Ontario Master Business Licence (MBL) is a legal requirement for businesses operating under a name different from the owner’s legal name or corporate entity. This guide covers registration, benefits, renewal, and key considerations for entrepreneurs in Ontario.
What is an Ontario Master Business Licence?
An Ontario Master Business Licence (MBL) registers your business name provincially, allowing you to operate legally under a chosen name. Key details:
– Cost: $60 for 5 years.
– Validity: Renew every 5 years.
– Applies To:
– Sole proprietorships using a trade name.
– Partnerships not covered under the Limited Partnerships Act.
– Corporations operating under a name different from their legal corporate name.
Without an MBL, you can’t open a business bank account, apply for tax IDs, or access wholesale pricing.
Who Needs an MBL in Ontario?
|
Business Type |
Requires MBL |
|
Sole Proprietorship |
Yes, if using a trade name |
|
General Partnership |
Yes, unless under Limited Partnerships Act |
|
Incorporated Business |
Only if using a different name |
Note: An MBL doesn’t provide name protection. Conduct a NUANS search (https://www.nuans.com) or use Service Ontario’s $8–$26 name search to avoid conflicts.
How to Register for an Ontario Master Business Licence
3 Registration Methods:
-
Online
– Visit Service Ontario (https://www.serviceontario.ca).
– Instant approval, 24/7 access.
– Payment: Credit card.
-
In-Person
– Visit a Service Ontario Centre (e.g., Barrie office).
– Payment: Debit, cheque, or credit card.
-
By Mail
– Mail forms to Toronto office.
– Cost: $80 (4–6 weeks processing).
Required Information:
– Business name, address, and activities.
– Owner/partner legal names.
Benefits vs. Limitations of an MBL
✅ Benefits
– Access to business banking and tax accounts.
– Qualify for government grants.
– Simple 5-year renewal process.
❌ Limitations
– No name protection (risk of duplication).
– No limited liability (personal assets at risk).
– No corporate tax benefits.
Renewing Your Ontario Master Business Licence
– When: Every 5 years (60-day grace period post-expiry).
– Process: Renew online via Service Ontario or an authorized provider like Ontario Business Central.
– Late Renewal Risks:
– Expired businesses must re-register (new BIN and start date).
– Loss of business name if claimed by others.
FAQs: Ontario Master Business Licence
1. Does an MBL expire?
Yes. Renew every 5 years to maintain legal operations.
2. How much does an MBL cost?
$60 for online/in-person registration; $80 by mail.
3. Can I operate without an MBL?
Only if using your legal name (e.g., “Jane Doe,” not “Jane’s Bakery”).
4. How do I get a copy of my MBL?
Request via Service Ontario’s Business Registry or in person.
5. Does an MBL protect my business name?
No. Incorporate your business for exclusive name rights.
6. What’s the difference between an MBL and incorporation?
Incorporation offers liability protection and tax benefits; an MBL is a basic registration.
Conclusion
Securing an Ontario Master Business Licence is essential for legal compliance and accessing critical business services. Whether you’re a sole proprietor or a partnership, register online today for a streamlined process. Stay proactive with renewals to avoid disruptions and protect your business identity.
Need Help? Contact Common Accounting at commonaccounting.com for registration support, name searches, and account setup.
