Municipal Requirements to Start a Business

This document is an overview of some of the municipal requirements that may apply to starting a business in Ontario; however, this information is general in nature and does not cover all situations or all municipal jurisdictions.  For more information on municipal requirements, contact the clerk of the city, town, village or rural municipality where your business will be located.  An index of Ontario municipal web sites can be found on the Association of Municipalities of Ontario web site .

Summary

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 further information:
visit the web site:   Your Guide to Small Business
see the document:  Business Licences

It may be useful to contact a private business consultant, lawyer or accountant.

Municipal Licences

Each municipal government has the authority to issue its own business licences within its jurisdiction. While not all types of businesses require a municipal licence, many do, so check with the appropriate local officials to find out if your business does.

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 or by checking the appropriate municipal government web site.

Zoning Bylaws

All municipalities have zoning and building regulations. You’ll have to check with municipal authorities to ensure that your business conforms.

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

Some zoning information may also be found on the appropriate municipal government web site.

A useful definition of zoning by laws can be found on the  Ministry of Municipal Affairs and Housing   web site.

Municipal Building Department

A business location is subject to inspection by the Municipal Building Department to make sure that it meets local safety requirements. Most municipalities require a building permit before alterations or new construction begins.

It is extremely important that obtain the necessary building permit(s) before beginning alterations or new construction.

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

Ontario Building Code

The Building and Development Branch administers the Building Code Act (BCA) and the Ontario Building Code (OBC), which govern the construction of new buildings and the renovation and maintenance of existing buildings.

For further information:
visit the web site:  Ontario Building Code

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
• Municipal Property Assessment Corporation
• Your Local Government
• Association of Municipalities of Ontario
• City of Toronto Municipal Licensing and Standards
• Downloadable list of all Ontario Municipalities
• Ontario Ministry of Government and Consumer Services Contacts for Permits and Licences
• Municipal Act, 2001

This document was prepared by the Canada-Ontario Business Service Centre from a variety of sources, including the publication " Your Guide to Small Business ".