Launch Your Halifax Cut-and-Sew Apparel Manufacturing Business Today
On this page, you’ll find a practical, step-by-step guide to starting a cut-and-sew apparel manufacturing business in Halifax (NAICS 315250) — not contractors, but full in-house production. We break down the nine essential requirements, the permits and registrations you’ll likely need, and what startup costs and timelines look like. Use this as your clear path from idea to your first run of finished garments.
In plain language, you’ll learn what to prepare, including an overview of the nine requirements, typical Halifax permits, and how to budget. You’ll get a realistic timeline from planning through facility setup, equipment purchases, and hiring, to first production. We cover costs you should expect—lease or space setup, machines, licenses, insurance, and working capital—and tips to stay on track.
Halifax is a strong fit for cut-and-sew, with local textile suppliers, skilled artisans, and supportive programs for small manufacturers. The city’s logistics hub and proximity to Atlantic Canada markets can help you scale, connect with buyers, and grow your fabric-and-production capacity more efficiently.
Requirements Overview
The most critical requirement for operating a cut and sew apparel manufacturing business in Halifax is the Business Number (BN) Registration. This is a federal obligation from the Canada Revenue Agency, and you cannot legally operate without it. The BN ties together your tax accounts, payroll, and any import/export activity, so obtaining it upfront is non-negotiable and keeps you compliant with banks, suppliers, and customers.
Operationally, you’ll want to line up core compliance around health, safety, and structure. Make sure you meet Apparel Product Safety Standards and Apparel Labeling Requirements so your garments are safe and clearly labeled for buyers and consumers. Depending on your chosen structure, you may need Nova Scotia Corporation registration or Partnership Registration. At the same time, arrange Nova Scotia Workers’ Compensation Board Coverage to protect your workers, and set up Payroll Deductions Registration to handle employee withholdings and remittances.
From a business-registration and tax perspective, ensure your Nova Scotia Business Name Registration (RJSC) is in place if you’re operating under a name other than your own, and that your BN is active. You’ll also want GST/HST Registration so you can collect and remit sales tax where required, and Payroll Deductions Registration to manage withholdings for your team. These steps help you stay organized and compliant as you scale production.
You’ve got this. Start with securing the BN, then map out the business-structure registration, tax registrations, and the safety and labeling standards. If you take it step by step and reach out to the provincial and federal registries early, you’ll be well on your way to a smooth, compliant launch in Halifax.
Detailed Requirements
Here are the specific requirements for starting a cut and sew apparel manufacturing (except contractors) in Halifax:
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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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Nova Scotia Business Name Registration (RJSC) RequiredBusinesses in Nova Scotia must register their business name with the Registry of Joint Stock Companies if operating under a name other than the owner's personal name. This includes sole proprietorships, partnerships, and trade names. Registration provides legal recognition and is required for business operations, banking, and obtaining licenses. Registration can be completed online or in person. Business registrations must be renewed every 5 years. To register a business name in Nova Scotia: 1. Conduct NUANS name search ($53.09 Atlantic or $66.30 Federal) 2. Complete business name registration through RJSC Connect 3. Pay registration fee ($68.55 sole prop, $93.40 LLP) 4. Receive certificate of registration 5. Renew annually before expiry 6. Report any changes within required timeframes
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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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Nova Scotia Corporation ConditionalRequired if incorporating in Nova Scotia. Incorporation under NS law. Apply to Province of Nova Scotia for Nova Scotia Corporation: 1. Contact relevant Province of Nova Scotia department for requirements 2. Complete application form 3. Submit required documentation 4. Pay applicable fees 5. Await approval Check Province of Nova Scotia government website for current requirements and processing times.
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Partnership Registration ConditionalRequired for partnerships. Registration of partnerships. Register through Province of Nova Scotia 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 Nova Scotia 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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Nova Scotia Workers' Compensation Board Coverage ConditionalRequired if you have employees in Nova Scotia. Employers in Nova Scotia must register with the Workers' Compensation Board (WCB) and maintain coverage if they employ workers. WCB provides insurance coverage for workplace injuries and occupational diseases. Most employers with one or more workers are required to register, with some industry exemptions. Registration must occur within 10 days of hiring the first worker. Employers pay premiums based on their industry classification and assessable payroll. To register with WCB Nova Scotia: 1. Determine if you're in a mandatory industry with 3+ workers 2. Register within 10 days of hiring third worker 3. Report assessable payroll annually 4. Pay premiums based on industry rate ($2.65/100 avg 2024) 5. Maintain coverage and report workplace injuries 6. Optional: Special Protection for proprietors/partners
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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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