Most of the businesses operating in Canada have their E-commerce websites nowadays. Other countries are nowhere behind in this category of business. The E-commerce industry is the one industry that has gone only upward in the past few decades. It’s such a fantastic opportunity for every business-minded individual out there. Modern entrepreneurs are highly focused on their online sales and reputation because this is the future of business. And this is here now.
If you are also willing to set up and register an E-commerce business in Canada, you will find some valuable tips here. You will also see how to cope with Canadian taxes as an E-commerce business owner.
E-Commerce Business requirements in Canada
This section includes fundamental requirements for an E-commerce business in Canada. This section consists of a comprehensive guide on the following
- Physical Address registration
- Business Incorporation
- Domain Name registration
- Business Name registration
Just like any regular business, you are required to register a physical address for your E-Commerce business in Canada. It does not matter if your entire business is based on the internet. This requirement is there to ensure safety, quality standards, accountability, and other preventive measures. Your business will interact with authorities in Canada from time to time. To ensure a convenient interaction, you will need to register this address. You will also need to display a registered telephone number and email address on your business’s website.
Business incorporation is a professional practice that has been in use by hundreds of thousands of businesses in Canada – Online or not. Business incorporation is an effective business strategy that can benefit you in a multitude of ways, including tax returns and evasion from certain legal liabilities. If your E-commerce business includes five or more websites and the revenue is high enough, you may need to incorporate your E-commerce business in Canada. Anyone can benefit from a professional accounting firm in this regard.
It is impossible to have an E-commerce business without a domain name. Even if you have registered your business’s domain name in a foreign country, you will still have to register it with CIRA for operating your business in Canada. You will also need to ensure that the domain name for your business represents what you do online. It should directly reflect the business activities that you perform. Registering your E-commerce business with CIRA means you comply with all the legislation from them.
A critical requirement for running a business in Canada is tax reporting and business number registration. Just like any other business, you will need to report your taxes to CRA. And for that, you will need to go through business number registration. It’s a simple online process, and anyone can register their business with CRA if all the requirements are met. To make the best case for your online business, you can hire an accounting firm that provides Startup Accounting services.
The best way to go about setting up and registering an Ecommerce business in Canada is to go through a professional route. If you meet all the legal and ethical requirements, you will find it easier to operate. You will also need to have proper bookkeeping while running such a setup. To make sure that you don’t miss out the critical requirements such as tax reporting, you will need professional assistance.
Sohail Afzal, CPA, CMA, MBA
Sohail Afzal, (CPA, CMA, MBA) is the founder & CEO of GTA Accounting Professional Corporation. He is a highly experienced Chartered Professional Accountant and businessman himself and understands the challenges that many businesses face when it comes to cash flow management. As an experienced business consultant & tax advisor, he is helping companies grow by providing the technical, financial, and contractual information necessary for strategic decision-making.