Starting a new business in Quebec involves more than choosing a name and opening a bank account. Entrepreneurs must navigate multiple tax registrations, licensing requirements, and administrative steps before they can legally operate. One of the most important components of business registration is properly setting up GST, QST, payroll deductions, corporate accounts, and other regulatory obligations. Missing one step or registering late may trigger penalties, create compliance issues, or delay your ability to issue invoices. This guide provides a complete new business registration checklist to help entrepreneurs in Quebec start operations smoothly while remaining fully compliant with federal and provincial tax authorities.

Proper registration from day one ensures that your business can charge taxes correctly, recover input tax credits, issue payroll slips, receive refunds, and avoid administrative problems. Following this checklist helps create a solid foundation for financial, tax, and legal compliance.

LEGAL AND REGULATORY FRAMEWORK

Business registration requirements fall under the Quebec Business Corporations Act, the federal Income Tax Act, the Excise Tax Act for GST, and the Quebec Taxation Act for QST. Any business operating in Quebec must register with the Registraire des entreprises du Québec (REQ) unless exempt. Once registered, the business may be required to open accounts with the CRA and Revenu Québec for GST, QST, payroll deductions, corporate income tax, source deductions, and other administrative filings.

GST and QST registration becomes mandatory when the business exceeds thirty thousand dollars in annual taxable revenues. However, many startups voluntarily register early to claim input tax credits and avoid having to retroactively collect tax. Every business must also maintain financial and tax records for at least six years.

KEY COURT DECISIONS

Court rulings consistently reinforce that businesses are responsible for properly registering and complying with tax laws from the moment they begin operating. In several cases, businesses attempted to retroactively correct registration mistakes or explain that they were unaware of requirements. Judges upheld penalties, stating that ignorance of registration rules is not a valid defence.

Other cases involved businesses that operated without correct GST/QST registration and issued invoices without tax numbers. Courts supported Revenu Québec’s reassessment and required the business to remit the taxes it should have collected. These rulings show that early and accurate registration is essential for long-term compliance.

WHY CRA AND REVENU QUÉBEC TARGET NEW BUSINESSES

New businesses often make administrative mistakes because they lack structured procedures or assume tax obligations apply only after profitability. Revenu Québec regularly audits startups that:
• do not register for GST/QST on time
• issue invoices without tax identification numbers
• mix personal and business expenses
• file inconsistent or incomplete first-year returns
• fail to maintain proper documentation
• claim input tax credits without valid receipts

Because new businesses often grow quickly, early administrative failures can lead to substantial compliance risks. A robust registration checklist helps prevent these issues.

NEW BUSINESS REGISTRATION CHECKLIST: GST, QST, AND MORE

1. Register the business with the REQ
   Choose your legal form (sole proprietorship, partnership, corporation) and register with the Registraire des entreprises du Québec.

2. Obtain a federal business number (BN)
   Register your business with the CRA to obtain the nine-digit BN required for GST/HST, payroll, and corporate tax accounts.

3. Determine if you must register for GST/QST
   Mandatory if taxable revenues exceed thirty thousand dollars. Voluntary registration is recommended for startups incurring early expenses.

4. Open GST and QST tax accounts
   Register with Revenu Québec for GST and QST and ensure your tax numbers appear on all invoices and contracts.

5. Set up bookkeeping and tax codes
   Configure your accounting software (QuickBooks, Xero, Sage, Wave) with correct GST/QST tax codes, chart of accounts, and invoice templates.

6. Create a system to track input tax credits
   Maintain proper documentation to claim GST/QST on business expenses, including supplier invoices with GST/QST numbers.

7. Open your corporate income tax accounts
   Corporations must register for corporate income tax accounts with both CRA and Revenu Québec.

8. Register for payroll and source deductions (if hiring employees)
   Set up accounts for withholding taxes, QPP, EI, RQAP, CNESST, and employer contributions.

9. Set up required permits or licenses
   Depending on your industry: restaurant permits, construction RBQ licenses, professional certifications, retail permits, or municipal approvals.

10. Open a business bank account
    Separate personal and business finances to ensure clean tax records and prevent compliance issues.

11. Set up invoicing compliant with GST/QST rules
    Include legal names, tax numbers, invoice dates, descriptions, and tax amounts on every invoice.

12. Prepare early cash flow and GST/QST forecasts
    Plan for tax remittance obligations to avoid liquidity problems as the business grows.

13. Implement document retention systems
    Store receipts, contracts, and invoices electronically and create monthly review procedures.

14. Schedule GST/QST filing deadlines
    Mark monthly, quarterly, or annual deadlines to prevent late filing penalties and interest.

15. Prepare for audits from day one
    Maintain organized files so Revenu Québec can verify your records easily if needed.

MACKISEN STRATEGY

Mackisen CPA helps new entrepreneurs navigate every administrative step involved in starting a business in Quebec. We complete all registrations with the REQ, CRA, and Revenu Québec, including GST/QST accounts, corporate income tax accounts, payroll accounts, and provincial permits. We also configure bookkeeping systems, create invoicing templates, build tax workflows, and implement GST/QST tracking procedures from day one.

Our team ensures that your startup does not overlook crucial registration requirements that could lead to penalties or audits later. We provide founders with personalized compliance calendars, industry-specific registration guidance, and documentation checklists to maintain strong records throughout the year.

REAL CLIENT EXPERIENCE

A Montreal wellness clinic opened without registering for QST, assuming that early services were exempt. Revenu Québec questioned their first filings. Mackisen corrected the registration, updated invoicing, and ensured future compliance.

A tech startup filed corporate income tax but forgot to register for GST/QST. Their first clients expected tax invoices. Mackisen completed the registration immediately, created compliant invoice templates, and corrected their early sales.

A small construction business mixed personal and business purchases, causing input tax credit denials. Mackisen restructured their accounts, created a documentation system, and filed amended returns to recover missed credits.

COMMON QUESTIONS

When should I register for GST/QST?
As soon as you expect to exceed thirty thousand dollars in taxable revenues or when voluntary registration provides input tax credit advantages.

Can I issue invoices without GST/QST numbers?
Not if you are registered or required to be registered. Doing so may result in penalties and reassessments.

Do all new businesses need payroll accounts?
Only if you plan to hire employees. Otherwise, payroll registration is not required.

Can voluntary GST/QST registration benefit a startup?
Yes. It allows you to recover input tax credits on initial expenses, improving cash flow.

What happens if I register late?
You may need to remit taxes retroactively, even if you did not charge them to clients.

WHY MACKISEN

Avec plus de 35 ans d’expérience combinée, Mackisen CPA Montréal accompagne les nouvelles entreprises dans toutes leurs obligations administratives, fiscales et comptables. Whether you are launching a startup, opening a retail store, or incorporating a new company, our expert team ensures precision, full compliance, and a smooth launch from day one.