Starting a business in Ontario? You’ve probably heard about the Master Business License (MBL). But what is it, and how do you get one without pulling your hair out?
Good news! We’re breaking it down in plain English (with a sprinkle of humour) so you can get started with confidence. Whether you’re flying solo, teaming up with a partner, or adding a trade name to your corporation, Ontario’s MBL has a flavor for everyone.
What is a Master Business License (MBL)?
Think of it as your business’s birth certificate. The Master Business License is a document issued by the Ontario government that proves you’ve registered a business name. It’s valid for 5 years and can be renewed.
You need an MBL if you:
- Are a sole proprietor (a one-person show)
- Are starting a general partnership (with one or more partners)
- Have a corporation and want to operate under a different trade name
Let’s explore all three types.
1. Sole Proprietorship: The One-Person Army
This is the simplest and most common type of business in Ontario. If you’re running the show on your own and using a name that isn’t your legal name (like “Cool Beans Café” instead of “Mary Smith”), you’ll need an MBL.
Perks of a Sole Proprietorship
- Easy and affordable to register
- Full control (you’re the boss!)
- Minimal paperwork
How to Register
To register a sole proprietorship in Ontario, you need:
- A valid business name. You will need to conduct a NUANS search to make sure your name is available in Ontario.
- Your personal info (name, address, etc.). You must provide a physical address in Ontario (No Po Box). In case you don’t have a physical address in Ontario, Canada Incorporation Agency can provide you with a registered office address and the mail scanning service.
- Pay the Government and Agent Fees ( Around 200 CAD).
You can register online in minutes. Click here to start a business in Ontario as a sole proprietor.
Real-Life Example
Meet Priya. She’s a yoga instructor in Toronto and wanted to start offering her own classes outside of the gym where she worked. She decided to register her business as “Breathe Easy Yoga.” She visited an Canada Incorporation Agency online registration portal, entered her details, paid the fee, and within minutes received her Master Business License by email. Just like that, she was legally ready to teach under her new brand and open a business bank account. Namaste, business ownership!
2. General Partnership: The Dynamic Duo (or Trio… or More)
Starting a business with one or more people? Then you’re in general partnership territory.
What’s a General Partnership?
It’s when two or more individuals or entities agree to operate a business together and share the profits and responsibilities. You’ll need an MBL to operate under your joint business name.
Partnership Pros
- Shared responsibility (and stress!)
- Combined capital and skills
- Tax simplicity (profits are divided and reported individually)
Registration Steps
To register a general partnership, you’ll need:
- Business name
- Names and addresses of all partners
- Filing fees ( around 200 CAD).
Keep in mind: All partners are equally liable for debts. Choose your business BFFs wisely.
3. Trade Name Under a Corporation: The Business Alter Ego
Already incorporated but want to operate under a different name? That’s where a trade name (aka operating name) comes in. You’ll still need an MBL for that.
Example: You incorporated as “1234567 Ontario Inc.” but want to use “Sunshine Roofing.” Register that name as a trade name.
Why Register a Trade Name?
- Professional branding (no one wants to hire “1234567 Inc.”)
- Flexibility to run different brands under one corp
- Required by law to operate under a different name
How to Register
To register a trade name:
- Corporation must be active in Ontario
- Provide the exact corporate name and number
- Conduct the NUANS Search and obtain an Ontario NUANS Report to make sure your name is available
- Provide your company key. If you don’t have one, Canada Incorporation Agency can retrieve it from the government.
- Pay the registration fees. ( around 200 CAD).
You don’t need to file separate taxes—just make sure your legal corp keeps track of all the trade names it uses.
FAQs: Master Business License in Ontario
Do I need a Master Business License to open a business bank account?
Yes! Most banks in Ontario require your MBL to open a business account.
How long is the license valid?
Your MBL is valid for 5 years. You’ll get a reminder when it’s time to renew.
Can I change the business name later?
Nope. If you want to change the name, you have to register a new MBL.
Is an MBL the same as incorporation?
Nope! An MBL is for non-incorporated businesses or trade names. If you want to incorporate in Ontario, that’s a different process.
What happens if I don’t renew my MBL?
Your registration expires, and your business name is no longer legally registered. That means no advertising, signing contracts, or banking under that name until you re-register.
Can I register my MBL online?
Absolutely. The process is quick and simple through Ontario’s online business registration portal or a trusted third-party service like Canada Incorporation Agency.
Do I need to do a name search before registering?
Yes, you need to do it. A NUANS name search ensures your business name isn’t already taken or too similar to another. It saves you from headaches later.
Can I use the same business name as someone in another province?
Yes, as long as no one in Ontario is using it and it doesn’t infringe on a registered trademark. But remember, branding is everything—uniqueness helps you stand out.
Final Thoughts
The Master Business License is your golden ticket to doing business legally and professionally in Ontario. Whether you’re going solo, joining forces, or giving your corporation a brand makeover, registering is fast, affordable, and smart.
Need help? Let a pro walk you through it so you can get back to what really matters—running your business (or enjoying your third coffee of the day).
Click here to get your Master Business License today and make it official!
