The first 90 days in Canada are when you establish the systems you will use for years. Getting the business setup right early prevents costly corrections later — missed deductions, CRA problems, or having to rebuild records from scratch. Here is a concrete week-by-week plan for newcomers who plan to freelance or run a self-employed business.
Week 1–2: Documents and Banking
- ☐ Apply for your SIN at a Service Canada Centre (bring your immigration documents — processed same-day usually)
- ☐ Open a personal bank account if you don’t have one
- ☐ Open a business bank account: EQ Bank Business or Wealthsimple Business (both online, no credit check, no monthly fee)
- ☐ If serving international clients: open a Wise Business account ($55 CAD one-time, unlocks US/EU local receiving accounts)
- ☐ If using a trade name: complete provincial business name registration (ontario.ca/businessregistry for Ontario, etc.)
Week 2–3: Business Setup
- ☐ Set up accounting software: Wave (free) is sufficient for most newcomer freelancers
- ☐ Configure your province’s GST/HST rate in Wave: Ontario 13%, BC 5% GST, Alberta 5% GST, Nova Scotia 14%, etc.
- ☐ Create your invoice template with: your name/business name, address, payment instructions (e-Transfer email; Wise USD details for US clients), and GST/HST number once registered
- ☐ Open a tax savings sub-account or savings account designated for taxes — transfer 25–30% of every payment immediately
Week 3–4: CRA Registration
- ☐ Create a CRA My Account at canada.ca (requires SIN and prior year T4 or other CRA-registered information — newcomers may need to create via paper form in year 1)
- ☐ Register for a Business Number (BN) through CRA’s Business Registration Online (BRO) portal once you are ready to start invoicing
- ☐ If you expect to reach $30,000 in revenues quickly, register for GST/HST immediately — voluntary early registration lets you claim ITCs on business purchases
Month 2–3: First Invoices and Records
- ☐ Issue your first invoices — all business income must be reported on your T2125 regardless of amount or whether a T4A is issued
- ☐ Keep all receipts digitally — photograph business receipts immediately; save subscription renewal emails to a “Business Receipts” folder
- ☐ Record all payments received in Wave as you go — monthly reconciliation takes 45 minutes; quarterly catch-up takes half a day
- ☐ If you have a vehicle used for business, start your mileage logbook from day one
- ☐ Set up your Interac e-Transfer Autodeposit on your business bank account
Month 3: Tax Setup Confirmation
- ☐ Verify your year-to-date revenue against the $30,000 GST/HST threshold — if approaching, register now rather than scrambling when you cross it
- ☐ Confirm your tax savings account has approximately 25–30% of your net revenue accumulated
- ☐ If you want to use an RRSP, confirm when you will have your first year of Canadian earned income — RRSP contribution room accumulates from your first filing year
Frequently Asked Questions
Can I start a business in Canada before I have my SIN?
You can sign a contract and begin working, but you cannot invoice officially, open a bank account, or file taxes without a SIN. Apply immediately upon arrival — Service Canada processes most applications same-day at their offices. Some newcomers use a short waiting period to focus on clients before finalizing administrative setup.
What is the biggest tax mistake newcomers make in year one?
Underestimating the tax bill. Employees are used to net pay — tax withheld automatically. As a freelancer, you receive 100% of every invoice. Many newcomers spend that income not realizing 25–35% will be owed to the CRA in April. Setting aside tax in a separate account from the first payment prevents this shock.
Do I need a Canadian mailing address for CRA registration?
Yes. All CRA registrations require a Canadian address. This is your residential address — it does not need to be a business address. If you arrive in Canada and stay with friends or family temporarily, use that address and update it when you establish permanent housing.