How to register a sole proprietorship in Canada
Learn how to register a sole proprietorship in Canada, when provincial or territorial registration is required, when you need a Business Number, and which CRA accounts, permits and tax obligations may apply.
Helpydo structures practical guidance around official or public sources. For individual cases, confirm requirements with the responsible institution.
A sole proprietorship is registered primarily at the provincial or territorial level, not through one national Canadian sole-proprietorship registry. Most businesses need to register in the provinces or territories where they operate, although in some jurisdictions a sole proprietor operating only under the owner's legal name may not need business-name registration. You may also need a CRA Business Number and program accounts such as GST/HST or payroll, plus federal, provincial, territorial or municipal permits and licences.
What you need
- Decide that a sole proprietorship is the appropriate business structure for you.
- Know where your main business office will be located and the provinces or territories where you plan to operate.
- Choose whether you will operate under your own legal name or a separate business name.
- Check the registration and business-name rules of each province or territory where you plan to do business.
- Register the sole proprietorship or business name with the applicable provincial or territorial authority when required.
- Determine whether you need a Canada Revenue Agency Business Number (BN).
- Register for any required CRA program accounts, such as GST/HST or payroll deductions.
- Identify federal, provincial, territorial and municipal permits or licences required for your activities and location.
- Keep records of your business income and expenses for tax reporting.
Eligibility
A sole proprietorship is an unincorporated business owned by one individual. The owner makes the business decisions, receives the profits, claims the losses and does not have a separate legal status from the business. The owner therefore assumes the risks of the business, which can extend to personal property and assets. Registration requirements depend on the province or territory where the business operates and the name used. The Government of Canada states that most businesses need to register with the provinces and territories where they plan to do business, but in some cases a sole proprietorship operating under the owner's own name does not need to register. Provincial or territorial rules must be checked for the specific location.
How to do it
- Confirm that you want to operate as a sole proprietor. A sole proprietorship is an unincorporated business owned by one person. Unlike a corporation, the business does not have separate legal status from its owner.
- Identify where you will operate. Determine where your main office will be located and whether you will conduct business in other provinces or territories. Registration requirements can differ by jurisdiction.
- Choose your business name. Decide whether to operate under your own legal name or a separate business name. The CRA states that a sole proprietor may operate under their own name, a registered business name, or both.
- Check whether provincial or territorial registration is required. Most businesses need to register in the provinces and territories where they plan to operate. In some cases, a sole proprietor using only the owner's legal name may not need to register. Check the official business registry for your province or territory before starting operations.
- Register your business name where required. Follow the name-search, reservation or registration procedure required by the applicable provincial or territorial authority. Requirements and fees are jurisdiction-specific.
- Determine whether you need a CRA Business Number. An unincorporated business does not automatically need a BN simply because it is a sole proprietorship. You need a BN when you register for a CRA program account such as GST/HST or payroll. A BN may also be issued through certain provincial registrations.
- Register for CRA program accounts when required. Depending on your activities, you may need a GST/HST account, payroll deductions account or another CRA program account. If you do not already have a BN, one can be issued when you register for a CRA program account.
- Use Business Registration Online when applicable. For resident Canadian businesses, CRA Business Registration Online (BRO) is the fastest online method for obtaining a BN and certain program accounts. Since July 14, 2026, BRO is accessed through a CRA account.
- Check GST/HST requirements. A sole proprietor making taxable supplies in Canada may have to register for GST/HST when the applicable small-supplier rules no longer apply. Some activities have special registration requirements. Eligible small suppliers can generally choose voluntary registration.
- Register for payroll if you become an employer. If your business pays employees or other amounts requiring payroll deductions, determine whether you need a CRA payroll deductions program account.
- Check permits and licences. Your business may require federal, provincial, territorial or municipal permits and licences depending on its location and activities. Use Canada's BizPaL service where available to identify requirements.
- Set up your tax records. A sole proprietor reports business income or loss on an individual T1 income tax and benefit return. Form T2125, Statement of Business or Professional Activities, is generally used for business or professional income and expenses, while other forms apply to certain farming or fishing activities.
What is a sole proprietorship in Canada?
A sole proprietorship is an unincorporated business owned by one individual. It is the simplest type of business structure recognized by the Canada Revenue Agency.
The owner makes the business decisions, receives the profits and claims the losses. The business does not have a separate legal status from its owner, so the owner assumes the risks of the business. Those risks can extend to the owner's personal property and assets.
Is there one federal registration for a sole proprietorship?
No. Canada does not have one federal registration that creates every sole proprietorship nationwide. Business registration is primarily handled by provinces and territories.
The Government of Canada states that most businesses need to register with the provinces and territories where they plan to do business. The exact registration process, fees and business-name rules therefore depend on the jurisdiction.
