Business Start-Up Info-Guide

This Info-Guide is designed to inform prospective entrepreneurs about regulations regarding the start-up of a new business in Newfoundland and Labrador.  The focus is on regulations that apply to all businesses; however, you can obtain additional information on specific business sectors or industries by contacting the Canada/Newfoundland and Labrador Business Service Centre (CNLBSC) or our Network Sites nearest you.

Canada/Newfoundland and Labrador Business Service Centre
90 O'Leary Avenue
P.O. Box 8687
St. John's, Newfoundland & Labrador  A1B 3T1
Telephone: (709) 772-6022
Fax: (709) 772-6090
Toll-free (information): 1-800-668-1010 (in the Atlantic region only)
TTY Toll-free (hearing impaired): 1-800-457-8466
E-mail: info@cbsc.ic.gc.ca
Web site: http://www.cbsc.org/nl
Hours of operation: 8:30 am to 5:00 pm Monday to Friday

TABLE OF CONTENTS

Licenses & Permits
Incorporation
Taxation
Labour Laws
Intellectual Property
Competition & Consumer Laws
Import/Export
Business Insurance

Licenses & Permits

City/Town Councils

(for contact information, consult your local telephone directory)

Municipal governments have varying requirements regarding the operation of businesses within their boundaries.  Your local municipality should be consulted on such matters as:

Government Service Centres

Many of the licenses, permits, or approvals required by small businesses in this province are issued through the various Government Service Centres located throughout the province.  Inspectors at the Centres are responsible for insuring that business owners adhere to regulations regarding:

• building codes
• design of septic systems
• elevator installation/maintenance
• building accessibility for persons with disabilities
• public health and safety.

Food establishment licenses, tobacco and liquor licenses are also issued by the Government Service Centres.

For a complete list of licenses and permits required by GSC, visit the regional office nearest you: GSC - Contacts for Newfoundland and Labrador

Incorporation

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Registry of Companies

In Newfoundland and Labrador, you must register with the Registry of Companies if you decide to incorporate provincially. Sole proprietorships and partnerships are not required to be registered provincially.

The Companies and Deeds On-line (CADO)  system enables users to perform basic searches of the Registry of Companies from their home or office at no cost.  You can also:

• file Articles of Incorporation
• file an Annual Return
• file a Notice of Directors
• file a Notice of Registered Office
• request a Name Reservation
• file a Notice of Registered Office in NL
• obtain a Certificate of Good Standing
• pay on-line, where applicable, via Visa or MasterCard through a secure payment system.

The basic fee for provincial incorporation is $300. For a complete schedule of fees, see: Registry of Companies - Fees

Department of Government Services
Ground Floor, East Block
Confederation Building
P.O. Box 8700
St. John's, NL  A1B 4J6
Telephone: (709) 729-3317
Fax: (709) 729-0232
Web site: http://www.gs.gov.nl.ca/cca/cr/

Corporations Canada

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Federal incorporation gives you the right to carry on business anywhere in Canada and provides heightened name protection.  The fee for filing federal articles of incorporation is $200 if filed online through the Corporations Canada Online Filing Centre ($250 if filed through other means).

In addition, unless the company is going to request a numbered name, a NUANS® name search report will have to be filed. The NUANS® report may be obtained from an independent search house (the cost is approximately $75 per search) or by direct search (the NUANS® Real-Time System) which costs $20. Again, this is done through the Online Filing Centre. 

If you simply want to search the Federal Corporations Data On-line, you can do so for free. (NOTE: This is not a real-time search. This database is updated every few hours, so results may vary from a NUANS® Real-Time System search).

For general information on the advantages and disadvantages of each form of ownership, see the document  Forms of Business Organization

Corporations Canada
Industry Canada
9th Floor
Jean Edmonds Tower South
365 Laurier Avenue West
Ottawa, Ontario  K1A 0C8
Telephone: (613) 941-9042
Fax: (613) 941-0601
Toll-free (information): 1-866-333-5556
E-mail: corporationscanada@ic.gc.ca
Web site: http://corporationscanada.ic.gc.ca/epic/internet/incd-dgc.nsf/en/home?OpenDocument

Taxation

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City/Town Councils

(for contact information, consult your local telephone directory)

Consult your city/town council for information on business tax rates within your municipality.

