Table of contents
Introduction
Getting started
Regulations
Taxation
Financing
Other resources
Introduction
A retail business sells products directly to consumers from a location such as a storefront, a mobile kiosk or an online shop.
This guide will give you general information and regulations for operating an independent retail business. For information on buying a franchise, visit the Canadian Franchise Association website or call them at 1-800-665-4232.
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Franchising
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.
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Starting a business
Choosing a location
For most businesses, choosing an appropriate location is critical. Your ideal location will depend on your business needs, zoning restrictions and where your customers and competitors are. Taxes, noise and the local business environment are also important factors to consider when reviewing your options.
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Choosing and setting up a location
Contact your local municipality to determine which zoning requirements will apply to your location before you start selling. Visit the Association of Municipalities of Ontario (AMO) website for a listing of municipalities.
Read online:
Association of Municipalities of Ontario
E-business
If you plan to have an online presence for your business there are specific legal requirements to follow, such as providing secure credit and debit card transactions, charging taxes to customers outside of Ontario and creating contracts at a distance.
Read online:
E-business, security, privacy and legal requirements
Selecting your inventory
Your inventory is made up of the products you have in stock. Managing your inventory accurately will show you which products are in demand and which ones are not selling. Keeping track of what you sell can make it easier to determine which products to stock.
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Inventory management
Selecting your supplier
A supplier provides the products you need to run your business. Finding the right suppliers and managing your relationship with them is an important part of running a retail business.
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Supplier selection process
Manage your suppliers
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
Your retail business may need to follow several different regulations depending on your products and activities, including:
Consumer product labelling (non-food)
There are labelling standards for everyday consumer products (like t-shirts, office supplies and pet food) that you need to know about before you begin selling products.
The Competition Bureau regulates labelling for most “non-food” consumer products. To learn more about the rules for packaging, labelling and advertising your products, contact the Competition Bureau directly or refer to the following link:
Contact the Competition Bureau:
1-800-348-5358
Labelling
The Competition Bureau also publishes individual guides on labelling requirements for certain business activities and consumer products. Refer to the following guides if you need more information on a specific aspect of labelling:
Labelling - packaging consumer products (non-food)
Learn about your responsibilities when packaging and labelling consumer products (including pet food).
Read online:
Guide to the Consumer Packaging and Labelling Act and Regulations
Packaging and labelling requirements
Made in Canada
Learn about the rules and regulations for using claims like "Designed in Canada" or "Made in Canada" to promote your products.
Read online:
"Product of Canada" and "Made in Canada" claims
Labelling textiles
If you are selling textile products such as clothes, carpets or upholstery within Canada, the product must be labelled appropriately.
The label on your products must show the fibre content information in both English and French. The Canadian manufacturer, processor or finisher must be identified either through a CA Identification Number (for Canadian dealers only) or by listing their complete business name and postal address.
For specific textile labelling requirements, visit the Competition Bureau website.
Read online:
Guide to the Textile Labelling and Advertising Regulations
Food safety and labelling
Your local health unit is the main contact for information on food safety and inspections.
Contact your local health authority to arrange an inspection of your business location, equipment and processes and make sure your business is complying with provincial and federal legislation.
The following link provides contact information for local health authorities that inspect food businesses in Ontario.
Read online:
Local public health contacts
You also need to follow safety standards and labelling rules if you produce, service, process or manufacture food.
Canadian Food Inspection Agency (CFIA)
Most businesses that buy, sell, ship, process or manufacture food will have CFIA regulations to follow.
These regulations may require you to:
- Obtain a licence
- Keep records
- Properly label packaged foods
Activities that are regulated include:
- Importing foods for re-sale
- Selling food to the public, retail food sales
- Shipping food products to another province or territory
- Producing, manufacturing or advertising food products
Check with the CFIA to find out which requirements apply to your business.
Contact CFIA:
1-800-442-2342
Food licences
Food safety for industry
Toolkit for businesses
Labelling, standards of identity and grades
Ontario Ministry of Agriculture, Food and Agribusiness (OMAFA)
You may have regulations or inspection standards to follow if you produce, transport or manufacture specific food products in Ontario. Regulated products include dairy, eggs, fish, meat, honey and other plant-based products. Contact the Ministry directly to find out what will apply to your business.
Contact OMAFA:
1-877-424-1300
Food Inspection Programs
Ontario Ministry of Health
Home-based food businesses are allowed to sell low-risk, home-prepared foods and are exempt from certain regulatory requirements, such as specified handwashing stations in food premises, compliance with commercial dishwashing requirements and food handling training certification.
Low-risk food items are generally considered non-hazardous and do not require time and temperature control. Some examples of low-risk foods include:
- Most breads and buns (without meat, cream filling, etc.)
- Most baked goods (with no custard)
- Chocolate, hard candies and brittles
- Fudge and toffees
- Pickles, jams and preserves
- Granola, trail mix, nuts and seeds
- Cakes (icing that doesn’t require refrigeration), brownies, muffins and cookies
- Coffee beans and tea leaves
For more information contact your local public health unit:
Ontario Ministry of Health - Food handler training and certification
Local public health contacts
Music licence
When your business uses recorded music, you are responsible for getting the right licence(s) for that use. Contact the following organization for more information:
Tobacco retail dealer's permit
In order to sell tobacco products, you are required to have an Ontario tobacco retail dealer's permit. If you plan on importing tobacco products, you will also need an importer's registration certificate.
Stocking or selling illegal (or contraband) cigarettes that do not have an Ontario tax mark (yellow tear strip) is prohibited. Unauthorized possession of unmarked cigarettes may result in penalties, fines, imprisonment and forfeiture of the product.
There are also other commercial activities in the tobacco sector that require registration with the Ontario Ministry of Finance.
Contact the Ministry of Finance:
1-866-ONT-TAXS (1-866-668-8297)
Basic rules for tobacco retail dealers
Application for Tobacco Retail Dealer's Permit
Contraband tobacco
Tobacco Tax
Tobacco sales
The manufacture, sale, labelling and promotion of tobacco products are regulated in Canada. Find out what federal regulations will affect your business if you sell tobacco products.
Read Online:
Regulating tobacco and vaping products
You should also contact the municipality where the business will be operating for any local licences or permits that you may need.
Contact AMO:
1-877-426-6527
Association of Municipalities of Ontario
Lottery tickets
If you plan on selling lottery products on behalf of the Ontario Lottery and Gaming Corporation (OLG), or selling break-open tickets, you must be registered with the Alcohol and Gaming Commission of Ontario (AGCO).
Contact AGCO:
1-800-522-2876
Lottery retailers (sellers) registration
Single-use plastics
There are rules and restrictions for using, selling, importing and exporting single-use plastics that may apply to your business. The regulations include common items such as plastic bags, cutlery, straws and various containers.
Refer to Environment and Climate Change Canada’s website for the regulations and guidance on alternative products for your business:
Single-use Plastics Prohibition Regulations
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
Other resources
Industry-specific links