Federal registration with the Canada Revenue Agency is a separate issue. A sole proprietor may need a CRA Business Number and one or more program accounts depending on the activities of the business.
Do you have to register a sole proprietorship in Canada?
Not always. The Government of Canada notes that, in some cases, sole proprietorships operating under the business owner's own name do not need to register. Whether this exception applies depends on the rules of the province or territory where the business operates.
If you use a business name other than your own legal name, registration of that name is commonly required under provincial or territorial rules. Do not assume the same rule applies everywhere in Canada. Check the official business registry for each jurisdiction where you plan to operate.
Where do you register a sole proprietorship?
Start with the province or territory where your business will operate. Canada.ca provides official links to provincial and territorial business registries for Alberta, British Columbia, Manitoba, New Brunswick, Northwest Territories, Nova Scotia, Nunavut, Ontario, Prince Edward Island, Quebec, Saskatchewan and Yukon. Requirements for Newfoundland and Labrador and other jurisdiction-specific situations should be confirmed directly with the relevant provincial or territorial government.
If you plan to conduct business in more than one province or territory, check the registration requirements in each location rather than assuming registration in one jurisdiction covers all of Canada.
Can you use your own name as a sole proprietor?
Yes. The CRA states that a sole proprietor may choose to operate under their own name, a business name or both.
If you operate as an individual under your own name, you can bill customers or clients in your own name. If you operate under a registered business name, you bill customers in that business name. The CRA also notes that if the business uses a name other than your own, you need a separate bank account to process cheques payable to the business.
Choosing and registering a business name
Business-name registration rules are provincial or territorial. Depending on the jurisdiction and proposed name, you may need to search for an existing name, reserve a name or register the business name before using it.
Registering a business name is not the same as incorporating. A registered sole proprietorship remains an unincorporated business and does not become a separate legal entity simply because a business name is registered.
Do sole proprietors need a CRA Business Number?
Not every sole proprietorship needs a Business Number. The CRA states that an unincorporated business only needs a BN when it registers for CRA program accounts.
You may need a BN if, for example, you need a GST/HST program account or payroll deductions program account. If you do not already have a BN, you can obtain one when registering for a CRA program account.
A Business Number is a unique nine-digit identifier. CRA program accounts add a two-letter program identifier and four-digit reference number to the BN. For example, GST/HST uses the program identifier RT and payroll deductions uses RP.
Can provincial registration automatically provide a Business Number?
Yes, in some jurisdictions. Current CRA guidance states that a BN is issued as part of registration or incorporation with Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan.
However, receiving a BN does not mean that every CRA program account has automatically been opened. Determine separately whether your business needs GST/HST, payroll or another program account.
How to register for a CRA Business Number and program accounts
For Canadian residents with a valid Social Insurance Number, CRA Business Registration Online is the fastest online method for obtaining a BN and certain CRA program accounts.
As of July 14, 2026, BRO is accessible through a CRA account. You must sign in using an available CRA sign-in method before using BRO for BN and applicable program-account registrations.
Before registering, be prepared to provide information such as the owner's name, phone number and SIN, legal and operating business names, mailing and physical addresses, business type, description of the main business activity, and information about the main products or services.
Does a sole proprietor need to register for GST/HST?
It depends on the business's activities and revenues. A sole proprietor may be required to register for GST/HST if they make taxable supplies in Canada and no longer qualify as a small supplier under the CRA rules.
For most businesses, the standard small-supplier threshold is based on $30,000 of worldwide taxable supplies, including zero-rated supplies, calculated under the CRA's applicable single-quarter and consecutive-quarter tests. Special rules apply to certain activities and organizations.
Eligible small suppliers making taxable supplies can generally choose to register voluntarily. Once registered, GST/HST collection, filing and remittance obligations apply.
What if you hire employees?
A sole proprietor that becomes an employer may need a CRA payroll deductions account. Payroll program accounts use the RP identifier attached to the business's existing nine-digit BN.
Determine whether payroll registration is required before you begin making payments that are subject to payroll withholding and reporting obligations.
Permits and licences
Registering a sole proprietorship does not automatically give you every authorization required to operate. Depending on what your business does and where it operates, you may need federal, provincial, territorial or municipal permits and licences.
Canada's BizPaL service can generate a customized list of permits and licences from participating federal, provincial, territorial and municipal authorities based on your business activities and location.
Industries such as food, transportation, construction, regulated professions and other specialized activities may have requirements beyond basic business registration.
How does a sole proprietor pay income tax?
A sole proprietorship does not file a separate corporation income tax return. The owner reports the business's income or loss on their individual T1 income tax and benefit return.
