Drop Shipping Legalities in Canada
Dropship Canada
Canada Wholesale Drop Shipping
Last Updated: 7 April 2008

QUESTION

...I've been trying to find information about starting my own business online. I want to start a embroidery and sewing supply business online. I live in Ontario Canada and one of my suppliers is from China.

ANSWER

1. CANADA REVENUE AGENCY
   To import embroidery and sewing products from China and Italy, you will need to obtain an Import Number from the Canada Revenue Agency (CRA). You can find the relevant information at Business Number (BN) registration. If you want to speak with a real person at CRA about what you need, call 1-800-959-5525.
   

   Source: Business Registration Online (BRO), CRA
   
   Business Registration Online is a one stop, online, self serve application that allows you to register for a Business Number, as well as for four major CRA programs (Corporation Income Tax, Goods and Services / Harmonized Sales Tax, Payroll Deductions, and Import-Export accounts).
   
   You can also register or apply for Ontario, Nova Scotia and British Columbia program accounts. For more information and to register online, choose from the topics...[here].

2. Ontario Programs (see source for other provinces).

   Source: Ontario programs, CRA.
   
   Ontario programs

   • register or renew a business name with the Ministry of Government Services
   • apply for these accounts:
     • Ontario Retail Sales Tax
     • Ontario Employer Health Tax<\li>
     • Ontario Workplace Safety and Insurance Board

   You need to register a business name with the Province of Ontario if you are not operating under your exact legal name. There is a $60 registration fee, which you can pay on-line using your credit card.

3. As an Ontario resident, you can contact your Regional Access Program, set up an appointment, describe your new business and receive all the information you'll require to do it right, both provincially and federally.

   Source: Regional Access Program Location Index
   Canada-Ontario Business Service Centre - COBSC
   
   Whether you are starting a business, expanding a business or entering a new area of business activity, such as exporting or e-business, it is essential that you make well-informed decisions.
   
   The partners of the Regional Access Program can help you find comprehensive information to help you make those decisions, as well as a computer connected to the Internet to help you conduct additional research. Some sites also offer help with writing a business plan, free advice from a business consultant, business seminars or workshops and business loans... [Read More]

   Source: Ontario Regional Access Program Locations
   Canada-Ontario Business Service Centre, Accessed: 7 April 2008

   Ontario: Locations Near You

   Type your postal code in the form below to find Regional Access Program locations near you.
   
   To find locations in specific cities, select a city in the drop-down, or locate it using the map.

   Find by Postal Code

   Postal Code: Within: 25 km 50 km 100 km

   Find by City

   Select City: Alliston Atikokan Bancroft Barrie Belleville Birch Island Blenheim Blind River Bolton Bracebridge Bradford Brampton Brantford Brockville Caledonia Cambridge Chatham Cobourg Collingwood Cornwall Dryden Elora Essex Fort Frances Geraldton Gore Bay Guelph Haileybury Haliburton Hamilton Hanover Harrowsmith Hawkesbury Hearst Ingersoll Innisfil Kapuskasing Kenora Keswick Kincardine Kingston Kingsville Kirkland Lake Kitchener Komoka Lindsay London Markham Midland Milverton Mississauga Moose Factory Muncey Napanee Newmarket Niagara Falls North Bay Oakville Ohsweken Orangeville Orillia Oshawa Ottawa Owen Sound Parry Sound Pembroke Peterborough Picton Port Colborne Port Elgin Prescott Red Lake Renfrew Richmond Hill Rockland Sarnia Sault Ste. Marie Seaforth Shannonville Simcoe Smiths Falls St. Catharines St. Thomas Stratford Sturgeon Falls Sudbury Terrace Bay Thorold Thunder Bay Timmins Toronto Vaughan Wallaceburg Wawa Wikwemikong Windsor Woodstock

QUESTION

I am a resident of Ontario Canada and want to become an online seller. To sign up with many dropshippers, I would need a Tax ID number/Reseller license. Would you know how I can get one?

ANSWER

1. You can obtain your BUSINESS LICENSE online at http://www.cbs.gov.on.ca/obc/english/68JRD3.htm.
   This will cost you $60 CAD, and you will receive your license immediately — be prepared to print the license on your machine, once you've completed the form. If you get stuck, there's a HELP number at the bottom of the page.
   
    Canada-Ontario Business Service Centre: 1.800.567.2345.



2. You do not need to register for a GST/HST number unless your annual sales are >= $30,000 CAD (see GST/HST, below), but, should your total sales equal or exceed that amount at any point in the year, you must call the office and register immediately.
   You must charge GST on all sales thereafter.
   
    For more information, see:
   http://www.cra-arc.gc.ca/E/pub/gp/rc4027/rc4027-04-e.html.
    See also:
   http://www.cra-arc.gc.ca/tax/business/topics/gst/menu-e.html.
    Or you can call the Canada Revenue Agency: 1.800.959.5525 — press star right away to speak with an agent and avoid the recorded messages.



3. If your customers are located in Ontario, you must register for a RETAIL SALES TAX VENDOR'S PERMIT, and you must charge PST on your sales.
   
    For more information on Retail Sales Tax in Ontario, see:
   http://www.rev.gov.on.ca/english/taxes/rst/.
    To find your local office for this permit, go to:
   http://www.fin.gov.on.ca/english/about/contactus/offices.html.



4. OPTIONS — If you market exclusively to U.S. residents, you can avoid many of these headaches by using a service solution such as Doba™ — call the support number for assistance. See also Shopster, a Calgary-based storefront solution that enables you to select products only from Canadian suppliers, if you wish, and handles all order processing in your behalf. If your Canadian sales are >= $30,000 CAD, however, you will need to obtain a GST/HST number.