The essentials of business permits and licenses in Canada

Starting up a new business in Canada is exciting, but it requires more than an idea. Here's what you need to know to get your feet off the ground.

Starting up a new business in Canada is exciting, but it requires more than an idea. You also need to establish yourself as a legal business in the country and your specific province, as well as acquire business permits and licenses in order to open. The exact permits and licenses your business needs varies depending on your industry, the type of products or services you sell, where you're located and other factors.

A new business looks at permits and licenses in a few major categories. First, you must research your province's business requirements. Next, look at your industry or business-related permits. Finally, examine licenses based on the products or services you plan on selling. Here are a few examples of permits and licenses Canadian businesses typically hold.

An example of a license specific to a type of business is the insurance agency license required in Nova Scotia. This license is required for companies that sell insurance contracts such as life and general insurance. If your business doesn't have this license prior to selling these products, you are not legally compliant with the province. Not only could this get you in trouble, but the policy that you're selling to clients would not be valid. Another business-specific permit required across all of Canada references a specific business activity. If you run a taxidermy business and you mount migratory birds as part of your services, you need a Taxidermy Permit (Migratory Birds).

In Ontario, if your retail store sells any sort of tobacco product, you need a Tobacco Retail Dealer's Permit. This permit grants your business the ability to buy tobacco items from wholesalers and sell the products to the public.

A general business license applies to any business within a particular province. Ontario requires a Master Business License that recognizes the legal establishment of a business under its business name. This license also tracks when the business was created and states when the license expires.

Business permits and licenses in Canada show that your business is operating legally and won't be subject to any fines or penalties. It takes time to track down every permit and license needed for your business, but it's a necessary effort.