What license do I need for eCommerce?

Some common licenses that you may need to obtain include a general business license, sales tax license, professional or occupational license, and an import/export license.

A general business license is typically required for most businesses, including eCommerce operations, in Canada. Registering your business with the provincial or federal government allows you to conduct business within that jurisdiction.

In addition, if your eCommerce business sells taxable products or services, you’ll likely need to register for the Goods and Services Tax (GST), Harmonized Sales Tax (HST) or Provincial Sales Tax (PST). This registration enables you to collect sales tax from customers and remit it to the appropriate tax authority. Make sure you are writing off your GST paid on expenses.

In certain cases, you may also need a professional or occupational license if your eCommerce business offers specialized products or services that require professional certification or licensing in Canada. Examples of such businesses include online pharmacies, medical equipment suppliers, or companies offering financial, legal, or health services.

Furthermore, if your business involves importing or exporting products internationally, an import/export license may be necessary to comply with Canadian trade regulations and customs laws.

To ensure that you obtain the appropriate licenses for your Canadian eCommerce business, research your provincial or territorial government’s regulations and consult with professionals if needed. Understanding and fulfilling the licensing requirements will help you avoid potential legal issues and ensure the successful launch and operation of your eCommerce enterprise in Canada.