Everyone says "it depends." That is not helpful when you are sitting there with an idea and a budget wondering if you can actually afford to make it official. So here are the real numbers. Every province. Every business structure. Broken down to the dollar. Spoiler: it is way cheaper than most people think.
The Quick Answer
Starting a business in Canada costs:
- Sole proprietorship: $0 to $200 (depending on province)
- Partnership: $0 to $200 (same as sole prop in most provinces)
- Corporation (federal): $200 online, $250 by mail
- Corporation (provincial): $200 to $500 depending on province
That is it. That is the mandatory cost to legally start a business. Everything else — website, logo, business cards, fancy office — is optional. You can be a legal business owner by the end of today for less than a nice dinner.
The $0 Path
In Alberta, registering a sole proprietorship is free if you operate under your own legal name. In several other provinces, if you use your own name (e.g., "Jean-Michel Harvey-Perron Consulting"), you do not need to register at all. You are already a business. Legally. Right now.
Cost by Business Structure
| Structure | Registration Cost | Ongoing Annual Cost | Best For |
|---|---|---|---|
| Sole Proprietorship | $0 - $200 | $0 - $60/year (renewal) | Freelancers, side hustles, solo operators |
| Partnership | $0 - $200 | $0 - $60/year | Two or more people, shared liability |
| Provincial Corporation | $200 - $500 | $20 - $50/year (annual return) | Operating in one province, liability protection |
| Federal Corporation | $200 online | $12/year (annual return) | Operating nationally, name protection across Canada |
Most people starting out should go with a sole proprietorship. It is the cheapest, simplest, and fastest. You can always incorporate later when revenue justifies the extra complexity. There is no advantage to incorporating a business that makes $0.
Registration Cost by Province (Sole Proprietorship)
| Province | Registration Fee | Renewal | Notes |
|---|---|---|---|
| Alberta | $0 (own name) / $60 (trade name) | None | Cheapest province to start |
| British Columbia | $40 | None | One-time fee, no renewal |
| Ontario | $60 | Every 5 years | Registers for 5 years |
| Quebec | $36 | $36/year | Annual declaration required |
| Manitoba | $100 | None | Business name registration |
| Saskatchewan | $60 | None | One-time registration |
| Nova Scotia | $60 | $60/year | Annual renewal |
| New Brunswick | $100 | None | One-time |
| PEI | $75 | None | One-time |
| Newfoundland | $100 | $25/year | Annual renewal |
Notice: the most expensive province is $100. The cheapest is free. Nobody should be stopped from starting a business because of registration costs. That excuse is dead.
The Hidden Costs Nobody Mentions
Registration is cheap. But there are other costs that catch people off guard. Here is what to actually budget for:
| Item | Cost | Required? |
|---|---|---|
| Business bank account | $0 - $30/month | Recommended (not legally required for sole prop) |
| Domain name | $15 - $20/year | No, but you should |
| Website hosting | $0 - $30/month | No (free options exist) |
| Bookkeeping software | $0 (Wave) to $30/month | Recommended |
| Business insurance | $30 - $150/month | Depends on industry |
| GST/HST registration | $0 | Required once revenue exceeds $30,000 |
| Accounting (year-end) | $200 - $1,000 | Recommended for corps, optional for sole props |
| Lawyer (incorporation) | $1,000 - $2,500 | Not required (you can self-incorporate online) |
The Real Minimum
The absolute minimum to start a legitimate business in Canada: $0 (Alberta sole prop under own name) to $100 (most provinces). Everything else is optional until you are making money. Do not spend money you have not earned yet.
What You Can Skip
- A lawyer: You do not need one to register a sole proprietorship or even to incorporate. Online self-incorporation through Corporations Canada costs $200 and takes 15 minutes.
- A fancy website: Start with a free Google Business Profile, a LinkedIn page, or a simple one-page site. Revenue first, aesthetics later.
- Business cards: It is 2026. Nobody hands out business cards anymore.
- An office: Work from home. Get a virtual address for $20/month if you need a professional mailing address.
- A logo: Use Canva. Make something in 10 minutes. Rebrand later when you can afford a designer.
What You Cannot Skip
- Business number (BN): Free from CRA. Required if you hire employees, incorporate, or register for GST/HST. Get it at canada.ca — takes 10 minutes online.
- GST/HST registration: Mandatory once your revenue exceeds $30,000 in any four consecutive calendar quarters. Free to register. You charge customers tax and remit it to CRA.
- Separate finances: Not legally required for sole props, but open a separate bank account. Mixing personal and business money is a nightmare at tax time.
- Record keeping: CRA requires you to keep financial records for 6 years. Use Wave (free) or a spreadsheet at minimum.
Federal vs Provincial Incorporation
If you decide to incorporate (usually worth it once net income exceeds $50,000-$60,000 for the small business tax rate advantage):
| Federal | Provincial (Ontario example) | |
|---|---|---|
| Cost | $200 online | $300 online |
| Name protection | Across all of Canada | Only in that province |
| Annual filing | $12/year | $20-50/year |
| Extra requirement | Must also register in province you operate | None |
For most small businesses operating in one province, provincial incorporation is simpler. If you plan to operate nationally or want your business name protected everywhere, go federal.
The Realistic Year-One Budget
Here is what a typical Canadian startup actually spends in year one:
The Lean Startup (freelancer, consultant, online business):
Registration: $60
Domain: $15
Hosting: $0 (free tier)
Bookkeeping: $0 (Wave)
Business bank account: $0 (Tangerine/Simplii)
Total year one: $75
The Incorporated Startup (planning to scale):
Federal incorporation: $200
Provincial registration: $60
Domain + hosting: $200
Bookkeeping software: $0 (Wave)
Accountant (year-end): $500
Business bank account: $0-$180
Insurance: $600
Total year one: $1,560 - $1,740
Neither of these numbers should stop anyone. If you have a business idea that could generate even $1,000/month in revenue, the $75-$1,740 startup cost pays for itself in the first month or two.
Get Started Today
Here is your step-by-step for today — not next week, today:
- Decide your structure: Starting small? Sole proprietorship. Planning to scale? Incorporate later.
- Register your business name: Go to your provincial registry website. Fill out the form. Pay the fee. Done in 15 minutes.
- Get a business number: Go to canada.ca/business-registration. Free. Online. Instant.
- Open a business bank account: Tangerine or Simplii (free). Walk in or apply online.
- Build your plan: Use our free AI business plan generator to map out your strategy before spending anything else.
Total time: about 1 hour. Total cost: $0-$200. You are now a business owner.
For the complete step-by-step guide covering everything from validation to launch, read our full guide to starting a business in Canada. If you need a pitch deck for investors, the pitch deck builder is free too. And once you are running, the Canadian money cheat sheet has all the tax and financial numbers you will need.
The cost of starting a business in Canada is not what stops people. What stops people is thinking it costs more than it does. Now you know the real numbers. The only remaining cost is your time — and your time is worth investing in yourself.
Need personalized guidance for your specific situation? Get free AI business coaching tailored to your industry and goals.
Start today. The registration fee is the cheapest investment you will ever make.
About Sarah Patel
Sarah specializes in helping businesses optimize their financial operations and make strategic investment decisions. Her background in both traditional finance and fintech gives her a unique perspective on modern business challenges.
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