How to start an artisan and craft business in Ontario

Table of contents

Introduction
Getting started
Regulations
Taxation
Financing
Other resources

Introduction

The artisanal and craft industries are comprised of many disciplines, and can include a number of professions, from sculptors or quilters, to jewellery-maker or a mechanic who custom-designs vehicles. Artisanal businesses and craft businesses produce a wide variety of products ranging from unique handmade artistic items to mass-produced collectibles or specialty items. In fact, any business creating and selling products made with a “personal touch" could be defined as an artisanal or craft business.

Note: This guide does not address the specific requirements for starting and running an artisanal food business. However, Small Business Services has created a guide to give you more information about the food services industry.

Read online:
How to start a restaurant or catering business in Ontario

Getting started

When you start a business there are several things to consider before you can sell your product or service. Most businesses in Ontario need to complete a minimum of three basic steps:

  • Find out what licences and regulations apply to your type of business
  • Choose a business structure and register or incorporate your business
  • Determine if you will need to collect and remit HST

Our Starting a business guide will give you more information on these steps and other basic requirements for starting a business in Ontario.

Read online:
Starting a business

Regulations

Your business may need licences and permits from the federal, provincial and municipal levels of government.

In addition to the information you will find in this guide, you can use BizPaL to find licences and regulations that may affect your business.

Use online:
Permits and licences search

Common regulations that can apply to an arts business include:

Intellectual property

Intellectual property refers to the legal rights to ideas, inventions and creations in the industrial, scientific, literary and artistic fields. It also covers symbols, names, images, designs and models used in a business.

Trade-marks and copyright

If you want to protect an artistic, dramatic, musical or literary work - including computer programs and performance or sound recordings - you may wish to apply for a trade-mark or copyright.

Read online:
Intellectual property and copyright

Product safety and labelling

When you are selling, importing/exporting or manufacturing products, you are responsible for ensuring safety standards are met and your products are labelled properly.

Labelling

You will need to be aware of the regulations for business owners if you are labelling goods produced domestically or imported into Canada.

Contact the Competition Bureau:
1-800-348-5358
Labelling

Hazardous products

If you manufacture, sell or import consumer goods such as (but not limited to) products for children, textiles for clothing or flooring, or paints and modelling materials, you need to be aware of your legal responsibilities.

Read online:
Frequently Asked Questions - Hazardous Products Regulations

Technical standards and safety

You need to be aware of your legal responsibilities if your business deals with items such as (but not limited to), amusement devices, boilers and pressure vessels, elevating devices or fuels. The Technical Standards and Safety Authority (TSSA) regulates these types of products and also performs inspections of your premises.

Contact the TSSA:
1-877-682-8772
Technical Standards and Safety Authority

Precious metals and stones

Anyone creating products that contain precious metals and/or stones should be aware of the regulations for marking and selling them.

Precious metals marking

Make sure any products you create with precious metals (articles made with gold, silver, platinum or palladium) meet the requirements for marking. Precious metals marking helps consumers make informed purchasing decisions.

Read online:
Precious metals marking

Dealers in precious metals and stones

If you buy and sell precious metals and stones, you may have obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. To find out what requirements may apply to you, contact the Financial Transactions and Reports Analysis Centre of Canada, (FINTRAC).

Contact FINTRAC:
1-866-346-8722
Dealers in precious metals and stones

Travel and accommodation services

If you arrange transportation or sleeping accommodation for your clients, you may need to register with the Travel Industry Council of Ontario (TICO). Examples of activities that can include regulated travel and accommodation services:

  • Tours
  • Retreats
  • Workshops
  • Seminars
  • Fieldtrips

To find out more about activities that require registration, contact TICO or visit their website.

Contact TICO:
1-888-451-8426
Resources and guidelines

Importing/exporting products

If you plan to import goods into Canada or export goods to other countries, you need to be aware of the regulations for international trade.