Canada Revenue Agency  (CRA)

The Business Number (BN) is a numbering system that simplifies and streamlines the way businesses deal with the federal government. The BN includes the four major CRA business accounts:

• corporate income tax
• import/export
• payroll deductions, and
• goods and services tax/harmonized sales tax (GST/HST).

If you need at least one of these four CRA business accounts, you will need a Business Number. As well, you should note that many suppliers prefer to do business with companies that have a Business Number.

Before registering for the BN, you should make some important decisions about the business you plan to operate. For instance, you should know the name of the business, its location, its legal structure (e.g., sole proprietorship, partnership, or corporation) and its fiscal year-end. You also need to estimate your business's sales.

A Business Number is not necessary if your business (i) makes $30,000 or less per year, or (ii) does not plan to hire employees.

If you are a sole proprietor or a partner in a partnership, you will continue to use your social insurance number (SIN) to file your individual income tax return, even though you may have a BN for your GST/HST, payroll deductions, and import/export accounts.

The following Canada Revenue Agency guides provide additional information:

• Guide for Canadian Small Businesses
• Business and Professional Income
• Employee or Self-employed

St. John's Tax Centre
Canada Revenue Agency
290 Empire Avenue
St. John's, Newfoundland & Labrador  A1B 3Z1
Fax: (709) 754-3416
Toll-free (information): 1-800-959-5525 T.I.P.S. Automated Services 1-800-267-6999
Toll-free (publications): 1-800-959-2221 (Forms and Publications)
TTY Toll-free (hearing impaired): 1-800-665-0354
Web site: http://www.cra.gc.ca/menu-e.html

Labour Laws

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Labour Relations Agency

The Department of Human Resources, Labour and Employment is responsible for the Labour Relations Agency. The Agency has a Frequently Asked Questions  section on their web site which covers the following topics related to provincial employment regulations:

• Benefit Eligibility
• Hours of Work
• Payment of Wages
• Payroll Administration/Records
• Vacation and Vacation Pay
• Public Holidays
• Termination of Employment
• Pregnancy Leave
• Parental Leave
• Adoption Leave
• Bereavement Leave
• Employment of Children
• Sick/Family Responsibility Leave

Labour Relations Agency
3rd Floor, Beothuck Building
20 Crosbie Place
P.O. Box 8700
St. John’s, NL  A1B 4J6
Telephone: (709) 729-2743/2742
Fax: (709) 729-3528
Toll-free (information): 1-877-563-1063
Web site: http://www.hrle.gov.nl.ca/lra/

Human Resources and Social Development Canada (HRSDC)

Tel: 1-800-0-Canada (1-800-622-6232)
[Note:  Inquiries for HRSDC and some other federal government departments are handled through Service Canada ]

Federal labour and workplace information for employers and entrepreneurs can be found on HRSD's web site. Partnership initiatives and funding programs, including wage subsidies, are also covered.

Their HR for Employers  web site is a one-stop information source for human resources management for small to medium sized businesses. Topics covered include:

• Hiring Employees
• Payroll/Benefits
• Departing Employees
• Training Employees
• Employee Relations
• Health & Safety
• HR Planning.

Local Offices (NL)

Canada's National Occupational Health and Safety Web Site

This web site allows Canadians to easily and independently locate occupational health and safety information provided by the federal, provincial and territorial governments of Canada and by the Canadian Centre for Occupational Health and Safety (CCOHS).

Included is information on:

Department of Government Services - Occupational Health and Safety Division
Tel: 1-800-563-5471

Service Canada (HRSDC) - Occupational Health and Safety
Tel: 1-800-0-Canada (1-800-622-6232)

Health Canada - Workplace Health and Public Safety Programme (WHPSP)

Workplace Health, Safety and Compensation Commission (WHSCC)

PRIME is the acronym for the Commission’s new employer incentive program. PRIME has two parts. The Practice Incentive recognizes employers for their good practices in the areas of occupational health and safety and return to work through a 5% refund on average annual assessments. Employers who meet these requirements will be eligible for further refunds in part two of PRIME - the Experience Incentive.

