If you’re starting a business in Canada, you’ll need to deal with more than a little paperwork. However, not all of it has to be a headache. One of the most important documents for small business owners is a Master Business License (MBL). It’s a simple yet powerful registration that makes your business official, legal, and ready to operate.
Not sure what a Maser Business License is or what role it might play in your business’s success? Whether you’re launching a side hustle or a full-scale company, here’s why an MBL matters and how to get one.
What Is a Master Business License?
A Master Business License is a registration document issued by the government that lets you legally operate a business under a specific name. It applies to sole proprietorships, general partnerships, and some corporations that want to use a different trade name from their legal corporate name. However, it’s not applicable to all businesses, so you’ll need to know what laws apply to your business, specifically.
Think of it as an official permission slip. It tells the government, customers, and banks that your business exists and is operating legally. Without it, you won’t be able to open a business bank account, apply for financing, or sign contracts under your business name.
Who Needs a Master Business License?
You’ll need an MBL if you’re running a:
- Sole proprietorship – If you’re doing business under a name other than your legal name, you need an MBL. Example: If John Smith wants to run “Smith’s Auto Repair,” he needs a license. However, if Mr. Smith repaired cars under his own name, he wouldn’t need an MBL. That said, Smith’s Auto Repair definitely sounds more legitimate than just writing a cheque to someone named John Smith to fix your car.
- General partnership – If two or more people are running a business together under a shared name, they need an MBL to operate legally. It’s all about establishing a legal entity that exists apart from either of the partners.
- Corporation using a trade name – If you’ve incorporated your business but want to operate under a different trade name, you’ll need an MBL. Example: If “123456 Canada Inc.” wants to do business as “Maple Tech Solutions”, the business would need an MBL. This might be necessary if your corporation expands into an area where your primary business name is already being used.
If you’re incorporated and using your registered corporate name, you don’t need an MBL. Your Articles of Incorporation already handle your business name registration.
Why Bother with a Master Business License?
You might be thinking, “Can’t I just run my business without all this paperwork?” Technically, yes. But here’s why getting an MBL is a smart move:
- It Makes You Legal – Operating without registering your business name can lead to fines and penalties. An MBL keeps everything above board, saving you time, money, and hassle down the road.
- It Lets You Open a Business Bank Account – Banks won’t let you open an account under your business name without an MBL (if applicable). Keeping personal and business finances separate is a big part of financial success.
- It Builds Trust – Customers, suppliers, and lenders take you more seriously when you’ve registered your business. It shows you’re in it for the long haul.
- It Makes Financing Easier – If you ever need funding (like a cash advance from Bizfund), having an MBL proves your business is legitimate. Lenders need to see official documents before they approve loans.
- It Protects Your Business Name – Registering your name means no one else in your province can legally operate under it.
How to Get a Master Business License in Canada
Registering for an MBL is a pretty straightforward process. Here’s how you do it:
- Pick Your Business Name – Make sure it’s unique and doesn’t conflict with existing businesses in your province. Some provinces let you do a name search before registering.
- Choose Your Business Structure – Decide if you’re registering as a sole proprietorship, partnership, or corporation.
- Register Online or In Person – In most provinces, you can register through your provincial government’s website. Ontario, for example, lets you apply through ServiceOntario.
- Pay the Fee – Fees vary by province but usually range from $60 to $80 for a sole proprietorship or partnership.
- Receive Your License – Once approved, you’ll get your Master Business License, which is valid for five years in most provinces.
MBL Registration by Province
Each province handles MBLs a little differently. Here are some quick links to get you started:
- Ontario – ServiceOntario (Master Business License valid for 5 years)
- British Columbia – BC Business Registry (Usually called a Business Name Registration)
- Alberta – Service Alberta (Trade Name Registration)
- Quebec – Registraire des entreprises (Registration Declaration)
- Manitoba, Saskatchewan, Atlantic Canada – Provincial registries handle name registration similarly to Ontario
Does a Master Business License Expire?
Yes. In most provinces, an MBL is valid for five years, after which you’ll need to renew it. If you forget to renew, your business name could become available for someone else to claim.
Master Business License vs. Business Number (BN)
A Master Business License is not the same as a Business Number (BN). Your BN is assigned by the Canada Revenue Agency (CRA) and is used for tax purposes, while your MBL is a provincial registration for your business name. Most businesses need both—your MBL for operations and your BN for taxes and payroll.
Building a Successful Business
If you’re serious about running a business in Canada, getting a Master Business License is a must. It’s a simple process that unlocks a world of opportunities—from opening a business bank account to securing funding and protecting your brand. And if you ever need a financial boost to grow your business, Bizfund is here to help with quick, hassle-free funding based on your future earnings.
Get your paperwork in order, build your business the right way, and set yourself up for long-term success.
