Launch Your Used Car Dealership in Montreal Today
This page gives you a practical, no-nonsense guide to starting a used car dealership in Montreal (NAICS 441120). It outlines the nine requirements you’ll need, explains which permits and licenses matter, and helps you estimate startup costs, while a clear timeline shows how to move from planning to your first lot.
You’ll learn what the nine steps cover, where to apply for municipal permits and licenses, and how to budget for registration, insurance, business taxes, and bonding. The page also flags common timing touchpoints: approvals, inspections, the window to secure inventory and a showroom space, and how to avoid common delays.
Montreal’s vibrant, bilingual market and strong auto supply network make it a smart place to launch a used car dealership. With clear licensing, zoning, and consumer-protection rules, you can build trust fast and turn your plan into a thriving business on day one, with straightforward steps and practical checklists to keep you compliant and focused.
Requirements Overview
The most critical requirement for operating a business in Montreal is a Business Licence. This licence is legally required and you cannot legally operate a used car dealership without it. It confirms you meet local rules for operating a business and protecting consumers, and you must obtain it before you start selling cars or signing employment agreements. This requirement is non-negotiable.
For mandatory operational requirements, focus on health, safety, and permit-related obligations. If you hire staff, you must register with the Quebec CNESST for workers’ compensation, which protects employees in case of workplace injuries. You may also need Payroll Deductions Registration to handle income tax and other withholdings for your employees. These steps are essential to keep your shop compliant and to manage risks as you grow.
Business Registration & Tax covers how you formalize and report the business. You’ll need a Business Number (BN) registration with the federal government, a Quebec Enterprise Number (NEQ), and Quebec Business Registration (REQ - Registraire des entreprises). Depending on your business structure, you’ll select either Partnership Registration or Quebec Corporation Registration. In addition, GST/HST Registration is typically required for tax purposes, and Payroll Deductions Registration applies if you employ people.
Next steps: take action by aligning your licensing and registrations in the right order. Start with obtaining the Business Licence, then set up BN, NEQ, and REQ registrations based on your structure, and decide early whether you’ll need partnership or corporate status. If you’re unsure, consider a quick consult with a local business advisor or the appropriate government websites—taking these steps now will make the path to opening smoother and less stressful. You’ve got this—you’re on the way to a compliant, ready-to-operate operation.
Detailed Requirements
Here are the specific requirements for starting a used car dealers 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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