Who must register?
The Workplace Health, Safety and Compensation Act requires all employers performing work in the Province of Newfoundland and Labrador to register with the Workplace Health, Safety and Compensation Commission (the Commission).

Incorporated businesses/limited companies/incorporated associations
All incorporated companies must register with the Commission.  Coverage is mandatory for all workers, including the owner, directors or managers, even if the owner is the only worker.

Non-incorporated businesses
A non-incorporated business is not required to register if the only workers are the proprietor or partners.

WHSCC - Contacts for Newfoundland and Labrador

Intellectual Property

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Canadian Intellectual Property Office

In this province, the Canada/Newfoundland Business Service Centre is an intermediary for CIPO, which means that we assist with inquiries on intellectual property, connect clients with CIPO's staff in Halifax, N.S., and arrange information sessions when CIPO staff are visiting this Province.

There are various types of intellectual property protection such as patents; trade-marks; copyrights; and industrial designs. The following guides on CIPO's Web site are quite helpful in understanding each:

• Guide to Copyrights
• Guide to Patents
• Guide to Trade-marks
• Guide to Industrial Designs

From CIPO's web site, you can also do free searches of  the:

• Canadian Patents Database
• Canadian Trade-marks Database

Mr. Tom Boyd
Business Development Officer
Canadian Intellectual Property Office
1575 Brunswick Street
Halifax, Nova Scotia  B3J 2G1
Telephone: (902) 426-6476
Fax: (902) 426-6530
Toll-free (information): 1-800-668-1010
E-mail: boyd.tom@cbsc.ic.gc.ca
Web site: http://cipo.gc.ca

Socan

SOCAN is Canada's national performing rights society.  The law (the Copyright Act of Canada) requires that the users of music obtain a SOCAN license to perform or authorize others to perform copyright music in public.  Therefore, performances of music, live or recorded, in public whether in restaurants, clubs, hotels, banquet halls, dance halls, offices, stores, etc., all require payment of a license fee.  The cost of the SOCAN license depends upon the particular use of music and the type of establishment being licensed.

SOCAN
Suite 802
45 Alderney Drive
Queen Square
Dartmouth, Nova Scotia  B2Y 2N6
Telephone: 902-464-7000
Fax: 902-464-9696
Toll-free (information): 1-800-70 SOCAN (1-800-707-6226)
Web site: http://www.socan.ca

Competition & Consumer Laws

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Competition Bureau

The Bureau is an independent law enforcement agency responsible for the administration and enforcement of the following Acts:

• Competition Act
• Consumer Packaging and Labelling Act
• Textile Labelling Act
• Precious Metals Marking Act.

It promotes and maintains fair competition so that Canadians can benefit from competitive prices, product choice and quality services. The organization investigates anti-competitive practices and promotes compliance with the laws under its jurisdiction.

The Business section of the Bureau's web site helps businesses understand their obligations under Canadian competition law and provides useful information on compliance.

THIS CONTACT SERVES ALL REGIONS
Information Centre
Competition Bureau
Phase 1, Place du Portage
50 Victoria Street
Gatineau, Quebec  K1A 0C9
Telephone: (819) 997-4282
Fax: (819) 997-0324
Toll-free (information): 1-800-348-5358
TTY Toll-free (hearing impaired): 1-800-642-3844
E-mail: compbureau@cb-bc.gc.ca
Web site: http://www.competitionbureau.gc.ca

Privacy Commissioner of Canada

In Canada, we are protected by two federal privacy laws. The Privacy Act covers the personal information-handling practices of the federal government and the Personal Information Protection and Electronic Documents (PIPED) Act is Canada's new private sector privacy law, which came fully into effect on January 1, 2004.

