After you incorporate a business through the Ontario Business Registry (OBR), the Canada Revenue Agency (CRA) is notified automatically. Your 9-digit federal Business Number (BN) is typically generated and mailed to your registered office within 1 to 5 business days. Once you have this number, you can officially register for your HST and payroll accounts.
Starting a new company in Ontario is an exciting milestone. Whether you are launching a retail store in London, a tech startup in Toronto, or a consulting firm in Ottawa, formalizing your business structure is the first major step. However, many new founders become confused by the different numbers and registrations required by the provincial and federal governments.
When you incorporate provincially, you instantly receive an Ontario Corporation Number (OCN). But to deal with taxes, payroll, and import/export duties, you need a federal Business Number (BN9) issued by the Canada Revenue Agency (CRA). ⚠ The BN is essentially the Social Insurance Number for your business. Without it, you cannot open commercial tax accounts or register for the Harmonized Sales Tax (HST).
Fortunately, the Ontario government has streamlined this process significantly in recent years. You no longer have to manually apply for a basic CRA Business Number after incorporating provincially. Below is a step-by-step guide explaining the timeline, the automatic integration system, and when you can legally start charging HST in Ontario.
Step-by-Step Process: From Incorporation to CRA Registration
The journey from filing your corporate documents to becoming fully tax-compliant involves a seamless, but sometimes confusing, handover between the Ontario Business Registry (OBR) and the federal government. 📋 Most corporate law firms or online incorporation services manage this flow for you, but understanding the steps is vital for a business owner.
Step 1: Filing Articles of Incorporation with the OBR
The process begins at the provincial level. You, or your lawyer, will file your Articles of Incorporation (Form 1) through the online Ontario Business Registry. You will also submit your NUANS name search report (unless you are opting for a numbered company) and pay the provincial incorporation fee.
As soon as the filing is accepted, Ontario immediately issues your Certificate of Incorporation and your Ontario Corporation Number (OCN). 🏢 Congratulations, your corporate entity legally exists. However, this provincial number is strictly for corporate registry purposes, not for federal taxation.
Step 2: Waiting for the Automatic CRA Integration
You do not need to call the CRA to ask for a Business Number immediately after incorporating. The Ontario Business Registry operates on an integrated system and automatically securely transmits your new corporate details directly to the Canada Revenue Agency.
The CRA system receives this data and automatically generates a unique 9-digit Business Number (BN9) for your corporation. 📬 The CRA will then mail a physical summary letter containing this new Business Number directly to the registered head office address you provided during your provincial incorporation.
Step 3: Receiving the Federal Business Number (BN9)
Your new 9-digit BN is the foundation of your corporate tax identity. It will look something like this: 123456789. Once you receive this number in the mail (or retrieve it earlier by logging into the CRA’s online portals if you are in a rush), you can move on to the critical next steps.
Keep this number secure. 🔒 It will be required anytime you communicate with the federal government, open a corporate bank account at a major Canadian institution, or apply for municipal business licences in cities like Brampton or Mississauga.
Step 4: Registering for Program Accounts (HST and Payroll)
Having a 9-digit Business Number does not mean you are automatically registered for HST! The base BN9 simply identifies your business. To collect taxes or pay employees, you must activate specific program accounts, which attach a two-letter and four-digit suffix to your base number.
For example, you must register online via the CRA’s secure Business Registration Online (BRO) portal or through My Business Account to activate your HST account, which will look like 123456789 RT 0001, as the CRA no longer accepts registrations by phone. 💵 If you plan to hire staff, you will activate a payroll deductions account, resulting in 123456789 RP 0001. It is generally advisable to have your accountant or law firm handle these specific program registrations to ensure correct filing frequencies are selected.
How Much Does the Registration Process Cost?
Getting your Business Number from the CRA is actually free, but getting to that stage requires paying the mandatory provincial incorporation fees. Here is a breakdown of the standard costs for setting up a corporate entity in Ontario:
| Registration Step | Estimated Cost (CAD) |
|---|---|
| Provincial NUANS Name Search | $8 to $20 (approximate) |
| Ontario Business Registry (OBR) Incorporation Fee | $300 flat provincial fee |
| CRA Business Number Generation | $0 (Free automatically) |
| CRA HST & Payroll Account Registration | $0 (Free to activate) |
| Lawyer Fees (Drafting Articles, Minute Book, Shares) | $1,000 – $2,500+ (optional but recommended) |
While DIY incorporation costs around $320 CAD in government fees, hiring an Ontario business lawyer ensures your share structure, corporate minute book, and initial bylaws are legally sound, preventing massive legal headaches during future audits or business sales. 💼
How Long Does the Entire Process Take?
The modern digital system is remarkably fast. Filing your Articles of Incorporation through the OBR yields an immediate result. You will receive your Ontario Corporation Number the exact same day you submit the online forms.
The automatic generation of the CRA Business Number takes roughly 1 to 5 business days to process in their backend systems. 📨 However, waiting for the official CRA letter to arrive via Canada Post can take 10 to 14 days. If you are rushing to open an HST account, you must access the CRA’s Business Registration Online (BRO) portal, as the CRA has discontinued phone registrations and now requires all new business numbers and program accounts to be set up online.
Frequently Asked Questions (FAQ)
Do I have to register for an HST account immediately?
Not necessarily. In Canada, you are only legally required to register for an HST account when your total gross revenues exceed $30,000 CAD in a single calendar quarter or over four consecutive calendar quarters. However, many founders choose to register immediately voluntarily so they can claim Input Tax Credits (ITCs) on their startup expenses.
Can I issue invoices to clients before my CRA Business Number arrives?
Yes, you can issue standard invoices under your corporate name before receiving the BN. However, you cannot legally charge or collect HST from your clients until your specific HST program account (RT0001) is active. Once activated, you must display that HST number on all your commercial invoices.
What happens if my CRA letter never arrives in the mail?
If two weeks have passed since your provincial incorporation and you have not received a physical letter from the CRA, you should call the CRA Business Enquiries line (1-800-959-5525). Have your Ontario Certificate of Incorporation and your Social Insurance Number ready to verify your identity as the corporate director.
Can a law firm register my HST and Payroll accounts for me?
Yes. Many corporate law firms and accounting firms in Ontario offer full-service incorporation packages. Once the automatic BN is generated, you can sign a CRA authorization form allowing your lawyer or accountant to contact the government and activate your program accounts on your behalf.
Is a federal corporation faster to set up than an Ontario one?
Federal incorporation (via Corporations Canada) and Ontario provincial incorporation take roughly the same amount of time online. Both systems instantly communicate with the CRA to generate your Business Number. The choice between federal and provincial depends on your business goals and where you plan to operate, not the speed of registration.
Leave a Reply