How to Register a Small Business in Quebec

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Budding entrepreneurs wanting to start up a small business (or become self employed), either on a full time or part time basis, are often not sure where to start. If you and your business are located anywhere in Canada , please refer to my article on how to register a business in each province in Canada. In Quebec, the process of registering a business, depending on your circumstances,  is actually fairly straightforward.  In this article we look at the questions that you need answer to determine your business registration obligations in Quebec and how to go about doing it.

Why you should register your business

A business registration is a regulatory process and is distinct from tax. In practice this means that, in most cases, you don’t necessarily need a business registration to get tax numbers for sales tax (GST/HST and QST) and payroll numbers (which allows you to hire employees). However, once you have reached this stage in your business it is highly recommended to at least register your business and possibly incorporate. For more details on the differences between registration and incorporation, please see my post on registration vs incorporation in Canada.

There are several reasons why you should register your business (note that a business registration is distinct from an incorporation. )

• You are required to register in most provinces if you are using a name for your business other than your first and last name

• Registering your business helps to give it legitimacy and enhances credibility with your suppliers, customers and other business associates.

• You receive a business number (NEQ in Quebec) which allows you to open up a business bank account. A business bank account can be very useful for receiving and making payments on behalf of your business and also for other banking products that you might need such as a line of credit or loans.

• If you are audited by Revenue Canada or Revenue Quebec and they question whether you are actually running a business, the business registration can be used as one fact that establishes that you do indeed have a business

• If you have a website or social media presence that you are running under a name, other than your own, you can register this as your business name. You can also add more than one name if you have two or more different types of businesses.

Do you Need to register Your Business?

If you want to start an unincorporated business i.e. a sole proprietorship, whereby you ONLY use your own first and last name to invoice and transact with your customers, then technically no registration is required.  This applies to a diverse range of business owners/self employed individuals including artists, writers and eBay sellers, who do not necessarily need a separate business name and can simply use their own given name.  

If you decide that you want to have a business name that is even slightly different from your given first and last name, then you are required to register your business in Quebec. Many business owners might use a different name for their websites or even an informal name that is used to communicate with customers which means that they must register their businesses.

Natural person who operates a sole proprietorship under a name that does not include his or her last name and first name

It must register in the register within 60 days following the start of activities in Quebec.

Registraire Des Entreprises (translated from French)

Note that anyone who plans to start a tobacco retail outlet or a tanning salon, has to register with the Registraire Des Entreprises (Enterprise Register) even if they only use their given first and last names

See my video below with advice on whether you should register your business:

How to Register Your sole proprietorship

The registration process is explained at the Quebec Enterprise Register which is also where the registration process is initiated.

The registration for a sole proprietorships is available online at this link. The service is only available in French, however, using a translate function (such as Google translate in chrome) can make this easier if you have difficulty navigating it in French. Using this link you can either register for the first time or re-register if you are changing the name of the business.

The registration declaration must be sent to the Registraire des entreprises no later than 60 days after the date on which registration is required except for businesses who have started a tobacco retail outlet or an artificial tanning salon, in which case they must file the declaration within 30 days of the start of the operation. 

The fees to register a business as of 2024 with the Registraire des Entreprises are quite reasonable at $39 for a sole proprietorship and $60 for a partnership. There is also a priority service for which the fees are a little higher at $58.50 as of 2024. The annual renewal fee for a sole proprietorship in Quebec is also $39. For the full list of fees for a sole proprietor, you can consult the fees and terms of payment document from Revenue Quebec.

What Type of Information is Required to Register

To file a registration declaration, you will have to provide the following information, depending on the situation:

• the name and address of the signatory of the request;

• the name of the natural person;

• any other name that the natural person uses and under which he identifies himself in the exercise of his activities in Québec, if applicable;

• the home address of the natural person;

• the address of the elected domicile as well as the name of the person authorized to receive the documents of the natural person;

• the two main activities of the natural person;

• the number of employees whose place of work is located in Québec;

• the name and address of establishments located in Québec and the activities carried on there;

• if applicable, the name and address of the administrator of the property of others, his function and the duration of his mandate;

• if applicable, the name and address of the authorized representative;

• the contact details of the person to contact in case the Registraire des entreprises needs additional information to process the request.

