants Start a Business in Canada?
Yes — immigrants can legally start a business in Canada.
Immigrants can start a business in Canada if they are permanent residents, citizens, or in many cases, temporary residents (like work permit holders), depending on business structure and provincial rules.
Who Can Start a Business in Canada?
Status | Can Start a Business? | Notes |
Permanent Resident (PR) | ✅ Yes | Full rights |
Canadian Citizen | ✅ Yes | No restrictions |
Work Permit Holder | ⚠️ Yes (with conditions) | Must check permit terms |
International Student | ⚠️ Limited | Usually restricted |
Non-Resident | ✅ Yes | May need a Canadian director |
Step-by-Step: How to Start a Business in Canada as an Immigrant
1. Choose Your Business Structure
Options:
Sole Proprietorship (simplest)
Corporation (most protection)
Partnership (2 or more owners)
2. Pick and Register Your Business Name
You’ll need:
Name search (NUANS for named corporations)
Registration with your province or federally
Tip: Follow naming rules to avoid your registration being rejected, flagged or cancelled
3. Register Your Business
In Ontario, you can:
Register a sole proprietorship or general partnership
Incorporate provincially or federally
This is required for:
Taxes
Payroll
Import/export
Non-residents can register CRA (Canada Revenue Agency) accounts even if they do not live in Canada, as long as they are carrying on business activities that require tax registration in the country. Non-residents usually cannot use the standard online business registration portal and must instead complete the non-resident registration process through CRA’s dedicated web form or by submitting Form RC1 by mail or fax.
While a Canadian Social Insurance Number (SIN) is not required, CRA may request additional identification and details about the business structure, ownership, and Canadian activity, and in some cases a Canadian representative or address may be needed for correspondence.
Requirements:
ID
Business registration documents
SIN (in most cases)
Newcomer Challenge: Many banks require Canadian credit history — consider newcomer banking programs.
Depends on:
Industry
Location
Examples:
Food business → health permits
Construction → trade licensing
Cost to Start a Business in Canada (2026)
Expense | Estimated Cost |
Sole Proprietorship | $60 – $200 |
Incorporation | $300 – $600+ |
NUANS Report | $13 – $60 |
Business Bank Account | $0 – $50/month |
Licenses | Varies |
Annual filings
Accounting fees
HST compliance
Business insurance
Starting a Business in Canada on a Work Permit
You can start a business on a work permit in Canada, but only if your permit allows it or you are not actively working in the business without authorization.
Key Considerations:
Some permits restrict self-employment
You may need:
Open work permit
Legal advice
How to Open a Business in Canada for PR Holders
PR holders have the easiest path:
No restrictions
Full access to funding
Eligible for grants
Because there are no restrictions on business registrations for PR holders, you would simply follow the regular path of registration or incorporation.
Funding Challenges for Newcomers (And Solutions)
Common Issues:
No Canadian credit history
Limited access to loans
Government grants
Microloans
Newcomer entrepreneur programs, like Futurpreneur Canada,
Taxes for Newcomer Entrepreneurs
You may need to:
File income tax
Charge HST
Submit corporate filings
Tip: Work with an accountant familiar with newcomers.
Common Questions We Hear
Can immigrants start a business in Canada without PR?
Yes, but restrictions apply depending on visa status and business structure.
How much money do I need to start a business in Canada?
You can start with as little as $60 for a sole proprietorship or $300 for an Ontario corporation. Additional services fees can apply if you're using a registration service.
Can I start a business in Canada on a work permit?
Yes, but only if your permit allows self-employment or you are not actively working in the business. Always
Do I need a Canadian partner to start a business?
Not always, but some provinces require a Canadian director for corporations.
What is the easiest business to start in Canada?
Service-based businesses like cleaning, consulting, and online stores are easiest and lowest cost.
Final Thoughts
If you’re a newcomer entrepreneur in Canada, there’s never been a better time to start. The system is designed to support small businesses—but only if you understand the rules, costs, and opportunities.
This guide gives you everything you need to confidently take the first step.
Want Help Getting Started? Register or incorporate your business quickly with support from Launch a Business!
