Municipal Requirements to Start a Business

Summary

Municipal Licences
Each municipal government has the authority to issue its own business licences within its jurisdiction.  Many but not all types of businesses require a municipal licence.  The fees can vary from a few dollars to a thousand or more, but in most cases the fees are nominal.  Since there is no uniformity throughout the province regarding municipal licences for businesses, you should consult with the appropriate local officials to determine if your business will be affected by local regulations and licences.

Businesses (including home-based businesses) must also meet the zoning bylaws that control property uses in their municipality.  In addition, most municipalities require a building permit before alterations or new construction can take place.

To determine if your business will be affected by local regulations, licences, municipal business tax or zoning requirements contact the clerk of the city, town, village or rural municipality where your business will be located.  These numbers can be found in the Blue Pages of the Telephone Directory under the appropriate heading (e.g. Licences and Permits).

Where municipal business licences are required, they are usually intended to control businesses which pose special problems regarding health, safety, and the general well-being of the community.  The local municipality is also responsible for the administration of certain provincial laws such as the Health Protection and Promotion Act , which governs community health standards.

For more information on business licences, check with the appropriate municipal licensing board, commission or bylaw officer.

See the website
http://www.serviceontario.ca/workplacegateway/english/Municipal_Business_Licenses.htm

Do I need a licence to start my own business?

Many types of businesses require licensing from the federal, provincial and/or municipal government.  These requirements could include an operating permit, special permission to operate in your chosen location or specific qualifications for you and/or your employees.  For more in formation

See the websites
Your Guide to Small Business
http://www.sbe.gov.on.ca/ontcan/sbe/en/st_yrguide_en.jsp
The Ontario statutes and regulations published at
http://www.e-laws.gov.on.ca/home_E.asp?lang=en
The Federal Statutes and regulations
http://laws.justice.gc.ca/en/index.html

or contact a private business consultant, a lawyer or an accountant.

Zoning Bylaws
Zoning bylaws are used by the city or town to regulate the use of land.  They state exactly what land uses are permitted in the community and provide information such as where buildings may be located, the types of uses and dwellings permitted, and standards for lot size, parking requirements and building height.  Most municipalities have a planning board to designate areas within the municipality as residential, commercial, light industry, heavy industry, noxious industry, green belt or parkland.  Construction, reconstruction, alterations or additions to a building require approval of the designs by the building department.

If you propose using your property in a way that does comply with the existing bylaw you will have to apply for a zoning change.  Before you apply for rezoning, you should discuss your proposal with the planning staff in the municipality or with the municipal clerk.  They may offer preliminary advice on how to proceed with a formal application and on the fees that may be required.

If you have a proposal that meets the main requirements of the zoning by-law, but does not conform exactly, you can apply for a minor variance.  As long as the general purpose and intent of the bylaw can be maintained, a change of minor variance can be considered by the municipality.  Obtaining a minor variance involves an application to your local Committee of Adjustment followed by a public hearing and full consideration of your proposal.  The public is involved in the process of evaluating your application for zoning amendments or variances.

For details on fees and other requirements, contact the municipal clerk or zoning officer of the city in which the business will be located.

Ontario Building Code and Municipal Building Department
A business location is subject to inspection by the Municipal Building Department to make sure that it meets local safety requirements, such as those designated by the Ontario Building Code and the Ontario Fire Code.  Most municipalities require a building permit before alterations or new construction begins.  It is extremely important, therefore, that you check zoning regulations before signing a lease, and obtain the necessary building permit(s) before beginning alterations or new construction.

The publication "Your Guide to Small Business" contains some useful tips on purchasing and leasing premises. The Municipal Building Department may also have some valuable information for you.

Municipal Business Taxes
Many cities and towns charge business taxes to businesses operating within their jurisdiction.  These taxes can vary according to geographic location, type of business (e.g. manufacturing, retail), and amount of space occupied.  If you are starting a new business or purchasing an existing business, it is wise to inquire with the municipality to determine what local business taxes will be charged and how they will be calculated.  Researching and understanding municipal tax rates should be part of your business plan and may help you decide where to locate your business.  For more information on municipal business taxes, you should contact the taxation office of the city or town where your business will be located.

Additional Documents of Interest

Additional Web Sites of Interest

• Ontario Municipal Board
  http://www.omb.gov.on.ca/index.html
• Municipal Property Assessment Corporation
  http://www.assessmentontario.com
• Your Local Government
  http://www.yourlocalgovernment.com
• Association of Municipalities of Ontario
  http://www.amo.on.ca/YLG/ylg/ontario.html
• Small Business Central
  http://www.sbe.gov.on.ca/ontcan/sbe/en/st_sbc_en.jsp
• City of Toronto Municipal Licensing and Standards
  http://www.city.toronto.on.ca/licensing
• Ontario Municipal Act
  http://www.e-laws.gov.on.ca/DBLaws/Statutes/English/01m25_e.htm
• Links to Canadian Municipal Government Websites
  http://www.municipalworld.com/hotlinks.htm#mun
• Downloadable listing of all Ontario Municipalities
  http://www.mah.gov.on.ca/userfiles/HTML/nts_1_25675_1.html
• Government of Ontario (MGS) Contacts for Permits and Licences
  http://www.cbs.gov.on.ca/mcbs/english/permits_licences.htm