Starting a business is a big undertaking, and it can be overwhelming to figure out where to start. That’s why we created this straightforward guide to walk you through the steps to starting a small business in British Columbia (BC). We’ll also leave you with some resources to make sure you get your business started off on the right foot.
As a business owner, it’s your responsibility to adequately educate yourself on the laws related to operating a business in BC. With that in mind, let’s go over some things you need to know when it comes to the legal requirements in the province.
Key Takeaways
- Starting a business in BC means choosing the right structure, then completing your BC Business Name Registration and getting your BC Business Number (BN) from the CRA.
- BC has its own tax rules. You may need to collect and remit BC Provincial Sales Tax (PST) on top of GST, depending on what you sell.
- Tools like BizPaL and Ownr make it easier to find the permits you need and get your business registration done quickly and correctly.
Legal requirements for starting a business in BC
BC’s legal requirements depend on your business structure, name, and where you plan to operate. Here’s what you need to know upfront:
- Not all businesses must register, but you’re required to if you operate under a name other than your own or incorporate.
- If you register a business with BC Registry Services provincially, you’ll need extra-provincial registration to operate in other provinces.
- You don’t have to be a Canadian citizen or permanent resident to start a business in BC. Your eligibility depends on your visa or permit type. Check with Immigration and Citizenship Canada to confirm. Read our guide on starting a business as a newcomer to Canada for more details.
Use BizPaL to get a customized list of all the licences and permits your business may need. You can also obtain industry-specific permits and a municipal business licence through the same portal.
How to start a business in BC: a checklist
Now that you’re aware of some of the legal requirements, let’s get into our 10 step checklist for how to start a business in BC.
1. Decide on a business idea
Most aspiring business owners fall into one of two camps: those who know exactly what kind of business they want to start, and those who have no idea. If you already have the perfect business idea, you can move onto the next step.
When coming up with your business idea, consider playing to your strengths. This means choosing an idea that incorporates your interests, experience, or educational background. People are more likely to trust a business that’s run by someone with demonstrable experience in the industry as opposed to someone who is brand new to their field.
2. Test your business idea
Before you invest time and money, validate your business concept first. Here’s how to conduct BC market research quickly:
- Know your audience: Consider demographics such as age, income, and values. This shapes how you market your product or service.
- Research competitors: Identify what they do well and where you can outperform them. That gap is your opportunity.
- Check search demand: Google keywords related to your business. High search volume usually signals a real market.
Talk to real people: Interview potential customers or offer free or discounted products in exchange for honest feedback. Their input is your best early data.
3. Choose your business name
Deciding on a business name is an important step because it sets the tone for your entire business. Depending on the type of business structure you choose, there are different requirements for naming your business.
As a BC entrepreneur, you’re required to submit a business name request unless you meet one of the following criteria:
- Your business is federally incorporated.
- You want your business name to be the Business Number (BN) assigned to you by the CRA when you register or incorporate.
- Your business is a sole proprietorship or general partnership operating under your own legal name.
If you choose to create your own business name, it must include a unique element, a descriptor, and, if incorporating, a corporate designation like “Inc” or “Ltd.” If your business name request is successful, you can register under that name, but only incorporated businesses get guaranteed exclusive use of their name. Incorporating helps protect your business name provincially.
4. Decide on your business structure
Determining the appropriate business structure early affects your taxes, liability, and growth options. Here’s a quick breakdown:
Sole Proprietorship
A sole proprietorship is the simplest structure. You don’t need to register if you operate under your own legal name. If you use a different trade name, registration is straightforward and costs around $40. You have full control, but you’re personally liable for all debts.
As your business grows, this structure can limit your access to funding and bump you into a higher tax bracket.
BC Corporation
A BC corporation is a separate legal entity. This gives you limited liability, lower corporate tax rates, and better access to capital. It’s more complex and expensive to set up. You’ll need to file incorporation documents and maintain corporate bylaws. But if you’re planning to grow, it’s usually worth it.
Other structures, including a general partnership, limited partnership, co-operative association, or non-profit organization, may suit certain business types.
Learn more about BC tax rates to see how your structure affects what you owe.
5. Register or incorporate your business
Let’s go over the steps to register and incorporate a business in BC.
How to register a business in BC
- Complete a business name request. You’ll need to submit two backup business name options in case your first choice is rejected.
- Once your business name has been approved, you’ll receive a Name Request (NR) number, after which you have 56 days to register your business in BC.
- You can register your business online at BC Business Registry, in person, by mail, or Ownr can take care of registration for you. It usually takes about five business days for your business registration to process, and 1-2 business days with priority service ($100 fee).
How to incorporate a business in BC
Submit your business name request. Next, you need to file your Articles of Incorporation. It’s possible to do this by yourself, but not recommended, since the government website doesn’t provide all of the legally required documents.
You could use a law firm to help you incorporate, but it can get expensive. That’s why your best bet for incorporating a business in BC is Ownr. For an affordable price, you’ll receive all of the documents you need to incorporate, automatically tailored to your business. Ownr also takes care of all of your paperwork and securely stores and organizes your legal documents.
How to incorporate federally
To incorporate your business federally, create an account with Corporations Canada.
Want a deeper breakdown of the process? Read our full guide on how to incorporate in British Columbia before you get started.
6. Write a business plan
Even if you’re starting small, a well-written business plan can set you up for long term success, especially when it comes to receiving funding. Many business loans or grants require a business plan in order for them to consider funding your business. Plus, writing a business plan will make you more aware of what areas need further attention before your business is ready to launch.
If you need help creating your business plan, Small Business BC has a business plan guide and template to get you started.
7. Secure business financing
You may already have a nest egg saved up to start your business, but chances are, at some point, you’ll need to look for additional funding and financing. Here are some places where you can find funding opportunities for your business.
