Launch Your PEO in London, Ontario: Start a Professional Employer Organization Today
This page gives a practical roadmap to launching a Professional Employer Organization (PEO) in London, Ontario, aligned with NAICS 561330. You’ll find a clear 12-step requirements checklist, an overview of typical permits and licenses, guidance on start-up costs, and a realistic timeline from incorporation to client-ready service. We'll highlight how to structure your entity, client onboarding, and ongoing compliance.
What you’ll learn: how to design a scalable PEO service model, integrate payroll, benefits, HR administration, and client management for multiple businesses. You’ll navigate Ontario rules on payroll taxes, WSIB coverage, privacy, and data security, and draft essential client contracts. We break down each of the 12 requirements in a practical sequence, flag likely permits and licenses, estimate start-up costs (registrations, insurance, software, and onboarding), and outline a practical 6- to 12-month timeline with milestones.
Why London works for a PEO: this city blends a growing small-business ecosystem with affordable operating costs, a steady supply of skilled graduates, and a strategic location between Toronto and the southwestern Ontario corridor. That mix makes it easier to attract clients and recruit staff, while still keeping setup times and operating costs manageable.
Requirements Overview
The most critical requirement for operating a business in London, Ontario is Occupational Health and Safety Act Compliance. This is a legal obligation you must meet to run any employer-related operations, and you cannot legally operate a professional employer organization without a compliant health and safety program, proper training, incident reporting, and a safe workplace. It is non-negotiable and foundational to everything you do.
Beyond safety, there are mandatory operational requirements that keep your day-to-day running within the rules. This includes securing the right licenses and safety measures, such as an Employment Agency License where applicable, Service Provider Workplace Safety Compliance, and WSIB registration and coverage to protect workers. You’ll also need to comply with Employment Standards rules to ensure fair pay and working conditions, and PIPEDA privacy compliance to protect client and employee information. Having appropriate coverage, like Commercial General Liability Insurance, also helps manage risks as you place workers with clients.
For your formal registrations and taxes, you’ll need to obtain a Business Number (BN) with the Canada Revenue Agency, register for GST/HST if you meet the threshold, and, if you’re operating under a trade name, complete Ontario Business Name Registration with ServiceOntario. A Business Licence may also be required depending on your exact services and location. Payroll deductions registration with the CRA should also be set up so you can handle taxes and contributions correctly from employee pay.
Next steps: map out a practical compliance plan and start scheduling the applications you need. Gather the necessary documents, reach out to the relevant agencies (ServiceOntario, CRA, WSIB, privacy regulators), and set a realistic timeline. With a clear, step-by-step plan and steady progress, you’ll move from checklist to compliant, confidently and sustainably.
Detailed Requirements
Here are the specific requirements for starting a professional employer organizations in London:
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Employment Agency License RequiredEmployment agencies, recruitment firms, and temporary help services must be licensed under the Employment Protection for Foreign Nationals Act and comply with fee restrictions and worker protections. Required since July 1, 2024 under ESA. Apply online to MLTSD. Fee: $750 non-refundable + $25,000 irrevocable letter of credit. Separate applications if both THA and recruiter. License valid 1 year. Clients cannot knowingly use unlicensed agencies. Penalties: $15K-$50K. Public registry available. Contact MLTSD.
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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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Business Licence RequiredGeneral business licence required to operate a business in City of London. Apply to City of London 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 London Business Licensing for specific requirements. Home-based businesses may have different requirements. Annual renewal required.
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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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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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Commercial General Liability Insurance ConditionalRequired for specific regulated activities. Wholesalers should maintain commercial general liability insurance covering product liability, premises liability, and completed operations. Often required by commercial leases and customer contracts. Ontario law requires general liability insurance for most businesses. Minimum typically $1M for small business, $2M+ for higher risk. Covers bodily injury, property damage, personal injury, advertising injury. WSIB also required for employees. Landlords, lenders may set higher requirements. Additional options: D&O, E&O, Cyber Liability. Cost: $500/yr to millions depending on risk. Contact insurance broker.
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Service Provider Workplace Safety Compliance ConditionalRequired for specific regulated activities. Service providers working at client sites must comply with OH&S Act requirements including training, PPE, safe work procedures, and coordination with client health and safety programs. OHSA applies to all Ontario workplaces. Service providers: H&S awareness training mandatory. JHSC for 20+ workers, Safety Rep for 6-19. Bill 190 (Oct 2024): electronic posting, telework coverage, virtual JHSC. Supervisor competency. Violence and harassment policies required. WSIB coverage. Contact MLTSD: 1-877-202-0008.
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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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PIPEDA Compliance (Administrative Services) ConditionalRequired for specific regulated activities. Administrative services handling personal information (employment agencies, credit bureaus, investigation services, document preparation) must comply with federal privacy law including consent, security, and breach notification. PIPEDA compliance for administrative services. Privacy policy. Consent management. Data minimization. Breach notification. Contact OPC: 1-800-282-1376.
Funding & Grants
Available funding programs that may apply to your professional employer organizations:
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Three-stream grant program for Nunavut-based artists, businesses, and organizations: (1) Getting Started/Arts Creation/Training — supports education, training, art supplies, equipment; (2) Arts and Culture Development — supports collaborative arts initiatives, exhibitions, shows, and touring; (3) Infrastructure Development — supports studios and cultural tourism infrastructure. Annual call for proposals.
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Provided contributions to settlement, employment, and community organizations delivering programs addressing employment barriers for racialized newcomer women, including work placements, mentorships, job counselling, and support for gender- and race-based discrimination. Program renewal ended in 2025; no new open call as of early 2026. Over 2,200 racialized newcomer women were served …
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