The Canadian Small Business Compliance Checklist

Starting a business in Canada is exciting, but compliance requirements can feel overwhelming. Federal, provincial, and municipal regulations create a layered system that varies depending on your industry, province, and business structure. This checklist distills the essentials into 15 actionable items that every Canadian business owner should complete in their first 90 days. Print it out, work through it methodically, and you will have a solid compliance foundation.

Business Formation (Days 1-15)

1. Choose and register your business structure. Decide between sole proprietorship, partnership, or corporation. Each has different liability, tax, and compliance implications. Register with your provincial registry (e.g., ServiceOntario, BC Registry Services, Alberta Corporate Registry).
2. Obtain a Business Number (BN) from CRA. This is your unique identifier for federal tax accounts. You will need it for GST/HST, payroll, import/export, and corporate income tax accounts.
3. Register for GST/HST collection. Mandatory once your revenue exceeds $30,000 in four consecutive quarters. Many businesses register voluntarily from day one to claim input tax credits.
4. Open a dedicated business bank account. While not legally required for sole proprietors, it simplifies accounting, tax filing, and CRA audit trails.

Employment and Payroll (Days 15-30)

5. Register payroll accounts with CRA. Required before your first payroll. You must deduct and remit income tax, Canada Pension Plan (CPP), and Employment Insurance (EI) contributions for all employees.
6. Register with your provincial workers' compensation board. WSIB (Ontario), WorkSafeBC (BC), WCB (Alberta), and CNESST (Quebec). Mandatory in most provinces once you hire your first employee; mandatory in some industries (construction, manufacturing) even without employees.
7. Understand employment standards. Each province has employment standards legislation covering minimum wage, hours of work, overtime, vacation, and termination. Know the rules in your province before you draft your first employment contract.
8. Create workplace health and safety policies. Under federal and provincial OHS legislation, employers must provide a safe workplace. Even a one-page policy is better than no policy.

Licences and Permits (Days 30-60)

9. Obtain a municipal business licence. Almost every municipality in Canada requires businesses operating within their boundaries to hold a valid business licence. Check with your local city hall.
10. Check industry-specific permits. Depending on your industry, you may need food handling permits, construction licences, professional regulatory body memberships, or environmental permits.
11. Verify zoning compliance. Ensure your business location is properly zoned for your type of business, especially if operating a home-based business.

Privacy and Data (Days 60-75)

12. Draft a privacy policy. If you collect any personal information (customer names, emails, payment info), PIPEDA or your provincial privacy law requires you to have a published privacy policy explaining what you collect, why, and how you protect it.
13. Implement basic data security. At minimum: strong passwords, multi-factor authentication on business accounts, encrypted storage for sensitive data, and regular backups.

Insurance and Risk (Days 75-90)

14. Obtain business insurance. At minimum, consider general liability insurance and professional liability (errors and omissions) insurance if you provide services. Many commercial leases require proof of insurance.
15. Set up a compliance calendar. Track all renewal dates, filing deadlines, and regulatory milestones. Missing a deadline is the most common cause of compliance lapses for small businesses.

Key Takeaways

• The first 90 days set the compliance foundation for your entire business — do not rush through these items.
• CRA registration, provincial workers' compensation, and municipal business licences are non-negotiable basics.
• Privacy compliance applies from day one if you collect any personal information — even a customer email list.
• A compliance calendar is your single most valuable tool for staying on track after the initial setup.
• When in doubt, check with your province's business services portal (e.g., BizPaL) for a customized list of requirements for your industry and location.