Legal and Practical Information when Starting a Business

Oct 31st, 2019

Legal and Practical Information for Starting a Business

Provincial Information
There are so many things to consider when starting a business. If you are at the point where you are 100% invested in creating your business there are some legal and practical requirements that will have to be fulfilled.
A great place to start is with the “Start and Grow Your Business” section of the Government of Manitoba’s website. www.gov.mb.ca

In the section titled “Plan Your Business” the following requirements are explained:

1. Choose Your Business Structure www.gov.mb.ca/jec/busdev/business_structures
• Sole Proprietor
• Partnership
• Incorporation
There are pros and cons to each type of business structure and all are explained on the government website. Take the necessary time to determine which business structure will best suit your needs. A Sole Proprietorship and Partnership can be changed to an Incorporation at a later date, if that is deemed advisable. It is a good idea to discuss tax implications with an accountant and any legal considerations with a lawyer. Knowledge and understanding are critical to making good choices that will serve you into the future.

2. Business Name www.companiesoffice.gov.mb.ca
• File a business name with the registry, which is then searched by the Companies Office
• If the name is used you will need to choose a different name and search that
• Once a name is available the Business Name needs to be Reserved
• Register the Business Name
• Receive the provincial Business Number
• Sole Proprietors who carry on business under their own name (ex: Maggie May operating as Maggie May’s Marvelous Muffins) do not have to register.
• Note: the sole owner is required to display a sign at their business showing his or her full name. Partnerships and Corporations must be registered with the Companies Office
When registering a Business Name, a Business Number will be issued. The Business Number will be used for Manitoba Taxation and for an incorporation. All Provincial departments use the same Business Number so it is important to let them know you have a number, so another one isn’t issued.

3. Workers Compensation Board of Manitoba. www.wcb.mb.ca
Workers Compensation of Manitoba covers employees and owners for loss of earnings due to injury at the workplace. Rates are established according to the industry and rate of injuries within that industry. For example, it is much likelier that an injury will occur in the construction industry compared to retail sales, therefore the rates are higher.

4. Manitoba Employment Standards. www.gov.mb.ca/labour/standards
All employers must adhere to the rules provided by Manitoba Employment Standards, so it is essential that you are aware of your rights and responsibilities as an employer. An employer can not pick and choose which rules to follow within the code. Familiarize yourself with the Labour Standards so you know the rules governing employee relations and payment.

5. SAFE Work Manitoba. www.safemanitoba.com
It is very important to provide a safe work environment for your employees. On the Safe Manitoba website there are resources, training courses and information to assist in providing a safe workplace.

6. Food Handling Establishment Inspections & Health Permits.
www.gov.mb.ca/health/publichealth/environmentalhealth/protection/food.html
If your plan is to go into the food business there are many regulations that need to be followed prior to opening. The above web link will connect you to the Provincial Government site which details all the needed licenses, permits and expectations for a food operation in Manitoba.

Federal Information

7. Federal Corporation
www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations
Incorporation can occur at the federal as well as the provincial level. Corporations Canada gives you a general overview of creating and operating a business corporation, including information on the steps to incorporating, your obligations and more.
Should you choose to only do business In Manitoba, incorporating at the federal level would not be necessary. Federal incorporation under the Canada Business Corporations Act provides nation-wide business name protection (the corporate name is approved for use in every province or territory in Canada that the business wishes to operate in). It also provides more global recognition than provincial incorporation if you plan to operate internationally. If you choose federal incorporation, you will also be required to register your federal corporation in Manitoba, as well as any other province in which you carry on business.

8. Federal Business Number (BN) www.canada.ca/en/services/taxes/business-number

The federal business number is a 9-digit number issued by Revenue Canada. It is used for
GST/HST, Payroll-Source Deductions, Import-Export, and Corporation Income Tax. There are different identifiers for each category:
• GST- 9-digit number + RT
• Payroll- 9-digit number +RP
• Import/Export- 9-digit number +RM
• Corporation Tax-9-digit number +RC
• The nine-digit number stays the same for each account, the only thing that changes are the letters at the end of the sequence that define the type of account.
Registration is required for each different account. It is only necessary to register for the accounts you are going to be using. For further information make sure to use the above listed link.

Preparing to open a business is a time consuming and detail-oriented process. Making sure to have enough time to accomplish all the many functions is very important in providing a sound basis for the operation of the business. Making to-do lists, that are prioritized, can be very helpful in navigating all the governmental requirements. If you don’t understand a rule, regulation or requirement, make sure to ask questions so you can be educated and make decisions based on knowledge, rather than assumption.
Canada is governed by rules; all business owners are expected to follow those rules and must follow Provincial and Federal regulations. Lack of knowledge can never be used as a way of not following the rules. There can be monetary fines applied for non-compliance, so it is essential you understand all that is legally required to operate a business in Manitoba/Canada.

Do you have ideas for a business? Are you a Permanent Resident? Would you like information about business in Canada? Would you like to have an advisor at your disposal at no cost to you?

If so, please contact Aurora Project’s Business Development Manager,
Naty Delbridge @ 204 -441-3207

email to: naty@aurora-project.ca

www. https:facebook.com/auroraprojectconsulting to book an appointment.