Small Business Financing in Canada: Helpful Tips for Newcomers
Starting a business in a new country may feel like both an opportunity and a learning curve. For newcomers to Canada, it can be useful to understand the rules, structures, and supports that are available. This can include legal requirements, business planning, and awareness of financing or trade considerations.
The overview below introduces some of the areas newcomers may wish to review when exploring small business ownership in Canada.
Learn more about TD New to Canada Banking Package
Check Your Eligibility
Before investing time and money, it’s a good idea to take steps to confirm that you are eligible to work and operate a business in Canada. Your immigration status may affect what is permitted, and certain professions may be regulated at the provincial level. This might mean certification or licensing is needed before you begin. More detailed information on these requirements is available through Government of Canada resources designed to support newcomers who are starting a business.[1]
Plan Your Business
A clear plan may provide structure to your ideas and guide decision-making. At this stage, you may want to decide on the legal form your business will take, such as sole proprietorship, partnership, or incorporation. Bear in mind, each business structure carries with it different responsibilities and tax considerations. [2] [3]
Market research may also be useful. Understanding customer demand, competition, and local conditions may influence whether your business idea is viable. Resources like TD’s “Validating your business idea” article outline some ways to begin.[4]
Newcomers may also be eligible for Canada’s Start-up Visa Program, which connects entrepreneurs with designated organizations that provide support. These organizations include venture capital funds, angel investor groups, or business incubators that assess business ideas and, if approved, provide guidance or investment to help them grow.[5]
A written business plan may bring all these elements together, helping you set goals, estimate costs, and prepare for potential challenges.
Register and Review Legal Requirements
Once a plan is in place, the next step may be to register your business. In most cases, this means obtaining a business number and registering with the federal or provincial government. You may also need to register for permits or licenses depending on the type of business and where it will operate.[6]
Legal advice may also be useful, particularly if you are unfamiliar with Canadian regulations. Services such as Pro Bono Ontario or the Law Society Referral Service may provide guidance to help navigate contracts, intellectual property, or liability questions. [1]
Ready to bank? Learn more about TD New to Canada Banking Package today
Review Tax and Hiring Obligations
Business ownership also involves tax responsibilities. You will likely need to register for and collect the Harmonized Sales Tax (HST), depending on the nature and revenue of your business. The Canada Revenue Agency offers a Liaison Officer Initiative to help small business owners understand their tax obligations.[7]
If you plan to hire employees, you – need to comply with payroll, health, and safety standards. Each province has employment standards and labour laws that outline wages, hours, and working conditions.[1]
Explore Trade and Financial Support
If your business involves importing or exporting goods and services, additional rules may apply in Canada. It’s a good idea to check Canadian government resources, which clearly outline the requirements for cross-border trade and may identify supports available to businesses like yours working internationally.[1]
Financing is another area to consider. New businesses may rely on different sources of funding, such as personal savings, loans, lines of credit, or support from family and community networks. Some entrepreneurs also explore government-backed programs or grants that may be available to small business owners. TD works with Fundica[8], which is a search engine that matches businesses with relevant government funding programs. A dedicated business account may make it easier to keep personal and business finances separate. TD provides accounts and related products that are designed with small business owners in mind.[9]
In addition, TD’s New to Canada learning hub provides resources tailored for newcomers who want to learn more about financial services in Canada.[10]
Bringing the Pieces Together
Every small business journey is unique. By taking the time to look closely at eligibility, planning, registration, taxes, and financing, newcomers like you may feel better prepared to start and grow your business idea in Canada.
Learn more about TD New to Canada Banking Package
Why Choose TD?
More than 160 years of helping Canadians:
TD has a proud history of delivering financial solutions to Canadians for more than 160 years. TD also brings a century of experience helping newcomers navigate the unique challenges of the Canadian banking system.
With over a thousand branches, and the ability to also serve you in more than 80 different languages, TD has become one of the largest and most trusted banks in Canada, now serving 16 million Canadians.
TD offers online support and resources of interest to newcomers on topics such as banking basics, moving to Canada, credit score essentials, and more. TD is open longer hours for your convenience and has thousands of ATMs across Canada to help you take care of your everyday banking needs quickly and easily.
Ready to Bank?
Learn more about TD New to Canada Banking Package today.
Book an appointment to talk with a TD Personal Banking Associate about the TD New to Canada Banking Package. You can book online right away, or visit the TD website to learn more.
Legal Disclaimer:
Information provided by TD Bank Group and other sources in this article is believed to be accurate and reliable when placed on this site, but we cannot guarantee it is accurate or complete or current at all times. The information in this article is for informational purposes only and is not intended to provide financial, legal, accounting or tax advice, and should not be relied upon in that regard. This information is not to be construed as a solicitation to buy. Products and services of the TD Bank Group are only offered in jurisdictions where they may be lawfully offered for sale. All products and services are subject to the terms of the applicable agreement. The information in this article is subject to change without notice.
® The TD logo and other TD trademarks are the property of The Toronto-Dominion Bank or its subsidiaries.
[1] Government of Canada, Business guide for newcomers to Canada, Canada.ca, Ottawa, Government of Canada, 2025, https://sbs-spe.feddevontario.canada.ca/en/business-guide-newcomers-canada, (accessed 25 August 2025).
[2] Government of Canada, Planning a business, Canada.ca, Ottawa, Government of Canada, 2025, https://www.canada.ca/en/services/business/start/planning.html, (accessed 25 August 2025).
[3] Government of Canada, Starting a business, Canada.ca, Ottawa, Government of Canada, 2025, https://sbs-spe.feddevontario.canada.ca/en/starting-business, (accessed 25 August 2025).
[4] TD Bank Group, Market research: Starting a business in Canada, td.com, Toronto, The Toronto-Dominion Bank, 2025, https://www.td.com/ca/en/business-banking/small-business/starting-your-business/market-research, (accessed 25 August 2025).
[5] Government of Canada, Start-up Visa Program, Canada.ca, Ottawa, Immigration, Refugees and Citizenship Canada, 2025, https://www.canada.ca/en/immigration-refugees-citizenship/services/immigrate-canada/start-visa.html, (accessed 25 August 2025).
[6] Government of Canada, Registering your business with the government, Canada.ca, Ottawa, Government of Canada, 2025, https://www.canada.ca/en/services/business/start/register-with-gov.html, (accessed 25 August 2025).
[7] Canada Revenue Agency, Liaison Officer Initiative, Canada.ca, Ottawa, Government of Canada, 2025, https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/liaison-officer-initiative-loi.html, (accessed 25 August 2025).
[8] The Toronto-Dominion Bank is not responsible for, nor does it guarantee the information, recommendations, products, or services offered by Fundica.
[9] TD Bank Group, Small Business Bank Accounts, td.com, Toronto, The Toronto-Dominion Bank, 2025, https://www.td.com/ca/en/business-banking/small-business/bank-accounts, (accessed 25 August 2025).
[10] TD Bank Group, Learning resources for newcomers to Canada, td.com, Toronto, The Toronto-Dominion Bank, 2025, https://www.td.com/ca/en/personal-banking/solutions/new-to-canada/learning-resources, (accessed 25 August 2025).
