Launch Your Fredericton Cut and Sew Apparel Manufacturing Business
This page guides you through starting a cut-and-sew apparel manufacturing business in Fredericton under NAICS 315250 (excluding contractor work). It provides a practical 10-step requirements checklist, a realistic cost range, and a transparent timeline from idea to production. You’ll see exactly what permits, licenses, and registrations you’ll need, plus tips for securing a suitable workspace and essential equipment to hit the ground running.
Key learnings include the scope of the 10 requirements: permits and zoning approvals, business registration and tax IDs, insurance and workers’ compensation, health and safety compliance, environmental considerations, facility leasing or purchase, equipment, suppliers, and hiring. We break down typical startup costs—lease or purchase, sewing machines, cutting tables, safety gear, utilities, and initial materials—and outline a practical timeline for approvals and setup so you can budget and schedule with confidence.
Fredericton offers a supportive local manufacturing ecosystem, skilled textile workers, and access to gear and suppliers that fit small and growing operations. This city-and-industry pairing makes it easier to launch, stay compliant, and scale your cut-and-sew business in Canada.
Requirements Overview
Starting a cut-and-sew apparel manufacturing business in Fredericton begins with obtaining a Business Number (BN) registration. This is a legal requirement to operate and to interact with federal and provincial programs, including taxes. You cannot legally run your business without a BN, so this step comes first and sets the foundation for everything that follows.
Next, focus on mandatory operational requirements that keep you compliant and safe. Make sure your workplace is covered by New Brunswick WorkSafeNB Employer Coverage so you meet workplace safety rules and protect your employees. Also ensure you follow apparel product safety standards and labeling requirements, so the products you make meet regulatory expectations and customers know what they’re buying. These steps are about day-to-day compliance and good, safe operations.
For business registrations and taxes, complete the NB items that keep your business legitimate and billable. Register your New Brunswick Business Name (SNB) and consider NB Corporation Registration if you’re forming a corporation. You’ll likely need GST/HST Registration for sales taxes and Payroll Deductions Registration for employee withholding. If you’re using a business name or operating as a partnership, make sure those registrations are in place as well. Don’t forget to obtain your local Business Licence from the city if required for operation in Fredericton.
You’re almost ready to move forward. The remaining steps are practical and manageable: map out which registrations you need, gather the required documents, and set up accounts with the appropriate agencies (federal and provincial). If you’re unsure, consider a quick consult with a local business advisor or Service NB to confirm exact requirements for your specific operation. With these foundations in place, you’ll be on solid footing to start producing with confidence.
Detailed Requirements
Here are the specific requirements for starting a cut and sew apparel manufacturing (except contractors) in Fredericton:
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Business Number (BN) Registration RequiredA 9-digit Business Number is required for most businesses operating in Canada. It is used to interact with the Canada Revenue Agency and other federal programs. Required for GST/HST, payroll, corporation income tax, and import/export accounts. Register FREE online through Business Registration Online (BRO) at canada.ca. Takes 15-30 minutes. As of November 3, 2025, online registration is MANDATORY for new BNs - phone registration no longer available. You'll need: business name, address, owner SIN, business type, and start date. BN (9-digit number) issued INSTANTLY online. Available 21 hours/day, 7 days/week (closed 3-6am ET for maintenance).
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Business Licence RequiredGeneral business licence required to operate a business in City of Fredericton. Apply to City of Fredericton for Business Licence: 1. Determine business category 2. Complete business licence application 3. Submit required documents (ID, lease, zoning confirmation) 4. Pay application and annual fees 5. Await approval and receive licence Contact City of Fredericton Business Licensing for specific requirements. Home-based businesses may have different requirements. Annual renewal required.
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New Brunswick Business Name Registration (SNB) RequiredBusinesses in New Brunswick must register their business name with Service New Brunswick if operating under a name other than the owner's legal name. This applies to sole proprietorships, partnerships, and trade names. Registration provides legal recognition and is required for business operations and licensing. Registration can be completed online through SNB Online. Business name registrations for sole proprietorships and partnerships must be renewed every 5 years. To register a business name in New Brunswick: 1. Conduct name search ($13.80) 2. Complete registration through SNB Online 3. Pay $112 registration fee (includes Royal Gazette) 4. Receive certificate of business name 5. Renew every 5 years ($62) 6. Report any changes as required
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Partnership Registration ConditionalRequired for partnerships. Registration of partnerships. Register through Province of New Brunswick Corporate Registry or business services: 1. Conduct name search if applicable 2. Complete registration application 3. Submit required documents 4. Pay registration fees Contact Province of New Brunswick government services for specific requirements and fees. Annual reporting may be required.
