Launch Your Drilling Oil and Gas Wells Business in Toronto
This page guides you through starting a drilling oil and gas wells business in Toronto under NAICS 213111. It breaks down the 13 requirements you’ll need to meet, from permits and licenses to safety plans and environmental reviews. You’ll find a practical, step-by-step path, with real-world costs and a clear timeline to help you plan, budget, and move forward confidently.
Key things you’ll learn include the exact permits and licenses needed, regulatory approvals, land access and drilling rights, equipment and safety standards, and worker training requirements. You’ll also see how to arrange insurance and bonding, estimate capital and operating costs, and chart a realistic path from startup to first well, including expected timelines for approvals, procurement, and construction.
Toronto offers a centralized hub for energy services, suppliers, and skilled professionals, plus access to regulatory resources that can help speed approvals and compliance. With the right plan, you’ll be well-positioned to start confidently and grow in Ontario’s dynamic energy scene.
Requirements Overview
The most critical requirement for operating a drilling oil and gas wells business in Toronto is Heavy Equipment Operator Certification. This certification is legally required and you cannot operate the heavy machinery used in drilling without it. It is non-negotiable and serves as the foundation you need before pursuing any other licenses or permits.
Beyond this, there are mandatory operational requirements that focus on health, safety, and proper licensing. You must align with the Occupational Health and Safety Act to protect workers, and you’ll also need the Mining Contractor and Service License, the Explosives License with proper magazine storage, and the Well Drilling and Water Systems License. These licenses ensure you meet safety, handling, and regulatory standards for the work you’ll perform, and they are prerequisites for legally carrying out drilling activities in Ontario.
On the business side, you’ll need to sort out registrations and tax numbers so you can bill clients, pay taxes, and hire people legally. Key steps include obtaining a Business Number (BN), a Business Licence, and registering your business name with ServiceOntario. Then set up GST/HST registration, payroll deductions registration if you have employees, and WSIB coverage for worker injuries. A Commercial General Liability Insurance policy is also highly advisable to protect your company from everyday risks.
Next steps: map out a realistic timeline and start conversations with the relevant regulatory bodies for licences, OHSA compliance, explosives, and well licenses. Build a simple checklist, allocate time and budget, and if needed, seek guidance from a regulatory consultant or industry association. With these foundations in place, you can pursue operations confidently and stay compliant as you grow.
Detailed Requirements
Here are the specific requirements for starting a drilling oil and gas wells in Toronto:
-
Mining Contractor and Service License RequiredMining support contractors (drilling, blasting, exploration) must be licensed, meet safety standards, and comply with explosives handling regulations. No separate mining contractor license in Ontario. Mining Act compliance required. Closure plan participation. WSIB coverage mandatory. H&S training per O. Reg. 854 (Mines and Mining Plants). Common core training. Trade qualifications may apply. Contact MNRF or MLTSD.
-
Explosives License and Magazine Storage RequiredCompanies using explosives for mining/blasting must obtain federal explosives licenses, magazine storage permits, and comply with handling, transport, and security requirements. Natural Resources Canada (NRCan) regulates explosives. License/permit for manufacture, storage, sale, possession. Magazine storage requirements. Blaster certification. Security screening. Annual inspections. Fireworks: separate categories. Contact NRCan Explosives: 1-855-283-8889.
-
Well Drilling and Water Systems License RequiredWell drillers and contractors must be licensed, comply with construction standards, water testing, and reporting requirements for potable and non-potable wells. Well technicians licensed by MECP under O. Reg. 903 (Wells). Classes 1-4 for different activities. Written exam required. Well record (tag) submission. Abandoned well procedures. MECP Well Technician License. New wells must meet construction standards. Contact MECP: 1-800-565-4923 or private training providers.
-
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).
-
Business Licence RequiredGeneral business licence required to operate a business in City of Toronto. Apply to City of Toronto 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 Toronto Business Licensing for specific requirements. Home-based businesses may have different requirements. Annual renewal required.
-
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
-
Heavy Equipment Operator Certification RequiredOperators of heavy equipment (bulldozers, excavators, cranes) must obtain certification and comply with safe operation standards and workplace training requirements. Not compulsory trade in Ontario. Industry certification through IOUE Local 793, OTT, or IUOE 793 Training Centre. Crane operators: O. Reg. 213/91 s.150 requires training. Mobile crane operators: enhanced requirements Jan 2025. TSSA requirements for hoisting engineers. WAH and signaller training required. Apprenticeship available (voluntary). Contact IOUE 793 or private training providers.
-
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.
-
Commercial General Liability Insurance (Resource Services) ConditionalRequired for specific regulated activities. Resource support contractors should maintain comprehensive commercial general liability insurance covering property damage, environmental incidents, and third-party claims. CGL recommended for resource extraction/forestry operations. Higher limits typical ($2M-5M). Environmental liability may be separate. Contractors liability for subcontractors. Logging: stumpage bonds separate. Mining: closure plan financial assurance separate. Contact RIBO broker for specialized coverage.
-
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.
-
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.
-
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.
-
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.
Funding & Grants
Available funding programs that may apply to your drilling oil and gas wells:
-
The Ignite Program provides up to $300,000 to BC-based industry-academic teams for R&D projects in natural resources, applied science, and/or engineering. Projects must be at TRL 3 or above, have commercialization potential within 3 years, and secure 2:1 matching funds from industry or government sources. Funded by the Natural Resources …
-
Under the CIIP, eligible industrial facilities reporting under the Greenhouse Gas Industrial Reporting and Control Act (GGIRCA) and emitting more than 10,000 tCO2e per year could receive a payment equal to all carbon tax paid above $30 per tCO2e, provided their emissions intensity met the world-leading benchmark for their sector. …
-
The Alberta Carbon Capture Incentive Program (ACCIP) provides non-repayable grants equal to 12% of eligible capital costs for new CCUS projects, including equipment to capture, compress, transport, store or utilize carbon dioxide. The program is retroactive to January 1, 2022, meaning eligible capital costs incurred since that date qualify. Grants …
-
Natural Resources Canada (NRCan) launched six prize-based challenges under the Impact Canada Initiative's Clean Technology Stream, backed by $75 million in federal funding announced in Budget 2017. The challenges—including Crush It!, Power Forward, Sky's the Limit, Charging the Future, Women in Cleantech, and the Indigenous Off-Diesel Initiative—used prize-challenge methodology to …
-
A $50 million federal program (Budget 2017) that funded demonstration and testing of clean technologies in oil sands extraction, LNG production, emissions detection and monitoring, heat/water recovery, and alternative low-carbon power technologies for oil and gas facilities. All funding has been allocated and the program is fully closed.
Ready to Launch Your Business?
Starting a business can be complex, but you don't have to do it alone. Our AI-powered business matcher can help you understand exactly what you need for your specific situation.
Try Our AI Business Matcher Get Expert Help
No credit card required • Takes 2 minutes
Browse Other Business Sectors
Explore business requirements in other industries: