How do I register a business after buying it, and what is the business number?

Registering after you buy a business is not one step. It depends on whether you bought a sole proprietorship’s assets, a partnership interest or a corporation’s shares. The Canada Revenue Agency (CRA) registers a business number (BN) and program accounts for a business. Provincial registration is a separate step, covered below.

The business number and program accounts

The CRA describes how to register for a business number and CRA program accounts for your business. The CRA says a change of owners, partners or directors may require different actions depending on the business, such as changing legal names or registering a new BN and new program accounts.

If you bought a sole proprietorship or partnership

The CRA says a sole proprietorship is legally and directly tied to one specific individual, and that a new owner can’t continue using the old BN. The new owner will have to get a new BN and new program accounts. For partnerships, the CRA says that in some cases, if the partners change, the business is considered a new legal entity and requires a new BN and new program accounts. The CRA also tells a seller whose business has a BN to contact their tax services office, since they might have to cancel it.

If you bought a corporation

The CRA says that before you contact it, any structure or owner changes for a corporation must be updated and validated with the federal or provincial incorporating authority. Once the changes are visible on the corporate registry, you send supporting documents to the CRA. The CRA adds that it can’t control how long an incorporating authority takes to update its registry, so allow for that delay.

Provincial registries

In Ontario, the Ontario Business Registry allows businesses to complete transactions online, including registering, incorporating and updating their information. Outside Ontario, confirm with the province which registry applies to your business. For names after an asset purchase, see How do I register a business name after an asset purchase?.