All countries implement licensing systems. These systems, in turn, provide a transparent system of controls and licensing requirements, while protecting the public from the irresponsible actions of those wishing to engage in business ventures. In other words, all licensing criteria must be clearly defined in the relevant legislation in order to minimize abuse of the system. This process serves many useful purposes, but can also be tiresome and confusing for those not familiar with the industry terminology. For this reason, it is recommended that you seek expert legal advice when deciding which types of licenses for a starting business you need. Your legal advisor will be able to provide you with advice on which type of license is most appropriate for your business needs, as well as guidance on the procedure and documentation needed to obtain a license.
Regulate the conduct of the business activity
The purpose of licensing is to regulate the conduct of the business activity. This includes ensuring the protection of consumers, workers, the environment, and other individuals. There are two main categories of licensing that apply to different businesses operating in different industries and in different geographical locations. The first category is for activities that take place in other countries, while the second category is for activities that take place in the country in which you are located. Each category has different qualifications and requirements, which are detailed in separate licensing regulations. These regulations are further divided into classes or groups, which reflect the legal obligations of business operators, as determined by the applicable legislation.
General and special business licenses
There are several different types of business licenses, including general business licenses and special business licenses. General business licenses are granted by the government to businesses that wish to engage in any type of trade in different provinces and territories. Examples of general business license types include wholesaling, import and export, commercial services, sales, and selling by the owner/breeder. Special business licenses are granted by the government to organizations that demonstrate an ability to create new jobs or benefits, to develop new industry sectors, or to exhibit skills and products that the market is lacking. Some examples of special business license types include farmers, fishermen, and fur traders.
Business Number (BN)
The purpose of a Business Number (BN) is to help facilitate the evaluation of a company’s financial records. It also indicates to the Canadian tax authorities that the business is registered under the tax regime in place in Canada. Business Number registration is compulsory, though a business can apply for a renewal of their license on an ongoing basis. The type of license required will depend on the structure and size of the business. Each license type comes with different performance criteria.
When it comes to obtaining a Business Number, it is important that you understand the differences between the different types. For instance, each classification may require that you submit financial statements, whereas all other classes will not. Understanding the differences between the different classifications ensures that you are able to compare your business to the criteria in each category. As well, understanding the significance of the numbers that appear in the documents, such as the Business Number, will ensure that you do not obtain an unsatisfactory level of service. The Government also has specific requirements for the submission of Business Applications and it can take up to two years for the government to grant your application.
General or detailed
A business license classifies the type of activity performed by your business. These classifications can be general or detailed. General business license classifications require that your business carry out a specific activity, such as manufacturing or selling food, or processing natural resources. You may also be required to provide information on the location of your premises, the number of employees you employ, and the nature of your business.
On the other hand, business license classifications are detailed to describe the details of your business, the production of which satisfies the requirement outlined in the license. For example, if you produce glass products, you will be required to obtain a glass product manufacturing license. You will also need to provide information on the number of employees you employ, the date your business started, and your sales figures over the past three years. Business license classifications can also include a requirement that you use specific materials or employ people who use only approved equipment. In addition, some of the classifications will also list other factors, such as your financial stability, your reputation, or your commitment to community development.
Finally
As well as a detailed listing of all of the requirements necessary for starting and operating a business, there are other things that the government requires you to submit. Examples include a completed Business Operating Manual, a complete set of Income and Business Taxes, copies of accounts and receipts, and a current and accurate Business License. While each type of license will vary slightly, they are all important pieces of information that ensure that your business runs according to government guidelines and that you enjoy some of the services that are available through the different types of licenses for a starting business. The information that you provide when applying for a Business Number, Business License, or a Business Operating Manual will help the authorities to know whether or not your business meets the criteria set out by the law, as well as making it easier for them to regulate your business in the future.