Launch Your Hamilton Cut and Sew Apparel Manufacturing Business
This page guides you through starting a cut and sew apparel manufacturing operation in Hamilton under NAICS 315250 (excluding contractors). It provides a practical, step-by-step overview of the 11 requirements you’ll need, plus the permits, licenses, and setup tasks to get production moving. From business registration and zoning to securing space, equipment, and supplier relationships, you’ll find concrete steps you can take today.
What you’ll learn here includes a clear outline of the 11 requirements, a realistic timeline, and typical startup costs for equipment, facility, insurance, and licensing. You’ll also see which municipal and provincial permits are needed, how to budget for workspace and payroll, and how to plan for your first production run. The goal is to transform uncertainty into a practical, doable plan you can follow.
Why Hamilton is a smart fit: the city offers a growing manufacturing ecosystem, relatively affordable commercial space, and strong access to local suppliers and transport. With the right permits, a lean setup, and a clear timeline, you can launch a scalable apparel manufacturing operation right in Ontario’s manufacturing heart.
Requirements Overview
The most critical requirement for operating a cut and sew apparel manufacturing business in Hamilton is Occupational Health and Safety Act Compliance. This is legally required and you cannot operate without it. It’s non-negotiable: it protects workers, helps prevent accidents, and keeps your business in good standing with inspectors and regulators. Make sure you have a solid safety program, staff training, incident reporting, and regular workplace checks in place from day one.
Beyond OHSA, you’ll need mandatory operational measures to keep the factory safe and compliant. Obtain a Hamilton business licence to operate locally, and ensure you meet Retail Fire Safety Compliance for your workspace. You’ll also need to follow Apparel Product Safety Standards and Apparel Labeling Requirements so your garments are safe and properly marked. Employment Standards Compliance is essential to treat workers fairly, and WSIB Registration and Coverage is important to provide workers’ compensation in case of injuries.
For the financial and administrative side, plan your business registrations and tax setup. If you operate under a name other than your own, register your Ontario Business Name with ServiceOntario. Get a Business Number (BN) from the CRA to handle taxes and payroll, and use the BN to register for GST/HST and to set up Payroll Deductions. If you hire staff, you’ll also need WSIB coverage and to remit payroll taxes through the BN.
You’ve got this. Start with the OHSA check, then tackle licences and safety standards, and finally set up your business identity and tax accounts. Take it one step at a time, and you’ll be on solid ground—reliable, compliant, and ready to start producing. If you’d like, I can map out a simple 4–6 week action plan.
Detailed Requirements
Here are the specific requirements for starting a cut and sew apparel manufacturing (except contractors) in Hamilton:
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Business Licence RequiredGeneral business licence required to operate a business in City of Hamilton. Apply to City of Hamilton 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 Hamilton Business Licensing for specific requirements. Home-based businesses may have different requirements. Annual renewal required.
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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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Ontario Business Name Registration (ServiceOntario) RequiredBusinesses in Ontario operating under a name other than the owner's legal name must register with Ontario Business Registry through ServiceOntario. This includes sole proprietorships, partnerships, and business names for corporations. Registration provides legal protection for the business name within Ontario and is required for banking, licensing, and business operations. Registration can be completed online through Ontario Business Registry. Business name registrations must be renewed every 5 years. Register business name with Ontario Business Registry: 1. Search Ontario Business Registry (free) for name availability 2. Consider NUANS name report ($25) for thorough search 3. Register online through Ontario Business Registry 4. Pay registration fee ($60 for sole proprietorship/partnership) 5. Receive 9-digit Ontario Business Identification Number (BIN) 6. Registration valid for 5 years 7. Renew before expiry
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Occupational Health and Safety Act Compliance RequiredAll Ontario workplaces must comply with the Occupational Health and Safety Act to ensure safe working conditions. Requirements include workplace safety policies, training, hazard assessments, and incident reporting. No registration - compliance law. Must post OHSA in workplace. JHSC required for 20+ workers (or 6+ in designated industries). Nov 2025: New administrative penalty scheme, defibrillator reimbursement. Telework now covered. Fines: up to $500K individuals, $1.5M corporations. 27 regulations under OHSA. Must conduct safety audits, maintain training records. Contact: 1-877-202-0008.
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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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Retail Fire Safety Compliance ConditionalRequired for specific regulated activities. Retail establishments must comply with Ontario Fire Code including fire alarm systems, emergency exits, evacuation plans, and maximum occupancy limits. Ontario Fire Code applies. Fire safety plan required for retail. Means of egress compliance. Fire extinguisher requirements. Occupant load calculations. Annual fire drill. Portable fire extinguisher monthly inspections. Emergency lighting. Exit signs. Fire alarm testing. Sprinkler inspections if applicable. Contact local fire department for inspections.
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Employment Standards Compliance ConditionalApplies if you have employees. Covers minimum wage, hours of work, vacation pay, public holidays, termination notice, etc. All Ontario employers must comply with the Employment Standards Act, covering minimum wage, hours of work, overtime, vacation, termination, severance, and other workplace rights. No registration required - compliance-based requirement. Follow Employment Standards Act (ESA) for minimum wage, hours of work, overtime, vacation, leaves, and termination. Post ESA poster in workplace (free download from ontario.ca). Keep employment records for 3 years. NEW for 2025: Employers with 25+ staff must provide written employment info to new hires by July 1, 2025. Job postings must include salary ranges by Jan 1, 2026. Call 1-800-531-5551 for help.
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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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WSIB Registration and Coverage ConditionalRequired within 10 days of hiring first employee, including family members and subcontractors. Workplace Safety and Insurance Board (WSIB) registration is mandatory for most Ontario businesses with employees. Provides compensation and support for workplace injuries and illnesses. Sole proprietors and partners can apply for optional coverage. Register FREE online at wsib.ca in 15-20 minutes. MANDATORY for most Ontario employers within 10 calendar days of hiring first worker. You'll need: CRA Business Number, payroll estimate, business activity description, owner/director info. Account number issued INSTANTLY online. Construction industry has expanded compulsory coverage. Premium rates vary by industry classification. Must display WSIB safety poster in workplace.
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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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