Launch Your Toronto New Car Dealers Business Today

Thinking of opening a New Car Dealers business in Toronto? This page is your practical starter guide for NAICS 441110. It walks you through the 13 regulatory requirements, from zoning and permits to dealer licensing, registrations, and showroom setup. You'll find a concise requirements overview, cost considerations, and a realistic timeline—so you can plan confidently and stay on track.

Here you’ll learn the exact steps for the 13 requirements, plus which permits, licenses, and registrations Toronto and Ontario demand. We cover OMVIC registration, dealer licensing, municipal zoning approvals, and key cost categories—from setup and inventory to insurance and legal. Expect a realistic timeline from formation to road-ready operations, plus practical tips to speed approvals and stay on budget.

Toronto’s big market, diverse customer base, and strong logistics make it a smart place to launch a New Car Dealers business. With solid demand and a robust supplier network, you can build steady growth while keeping compliance simple and manageable.

Business Type

New Car Dealers

Location

Toronto

Requirements Overview

The most critical requirement for operating a car dealership in Toronto is Motor Vehicle Dealers Act Registration. This is a legal license you must obtain before you can sell vehicles, and it sets the baseline consumer protections and dealer standards you must follow. It is non-negotiable—you simply cannot legally operate a dealership without this registration (typically through OMVIC in Ontario).

Beyond the top requirement, you’ll need to meet mandatory operational and safety obligations. This includes Occupational Health and Safety Act compliance to keep your workplace safe, and adherence to MVDA consumer protection requirements. You’ll also need to align with used vehicle safety standards, Employment Standards, and WSIB coverage for your staff. Practical steps include setting up payroll deductions, and ensuring you collect and remit GST/HST and Retail Sales Tax as applicable to your sales activities. All of these are essential to run a compliant, reputable dealership.

For registration and tax basics, you’ll want to handle core business registrations and numbers in parallel. This means obtaining a Business Number (BN) from the Canada Revenue Agency, registering a business name with Ontario’s ServiceOntario, and securing any required Business Licence. Don’t forget GST/HST registration and the related tax accounts tied to your operations so you’re ready to bill, report, and remit correctly.

Starting a new dealership is a lot to manage, but you can tackle it step by step. A practical next move is to secure MVDA registration (via OMVIC), then complete health and safety and worker coverage requirements, followed by business name, BN, and tax registrations. If you’d like, I can lay out a simple 90-day action plan with concrete forms and deadlines to keep you on track.

Detailed Requirements

Here are the specific requirements for starting a new car dealers in Toronto:

Motor Vehicle Dealers Act Registration Required

Motor vehicle dealers and salespeople must be registered with Ontario Motor Vehicle Industry Council (OMVIC) and comply with consumer protection, disclosure, and business practice requirements. Register with OMVIC (Ontario Motor Vehicle Industry Council). Complete OMVIC Certification Course ($286.08 as of Sept 2025) through Georgian College. Salesperson registration valid 2 years, dealer 1 year. All applicants screened including Canada-wide criminal record check. Over 8,000 dealers and 30,000 salespeople registered. CPD program launching April 2026. Contact: 1-800-943-6002.
Business Number (BN) Registration Required

A 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 Required

General 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) Required

Businesses 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
Occupational Health and Safety Act Compliance Required

All 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.
MVDA Consumer Protection Requirements Required

Vehicle dealers must provide disclosure statements, vehicle history reports, warranties, and comply with advertising standards and unfair practices prohibitions. Motor Vehicle Dealers Act (MVDA) 2002 protects consumers. OMVIC enforces. All-in pricing (2022). History disclosure mandatory. 90-day warranty on Class A used (Sept 2025 proposed). Compensation Fund for claims. Cooling-off rights. Signed disclosure statements. Contact OMVIC: 1-800-943-6002.
Used Vehicle Safety Standards Conditional

Required for specific regulated activities. Dealers selling used vehicles must provide safety standards certificates and ensure vehicles meet minimum safety requirements before sale. Safety Standards Certificate (SSC) required for used vehicle sale/transfer. Issued by licensed Motor Vehicle Inspection Station. 36-day validity. OMVIC registered dealers must provide. Private sales: buyer responsibility. Equipment standards per Highway Traffic Act. Electronic SSC since ARIS system. Contact MTO or find station at ontario.ca.
Employment Standards Compliance Conditional

Applies 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 Conditional

Required 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 Conditional

Required 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.
Retail Sales Tax Collection and Remittance Conditional

Required for retail sales. Retailers must register to collect HST, charge appropriate taxes on taxable goods, maintain records, and remit taxes to CRA on schedule. Ontario uses HST (13%) not separate RST. Register for GST/HST if revenue exceeds $30K in 4 quarters. HST collected = 5% federal + 8% Ontario. Remit to CRA. Point-of-sale rebates on some items (children's clothing, books). Input tax credits available. File returns as assigned (monthly, quarterly, annually). Contact CRA: 1-800-959-5525.
WSIB Registration and Coverage Conditional

Required 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.
Consumer Protection Act Compliance (Retail) Conditional

Required for specific regulated activities. All retailers must comply with Consumer Protection Act requirements for pricing, returns, refunds, warranties, extended warranties, gift cards, and unfair practices. Consumer Protection Act 2002 (CPA 2002) in force. New CPA 2023 pending (Bill 190). Covers: unfair practices, cooling-off periods (10 days), gift cards (no expiry), prepaid purchase cards. Motor vehicle repair disclosure. Bill 187 Right to Repair pending (Feb 2025 consultation). Max penalty $250K corps. Contact MCCSS Consumer Protection Ontario: 1-800-889-9768.

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