Business Start-up Frequently Asked Questions

Starting Up

Starting up a small business gives rise to new experiences and endless questions. But one of the first things you should find out about is the law. The municipal business license office is the first place to check for local regulations that concern new businesses. You can find out about:

  • Zoning Requirements
  • Business Licenses (most businesses will need one before starting up)
  • Other regulatory information on starting up a business in your area

The following are common questions asked when starting up a business. In answering these questions, you will be better equipped to make the necessary decisions to begin the entrepreneurial process.

  1. What do I need to open a business bank account?
  2. Is it legal to run a business from the location I’ve chosen?
  3. Who issues business licenses?
  4. Will registering my business protect its name?
  5. What do I need to buy wholesale products for my business?
  6. What do I need to know before planning a home-based business?
  7. I plan on working as a contractor. Do I need to register my business?
  8. How and why do I register for GST?
  9. Do I need to register for PST?


What do I need to open a business bank account?
In order to open a business bank account, most banks will require proof that you have registered your business with the Corporate Registrar’s office.

Is it legal to run a business from the location I’ve chosen?
In most cases, cities and municipalities can give you information on the zoning requirements for the area in which you wish to set up business.

Who issues business licenses?
The municipal business license office issues business licenses; this is something that most businesses will need to acquire before starting up.

Will registering my business protect its name?
Registering your business name as a sole proprietorship or a general partnership does not protect the name. You can protect your business name:

  • Provincially, by setting it up as a corporation.
  • Federally, by setting it up as a corporation.

What do I need to buy wholesale products for my business?
Wholesalers need to see your Social Services Tax (PST) number. You can get one by contacting the office for a form (1-877-388-4440), or by registering a PST number online at www.bcbusinessregistry.ca.

What do I need to know before planning a home-based business?
It’s advisable to research the regulations for the area where you live. Some types of home businesses may not be allowed in your area of the city (zoning is determined by the municipality’s business license office.

Some businesses require industrial space. For example food products can only be manufactured in an industrial kitchen that has been inspected by the local health unit. Therefore, a catering business would need access to an industrial kitchen.

Be forewarned, not disappointed. Check with your municipal business license office [link to the cities & municipalities list] before expending any effort or unnecessary expense.

I plan on working as a contractor. Do I need to register my business?
If you plan to operate a self-employed, non-incorporated business under your own name, without adding anything to your name, (eg: John Smith), then there is no need to register the business with the corporate registrar. Keep in mind that in order to open a business bank account, most banks require proof that your business is registered either as a sole proprietorship, or as a corporation.

If you decide to add something to your name (eg: John Smith Services), then you would need to register it. (Note that registering the name does not necessarily protect it.)

Depending on the kind of work you are doing, you may require a business license. It is best to check with your local municipality to make sure that you are fulfilling requirements.

How and why do I register for GST?
It is possible to register a GST number at any time, however it becomes mandatory at the point that you reach $30,000 worth of gross sales in any consecutive 4 quarters (basically any one-year period). You cannot charge GST unless you are registered for GST.

CRA contact info: toll free: 1-800-959-5525 web site http://www.cra-arc.gc.ca .

Do I need to register for PST?
The PST (social service tax) is a provincial sales tax administered by the Consumer Taxation Branch. You are required to register as a vendor and collect PST on your taxable sales and leases if you sell goods at retail, lease goods as a lessor, provide legal services, provide taxable services (for example, repairs to goods), or provide telecommunication services.  For more information, phone 604 660-4524 in Vancouver or toll-free at 1-877-388-4440 elsewhere in Canada, or check out the website: http://www.rev.gov.bc.ca/ctb/