The PIPED Act sets out ground rules for how private sector organizations can collect, use or disclose personal information in the course of commercial activities. It balances an individual's right to privacy with the need of organizations to collect, use or disclose personal information for legitimate business purposes.

For information on your responsibilities under the Act, see the
PIPEDA Guide for Businesses and Organizations

Privacy Commissioner of Canada
3rd Floor, Tower B
Place de Ville
112 Kent Street
Ottawa, Ontario  K1A 1H3
Telephone: 613- 995-8210
Fax: 613-947-6850
Toll-free (information): 1-800-282-1376
TTY (hearing impaired): 613-992-9190
E-mail: info@privcom.gc.ca
Web site: http://www.privcom.gc.ca
Hours of operation: 9:00 a.m. to 5:00 p.m. (EST) Monday to Friday.

Import/Export

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Canada Border Services Agency

The CBSA's Small and Medium-sized Enterprise Centre is tailored to meet the border and trade information needs of small and medium-sized enterprises (SMEs).  Resources found here will help SMEs comply with the legislative and border requirements of the CBSA. Included are two guides:

• Importing - A Step-by-Step Guide
• Exporting - A Step-by-Step Guide.

Canada Border Services Agency
165 Duckworth Street
6th floor
St. John's, Newfoundland & Labrador  A1C 1G4
Toll-free (information): 1-800-461-9999
Web site: http://www.cbsa.gc.ca/menu-e.html

Team Canada Inc

The Canada/Newfoundland and Labrador Business Service Centre (CNLBSC) initially handles all calls from this province to Team Canada Inc.  From TCI's web site, you can access key resources such as:

• Roadmap to Exporting
• Export Assistant
• Export Diagnostic
• Export Training
• Guides and Tools
• TradeMap
• Virtual Trade Commissioner.

CNLBSC staff will also put you in contact with local trade experts including staff from:

• Trade Team Newfoundland and Labrador (TTNL)
• Department of Innovation, Trade and Rural Development (INTRD)
• Atlantic Canada Opportunities Agency (ACOA)
• Canadian Manufacturers and Exporters - NL Division (CME-NL)
• Export Development Canada (EDC).

Canada/Newfoundland and Labrador Business Service Centre
90 O'Leary Avenue
P.O. Box 8687
St. John's, Newfoundland & Labrador  A1B 3T1
Telephone: (709) 772-6022
Fax: 709-772-6090
Toll-free (information): 1-888-811-1119
TTY Toll-free (hearing impaired): 1-800-457-8466
E-mail: info@cbsc.ic.gc.ca
Web site: http://exportsource.ca/gol/exportsource/site.nsf/en/index.html
Hours of operation: 8:30 am to 5:00 pm Monday to Friday

Business Insurance***

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Insurance is an essential part of financial planning. Unless you are willing to pay personally for business catastrophes and lawsuits, you will need to consult an insurance agent and purchase insurance.

You may not be aware of the types of business catastrophes that could conceivably occur in your business. It is the job of your insurance agent to tailor a policy that best fits your needs. Here are some examples of insurance coverage that would protect you against a claim:

Personal liability - protects against claims made by those who suffer bodily injury on your premises

Product liability - protects against law suits by customers who are injured while using your product

Fire - will enable you to rebuild or repair the business location as well as replace equipment and inventory in the event of fire damage

Automobile - protects your vehicle during business use

Disability - will provide income during a period when you cannot work

Business interruption - compensates for lost earnings during a temporary halt in business caused by a major disaster such as fire, tornado, flood, etc.

Life - provides protection against financial loss caused by your death or serious injury

Workers' Compensation - covers treatment of injuries and loss of pay related to employee accidents or illness on the job

Crime/Theft - reimburses for losses due to robbery, burglary, employee dishonesty

Bonding - ensures protection for faithful representation.

*** From: Selecting Professional Services

DISCLAIMER
Information contained in this document is of a general nature only and is not intended to constitute advice for any specific fact situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

Links Policy
Some of the hypertext links lead to non-federal government sites which are not subject to the Official Languages Act and the material is available in one language only.