Starting a business in Canada implies following several steps, among which some are mandatory, while others are not. Obtaining a business number (BN) can become mandatory for companies in certain industries, while for others it needs not to be obtained. The business number is also known as the tax ID number of a company.
Below, we have prepared a guide on how to apply for a business number (BN) when registering a company in Canada.
If you want to open a company in Canada and need assistance in obtaining a business number, our local consultants help you. We can also assist with the company registration procedure in Canada.
The business number is a unique code which can take different forms and can be used for completing various activities with government agencies. The business number can also be used instead of the company’s name, or in other words, upon the incorporation of a company, the business number will replace the procedure of obtaining a trading name for the company.
Our Canadian company formation specialists can offer more information on the business number and the legislation which provides for registering companies in this country.
There are several situations in which the business number is mandatory for Canadian companies. Among these, we mention the following:
If you are interested in setting up a business in Canada, our representatives can assist with the incorporation procedure at both federal and provincial levels.
The Canadian Revenue Agency requires local companies to use their business numbers when completing specific tax operations. Among these, Canadian companies which collect the Goods and Services Tax (GST) or Harmonized Sales Tax (HST), companies benefitting from payroll deductions, companies paying the corporate tax and companies involved in import-export activities are required to obtain the business number.
The BN number is assigned to a company upon registration. The CRA assigns the number when a company registers for taxation purposes for the first time. The BN number has the following structure:
The business number can be obtained online or by filing Form RC1 (Request for a Business Number).
Our company registration advisors in Canada can help you obtain a BN for your company.
There are a few special requirements which need to be taken into account when requesting the BN for a business in Canada. Sole traders, for example, must obtain a separate tax ID for each of the activities completed, if the person carries out multiple activities. A single BN can be obtained only if the sole trader is engaged in a partnership.
For companies registered at a federal level, the BN number is issued by Canada Industry upon the incorporation with the Trade Register. Following that, the companies need to register with the CRA for the programs and accounts corresponding to their activities.
For complete information on how to obtain a tax ID number, you can ask our company formation agents in Canada.
Canada is one of the largest economies in the world, 2019 representing a good year until this moment. Even if the Canadian economy increased at a slower pace, it did register an overall 0.4% growth by May.
Since the start of 2019:
For assistance in obtaining a BN or starting a company in Canada, please contact our representatives.