When Should I Start My Business in Canada?

November 06, 2025•6 min read

A newcomer’s guide to finding the right time to begin

If you’ve just arrived in Canada, it’s natural to start dreaming about building your own business.

Maybe you ran a company back home, or maybe this is something you’ve always wanted to do.

But the big question is: “When should you start?”

Here’s our honest answer: Unless you came to Canada with a Startup Visa or Business Immigration Program that requires you to start right away, wait a little.

And when we say “wait a little”, we mean two years at least. Or maybe five.

Before you start

Five years??? But, Anna, I want to make my dreams come true now!

If this was your reaction as you read our answer, we hear you. Loud and clear. But hear us out too.

Taking some time to settle and learn first will make your future business stronger.

We recommend waiting at least two years, so that you can:

1️. Settle in and understand daily life

Give yourself time to adjust. Find stable housing, a routine, and a community.

Let’s face it, moving to a new country is stressful. Even without adding the pressure of building a business.

Settle in Canada first. Give yourself and your family the grace to adjust to the life and culture of your new home.

This helps you make better decisions later when you start your business.

2️. Gain legal work status

If you wait the whole five years, chances are, you’ll have a PR. Even if you arrived as an international worker or maybe a student.

Being a Permanent Resident or a Canadian Citizen opens the door for you to own your business.

If, however, you’re here as a worker, student, or on a temporary permit even after five years, check the rules carefully.

Before you start or run a business, make sure your visa or permit allows self-employment.

The last thing you want is to start something that doesn’t align with your immigration status.

(Tip: You can always talk to an immigration consultant or lawyer to confirm what’s allowed.)

3️. Go through a couple of tax cycles

Taxes in Canada work differently from those in many other countries. Chances are that you didn’t have to file taxes in your home country. Here, you need to do it.

By working or freelancing first, you’ll learn how income tax and deductions work and you’ll be much better prepared to handle business taxes later.

And you’ll also realize why so many people become contractors and start their own businesses at some point. Because here in Canada we are taxed to death (yes, we are not sugarcoating things here at Newcomer Business Canada).

4️. Build your credit history

Credit is a big deal in Canada.

You’ll need it if you want to get a loan, lease equipment, or buy a business.

Start small: open a credit card, use it wisely, and pay your bills on time. By end of year two, and especially by end of year five, you’ll have decent file with the credit bureaus.

5️. Build relationships and get to know the culture

In Canada, business is built on trust and connection.

Take time to meet people, attend local events, and observe how Canadians do business.

Understanding the culture will help you communicate better and find real opportunities.

And, speaking of relationships, according to a famous Harvard research, they are important even for our general happiness and well-being.

Prioritizing networking, connecting, and building relationships in your new home during the first two to five years in Canada, will set you up for success in any endeavour, including entrepreneurship and business ownership.

6️. Observe how businesses operate

Look around your community.

What types of businesses are busy?
What’s missing?
What frustrates customers?

These are clues that will help you find a gap in the market and a business idea that fits the local needs.

Imagine how much you will be able to learn about Canada and consumer behaviour here after even just two years.

You’ll notice the seasonal patterns. You’ll see things that change. And the things that never change.

And within five years, you’ll get to experience the full cycle of elections (local and federal) and really understand the economic landscape.

If an opportunity comes, take it.
Sometimes, you’ll notice a gap or get invited into a small partnership earlier than planned. If it feels right and fits your situation, go for it. Small, low-risk opportunities can help you learn faster and test ideas before you commit fully.

When you’re ready to start

After a few years, when you’ve built your foundation, you’ll be in a much stronger position to succeed.

Here are a few things you’ll need to do:

1️. Develop a business plan

Before anything else, create a simple business plan. It doesn’t need to be fancy. A one pager with these key elements is more than sufficient:

What you want to do
Who your ideal customers are
How you’ll reach them
What it will cost and how you’ll make money

A business plan helps you stay focused, attract partners, and access funding later on.

2️. Choose your business structure and register it

Decide whether you’ll be a sole proprietor, partnership, or corporation. Then register your business name, get a business number (BN), and apply for any required licenses. (You can usually do this online through your province’s business registry.)

3️. Understand financing options

Once your credit and status are solid, explore your funding choices:

Your own savings (bootstrapping)
Bank loans or newcomer business loans
Government programs and grants (like BDC or Futurpreneur)

If you are starting your own business, you might be able to begin it as a side project and fund it yourself.

If you decide to buy an existing business, there are many grants, programs, and loans that can help you. At the time of writing of this article, BDC launched a $50 million fund to help women entrepreneurs buy businesses from retiring owners.