What is a CRA Business Number (BN) in Canada?

When starting a business in Canada, one of the first administrative steps is to register for a Business Number (BN). This 9-digit business number, issued by the Canada Revenue Agency (CRA), is essential for interacting with tax authorities and managing various government program accounts.

Whether your business is incorporated, operates as a sole proprietorship, or has employees, the BN is central to your financial and tax management. However, depending on the province in which you operate, additional provincial business identifiers may be required, such as the Quebec Enterprise Number (NEQ) in Quebec or the Ontario Business Number in Ontario.

This article explains what a business number is, why your business may need one, and how to register for a business number based on your situation.

What is a Business Number (BN) in Canada?

The Business Number (BN) is a unique 9-digit identifier assigned by the CRA to businesses and organizations. It serves as a standard identifier to consolidate interactions with government agencies under a single reference number. A business number is required to register for CRA program accounts such as GST/HST, corporate income tax and payroll deductions.

By using a single business account number, businesses can simplify compliance with Canada Revenue Agency (CRA) regulations and avoid duplicate registrations for multiple government programs.

Why do you need a Business Number (BN)?

The BN is mandatory for any company incorporated in Canada in order to file their T2 tax return and meet their tax obligations. Without this number, it is impossible to file a corporate tax return or interact with the CRA.

If your business has sales in excess of $30,000, you must register for GST/HST. The BN is then required to collect the tax from customers and remit it to the CRA.

If a business hires employees, it must also register with the CRA to administer payroll deductions, including Employment Insurance and Canada Pension Plan.

If your business engages in international transactions, such as importing or exporting goods and services, the CRA requires a BN to open an import-export account and manage customs obligations.

On the other hand, self-employed individuals and sole proprietorships operating under their own name are generally not required to obtain a BN, unless they are required to collect GST/HST.

How do I register for a Business Number (BN) with the CRA?

Registering for a BN is free and can be done through the following service options:

• Online: through the Canada Revenue Agency Business Registration Online.
• By phone: Call the CRA at 1-800-959-7775.
• By mail or fax: Submit a completed RC1 Business Number Registration Form.

Required information includes company name, address, legal structure of your business (corporation, sole proprietorship, organization, etc.), names of directors, date of commencement of operations and projected sales.

Once your application is complete, the CRA will assign you a 9-digit BN, sometimes supplemented by specific program identifiers:

• GST/HST tax account (RT0001).
• Payroll account (RP0001).
• Import/export account (RM0001).

Do you need a separate Business Number for each province?

The BN is sufficient for federal tax obligations, but some provinces require businesses to register for a provincial identifier.

In Quebec, businesses must register with the Registraire des entreprises du Québec (REQ) to obtain a Quebec Business Number (NEQ). This number is required for QST (Quebec Sales Tax) registration, business permits and access to provincial funding programs.

In Ontario, businesses must obtain an Ontario Business Number through Service Ontario to comply with local business registration requirements and municipal regulations.

In Alberta and British Columbia, federal registration with the CRA Business Number is usually sufficient, although businesses with a physical location or specific local regulatory requirements may need to register with the province.

If your business operates in multiple provinces, check the provincial registration rules to ensure compliance with local tax and regulatory requirements.

Quebec Business Number (NEQ)

The NEQ is different from the BN and is used for business registration with the REQ when you start your business in Quebec. It is mandatory for corporations, general and limited partnerships, and sole proprietorships that use a business name other than the owner's name.

Obtaining a NEQ formalizes the legal existence of the business in Quebec. It is often required to sign contracts, access certain grants, open a corporate bank account or file a CO-17 tax return.

Registration can be done online through the Registraire des Entreprises du Québec (REQ) portal or by mail by completing a registration form.

How do I register for a Quebec Business Number?

Registration is a simple process that can be completed:

• Online, through the Registraire des entreprises du Québec (REQ) portal.
• By mail, by filling out a registration application form.

Once registered, the NEQ is assigned and allows businesses to complete other tax registrations, such as QST (Quebec Sales Tax) registration with Revenu Québec.

Ontario Business Identification Number (BIN)

When you start your business in Ontario, you must register and obtain an Ontario Business Number through Service Ontario. This number is required to register a corporation, partnership or sole proprietorship using a business name.

The Ontario Business Number is used to interact with provincial government services and to access certain local government programs.

How do I get an Ontario Business Number?

Businesses can register for an Ontario Business Number by:

• Registering online through the Service Ontario Business Registry.
• Submitting an application by mail with the required business registration documents.

Once approved, the Ontario Business Number is issued and allows businesses to operate legally in the province.

The Business Number: essential for your corporate tax return

Obtaining a Business Number (BN) is a critical step for businesses operating in Canada. Whether you are in Quebec, Ontario or another province, understanding the differences between the BN, NEQ and Business Number in Ontario will ensure that you properly register and structure your business.

If you need help managing your corporate tax, payroll, or CRA program accounts, T2inc.ca can help simplify your tax obligations.

Need expert tax advice? Contact T2inc.ca today and ensure your business stays compliant with Canadian tax regulations!