Do you need a separate permit to conduct business?

In Canada, starting and running a business is regulated by a three-tier model: federal, provincial (territorial), and municipal levels. Each level of government sets its own requirements for licenses and permits, so the answer to the question of whether a separate permit is required depends on the nature of the business, its geography, and the scope of its activities. In general, there is no universal “national license,” but most entrepreneurs face the need to obtain at least one or more permits at different levels.

Federal level: business registration and special regulations

At the federal level, all businesses, except for informal sole proprietors without employees and with a turnover of up to CAD 30,000, must register with the Canada Revenue Agency (CRA) and obtain a Business Number. This unique identifier is required for paying taxes (GST/HST), employment contributions (CPP, EI), and interacting with federal support programs. However, the BN itself is not a license, but rather a key to further access to tax and registration services.

Some industries fall under direct federal jurisdiction and require special permits. These include financial services (banks, insurance companies), aviation and rail, interprovincial transportation, telecommunications, radio and television, as well as pharmaceuticals and food import control. Businesses in these sectors must obtain licenses from the relevant federal regulators: Office of the Superintendent of Financial Institutions, Canadian Transportation Agency, CRTC, CFIA, etc.

Provincial level: business registration and professional licenses

When a business is registered at the provincial or territorial level (e.g., Alberta Registries, BC Corporate Registry, Registries of Ontario), the entrepreneur formally obtains the right to operate under the chosen name within the province. For corporations, this involves filing Articles of Incorporation, and for partnerships and sole proprietorships, a Statement of Registration. The provincial registry does not issue “licenses” for all types of businesses, but it does confirm the legitimacy of the business name and structure.

However, provinces regulate a number of professions and industries separately. Medical professionals, lawyers, engineers, accountants, architects, dentists, and other specialists must obtain provincial professional licenses from the relevant associations (e.g., APEGA in Alberta, PEO in Ontario). Failure to comply with professional standards and working without a license results in fines and criminal liability.

The sale of alcohol, gambling, telemarketing, real estate, veterinary services, etc. are regulated separately. These industries require provincial licenses or permits to operate.

Municipal level: business licenses and zoning

The most common licensing requirements relate to municipal business licenses issued by city or district administrations. They are designed to control compliance with local zoning regulations, sanitary requirements, and safety measures. For example, coffee shops, restaurants, hair salons, auto repair shops, office centers, travel agencies, and many other businesses must obtain a municipal license before starting operations.

Zoning checks whether the premises or land are permitted to be used for the relevant type of commercial activity (residential area, commercial area, industrial area). Construction and renovation work usually requires separate building permits, which ensure compliance with building codes, fire safety regulations, and accessibility for people with disabilities.

Industry-specific requirements

Each industry has its own additional requirements. Restaurants must obtain food safety processing and certification permits, transportation companies must obtain commercial transportation and vehicle inspection permits, and builders must obtain licenses from provincial departments of municipal affairs and contractor licenses.

Businesses that sell licensed goods or services (medicines, legal services, financial advice) require appropriate professional or product-specific certifications and permits.

Insurance and financial guarantees

Certain types of activities require entrepreneurs to have liability insurance (professional liability, general liability, errors & omissions) or to provide financial guarantees. For example, construction companies in Alberta must pay contributions to the Workers' Compensation Board, and doctors must have professional liability insurance. The existence of an insurance policy is often checked before a license is issued.

Summary

Therefore, there is no need for a separate nationwide “business license” for all types of activities in Canada — the system is based on a combination of registrations and licenses at various levels. However, virtually every business faces the need for:

• Federal Business Number registration (CRA).
• Provincial registration of the business name and structure.
• Municipal business license and zoning permit.
• Industry-specific licenses (professional, product, construction, food, etc.).
• Insurance and financial guarantees in accordance with industry requirements.

Carefully studying the requirements at each level—federal, provincial, and municipal—will help you avoid fines, delays, and business interruptions. When planning to open or expand your business, always consult with corporate law specialists or business consultants to ensure that all regulations are followed and the necessary permits are obtained. Reliable legal and accounting partners will help you focus on growing your business rather than on bureaucratic details.