- Government of Canada Business Benefits Finder
- BC Government grants
- Government of Canada grants
- Angel investors
- Crowdfunding
8. Develop an online presence
An important part of establishing your business is creating an online presence. This way, when someone searches online for your business, they’ll have no problem finding you. Of course, there’s no better way to do this than to create your own website. However, if you want to start smaller, you can develop your presence on a free social media platform instead.
9. Register for GST and PST
As a BC entrepreneur, you may have to pay GST and PST. Provincial Sales Tax (PST) applies to retail sales involving taxable goods or services, unless specifically exempt. On the other hand, GST is only required if your business’s gross annual revenue exceeds $30,000.
10. Apply for other required permits and licences
Finally, it’s time to apply for any other business licences or permits you need, like municipal licences or industry-specific licences. As we mentioned earlier, BizPaL provides a customized list of all permits and licences you may require for all levels of government, based on your location and industry (e.g. master business licence in Ontario). Other business applications can be submitted online using OneStop, including WorkSafeBC workers insurance, payroll deductions, importing and exporting, and more.
How to Register a Company in British Columbia (BC)
There are two main paths: registration and incorporation. Registration is simpler, faster, and cheaper, typically around $40 for a sole proprietorship + $30 name reservation fee. It gets your BC Business Name Registration on record with the BC Business Registry, but it doesn’t give you the legal protections of a BC corporation.
Incorporation involves more steps and higher startup costs (government and filing fees start around $350 for provincial + $30 name reservation fee), but you walk away with a BC incorporation certificate, a registered office address on record, and limited liability protection.
Once your name reservation is approved through BC Registries, you have three ways to register:
- Online via OneStop: straightforward, but you’ll need to navigate the portal yourself.
- In person or by mail: slower and less convenient.
- Through Ownr: the fastest, most affordable option. All documents are automatically handled and stored.
Standard BC Business Name Registration takes approximately five business days after name reservation approval. If your business grows beyond BC, keep in mind that extra-provincial registration is required before you can comply with regulations in other provinces.
If you want to skip the back-and-forth with government portals, Ownr takes care of your registration or incorporation end-to-end, including filing your articles of incorporation and storing all required legal documents in one place.
Expanding east? Check out our guide on how to start a business in Ontario.
Start Your Business Easily with Ownr
Between choosing your business structure, completing your BC Business Name Registration, and navigating the BC Business Registry, there’s a lot to keep track of, especially when you’re focused on actually building your business.
Ownr makes it simpler. It’s more affordable than going through a law firm, faster than navigating government registration portals on your own, and all your documents are handled and securely stored in one place.
Ownr walks you through each step and handles the paperwork. Entrepreneurs at every stage use Ownr to reduce startup costs and avoid the headaches of DIY registration. If you’re ready to make your business official, register or incorporate with Ownr today.
Frequently Asked Questions
How long does it take to register a business in BC?
It depends on your method and business structure. For standard BC Business Name Registration, expect approximately five business days and 1-2 business days with priority service ($100 fee) after your name reservation is approved. , and 1-2 business days with priority service ($100 fee)
Can a non-Canadian register a company in BC?
It depends on your visa or permit. Your eligibility to operate a business in BC depends on the types of activities permitted by your immigration status. Check with Immigration and Citizenship Canada to confirm whether your status permits you to conduct business here.
Do I need a BC address to register?
Yes. A registered office address in BC is required for all incorporated businesses. This can be your home address, a lawyer’s office, or a virtual office service. Sole proprietors can also use their home address. Your registered office address will appear on public registration records through the BC Business Registry. Some business owners prefer using a virtual office address for privacy reasons.
How do I check whether a business name is available in BC?
Pre-search existing business names for free on BC Registries or OrgBook BC, but you’ll need to submit a formal Name Request (and pay the $30 fee) to officially reserve your chosen name.
What happens after I register? What are my ongoing obligations?
Your ongoing obligations may include renewing your BC Business Name Registration before it expires, filing annual reports, collecting and remitting BC Provincial Sales Tax (PST) and GST as applicable, and maintaining WorkSafeBC registration if you hire employees. You’ll also need to stay on top of municipal business licences and industry-specific permits renewals.
Additional resources for starting a business in BC
You’ve made your way through our checklist, but what now? Just because you’re an entrepreneur doesn’t mean you have to do it all alone. Here are some great resources to help you along the way.
This government business program helps increase small business access to loans from financial institutions by sharing the risk. Most small businesses in Canada are eligible regardless of their business structure, so long as their gross revenue does not exceed $10 million. The program provides up to $1,000,000 per borrower, with restrictions regarding how the loan can be spent.
WorkBC has a number of resources for employers, including the BC Employer Training Grant and a job board. You may also be able to access financial incentives when you hire diverse applicants like Indigenous people, youth workers or apprentices, people with disabilities, immigrants, or temporary foreign workers.
Here you’ll find a number of resources available to Indigenous BC entrepreneurs, including a skills training program, the Indigenous Business Directory, banking services and business financing, and so much more.
PacifiCan is a regional development agency working to support economic development in BC. They provide business support like training, capital, and mentoring, as well as a number of funding programs to suit different types of businesses.
This program helps entrepreneurs with disabilities in Western Canada by providing services including business mentoring, one-on-one counselling, business training and development, and loans.
Supported by the BC government and the federal government, Small Business BC is a non-profit organization offering free resources, business advice, and community events.
Now that you know all about the legal requirements of starting a business in BC and you have a detailed checklist of steps to take to get going, you’re ready to share your business idea with the world.
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This article offers general information only, is current as of the date of publication, and is not intended as legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. While the information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by RBC Ventures Inc. or its affiliates.