As a newcomer to Canada who wants to start a business, you will have many opportunities and face some unique challenges. Here, we’ll guide you through the main requirements of the Canadian business landscape and provide some helpful Alberta resources.
Immigration status and business rights
Firstly, it’s important to understand the implications of your immigration status. Only some newcomers have the right to start a business.
Important: Check the Government of Canada’s official immigration resources or your immigration lawyer to ensure your ongoing compliance with legal regulations and to check for the latest information.
Permanent Residents - have all the rights of a Canadian citizen to start a business.
Work Permit holders - if you hold an Open Work Permit, you have the right to start a business. However, if you hold a Closed Work Permit tied to a specific employer, you do not have the right to start a business.
Student Visa and Visitor Visa holders - Those holding a Student Visa can start a business if they maintain enrollment at a designated learning institution and follow other conditions. Visitor Visa holders cannot start a business in Canada.
Special business immigration programs
This program is targeted to those intending to start a business in Canada. There are financial and language requirements for this visa, and you must have the support of a designated organization, like a business incubator or venture capital fund.
Provincial Nominee programs (PNP)
Like other provinces, Alberta has immigration programs targeting certain types of entrepreneurs or business owners. If nominated under the PNP stream, you can get Permanent Resident status and start a business.
Essential steps to start your business
For a full, step-by-step guide to starting a business, download ATB’s Guide to Starting a Business.
Business idea validation
Think about what business you’d like to start and determine if you need any education, certification or experience to start this business in Alberta.
Market research requirements
Conduct basic market research to understand who your target market and competitors are. Develop a business plan encompassing the research and outlining your goals, strategy, timelines, and operational and financial projections.
ATB Business Advisors have access to market research information that may help.
Choose your business structure
Decide which form of business structure suits your needs.
Sole proprietorship
This is the most common structure chosen by new business owners because it is informal and straightforward. In the eyes of the government and tax authorities, you and your business are the same.
Partnership
If you have a partner, your relationship is governed by whatever legal relationship you set up regarding the business, but there is no legal structure.
Corporation
While corporations require more complex legal structuring than other business types, incorporation offers significant advantages. A corporation provides tax benefits, liability protection, and business name security as a separate legal entity.
Registering your business
You must register your business with the government and apply for a business number or tax account.
Before registering your business name, verify its availability. Search the internet for existing businesses, domain names, and social media handles. Check Canada's national databases: the Nuans system for corporate names and trademarks and the provincial business registries database covering provinces and territories.
Required permits and licenses
You must determine which permits and licenses you require. BizPaL is a free online service that provides simplified access to information about business permits, licences, and other requirements for establishing and operating your business. You may require licenses or permits at several levels, including municipal, provincial, and federal. You may also have industry-specific requirements to comply with.
Financial setup
Separate your personal and business finances by having a business bank account. While incorporated businesses legally require a dedicated business account in Canada, sole proprietors and partnerships are strongly encouraged to open one to maintain clean financial records and build business credibility. It also makes tax reporting and expense tracking clearer. ATB offers startups free business banking for a year, so you can focus on your business.
Legal and tax obligations
Meet with a lawyer to determine your business's legal implications, including the need for leases, shareholder agreements, and employment contracts. A lawyer can determine whether you need a copyright, patent or other intellectual property protection or commercial or business insurance to protect your operations and assets.
You must understand Alberta’s employment standards if you plan to hire employees. You may also need to register with the Workers' Compensation Board (WCB), which provides mandatory insurance coverage to protect employers and workers in case of workplace injuries or accidents.
Your accountant can fill you in on taxation, including revenue declarations, tax liability and expenses, and suggest record-keeping processes, such as a monthly financial pulse check.
Systems and equipment
Determine which software, file management and payment systems you need for your business and acquire the tools, supplies and inventory required for daily operations.
Funding your business
As a newcomer, you may be eligible for government programs or grants to help start your business. Learn more about small business grants and discover which opportunities you may be able to take advantage of.
A small business loan is another way to get your business off the ground. Talk to an advisor to learn about which products will work best for you and how to fund your startup.
Key resources and support
Immigration
Resources on different immigration programs
Information for immigrant entrepreneurs on immigrating to Alberta and starting a business.
Business support and financing
Supports business, innovation and community economic development in the prairie provinces.
Non-profit providing free business advice and guidance to launch your business with specific support for immigrant and newcomer entrepreneurs.
A list of funding resources for small business owners and Alberta entrepreneurs.
A group of independent organizations that receive funds to help start, grow and expand businesses in the prairies.
Financial and other support for rural small business owners and entrepreneurs in Alberta.
Tools and resources from the Government of Canada.
BDC is a bank devoted to Canadian entrepreneurs, including immigrants starting a business.
Provides support and programming for newcomers in Alberta.
Community demographics/statistics dashboard for Alberta cities and towns.
If you’re new to Canada and between the ages of 18-39, Futurpreneur can help you with financing, mentorship, support and resources.
Networking
Meet and develop business contacts through your local Chamber of Commerce.
Get more helpful advice and resources to start your life and business here in Alberta.
