Starting a business in Canada requires navigating several regulatory requirements, with obtaining a Business Number (BN) from the Canada Revenue Agency (CRA) sitting at the top of the priority list. This nine-digit identifier serves as your gateway to federal tax accounts, payroll deductions, and import-export activities – essentially functioning as your business's federal identity card.
The registration process has evolved significantly in recent years, with digital transformation accelerating during the pandemic years. According to recent data, Canada's payments landscape is undergoing a high-speed transformation, pushing corporate treasurers into the digital fast lane ¹. This shift extends to business registration processes, where online applications now dominate traditional paper-based methods.
For businesses planning international operations, securing your BN quickly becomes even more critical. The global digital payment industry reached $10.18 trillion in 2024 and is forecast to hit $32.07 trillion by 2033, representing a compound annual growth rate of 13.5% ². Canadian businesses need their BN to participate in this expanding global marketplace.
Understanding the Canadian business number system
Your Business Number consists of three components: a nine-digit registration number, a two-letter program identifier, and a four-digit reference number. This structure allows the CRA to manage multiple program accounts under a single business identity, streamlining administrative processes for both businesses and government agencies.
The BN connects to four main CRA program accounts. First, corporate income tax accounts track your business's tax obligations and filings. Second, GST/HST accounts manage your sales tax collection and remittance responsibilities. Third, payroll deductions accounts handle employee source deductions for income tax, CPP, and EI. Fourth, import-export accounts facilitate international trade activities.
Recent regulatory changes have expanded the scope of entities requiring business registration. As of April 1, 2025, financing and leasing companies, factoring companies, and cheque-cashing companies are now reporting entities under the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations ³. These businesses must obtain their BN promptly to meet compliance deadlines.
Step-by-step CRA business number application process
Online registration (fastest method)
The CRA's Business Registration Online (BRO) service offers the quickest path to obtaining your BN. Access the system through the CRA website using your personal CRA My Account credentials or a representative ID if applying on behalf of a client. The online form requires basic business information including legal name, operating name, business address, and anticipated start date.
Prepare these documents before starting your application: articles of incorporation (for corporations), partnership agreement (for partnerships), and personal identification for sole proprietors. The system guides you through selecting applicable program accounts based on your business activities. Most applications receive instant BN assignment upon submission, with confirmation arriving via email within minutes.
Phone registration
Call the CRA business enquiries line at 1-800-959-5525 during business hours. Have your incorporation documents, business address, and SIN ready for verification. The agent will complete your registration during the call, typically taking 15-20 minutes. You'll receive your BN verbally, with written confirmation following by mail within 5-10 business days.
Mail or fax registration
Download Form RC1, Request for a Business Number, from the CRA website. Complete all sections carefully, ensuring accuracy to avoid processing delays. Mail the form to your designated tax centre or fax to 1-877-477-6287. Processing typically takes 4-6 weeks, making this the slowest option available.
Timeline expectations for different registration methods
Online applications provide immediate BN assignment in most cases, with full account activation within 48 hours. The digital transformation of government services has significantly reduced processing times. Payments Canada began its modernization plan in 2016, replacing legacy systems with modern infrastructure ¹.
Phone registrations offer same-day BN assignment with written confirmation arriving within two weeks. This method works well for businesses needing immediate confirmation but lacking online access. However, call volumes can create wait times during peak periods.
Mail and fax applications require the longest processing time, typically 4-6 weeks from receipt. Factor in additional mailing time when planning your business launch timeline. Consider these methods only when online and phone options aren't viable.
Expedited registration options and strategies
Priority processing circumstances
The CRA offers expedited processing for specific situations. Businesses with immediate payroll obligations can request priority handling to meet remittance deadlines. Companies facing contract deadlines requiring BN verification may qualify for accelerated processing. International businesses establishing Canadian operations often receive expedited service to facilitate economic development.
Professional assistance benefits
Engaging a tax professional or business registration service can streamline your application. These experts understand CRA requirements and can identify potential issues before submission. They maintain direct communication channels with CRA representatives, potentially reducing processing times. Their experience helps avoid common errors that trigger application delays or rejections.
Strategic timing considerations
Submit applications early in the calendar year to avoid year-end processing backlogs. Avoid major tax deadline periods when CRA resources focus on return processing. Plan registrations for Tuesday through Thursday when call volumes typically decrease. Consider time zone differences if calling from outside Eastern Time.
Common registration delays and how to avoid them
Incomplete or inaccurate information remains the primary cause of registration delays. Double-check all fields before submission, particularly business addresses and contact information. Ensure consistency between your application and incorporation documents. Verify that authorized representatives have proper documentation to act on your behalf.
The new regulatory environment adds complexity to business registration. Bill C-2, the Strong Borders Act, introduced on June 3, 2025, establishes new requirements for businesses ⁴. All reporting entities except money services businesses must now enroll with FINTRAC, requiring coordination between multiple registration processes.
Technical issues can disrupt online applications. Save your progress frequently when using the BRO system. Prepare alternative registration methods if experiencing website difficulties. Keep copies of all submitted documentation for reference and resubmission if needed.
Post-registration requirements and next steps
Immediate actions after receiving your BN
Once you receive your BN, register for applicable program accounts immediately. Open a business bank account using your BN as identification. This step becomes crucial for businesses planning international operations. Understanding ⁵ helps ensure smooth account opening processes.
Set up your CRA My Business Account for online access to tax information and filing capabilities. This portal allows you to manage all program accounts, view account balances, and submit returns electronically. Register for direct deposit to receive any refunds or benefits quickly.
Compliance obligations
New compliance requirements significantly impact Canadian businesses. The Bill C-2 framework introduces penalties of up to $40,000 for minor violations, $4 million for serious violations, and $20 million for very serious violations ⁴. Understanding these obligations from the start helps avoid costly penalties.
Maintain accurate records of all business transactions from day one. The CRA requires businesses to keep records for six years from the end of the tax year. Implement accounting systems that track GST/HST collection and input tax credits. Schedule regular remittance dates for payroll deductions and sales taxes.
Setting up business banking after CRA registration
Your new BN opens doors to business banking services essential for operations. Traditional banks typically require your BN, incorporation documents, and identification to open accounts. However, the landscape of business banking has evolved significantly. When ⁶, consider both traditional and digital options.
For businesses with international ambitions, multi-currency capabilities become essential immediately after registration. Global cross-border bank credit expanded by $1.5 trillion in the first quarter of 2025, reaching a record $34.7 trillion ⁷. Canadian businesses need financial infrastructure to participate in this global economy.
Digital-first banking solutions
Modern financial platforms offer streamlined onboarding for newly registered businesses. These services typically require your BN, basic business information, and can be completed entirely online. The process of ⁸ has been simplified through digital verification methods.
Consider platforms that offer multi-currency accounts if you plan international operations. Some providers offer ⁹ with local CAD bank and branch codes, dedicated account numbers, and the ability to hold multiple currencies. These features become valuable as your business grows beyond domestic markets.
International business considerations
Canadian businesses engaging in cross-border trade face additional registration requirements. Import-export program accounts must be added to your BN for international shipping. As of April 1, 2025, importers and exporters must declare whether goods are proceeds of crime or tied to money laundering ³.
Currency management becomes critical for international businesses. Foreign currency credit in dollars, euros, and yen grew by 5%, 10%, and 6% respectively year-on-year at the end of Q1 2025 ⁷. Businesses need appropriate financial infrastructure to manage these currency exposures effectively.
Cross-border payment challenges affect businesses from day one. Research shows that 44% of respondents are frustrated by poor exchange rates and 35% by high or hidden fees when sending money internationally ¹⁰. Selecting the right financial partners during your setup phase helps avoid these common pain points.
Leveraging your BN for business growth
Building business credit
Your BN serves as the foundation for establishing business credit separate from personal credit. Register with business credit bureaus using your BN as primary identification. Open trade accounts with suppliers that report to credit agencies. Pay all obligations on time to build a positive credit history from the start.
Government programs and incentives
Many federal and provincial programs require a valid BN for participation. Research available grants, tax credits, and incentive programs relevant to your industry. Register for Scientific Research and Experimental Development (SR&ED) credits if conducting eligible research. Apply for export development programs if planning international expansion.
Ready to grow globally?
Scaling operations efficiently
As your business grows, your BN simplifies expansion processes. Adding new program accounts to your existing BN takes minutes online. Opening additional business locations uses the same BN with different program account numbers. Hiring employees becomes straightforward with established payroll accounts.
The digital payment sector's growth creates opportunities for Canadian businesses. With the market expected to reach $32.07 trillion by 2033 ², businesses with proper registration and infrastructure can capture their share of this expanding market.
Preparing for enhanced compliance requirements
The regulatory landscape continues evolving with significant implications for Canadian businesses. The Financial Action Task Force (FATF) is scheduled to begin evaluating Canada's anti-money laundering regime in late 2025 ³. Businesses must prepare for increased scrutiny and reporting requirements.
