Tips for Starting a Business as a New Canadian Resident

Introduction

Starting your own business after moving to Canada is often more than just a way to earn money. For new residents, it can mean building community ties, planning for a future, and creating something that lasts. No matter if your goal is to stay temporarily or work toward permanent residency in Canada, setting up a business takes careful planning and a clear idea of what’s allowed.

This guide breaks down practical steps and important considerations for newcomer entrepreneurs, from understanding your legal status to tapping into local support networks.

What steps should you take before launching a business in Canada?

The first thing to check is what your current immigration status allows. Can you start a business on your study or work permit, or do you need to wait until after you become a permanent resident? Many permits have restrictions on self-employment, and it’s best to confirm before investing any time or money. Even small differences in status can change your options. Review the conditions listed directly on your permit or speak with a qualified immigration advisor.

Once you are clear to start, you need to register your business. Decide if you’ll operate as a sole proprietor, a partnership, or as a corporation. The choice affects your tax obligations and how you report income. Newcomers often start small as sole proprietors, but corporations may offer long-term benefits for those planning to grow.

Choosing the right industry is another early decision. Ask around—what services or products are missing in your neighbourhood? Is there a market for your idea? Many successful newcomers start with something that meets a local demand, whether it’s tutoring, home repairs, or specialty foods.

How does immigration status affect your ability to start a business?

Your immigration status is at the heart of what kind of business you can run in Canada. Permanent residents usually have more freedom, including the ability to own and operate almost any type of business. But if you hold a work permit or are studying, the rules can be stricter.

“While work permits may limit business ownership in some cases, those with or transitioning to permanent residency often have broader options,” says a BorderPass immigration lawyer. Staying up to date on your status and knowing how it aligns with entrepreneurship is key.

For those whose permits do not allow self-employment, different pathways can help. Some international entrepreneurs move toward permanent residency in Canada through programs like the Start-up Visa, which supports people building businesses that benefit the local economy. If you’re planning to switch permit types or update your status, make certain that every change lines up with your business activities so you avoid problems in the future.

What support is available to newcomer entrepreneurs?

Newcomer entrepreneurs in Canada can access a wide range of support. Provincial and municipal programs often feature entrepreneur grants or startup incubators built for immigrants. These resources can help with everything from crafting a business plan to learning about market conditions.

Community agencies and settlement centres offer practical help, too. You can find workshops covering topics like budgeting, basic business law, and marketing tactics. These sessions focus on newcomers’ real-life questions and are sometimes delivered in multiple languages.

For newcomers managing both business growth and permit status, digital services like BorderPass help by tracking immigration paperwork and giving reminders. That way, you don’t lose sight of deadlines as your business builds traction.

What should you know about taxes, banking, and legal requirements?

Setting up a business bank account is a must for most new businesses, and many banks work directly with immigration-focused agencies to walk you through the process. You’ll generally need your permit, a Canadian address, and your business registration.

Every business owner is responsible for understanding tax rules. Once your revenue crosses a certain threshold, you need to register for GST or HST and file returns. Keep clear financial records and save receipts from the start. Software tools can lighten the paperwork.

Laws around hiring, contracts, and workplace rules can vary by province and industry. While there’s a lot of information online, one quick session with a legal advisor—especially through lawyer-backed tools—can keep you on the right track. Small mistakes, like mixing up employment categories or missing a tax deadline, can cause big headaches for new entrepreneurs.

How can you build your business network and find clients?

Newcomers sometimes arrive with no contacts or clients in Canada. Building a network is as important as building your product or service.

Try these simple ways to get started:

- Attend local business meetups for immigrant entrepreneurs

- Join professional associations in your field

- List your services on community directories that highlight immigrant-owned businesses

- Volunteer at neighbourhood events to make introductions and learn about Canadian business norms

Offering free workshops or sample services in your field, if permitted by your immigration status, is a practical way to get early referrals. Many newcomers get their first clients through word of mouth and community ties.

Planning Forward: Building Confidence as a Newcomer Entrepreneur

Launching a business as a new Canadian is about more than following the rules—it’s about planning for both growth and stability. When you keep your immigration status clear and use available legal and community resources, you lessen the stress of paperwork and focus on moving forward.

Each step closer to permanent residency in Canada usually opens more options for your business. Good planning, legal support, and local knowledge together help you build a business that not only supports you, but also offers something meaningful to your new community.

Building a business while planning your future in Canada comes with big decisions, and having the right support around your immigration status can make all the difference. At BorderPass, we guide newcomers through clear, smart steps that align with their long-term goals, including the move toward permanent residency in Canada. Our lawyer-backed platform helps keep things organized so you can focus on running your business, staying up to date with permits, and managing documents with confidence. If you’re not sure where to begin, contact us—we’re here to help you do it right.