Ontario doesn't issue one general business licence. Depending on where you are and what you do, you may need licences and permits from the federal, provincial or municipal government, and the Ontario Government's advice is to use BizPaL, a free online tool, to find the ones that apply to you.
People searching for an "Ontario business license" usually mean one of three things: registering a business name, a municipal licence from their city, or a sector licence from a regulator. They're different steps. Here's how to tell which you need and in what order.
Where licences fit in Ontario's start-up steps
The Ontario Government's guide to starting a business puts licences at step five, after you've chosen your ownership structure and registered your business online, and before you check whether you need to charge HST. That order matters: your registration details feed into most licence applications.
| Step | What it covers | Who handles it |
|---|---|---|
| Decide your ownership structure | The legal structure your business will use | You |
| Register your business online | Business name registration or incorporation | Ontario Business Registry |
| Check licences and permits | Federal, provincial and municipal requirements | BizPaL, then each issuer |
| Confirm whether to charge HST | Whether you must charge and register for HST | You, before your first sale |
Registration isn't a licence
This is the mix-up behind most searches. The City of Toronto explains that businesses operating under a name other than the owner's need to register with ServiceOntario, through the Ontario Business Registry. That gives you a registered name, not permission to operate a particular type of business. My guide on how to register a business in Ontario walks through that step.
How BizPaL works
BizPaL is the tool the Ontario Government points you to. It's free, and it filters permits and licences by your location, your industry and your business activities, so a home bakery in one town and a contractor in another get different lists. Run it before you sign a lease, because zoning and building permits can decide whether a location works at all.
What a city licence looks like: Toronto
Municipal licences are where most small businesses feel the rules. The City of Toronto says all businesses in Toronto need to secure the licences, permits and inspections they need before opening or operating. Its guidance includes several details worth knowing:
- Municipal Licensing and Standards has required Criminal Record and Judicial Matters Checks for all applications and renewals since November 1, 2018. A basic Criminal Record Check isn't accepted.
- Food businesses must comply with the Ontario Food Premises Regulation and Toronto's Licensing By-Law No. 545, and premises must get a PASS from Toronto Public Health (DineSafe) to operate.
- A licence won't be issued or renewed until all overdue bylaw fines are paid in full.
- Businesses that play or perform music to the public need a SOCAN licence.
- Some categories change: video stores no longer need a business licence from the City of Toronto.
Toronto also lists, business type by business type, which zoning, sign permits, registrations and tax accounts apply. Other Ontario municipalities publish their own lists, so check your city's site as well as BizPaL.
Three mistakes that delay opening
- Signing a lease before checking zoning. In Toronto, zoning questions for a specific property go to the nearest Toronto Building Customer Service counter, and the answer can rule a location out.
- Treating the business name registration as permission to trade. It isn't a licence, and most regulated activities need a separate approval.
- Leaving the background check to the last minute. Toronto's Criminal Record and Judicial Matters Check is needed for every application and renewal with Municipal Licensing and Standards, and a basic Criminal Record Check won't do.
Sign permits are another one people forget: Toronto lists them against almost every business type, alongside zoning.
Manitoba separates business names from incorporation, which my Manitoba registration guide explains.
How to find every licence you need
- Register your business name or incorporate through the Ontario Business Registry.
- Run a BizPaL search for your exact address, industry and activities.
- Check your city's business licensing page for municipal licences and inspections.
- Clear any overdue bylaw fines before you apply, since some cities won't issue a licence until they're paid.
- Check whether you need to register for HST once you're set up.
If you'll have staff, my guide to the minimum wage in Ontario covers the pay rules, and for a broader checklist, do I need a business license explains how licences, registrations and tax IDs differ.
My verdict
There's no single Ontario business licence to apply for, so don't waste time hunting for one. Register first, run BizPaL, then go to your city. If you're in Toronto, budget time for the Criminal Record and Judicial Matters Check, because it's a requirement for every application and renewal.
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A province where local governments issue the licence is covered in the BC business licence guide.
Frequently asked questions
Do I need a business licence in Ontario?
It depends on your location, industry and activities. The Ontario Government says you may need licences and permits under federal, provincial or municipal regulations, and recommends BizPaL to find them.
Is there a general business licence in Ontario?
No. Ontario doesn't issue one general business licence. Licences come from the level of government that regulates your activity, often your municipality.
What is BizPaL?
BizPaL is a free online tool that filters the permits and licences you need based on your location, industry and business activities.
Is registering a business name the same as a licence in Ontario?
No. Businesses operating under a name other than the owner's register with ServiceOntario through the Ontario Business Registry. That's separate from any licence.
Do all businesses in Toronto need a licence?
The City of Toronto says all businesses need to secure the licences, permits and inspections they require before opening or operating. Which ones apply depends on the business type.
What background check does Toronto require for a business licence?
Since November 1, 2018, Municipal Licensing and Standards requires Criminal Record and Judicial Matters Checks for all applications and renewals. Basic Criminal Record Checks aren't accepted.
Where do I check zoning for a Toronto business?
The City of Toronto says to visit the nearest Toronto Building Customer Service counter for inquiries about zoning or uses on a specific property.
Can I renew a Toronto business licence with unpaid fines?
No. The City of Toronto says licences won't be issued or renewed until all overdue bylaw fines are paid in full.
