Business Name Registration Ontario: A Complete Guide

Generally, registration is crucial in getting a business up and running smoothly. For instance, in Ontario, Canada, a business name registration is required for businesses and non-profit organizations planning to use a title other than the owner’s name.   

Formerly known as the Master Business License (MBL), this essential process covers sole proprietorships, partnerships, and trade names under a corporation. Obtaining a Business Name Registration (BNR) in Ontario applies to enterprises owned by Canadian residents or foreigners. 

But what is a Business Name Registration, and why do you need one? Read on and get to know the details. 

Understanding Master Business License/Business Name Registration 

If you’re establishing a new venture, applying for a Business Name Registration Ontario is crucial within 60 days of opening. Doing so gets your enterprise officially recognized in Ontario and allows you to operate in your area. Getting approved for such a license means your enterprise can work under your business title and have the right to use it for marketing and promotional purposes.

A business registration typically contains pertinent information about your organization, such as the business name, structure, address, and description of the business activities you’re allowed to perform. Furthermore, an MBL enables owners to open a commercial bank account bearing the business’s name, get an import and export license, and pay taxes.   

An MBL or business name registration in Canada is valid for five years and must be renewed, ideally before its expiration date. 

Which Businesses Need BNR? 

Ontario is Canada’s second-largest province, where several businesses are based. Government data shows that as of 2019, there were 450,636 small, medium, and large enterprises in Ontario, followed by Quebec, the region with the second-highest number of registered businesses, with 255,347. 

Business Name Registration is required for sole proprietorships, partnerships, and some corporations with titles and trade names that don’t bear their owner’s or partners’ names. For example, if you’re an accountant who wants to start a business named John Doe Accounting, you need to get a Business Name Registration. However, if you prefer to use your full name as a business title without any attachments, you don’t need to get a Master Business License or a Business Name Registration.    

Existing corporations in Ontario planning to do business using a title other than their corporate name also need to get approved for an MBL or BNR. For instance, John Doe and his friends formed STU Business Consultants corporation. They want to use trade names to convey what they can offer, so they must get an MBL or BNR. John Doe can use JD Accounting, and his other incorporators can use business titles with their names or initials, like AZ Marketing Consultant, XY IT Consultant, CG Operations Consultant, etc. 

What If There Are Business Changes? 

Identifying a profitable venture isn’t static. Market and consumer preferences change rapidly, and entities must adapt to these changes to thrive. 

As BNR lasts five years, business transitions may have taken place within the period. Some minor revisions don’t require owners to apply for a new one, such as in case of location transfers and changes in business activities. The same holds for amendments to partners’ names so long as the entity remains a partnership.   

Conversely, a registered owner planning to change from one business structure to another—for instance, from a sole proprietorship to a partnership—must apply for a new registration and cancel the old one.    

How To Apply For An MBL/BNR 

Applying for a business license or registration in Ontario is straightforward. It only requires business owners or authorized representatives to fill out the application form and pay the fees. 

• Perform A Preliminary Search: Before registering, ensure that you have a unique business name by keying in your proposed business title through the Newly Updated Automated Name Seach (NUANS). This search engine keeps a database of all business names in Canada, including corporations and tradenames. Some private companies offer this service for a small fee. Note that your proposed business name must not contain offensive or misleading terms. 

• Apply Online Or In-Person: Online application for Business Name Registration in Ontario is available through government portals and service providers. Otherwise, you can visit the nearest Small Business Enterprise Centre or Service Ontario office or send an email or registered mail. Applying online offers the fastest response, whereas sending mail is the slowest method in applying for a Master Business License.   

• Fill Out And Submit The Form:  Three forms are available, representing each business structure, and you can get them through the government and third-party portals. Besides important business and personal information, an MBL or BNR applicant must supply the NAICS code or the North American Industry Classification System. Canada adopted this universal system in October 2021 to classify business activities.  

The Business Name Registration, sometimes known as doing business as (DBA), is valid for five years. Entities will have a 60-day grace period to renew their registration. Otherwise, their permit will be expired, and they will have to file a new application.     

Wrapping Up 

Sole proprietorships and partnerships with names other than the owners must apply for a business name registration in Ontario. In doing so, entities can operate legally in the province and use their approved name to carry out profitable activities. As a legal requirement, owners with an unregistered business name risk paying steep fines and potential lawsuits from their clients and suppliers.