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Apparel Product Safety Standards ConditionalRequired for specific regulated activities. Apparel products must meet safety standards for flammability, drawstrings, small parts (children), and chemical content restrictions. Canada Consumer Product Safety Act compliance. Flammability requirements for children's sleepwear. No prohibited substances (lead, phthalates). Product testing. Recall procedures. Incident reporting. Contact Health Canada: 1-866-662-0666.
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NB Corporation Registration ConditionalRequired if incorporating in New Brunswick. Incorporation under NB law. Register through Province of New Brunswick Corporate Registry or business services: 1. Conduct name search if applicable 2. Complete registration application 3. Submit required documents 4. Pay registration fees Contact Province of New Brunswick government services for specific requirements and fees. Annual reporting may be required.
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GST/HST Registration ConditionalRequired if annual taxable revenue exceeds $30,000 (small supplier threshold). Taxi/ride-share drivers must register regardless of revenue. Businesses with gross revenues over $30,000 in any single quarter or over four consecutive quarters must register for, collect, and remit GST/HST. Small suppliers (under $30,000) may register voluntarily. Register FREE online through Business Registration Online (BRO) when your revenue exceeds $30,000 in any 4 consecutive quarters (small supplier threshold). Takes 15-30 minutes. You MUST register within 29 days of exceeding threshold and start charging GST/HST immediately on the sale that made you exceed it. Need your BN (or get one simultaneously). As of Nov 3, 2025, online registration is mandatory. Voluntary registration available anytime for input tax credits.
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Payroll Deductions Registration ConditionalRequired if you pay salaries, wages, or other remuneration to employees. Must register before first pay period. Required if you have employees. You must withhold Canada Pension Plan (CPP), Employment Insurance (EI), and income tax from employee wages and remit to CRA. Register FREE online through Business Registration Online (BRO) when you hire your first employee. Takes 15-20 minutes. You'll need your Business Number (BN) or can get one simultaneously. Payroll account (RP) added to your BN instantly. Register BEFORE your first pay date. Required to deduct CPP, EI, and income tax from employee wages. For 2025: CPP rate 5.95%, EI employee rate $1.66/$100 insurable earnings.
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New Brunswick WorkSafeNB Employer Coverage ConditionalRequired if you have employees in New Brunswick. Employers in New Brunswick must register with WorkSafeNB (Workplace Health, Safety and Compensation Commission) and maintain coverage for workers. WorkSafeNB provides insurance coverage for workplace injuries and occupational diseases. Most employers are required to register, with limited exceptions. Registration must occur within 10 days of commencing business operations or hiring the first worker. Employers pay assessments based on their classification unit rate and assessable payroll. To register with WorkSafeNB: 1. Determine if you're in a mandatory industry with 3+ workers 2. Register with WorkSafeNB online or by phone 3. Report assessable payroll annually 4. Pay premiums based on industry rate ($1.18/100 avg 2024) 5. Maintain coverage and report workplace injuries 6. Experience rating affects rate (+80% to -40%)
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Apparel Labeling Requirements ConditionalRequired for specific regulated activities. Apparel manufacturers must comply with textile labeling (fiber content, care), country of origin, and dealer identification requirements. Textile Labelling Act compliance. CA identification number from Competition Bureau. Bilingual labels (English/French). Fibre content percentages. Dealer identity. Country of origin. Contact Competition Bureau: 1-800-348-5358.
Funding & Grants
Available funding programs that may apply to your cut and sew apparel manufacturing (except contractors):
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A non-refundable 10% corporate income tax credit on eligible capital investments made by PEI corporations involved in manufacturing and processing. Claimed via T2 Schedule 321 filed with the corporation's T2 return. An additional Enriched Investment Tax Credit (up to 25%) is available through Innovation PEI for strategic-sector manufacturers requiring pre-approval …
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