Tourism is one of the most important economic sectors in Canada and starting a business in this industry can help any foreign investor who wants to take advantage of the business opportunities offered by this country. One of the best ways of starting a business in tourism in Canada is by starting a HORECA company. HORECA comes from hotel, café, restaurant which means incorporating one company which offers all these services. However, there is also the possibility of offering one or two of these services.
Foreign investors can also open HORECA companies under the same conditions and requirements as local entrepreneurs. They can also receive the support of our company formation consultants in Canada if they want to set up HORECA businesses here.
Registering a business for opening a Canadian HORECA company
The first important step when opening a HORECA company in Canada is to choose the legal entity under which the business will operate. In this case, the corporation is the most suitable type of company as it can cover the needs of a small and medium-size enterprise.
The following documents need to be considered when registering a company in Canada:
- the business name reservation is one of the most important steps, however, a business number can also be obtained;
- the company’s Articles of Association must provide information about the shareholders and the object of activity of the company;
- the personal information of the shareholders and directors must also be filed with the Trade Register;
- other documents could be required depending on the province the company will operate in.
Once the registration with the Companies Office is completed, the HORECA business must also obtain tax and VAT numbers and start the application procedure for the necessary licenses and permits.
It should be noted that the opening of a HORECA company in Canada depends very much on whether the business is set up at a federal or provincial level, as each authority has its own regulations and requirements related to the business licenses which must be obtained.
Our specialists in company registration in Canada can offer tailored information based on where you want to open a HORECA business.
Licensing requirements for HORECA companies in Canada
The licenses which must be obtained when opening a HORECA company in Canada will depend on the services the business will offer. For food establishments, the number of business permits can be extended based on all the facilities on the premises.
Among these licenses, we mention the following:
- the food license which is required for preparing and selling food products;
- the liquor license which is required for serving alcoholic drinks;
- a music license is also required for playing music on the premises;
- a sign permit which enables the HORECA company to display its name on the building;
- the municipal business license which is issued by the city hall in which the business operates.
When opening a hotel or food establishment in Canada, the business owner is also required to undergo an inspection from the local police department in order to obtain the fire safety certificate. Another inspection which a restaurant will be subject to is that of the Restaurant and Food Service Inspection.
Considering the licensing requirements and procedures are quite extensive in Canada, we invite you to ask for advice from our local consultants who can guide you through every step of the procedure of setting up a HORECA business.
Employment requisites for HORECA companies in Canada
An important aspect which must be considered when starting a HORECA company in Canada is hiring employees. It should be noted that special conditions apply for the staff in restaurants and hotels in Canada who must be qualified to work in such establishments. The company must also enroll for the workers’ compensation scheme.
Among these requirements, the personnel handling food must have passed certain medical exams.
Also, in order to ensure the success of the HORECA company, business owners might want to consider the special training programs which can be undertaken by them or by the people they hire. Among these, tourism, the liquor, and the food safety training certifications should be considered.
Starting a HORECA company in Canada can be quite rewarding for foreign and local investors who can come up with innovative solutions which are also promoted by the government.
If you are interested in opening a HORECA business in Canada and need assistance, do not hesitate to contact us. We offer specialized company formation services in Canada and we can help you start any type of company in this country.