Launch a Montreal Motor Vehicle Towing Business Today
This page walks you through starting a Montreal motor vehicle towing business (NAICS 488410). It provides a concise, step-by-step overview of the nine requirements, the permits and licenses you’ll need, typical startup costs, and a realistic timeline from registration to first tow. It also gives practical benchmarks and a clear checklist you can follow.
You’ll learn exactly what to prepare: the nine requirements you must meet, how to secure permits (Quebec business registration, provincial tow-operator licenses, and Montreal municipal approvals), insurance basics, equipment and vehicle standards, and likely costs. We map a practical timeline—from a few weeks to a couple of months—for moving from registration to licensing to operations.
Montreal’s busy streets and year-round demand for roadside assist make it a strong fit for a towing business. With clear permits, dependable service, good pricing, and a plan you’ll follow, you’ll be ready to serve drivers, repair shops, and insurers while building a scalable operation.
Requirements Overview
The most critical requirement for operating a motor vehicle towing business in Montreal is the Business Licence. This licence is a legal prerequisite set by the City of Montreal, and you cannot legally run a towing service without it. It’s non-negotiable: secure the licence first, because everything else hinges on having your business properly authorized to operate.
Mandatory Operational Requirements: health, safety, permits. If you hire employees, you must register for CNESST Employer Registration to provide workers’ compensation coverage, and you’ll need to handle payroll deductions and compliance with wage rules. In addition, keep your fleet and equipment in safe working order, follow road-safety and towing regulations, and maintain appropriate insurance. These safety and permitting steps protect your team and the public, and they establish a solid foundation for lawful day-to-day operations.
Business Registration & Tax: you’ll need the business and tax identifiers to operate smoothly. This includes a Business Number (BN) registration for Canada-wide tax matters, and a Quebec Enterprise Number (NEQ) along with Registraire des entreprises (REQ) registration for your business structure (whether you choose partnership, corporation, or other form). Depending on your setup, GST/HST registration may apply, and Payroll Deductions Registration is needed if you have employees. These registrations keep your finances organized and compliant across jurisdictions.
Encouragement: taking these steps in the right order will set you up for success. Start with the City of Montreal licence, then secure your BN/NEQ/REQ, and align payroll and safety registrations as you grow. If you’d like, I can tailor a simple, step-by-step checklist with deadlines and contacts to keep you focused and confident as you launch your towing business in Montreal.
Detailed Requirements
Here are the specific requirements for starting a motor vehicle towing in Montreal:
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Business Licence RequiredGeneral business licence required to operate a business in Ville de Montreal. Apply to Ville de Montréal 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 Ville de Montréal 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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Quebec Enterprise Number (NEQ) Registration RequiredRegistration of business with the Quebec Enterprise Registrar. Register with Registraire des entreprises du Québec: 1. Access quebec.ca/entreprises services 2. Complete declaration of registration online 3. Pay registration fee ($38 sole proprietorship, $367 corporation) 4. Receive NEQ (Numéro d'entreprise du Québec) Annual registration fee: $35 (exempt first 2 years). Annual update declaration required. 30-day deadline for changes.
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Quebec Business Registration (REQ - Registraire des entreprises) RequiredAll businesses operating in Quebec must register with the Registraire des entreprises du Québec (Quebec Enterprise Registrar). This includes sole proprietorships, partnerships, and corporations. Registration provides a Quebec Enterprise Number (NEQ) which is required for all business activities including banking, licensing, and tax purposes. Unlike other provinces, registration is mandatory for ALL businesses in Quebec, not just those with a business name different from the owner. Registration can be completed online. Annual declarations must be filed to keep the registration current. Register with Registraire des entreprises within 60 days of starting business. Required for sole proprietors operating under trade name, partnerships, and corporations. $39 for sole proprietorship, $60 for partnership. Receive NEQ (Quebec Enterprise Number).
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Partnership Registration ConditionalRequired if operating as partnership. Registration of general or limited partnerships in Quebec. Register partnership with Registraire des entreprises: 1. Complete declaration of registration 2. Provide partner information 3. Submit registration 4. Pay registration fee General and limited partnerships. NEQ assigned upon registration. Annual update declaration required.
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Quebec Corporation Registration ConditionalRequired if incorporating in Quebec. Incorporation of a company under Quebec law. Incorporate through Registraire des entreprises: 1. Conduct name search (NUANS) 2. Prepare articles of incorporation 3. Submit through quebec.ca or registry office 4. Pay incorporation fee ($367) Annual reporting required. Must file annual update declaration. Federal incorporation alternative available ($200).
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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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Quebec CNESST Employer Registration (Workers Compensation) ConditionalRequired if you have employees in Quebec. Employers in Quebec must register with the CNESST (Commission des normes, de l'équité, de la santé et de la sécurité du travail) and maintain coverage for workers. CNESST provides insurance coverage for workplace injuries and occupational diseases under Quebec's workers' compensation system. Most employers are required to register within 60 days of hiring their first worker. Employers pay contributions (premiums) based on their business activity classification and assessable payroll. Register with CNESST within 60 days of hiring first employee. CNESST provides workplace health and safety coverage. Premium rates based on industry classification. Annual declaration of wages required by March 14.
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