New cash handling restrictions affect all businesses. Bill C-2 prohibits accepting cash payments of $10,000 or more in single or related transactions ⁴. Financial entities face additional restrictions on third-party cash deposits. These changes require businesses to establish alternative payment acceptance methods from inception.
Compliance programs must be reasonably designed, risk-based, and effective under new requirements. Businesses should implement robust know-your-customer procedures, transaction monitoring systems, and record-keeping protocols. Starting with strong compliance foundations prevents costly retrofitting as regulations tighten.
Conclusion: Setting your business up for success
Obtaining your Canadian Business Number marks the first critical step in establishing legitimate business operations. While the process has been streamlined through digital channels, understanding requirements and preparing thoroughly ensures the fastest possible registration. Online applications remain the optimal choice, delivering immediate BN assignment in most cases.
The evolving regulatory environment makes prompt registration more important than ever. With penalties under Bill C-2 potentially reaching $20 million or 3% of global revenue ⁴, businesses cannot afford compliance gaps. Starting with proper registration establishes the foundation for ongoing regulatory adherence.
For businesses planning international operations, consider your banking and payment infrastructure during the registration process. Modern financial platforms offer comprehensive solutions for managing multi-currency operations, with some providing ⁹ that support operations in over 150 countries. These capabilities become invaluable as Canadian businesses expand into global markets where 65% of consumers prioritize payment speed ¹⁰.
Your Business Number opens doors to growth opportunities, government programs, and legitimate business operations. By following the strategies outlined above and choosing the right registration method for your situation, you can obtain your BN quickly and position your business for long-term success in Canada's dynamic economy.
FAQ
What is a Canadian Business Number and why do I need it?
A Canadian Business Number (BN) is a nine-digit identifier issued by the Canada Revenue Agency that serves as your business's federal identity card. You need it to open business bank accounts, register for GST/HST, set up payroll deductions, and conduct import-export activities. It's essentially your gateway to all federal tax accounts and business operations in Canada.
How long does it take to get a Business Number from CRA?
Standard BN registration typically takes 5-10 business days when applying online through the CRA's Business Registration Online service. Paper applications can take 2-4 weeks to process. For urgent needs, you can contact CRA directly to request expedited processing, though this may require additional documentation and justification.
Can I apply for my Business Number online?
Yes, the fastest way to get your BN is through CRA's Business Registration Online (BRO) service. This digital platform allows you to register for multiple CRA accounts simultaneously, including GST/HST, payroll deductions, and import-export accounts. You'll need your Social Insurance Number or Individual Tax Number, plus basic business information to complete the application.
What documents do I need to register for a Business Number?
You'll need your personal identification (SIN or ITN), business registration documents from your province, a detailed business description, and your business address. If you're incorporating, you'll also need your Articles of Incorporation. Having all documents ready before starting the application ensures faster processing times.
Do I need a Business Number to open a business bank account in Canada?
Yes, most Canadian banks require a Business Number to open a business bank account. The BN serves as proof of your business's legitimacy and federal registration status. Some financial service providers like Airwallex may have different requirements for their business accounts, so it's worth comparing options when setting up your business banking.
What happens after I receive my Business Number?
Once you receive your BN, you can immediately start using it to open business bank accounts, register for provincial tax accounts, and begin business operations. You'll also need to maintain compliance with CRA reporting requirements, file regular returns for any registered accounts (GST/HST, payroll), and update your business information if there are any changes to your operations or structure.
Citations
https://www.blakes.com/insights/strong-borders-act-a-landmark-shift-in-canada-s-aml-penalties/
https://www.airwallex.com/ca/blog/tax-identification-number-what-is-it
https://www.airwallex.com/ca/blog/compare-business-bank-accounts
https://www.airwallex.com/ca/blog/how-to-open-a-business-bank-account
https://www.airwallex.com/ca/business-account/global-accounts/cad-account
https://www.thunes.com/news/top-growth-drivers-in-consumer-cross-border-payments/
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Airwallex Editorial Team
Airwallex’s Editorial Team is a global collective of business finance and fintech writers based in Australia, Asia, North America, and Europe. With deep expertise spanning finance, technology, payments, startups, and SMEs, the team collaborates closely with experts, including the Airwallex Product team and industry leaders to produce this content.
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- Understanding the Canadian business number system
- Step-by-step CRA business number application process
- Timeline expectations for different registration methods
- Expedited registration options and strategies
- Common registration delays and how to avoid them
- Post-registration requirements and next steps
- Setting up business banking after CRA registration
- International business considerations
- Leveraging your BN for business growth
- Preparing for enhanced compliance requirements
- Conclusion: Setting your business up for success
- FAQ
- Citations
