Starting a business in Canada means getting familiar with the Canada Revenue Agency's (CRA) business number system early on. Whether you're incorporating a company, hiring your first employee, or crossing the threshold that requires GST/HST registration, a Business Number (BN) sits at the centre of your relationship with the CRA. This guide walks you through exactly what a BN is, when you need one, and how to register — step by step.
A Business Number is a unique nine-digit identifier the CRA assigns to your business for all federal tax purposes. The format is straightforward: 123456789. Think of it as your business's social insurance number — one root identifier that ties together every tax account you will ever open with the CRA.
The BN itself does nothing on its own. Its real power comes from the program accounts attached to it. Each program account adds a two-letter code and a four-digit reference number to your BN, identifying the specific tax obligation it covers. You can have multiple program accounts under a single BN, and you can add new ones as your business grows.
There are four main program accounts most Canadian businesses encounter:
Format: 123456789 RT 0001. This account is used to collect, report, and remit Goods and Services Tax and Harmonized Sales Tax. Once you register for this account, you charge GST/HST on taxable supplies and claim input tax credits on eligible business expenses.
Format: 123456789 RP 0001. When you hire employees, you need an RP account to remit payroll deductions — income tax, Canada Pension Plan contributions, and Employment Insurance premiums — to the CRA on a regular schedule.
Format: 123456789 RC 0001. Incorporated businesses use this account to file T2 corporate income tax returns and pay any taxes owing. Sole proprietors report business income on their personal T1 return, so this account applies only to corporations.
Format: 123456789 RM 0001. Businesses that import goods into Canada or export goods commercially need this account to work with the Canada Border Services Agency (CBSA).
Your business may only ever need one or two of these accounts, or it may need all four. The key point is that they all sit under your single nine-digit BN, keeping your CRA profile organised and unified.
Not every business owner needs a BN right away. Here is a breakdown of the most common situations that trigger the requirement.
Federal incorporation through Corporations Canada automatically generates a BN for your new corporation. The CRA creates an RC account at the same time, so your corporate tax obligations are set up from day one. If you incorporate provincially in Alberta, the process is slightly different — Alberta Corporate Registry handles the provincial incorporation, but you still need to register separately with the CRA to obtain your federal BN and program accounts. This is a step many Alberta business owners miss, so it is worth confirming your federal registration is complete even after your provincial paperwork is done.
If your business's taxable revenues exceed $30,000 in a single calendar quarter or over four consecutive calendar quarters, you are required to register for GST/HST. At that point you need a BN with an RT account. You can also register voluntarily before hitting that threshold — doing so lets you claim input tax credits on business purchases from day one, which can be advantageous depending on your industry and cost structure.
The moment you take on an employee and are responsible for deducting and remitting payroll amounts, you need a BN with an RP account set up. The CRA expects your first remittance by the 15th of the month following the month in which you made your first payroll payment, so do not leave this registration to the last minute.
If your business imports goods into Canada for commercial purposes or exports goods internationally, you need an RM account linked to your BN before your first shipment clears customs.
Sole proprietors operate under their own social insurance number for personal income tax. You do not need a BN simply because you are self-employed. However, the moment your revenues hit the GST/HST threshold, you hire an employee, or you begin importing and exporting, you will need to register for a BN and the relevant program accounts. Many sole proprietors also register voluntarily for GST/HST early to appear more established and to recover input tax credits.
The fastest and most straightforward method is the CRA's Business Registration Online (BRO) portal. Here is what the process looks like.
Before you start, have the following on hand:
Navigate to the CRA's BRO portal through the CRA website. You can complete registration without a CRA My Business Account, though having one set up simultaneously is useful for managing your accounts going forward. The BRO walks you through a series of screens covering your business details and the program accounts you want to open.
Work through each section carefully. The system will ask you to confirm your business structure, enter your legal name and address, choose your fiscal year-end, and select which program accounts you need to open. For GST/HST registration, you will be asked for your expected annual revenues and a description of what you sell.
One of the most convenient aspects of online registration is that the CRA issues your Business Number instantly upon completion. You will see your BN on screen and receive a confirmation number. Your official registration documents arrive by mail within a few weeks, but your BN is active and usable right away.
If you prefer to speak with someone or encounter any difficulties with the online portal, you can register by calling the CRA Business Enquiries line at 1-800-959-5525. Have all the same information ready as you would for online registration. A CRA agent will walk you through the process and issue your BN during the call.
Your business will evolve. You might start as a solo operator, grow past the GST/HST threshold, then hire staff a year later. You do not need to open every program account at registration — you can add them later through CRA My Business Account.
Once logged into My Business Account, navigate to the "Register a CRA program account" section and follow the prompts. The same information requirements apply. New program accounts are typically activated quickly, and your existing BN simply gets an additional suffix.
One detail worth knowing: when you incorporate a business federally through Corporations Canada, the CRA is notified automatically and typically assigns your BN and opens an RC corporate income tax account without any additional action on your part. You will receive your BN by mail from the CRA shortly after incorporation. However, if you also need GST/HST or payroll accounts, you still need to register those separately — the automatic assignment covers only the corporate income tax account.
For businesses setting up in Calgary and registering provincially through Alberta Corporate Registry, this automatic step does not occur. You must proactively register with the CRA through BRO or by phone to obtain your BN and any required program accounts.
The registration process itself is straightforward, but making the right decisions around your fiscal year-end, choosing the correct NAICS code, and determining which program accounts you need from the outset can have meaningful tax implications down the road. The team at Swift Accounting Calgary regularly helps new business owners navigate these early decisions, ensuring your CRA accounts are structured correctly from the start so you are not scrambling to make corrections later.
Whether you are incorporating, launching a sole proprietorship, or expanding an existing business, getting your BN setup right the first time saves headaches at tax time. Reach out to Swift Accounting to talk through your business structure and registration needs before you file anything with the CRA.
Not exactly. Your Business Number is the nine-digit root identifier (for example, 123456789). Your GST/HST number is your BN combined with the RT program account suffix — 123456789 RT 0001. When someone asks for your "GST number," you provide the full 15-character string, but your BN itself is just the first nine digits.
Not automatically. Sole proprietors file business income on their personal T1 return using their SIN, so no BN is needed for income tax purposes. However, if your revenues exceed the $30,000 GST/HST threshold, you hire employees, or you begin importing/exporting commercially, you will need to register for a BN and the appropriate program accounts at that point.
When registering online through Business Registration Online, your BN is issued immediately upon successful completion of the application — typically within minutes. Phone registration is similarly fast, with the BN assigned during your call. Official confirmation documents arrive by mail within a few weeks but are not required to begin using your BN.
Alberta does not have a provincial sales tax, so there is no separate provincial sales tax registration required. However, if your business has employees in Alberta, you will remit provincial income tax deductions through your federal RP payroll account — the CRA administers payroll remittances nationally. Alberta does have its own corporate income tax, but for most small businesses this is filed through the federal T2 return process using your BN, since Alberta participates in the federal corporate tax collection system under the Tax Collection Agreements.
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