How to Register a Sole Proprietorship in Ontario: 2026 Guide

Starting a business in Ontario does not always mean incorporating a company. For many freelancers, independent contractors, consultants and small service businesses, a sole proprietorship is the simplest way to get started.

This guide explains what a sole proprietorship is, when you need to register one in Ontario, what information you will need, and what happens after registration.

What is a sole proprietorship?

A sole proprietorship is a business owned by one individual.

Unlike a corporation, a sole proprietorship is not a separate legal entity from its owner. You control the business, receive its profits and report its business income as part of your personal income.

That simplicity makes a sole proprietorship a common starting point for people such as:

• freelancers
• consultants
• tradespeople
• independent contractors
• designers and developers
• cleaners and home-service providers
• tutors and instructors
• small online businesses

The trade-off is that the owner is personally responsible for the obligations and liabilities of the business.

Do you need to register a sole proprietorship in Ontario?

It depends on how you operate.

If you carry on business under a name other than your own personal name, Ontario generally requires that business name to be registered.

For example, if Jane Smith operates as Smith Creative Studio, the business name would generally need to be registered.

A sole proprietorship registration is commonly referred to as a Business Name Registration. You may also still hear the older term Master Business Licence.

How much does Ontario charge to register?

The Ontario government currently charges $60 for an online sole proprietorship registration filed directly through the Ontario Business Registry.

A registration is effective for five years and must be renewed if you want to continue using the registered business name after that period.

Third-party registration services may charge their own service fees in addition to, or inclusive of, government filing costs.

What information do you need?

Before starting your registration, it helps to have the following information ready.

1. Your business name

Choose the name you intend to use publicly for your business.

Registering a business name does not give the same name protection as incorporating a company or registering a trademark.

It is therefore worth checking whether similar businesses are already using the name before you register it.

2. Your legal name

Because a sole proprietorship belongs to an individual, the registration identifies the owner of the business.

Your legal name should match your official identification.

3. Business and address information

The registration requires information about your business and an address for the owner.

Make sure the information you provide is current and accurate.

4. Your main business activity

Ontario requires a North American Industry Classification System (NAICS) code describing the primary activity of the business.

For example, a software consultant, photographer and residential cleaning business would normally use different NAICS codes.

Choose the code that most closely represents the main activity that generates, or is expected to generate, your business revenue.

Do you need a NUANS report?

Normally, no.

A NUANS report is used in certain corporate name-registration processes. It is not normally required simply to register an Ontario sole proprietorship.

However, that does not mean you should choose a business name without checking it first.

A preliminary business name search can help identify obvious existing businesses using the same or a similar name before you submit your registration.

What happens after registration?

Once your registration is completed, keep a copy of your Business Name Registration with your business records.

There are also a few practical next steps to consider.

Open a business bank account

Keeping business and personal transactions separate makes bookkeeping considerably easier.

If customers will be paying you using your registered business name, you may also need a bank account that can accept payments made to that name.

Keep records of your income and expenses

A sole proprietor reports business income on their personal income tax return.

Keep invoices, receipts and records of business expenses throughout the year instead of trying to reconstruct them at tax time.

Determine whether you need GST/HST registration

Registering an Ontario business name and registering for GST/HST are two different things.

For most businesses, CRA's small-supplier threshold is $30,000 of taxable supplies. Depending on how and when that threshold is exceeded, GST/HST registration may become mandatory.

Businesses below the threshold can sometimes register voluntarily.

Special rules apply to certain activities, so check the CRA requirements that apply to your business.

Check licences and permits

A business name registration does not automatically give you every licence or permit you may need.

Requirements can depend on your industry and municipality.

For example, some regulated professions, food businesses, contractors or home-based businesses may have additional requirements.

How long does an Ontario sole proprietorship registration last?

An Ontario Business Name Registration is effective for five years.

Ontario currently allows renewal beginning six months before expiry and, for an expired registration, for up to 60 days after the expiry date.

If the registration has been expired for more than 60 days, you generally need to complete a new business name registration instead.

It is a good idea to keep the expiry date somewhere you will not forget it.

Sole proprietorship or corporation?

A sole proprietorship can make sense when you:

• are the only owner
• want a simple business structure
• are starting a relatively small business
• want lower setup and administrative complexity
• do not currently need a separate corporate legal entity

A corporation may be worth considering when factors such as liability, ownership structure, investment, tax planning or long-term growth become more important.

There is no requirement that a business remain a sole proprietorship forever. Many businesses begin as sole proprietorships and incorporate later as their needs change.

Registering an Ontario sole proprietorship

If you have decided that a sole proprietorship is right for your business, the main registration process is straightforward:

1. Choose your business name.
2. Check the name for obvious conflicts.
3. Select the appropriate NAICS business activity.
4. Provide the owner's information and addresses.
5. Review the application carefully.
6. Submit the registration.
7. Keep your completed registration with your business records.

OntarioSoleProp helps Ontario business owners prepare and submit their sole proprietorship registrations online without having to navigate the registration process on their own.

Ready to register your Ontario sole proprietorship? Start your application online.

This article provides general information and is not legal, tax or accounting advice. Requirements can vary depending on your circumstances and business activities.