Contact Small Business Services:
1-888-576-4444
Importing guide
Exporting to the United States
Exporting to world markets

Exporting cultural property

If your product is on the Canadian Cultural Property Export Control List, you will need an export permit and may need to follow additional regulations.

Read online:
Canadian cultural property export control list
Cultural property export permits

Music licence

When your business uses recorded music, you are responsible for obtaining the right licence(s) for that use. Contact the following organization for more information:

Entandem

Organizations that use music are legally required to obtain applicable RE:SOUND and SOCAN licences. Entandem enables businesses that use music to complete both licences at one time, through a single music license, so that rights-holders can be compensated for what they have fairly and legally earned through their work.

Contact Entandem:
info@entandemlicensing.com
Entandem

Legal questions

Legal questions

You can contact Pro Bono Ontario’s free legal advice hotline to enquire about getting help with your everyday civil legal needs (no family law, immigration or criminal law). The service is generally aimed at those who cannot afford a lawyer.

Note that service is not guaranteed and you will be asked questions as part of the qualifying process, such as the amount of personal income earned by your household, your name, postal code and age range.

Contact Pro Bono Ontario’s Free Legal Advice Hotline:
1-855-255-7256

Read online:
Pro Bono Ontario - Free Legal Advice Hotline

 

You can also contact the Law Society of Ontario's Law Society Referral Service if you have legal questions of a business nature. The service may be able to assist you in finding a lawyer or paralegal, based on your needs.

Use online:
Law Society Referral Service

Taxation

Depending on your location and the type of products or services being offered, federal, provincial and/or municipal business taxes may apply.

Read online:
Taxation guide

If you sell goods and services in Ontario, you may need a business number to collect and remit the Harmonized Sales Tax (HST). Most businesses that make less than $30,000 in any 12-month period are not required to charge HST; however, you can register voluntarily and claim input tax credits. Speak with the Canada Revenue Agency (CRA) for more information.

Contact CRA:
1-800-959-5525
Canada Revenue Agency

Financing

Grants, contributions, subsidies and loan guarantees are available from various government sources. Use Innovation Canada’s online search tool to look for programs and services that may apply to your business.

Search online:
Business Benefits Finder

Grants, subsidies and contributions - Arts and media

Find grant and subsidy programs available to businesses involved in arts and media, including programs offered or supported by the governments of Canada and Ontario.

Read online:
Grants, subsidies and contributions - Arts and media

Other common sources of financing for arts and craft businesses include:

Ontario Ministry of Tourism, Culture and Sport

If you are a member of the creative industries, or an arts and cultural group, you can access funding and operating grants to help your business grow.

Contact the Ontario Ministry of Culture and Tourism:
1-888-997-9015
Grants and awards

Jean A. Chalmers Fund for the Crafts

Your non-profit organization may be eligible for funding to develop projects that promote the fine crafts industry in Canada.

Contact the Canada Council for the Arts:
1-800-263-5588
Jean A. Chalmers Fund for the Crafts

Craft Ontario

As a member of Craft Ontario, you could be eligible for up to $2,100 through an annual program of awards and scholarships for students and craft professionals.

Contact Craft Ontario:
416-925-4222
Craft Awards

Summer Company

If you are a student between the ages of 15-29, you could receive up to $3,000 to start and run your own business.

Contact Summer Company:
1-888-745-8888
Summer Company

Starter Company Plus

If you are an Ontario resident aged 18 and over and not attending school full time, you may be eligible to apply for funding of up to $5,000 to start or expand your business. You could also receive:

  • One-on-one guidance from a business advisor
  • Mentoring from a local entrepreneur
  • Training through business workshops
  • Business experience that could help you obtain other traditional financing

You need to contribute 25% of the grant in cash or in kind. Other conditions apply.

Read online:
Starter Company Plus

Canadian Heritage

If you are a member of the Arts and Cultural industries, you may be eligible for Canadian Heritage's funding opportunities.

Contact Canadian Heritage:
1-866-811-0055
Funding - Culture, history and sport

Other resources

Industry specific information