Business Tips

An entrepreneurs guide to business name registration in Ontario

December 22, 2022

Registration of a business name in Ontario, Canada

If you’re an aspiring entrepreneur, you’ll have to dedicate time, effort, and resources to make your small business successful. Aside from this, you’ll also need to comply with regulations and requirements mandated by the government. In Ontario, for instance, one of the basic requirements for small businesses is to complete a Business Name Registration process.

Formerly called a Master Business Licence until October 2021, when it was changed to Business Name Registration (BNR), this process is required for small businesses to operate legally. The associated fees and documents necessary for this registration would depend on the scale of operations, the number of business owners, tax details, and other aspects relevant to the enterprise.

To know more about the process Business Name Registration Ontario requires from small enterprises, here’s a quick guide you may find helpful.

Determine the type of business that you have

Before you push through with business registration, you need to identify the kind of business that you have. Here are the three main business structures and their characteristics.

Sole proprietorship

If you own 100% of your enterprise, you may apply for registration under the Sole Proprietorship category. Sole Proprietorship is ideal for those starting a business for the first time, as it’s easy to establish and cancel and inexpensive to start. Moreover, the business registration is active for five years and renewable.

Partnership

Business partnerships can take on a variety of structures. For instance, a general partnership can be built between two or more people who hold equal shares and liabilities within the company. Meanwhile, those in a limited partnership setup can either be a general or a limited partner.

Before processing your application, it’s essential to determine the type of partnership you have in your enterprise, as it will also affect other aspects. It includes taxation and the authorization required from the owners to push through with the registration.

Trade name

Business owners also have the option to register a Trade Name, allowing them to operate a secondary business name. Essentially, it’s owned by either an existing incorporated business or a registered corporation in the Province of Ontario.

Many opt to operate under a Trade Name for various reasons. For one, they can use their Trade Name for advertising without the legal ending, such as Incorporated or Limited.

Decide on a business name

You’ll need a unique business name to distinguish your company from other companies. Also, you need to avoid using a name already associated with another business. If you use your name as a business name, you won’t be required to register. However, if your company name includes your name and another element that’s not included in your legal name, then registration is required.

There are other restrictions when applying for a business name. These restrictions include names with obscene or malicious tones, individual names that the business owner does not own, words that imply an association with the Federal government and its associates, and some non-Alphabetic symbols or characters.

You’ll also need to verify if the business name you wish to use is available to avoid infringement. For instance, you can conduct a New Updated Automated Name Search or NUANS to see if other companies are using the business name you want to use or similar terms.

If an incorporated business within your jurisdiction is already using your proposed business name, you can no longer proceed with registering a Business Name Registration under that name and will need to choose a different name that is available.

Submit the required information

Here are the details you’ll need to submit to proceed with your business registration in Ontario:

Your chosen business name
Business address or principal place of business in Ontario
Owner’s name and address
Nature of business
Authorizing the person in charge of the application procedures

The Canadian government also requires business owners to indicate the NAICS code applicable to the nature of their business. The government uses the North American Industry Classification System or NAICS to classify business establishments, which is why you’ll need to put this code in your application form.

You can browse the NAICS 2022 manual or other versions from previous years to determine the correct code for your business.

Finalize your registration

Once registered with the Ontario Government, you’ll be issued a Business Identification Number (BIN). Your registration is valid for five years after it’s finished, and you’ll need to file for renewal after the said period to keep your registration active.

Amendment of business name

Do you want to make changes to your Business Name Registration? The Ontario government allows amendments to your registered business address, owner’s address, and the nature of business. You can also add or remove a partner to your General Partnership. You’ll need to get your BIN ready for this application, and the changes you made will be in place for the remainder of the five-year enforcement of your registration.

However, amendments are only limited to the three details mentioned above. It means you’ll be unable to change the owner or business name on file. You’ll have to apply for a new registration if you need to change these details.

Conclusion

After you’ve completed the registration process and received your BIN, you’ll have to stay updated with the regulatory requirements per specific period to maintain your business status and keep a good record. In Ontario, you’ll have your business registration active for five years, and the renewal should be done within the first 60 days after its expiration. If you miss the deadline, you’ll have to complete your registration as a new application.