Starting a business in Canada as a newcomer involves navigating several systems — immigration documents, provincial registration, federal tax accounts, banking, and invoicing — at the same time, often without Canadian colleagues who have done this before. This hub collects everything you need in one place, organized by what to do first.
Before Anything Else: Confirm Your Work Authorization
Your ability to self-employ in Canada depends on your immigration status:
- Open work permit: Generally allows self-employment. Read the fine print — some open work permits restrict the type of work.
- Employer-specific work permit: Typically does not allow freelance work for other clients. Self-employment on a closed permit may violate your permit conditions — consult an immigration lawyer before proceeding.
- Permanent residents: No work restrictions. Full self-employment rights.
- Citizens: No restrictions.
Step 1: Get Your SIN
Your Social Insurance Number (SIN) is required for all CRA tax filings, banking, and business registration. Apply at a Service Canada Centre with your immigration documents. PRs and many work permit holders receive a SIN starting with any digit. Temporary residents receive a SIN starting with 9 — this is fully functional for self-employment purposes but expires when your immigration status expires.
Step 2: Register Your Business (If Using a Trade Name)
Operating under your own legal name: no registration needed. Using any other name: register provincially. Ontario: ontario.ca/businessregistry ($60, same-day). BC: bcregistry.gov.bc.ca ($70). Alberta: authorized registry agent (~$60–$80). Other provinces: through provincial corporate registry.
Step 3: Open a Business Bank Account
Open before your first invoice arrives. No-fee options accessible to newcomers: EQ Bank Business (fully online, no credit check), Wealthsimple Business, or local credit unions. For international clients, pair with a Wise Business account ($55 one-time) for USD/EUR receiving at mid-market rates.
Step 4: Set Up Invoicing
Wave (free) handles invoicing, expense tracking, and GST/HST for most newcomer freelancers. Set up your GST/HST tax rate for your province and create your first invoice template with your business name, address, and payment instructions (Interac e-Transfer for Canadian clients; Wise ACH details for US clients).
Step 5: Register for a CRA Business Number
Free at canada.ca’s Business Registration Online (BRO) portal. Required when: your taxable revenues will reach $30,000 in four consecutive quarters (mandatory GST/HST registration), or you want to register voluntarily to claim Input Tax Credits on business purchases. As of November 2025, all BN registrations are online only — phone registration no longer accepted.
Step 6: Understand Your Tax Obligations
- Income tax: Self-employment income on T2125 (attached to your T1 personal return). File by June 15, pay by April 30.
- CPP: 11.9% on net self-employment income between $3,500 and $74,600 (2026 rates). Maximum: $8,460.90.
- GST/HST: Collect and remit once your revenue exceeds $30,000 in four consecutive quarters.
- Set aside: 25–30% of every client payment for income tax and CPP.
Hub Navigation: Where to Go Next
- Registration → Business Registration in Canada Hub
- Banking and payments → Payments and Banking for Freelancers Hub
- Accounting software → Accounting Software for Freelancers in Canada Hub
- Taxes → Canada Freelancer Taxes Hub
- First 90 days action plan → Newcomer First 90 Days in Canada Hub
Frequently Asked Questions
Can I start freelancing in Canada before my SIN arrives?
Technically you can sign contracts and begin work, but you need a SIN to invoice, open bank accounts, and file taxes. Apply for your SIN as the first administrative step after arrival — Service Canada processes SIN applications same-day in most cases.
Do I need to tell immigration I’m starting a business?
For open work permits, no special notification is required to IRCC for freelance work within your permitted activities. For any situation where self-employment might conflict with your permit conditions, consult a Canadian immigration lawyer before starting — the consequences of unauthorized work can affect your permanent residency application.
Can I serve international clients from Canada?
Yes. Once you are a Canadian tax resident, your worldwide income is taxable in Canada. Serving international clients is common and legal. International client payments are zero-rated for GST/HST (you don’t charge GST/HST to foreign clients). Report all income in CAD equivalent on your T2125.