Creating a startup in Canada involves several key steps, from planning to legal registration and funding. Here’s a simplified guide to the basic requirements:

1. Business Idea & Market Research

  • Validate your idea by researching demand, competition, and target customers.
  • Define your Unique Value Proposition (UVP).

2. Choose a Business Structure

  • Sole Proprietorship (simple, but personal liability).
  • Partnership (shared ownership and risks).
  • Corporation (separate legal entity, protects personal assets, better for investors).
  • Most startups choose incorporation (federal or provincial) for credibility and funding opportunities.

3. Register Your Startup

  • Name Your Startup: Conduct a NUANS search (for corporations) to ensure name availability.
  • Federal/Provincial Incorporation:
    • Federal (allows business across Canada, but may require extra provincial registration).
    • Provincial (if operating mainly in one province).
  • Obtain a Business Number (BN) from the CRA (for taxes, payroll, GST/HST).

4. Legal & Tax Requirements

  • GST/HST Registration: Required if revenue exceeds $30,000/year (optional below).
  • Corporate Tax Filing: Even if no revenue, file annually.
  • Startup Visa Program (if immigrating as an entrepreneur with investor support).

5. Permits & Licenses

  • Depends on industry (tech, food, health, etc.).
  • Check federal, provincial, and municipal regulations.

6. Open a Business Bank Account

  • Needed for separating finances (especially for corporations).
  • Some banks offer startup-friendly accounts (e.g., RBC, BDC).

7. Protect Intellectual Property (IP)

  • Trademarks (brand name/logo) – via Canadian Intellectual Property Office (CIPO).
  • Patents (inventions) – if applicable.
  • Copyrights (software, content).

8. Funding & Grants

  • Bootstrapping (self-funding).
  • Government Grants & Loans:
    • Canada Small Business Financing Program (CSBFP)
    • Scientific Research & Experimental Development (SR&ED) Tax Credit (for tech/R&D).
    • Regional grants (e.g., IRAP, NRC, provincial programs).
  • Angel Investors & Venture Capital:
    • Networks like AngelList, MaRS, BDC Capital.
  • Crowdfunding (Kickstarter, SeedInvest).

9. Build a Team

  • Hire employees (register for payroll deductions with CRA).
  • Use contractors/freelancers for flexibility.
  • Consider Equity Incentives (stock options for early employees).

10. Set Up Operations

  • Accounting & Bookkeeping (QuickBooks, Xero, or an accountant).
  • Business Insurance (liability, errors & omissions, etc.).
  • Tech Setup (domain, website, SaaS tools like Slack, CRM).

11. Launch & Scale

  • MVP (Minimum Viable Product) launch to test the market.
  • Marketing & Sales Strategy (digital marketing, partnerships).
  • Networking (startup incubators, accelerators like DMZ, Y Combinator Canada).

Key Resources for Canadian Startups