What Are The Requirements for a Business Name in Quebec

The name of the business that you wish to register must conform with the following requirements:

• to Article 17 of the Corporate Legal Publicity Act which includes not using obscene names, not misrepresenting your business as a non profit or which in any other way is likely to mislead third parties.

• in section I of the Regulation respecting the application of the Act respecting the legal publicity of sole proprietorships, partnerships and legal persons in which there are several restrictions on names. Note that if you submit a name and it does not conform to these rules, the Registraire des entreprises will simply reject it , refund your fee and you can reapply.

• the Regulation respecting the language of commerce and business which means that you must provide a French name that is equivalent to your English name if applicable and other specific rules about when you are allowed to use a language other than French for your products and services.

You can contact the enterprise register by either sending an email or phoning them

Once you have completed the form, RDE will review your application including the suitability of the name that you have chosen for your business. If you they accept your application they will provide you with an NEQ number which is the official number of your business (and can be used to establish that you are a registered business, set up bank accounts etc.). If they reject your application, they will let you know (usually by mail) and you will have to resubmit.

Note that the NEQ number

is a ten-digit numerical identifier assigned to each enterprise that registers with the Enterprise register

Source

This is the NEQ number’s only purpose and is not connected with your tax files.

The NEQ number is different from the Identification number which is the number used for your tax filings including QST (TVQ), Quebec payroll and Quebec Corporate Tax.

how to register your Partnership or Corporation

If you are setting up a general or limited liability partnership or a corporation that has an office Quebec, then you must also register at the Quebec Enterprise Register. The following Registration procedures page provides you with links to the forms that are available online based on the type of business structure that you select.  Alternatively you can ask that the forms be mailed to you by contacting Revenue Quebec or you can go in person to one of their offices (One of which can be found at Complexe Desjardins in downtown Montreal).

should you register for Payroll and GST/QST?

Regardless of whether you register your business with the Quebec Enterprise register, you must evaluate whether you need to register for GST/QST and payroll.  For GST/QST (among other considerations) you must determine if your annual sales will exceed $30,000.  If this is the case, then you are required to register. Note that this is a separate process and requires a separate form that can be completed online. 

Similarly, if you intend to hire employees you must register for deductions at source using the same form. Note that there are no fees to sign up for GST/QST, payroll or corporate taxes.

other considerations For Registering your Business 

Even if you are not required to register Revenue Quebec advises (translated):

The advantage of registration on a voluntary basis is that it makes it possible to make public the existence of a company as well as certain information concerning it. Once registered, the company will have the same obligations as companies required to register.

Source

I usually recommend that my clients register as it gives their businesses additional validity, allows them to open a separate bank account and the annual fees at $39 per year are quite reasonable (and deductible as business expenses)

Regardless of whether you register, or how much revenue you generate, you are required to include all sales of goods and services, both on your Federal and Quebec tax return, and reflect it as business income on the T2125. Any expenses incurred to generate business income are then deductible.

As long as you are aware of your obligations, registering a business in Quebec is a fairly straightforward process and much of it can be accomplished somewhat painlessly online.  Once set up, it is important to ensure that you maintain adequate records of revenues and expenses and file the necessary government returns thus ensuring that you can attend to the business of running your business.

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Planning to Start A New Business? Let’s Make It Easier:

• Download your free start your sole proprietorship or start your corporation checklist that details each step in the process and helps to ensure that you don’t overlook anything.

• Explore My Starting Your Sole Proprietorship or Starting Your Corporation books which provide in depth guidance on starting your small business or becoming self employed.

• Need personalized advice on starting your business? Book a consultation with me for guidance tailored to your situation

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