How to Register Your Construction Company

By Editorial Team

Updated on November 7, 2023

If the pandemic offered us insight into anything, it’s that home renovation and construction have plenty of public interest. This interest doesn’t seem to be fading. The construction industry is a booming one, as a contractor or entrepreneur (or both), you may be curious about starting and registering your own business.

The demand for skilled contractors is definitely there, but what are the logistics when it comes to registering a construction company?

If you’re looking to transition into owning your very own business in Canada, now is as good a time as any to jump right into this venture. As our economy grows, your business can grow alongside it. This article will list the primary steps and considerations that you should take in order to turn your construction company business dream into a reality! Moreover, we’ll be looking specifically at Ontario and Alberta. 

How to register your construction company in Canada

men working_How to register your construction company_Reno Quotes

Determine your type of business

Regardless of the province where you’re located, if you’re registering a business in Canada, it will need to be recognized by the Government of Canada as well as the Canada Revenue Agency. This means you’ll have to obtain a legal license for your business. 

This process will involve deciding whether you want to register as a small business or an incorporated company. We’ll go over the pros and cons below but would like to note that many of the larger Canadian construction companies choose to be incorporated for the reasons we’ll detail below.

Personal liability

When you register as a small business, you are personally liable for the actions of your business alone. This means that any liabilities your business incurs will be charged to you. When it comes to incorporation, the business will be separate from you and thus, will have its own liability risk that’s separate from your individual person.

Name

Unfortunately, a small business license will not offer you name protection, so it’s easy to have your name or something similar used with no real recourse. In contrast, when incorporated you do have name protection and may be able to seek infringement recourse if someone decides to register a similar business name.

Taxes

With a small business, you’ll be taxed at a personal income level as registering a business means that it’ll automatically become part of your personal tax account. With an incorporated company, the corporation has its own tax account independent from yours. Do bear in mind this will require you to file both a personal and business tax return each year. Corporations are privy to lower tax rates and other tax concessions. 

Registration length

The length of your business registration will depend on the province you’re in. In Ontario, a business license will be valid for 5 years and once this time is up you’ll be able to register your business for another 5 years. Otherwise, the Ontario Government will automatically cancel it. In Alberta, your business license will be active indefinitely and remain valid unless you choose to dissolve the business. 

In regards to an incorporated company, it’s continual. In Ontario, the corporation has no yearly filings. However, in Alberta, you’ll be required to file an annual return in order to remain active.

Regulations and licensing

In Canada, there are specific licensing requirements when it comes to skilled trades. In many cases, each Province has their own rules and you can determine this by checking with the College of Trades or the equivalent to figure out what these are. 

For Ontario specifically, there are trades referred to as compulsory trades which need licensing or certifications to legally operate. Here is a brief list of some of the trades that do require specific licensing: 

  • Electrician

  • Gasfitter

  • Refrigeration / AC

  • Sheet metal worker

  • Plumbing

  • Oil Burner Mechanic

For the very specific trade licensing specifications check here for Ontario and here for Alberta. Do keep in mind that for certain cities you’ll need municipal licensing to practice certain construction projects.

construction site_How to register your construction company_Reno Quotes

Health and safety regulations

Health and safety are very important considerations when it comes to registering a business. You want to make sure that your workers are protected. In regards to the many trades covered under the construction sector, you’ll need to register with your provincial Workers Safety Board. It’s also recommended to look into the workplace safety regulations as defined by the Ministry of Labour, Skills and Training Development. For construction companies, there is a long list of considerations as this is a career with many risks. This includes covering areas such as fall prevention, hazardous substances, scaffolds, and so forth.

You can find Ontario regulations here, and Alberta regulations here.

Trade associations

In the construction industry, trade associations are a useful tool to connect with others in the field locally as well as internationally. Some options are:

If you're just getting started in this industry, registering with a trade association comes with many benefits. These include: saving money, gaining guidance, networking, learning from others in the field, maintaining the best construction and renovation practices, boosting your company reputation.

building exterior_How to register your construction company_Reno Quotes

Insurance

Insurance is a crucial consideration for any business, but especially in the construction industry where you’ll need protection against various risks. Without insurance, you’ll be liable for every and all costs related to the workplace including injuries, broken equipment and so on. To do this, contact an insurance company and obtain construction liability insurance that covers both general and property liabilities. In some instances, you’ll also want to cover any vehicles your business is using. 

In specific cases and with specific clients, you may require additional types of insurance including workers compensation insurance, disability insurance or unemployment insurance. 

Follow these links to register your business in Ontario and Alberta

Follow these links to incorporate them in Ontario and Alberta.

Find contracts for your home renovation company

RenoQuotes.com can help you get home renovation contracts. We get requests from clients looking for trusted home renovation professionals just like you. Fill out the form on our homepage (it only takes a few minutes), and you will receive information on how to get new clients for your renovation company through our service.


Get 3 free quotes for your project!

Submit a project and get 3 free quotes!

Looking for something else?

Get 3 free quotes for your project!

Submit a project and get 3 free quotes!

Are you a contractor?

Join our network and receive real leads!

Download the price guide for renovations

We’ll be emailing you the latest market price guide for renovations.



Related articles

The latest industry news, interviews, technologies, and resources.

4 min read

Editorial Team

29 Nov 2024

Ontario Recruiting Quebec-Based Workers: What's Going On?

At the Centre de formation professionnelle des Portages-de-l’Outaouais, students are flanked with signs promoting a “variety of trades grouped under the same labourers' union in Ontario.” Welding job opportunities are advertised with wages such as $54.62 an hour, and heavy machinery operators $61.02 per hour. 

5 min read

Cynthia Pigeon

07 Nov 2023

Everything to Know About Modular Construction

Progress, innovation, and environmentally friendly concepts are all part of the current culture in various industries, and the real estate industry is no different. When it comes to architecture, the possibilities are now only limited by your imagination.

Information and news on the construction sector
5 min read

Léa Plourde-Archer

06 Jun 2025

Masonry Cost Guide - How Much to Budget in 2025 in Canada?

Masonry and bricklaying are more than a skill, they are a craft. When it comes to the requirements for working with concrete and brick, you’ll need to work with a person who has specific training. These materials are especially difficult to manipulate, and thus, it’s almost always best to work with a professional.  Of course, working with a mason or bricklayer will leave you with lifelong structures and pieces, adding to the individuality and resale value of your home.

8 min read

Editorial Team

25 Apr 2024

How to Prevent Paint Bubbles or Blisters

There’s nothing like a bit of paint to morph a room, to then embrace the environment in no time. While painting projects are mostly feasible by all, it still goes without saying that professionals have proficient knowledge of the basics of painting to carry out a flawless finish. If that doesn’t reflect your abilities, unsightly marks could give you away sooner or later...like paint blisters or bubbles appearing on a freshly coated wall. 

Interior renovations
8 min read

Editorial Team

30 Aug 2024

Are Concrete Countertops Right For Your Kitchen?

A concrete countertop can help transform the space it's in. Many see concrete as an industrial material. However, if used well, it can adapt to any decor style. A mundane kitchen can undergo a major transformation with the addition of a new concrete countertop covering.

Kitchen

Looking for a contractor?

Submit a project and get 3 free quotes now!