For business or professional activities, Form T2125, Statement of Business or Professional Activities, is generally used to report business income and expenses. Different forms apply to certain farming and fishing activities.
The owner pays personal income tax on the net income generated by the business. Depending on the circumstances, a sole proprietor may also have to make income tax and Canada Pension Plan instalment payments. Quebec Pension Plan rules may apply in Quebec.
Tax filing deadlines for self-employed individuals
Self-employed individuals generally have a later personal income tax return filing deadline than most individuals. For the 2025 tax year, the CRA set June 15, 2026 as the general filing deadline for self-employed individuals and their spouses or common-law partners, subject to applicable exceptions. Any balance owing for the 2025 tax year was generally due April 30, 2026.
Tax dates change by tax year. Check the CRA's current deadlines for the return you are filing rather than relying on a previous year's date.
What records should you keep?
Keep complete records of business income, expenses and transactions so that you can support the amounts reported to the CRA. Records can also be important for GST/HST, payroll and other obligations when those program accounts apply.
Separate business and personal record-keeping can make tax reporting easier even though the sole proprietorship and owner are not separate legal entities.
Sole proprietorship registration checklist
- Confirm that a sole proprietorship is appropriate for your business.
- Identify every province or territory where you will operate.
- Choose whether to use your legal name or a business name.
- Check the business-registration rules for your jurisdiction.
- Register the business name where required.
- Determine whether you need a CRA Business Number.
- Check whether GST/HST registration applies.
- Open a payroll account if required for employees or other applicable payments.
- Check BizPaL and relevant authorities for permits and licences.
- Set up business records for income, expenses and tax reporting.
What happens if you later incorporate?
Changing from a sole proprietorship to a corporation changes the legal status of the business. The CRA treats this as more than a simple name change. You must first create the new corporation through the appropriate federal or provincial incorporating authority.
A new corporation generally receives or requires its own BN and corporation income tax account. Existing GST/HST, payroll and other program accounts associated with the sole proprietorship are not automatically transferred to the corporation, so follow the CRA's current change-of-legal-status procedure when incorporating an existing sole proprietorship.
Frequently asked questions
Do I have to register a sole proprietorship in Canada?
Most businesses need to register with the provinces or territories where they plan to operate. However, the Government of Canada states that in some cases a sole proprietorship operating under the owner's own legal name does not need to register. Check the rules of your specific province or territory.
Is a sole proprietorship registered federally in Canada?
There is no single federal registration that creates every Canadian sole proprietorship. Business registration is primarily provincial or territorial. Federal CRA registration for a Business Number and tax program accounts is separate.
Can I run a sole proprietorship under my own name?
Yes. The CRA states that a sole proprietor may operate under their own name, a registered business name or both. Provincial or territorial registration requirements still need to be checked.
Do I need a Business Number as a sole proprietor?
Not necessarily. The CRA states that an unincorporated business only needs a Business Number when it registers for CRA program accounts. Examples include GST/HST and payroll deductions accounts.
Is it free to register a sole proprietorship in Canada?
There is no single national registration fee. Provincial and territorial registration and business-name fees vary. CRA registration for a Business Number or program account does not have a registration fee.
Do I need GST/HST registration as a sole proprietor?
You may need to register if you make taxable supplies in Canada and no longer qualify as a small supplier. For most businesses, the standard small-supplier threshold is $30,000 under the CRA's applicable revenue tests. Special rules apply to some activities.
Can I register for GST/HST voluntarily if my sales are below $30,000?
Generally yes, if you are an eligible small supplier making taxable supplies in Canada. Voluntary registration means you take on GST/HST collection, filing and remittance obligations.
How does a sole proprietor pay tax in Canada?
A sole proprietor reports business income or loss on their individual T1 income tax and benefit return. Form T2125 is generally used for business or professional income and expenses. The owner pays personal income tax on net business income.
Do I need a separate business bank account as a sole proprietor?
The CRA states that if your business has a name other than your own, you need a separate bank account to process cheques payable to the business. Keeping business and personal transactions organized separately can also simplify record-keeping.
Do I need business permits after registering a sole proprietorship?
Possibly. Registration does not replace federal, provincial, territorial or municipal permits and licences. Requirements depend on your activities and location. Canada's BizPaL service can help identify permits and licences in participating jurisdictions.
Can I register a sole proprietorship online in Canada?
Online registration is available in many jurisdictions, but the process depends on the province or territory. CRA Business Registration Online is available separately for Business Number and applicable CRA program-account registrations.
What happens to my sole proprietorship if I incorporate later?
Incorporating changes the legal status of the business. You must create a corporation through the appropriate incorporating authority, and CRA Business Number and program-account changes may be required. Existing program accounts are not automatically transferred to the new corporation.