How to start a home-services business in Canada as a newcomer

Home services suit many newcomers: the start-up costs are low, skills from home often transfer, and demand in fast-growing areas such as York Region is steady. The first question is not what to charge or how to advertise, though. It is whether your status lets you work for yourself, because doing self-employed work your permit does not allow can put that status at risk.

Can I be self-employed on my immigration status?

It depends on the document you hold and the conditions printed on it. This is the general picture from Immigration, Refugees and Citizenship Canada (IRCC); your own permit is what counts.

How do I register a home-services business in Ontario?

Once your status allows it, the setup is the same as for anyone else. Most newcomers start as sole proprietors, because it is quick and cheap:

1. Get a Social Insurance Number (SIN) if you do not have one; you need it to file taxes.
2. Register a business name on the Ontario Business Registry if you will trade under a name other than your own legal name: $60, valid for five years.
3. Open a separate bank account for the business so your records are clean.
4. Get a CRA business number and a GST/HST account when you need one: mandatory once taxable sales pass $30,000 in a single calendar quarter or over four consecutive quarters, optional before that. The HST rate in Ontario is 13%.
5. Report business income on Form T2125 with your personal tax return, and set aside money for tax and both halves of Canada Pension Plan contributions.

Incorporating costs more ($300 in Ontario, $200 federally online) and brings more paperwork. It can make sense later; ask an accountant, and ask your immigration adviser too, because some permits and immigration programs treat business ownership differently from self-employment.

Which home services need a licence in Ontario?

Some trades need a provincial licence or certificate before you do the work for pay, and a licence from another country does not transfer automatically. Other home services need none.

If you were a plumber or electrician back home, the Trade Equivalency Assessment lets you prove your experience and challenge the certifying exam instead of repeating an apprenticeship. Skilled Trades Ontario lists the assessment at $235, with HST charged on it, and strong employer letters listing your tasks and hours make the biggest difference.

What insurance does a new home-services business need?

Commercial general liability is the one customers and platforms ask for, commonly $2 million per occurrence. Cleaners are often asked for a fidelity bond too. If you drive to jobs with tools, tell your auto insurer, because personal policies may not cover business use. WSIB coverage is mandatory for most construction business owners and for any business that hires workers in a covered industry; a sole cleaner with no workers can usually choose optional coverage instead.

What mistakes do newcomer home-services businesses make?

• Starting paid work before checking what the permit allows, or assuming a spouse's open permit covers the same work.
• Doing licensed work, such as swapping a light fixture or connecting a gas dryer, under a handyman or cleaning business.
• Pricing like an employee: forgetting that the rate must cover insurance, travel, supplies, tax and both halves of CPP.
• Taking cash without records. Clean records are what prove income for a mortgage, a lease or a future immigration application.
• Working without insurance because no one asked for it yet.

How do newcomers find their first clients?

Start with the community you already have: language groups, places of worship, newcomer associations and neighbours. Many homeowners prefer a pro who speaks their language. Collect reviews from every early job, keep a photo portfolio, and ask satisfied customers for one referral each. A platform can fill the gaps while word of mouth builds.

On Doyo, customers can describe the job in English, French, Persian or Spanish, and every pro passes a photo ID check and a police record check. Contractors who already work with other newcomer tradespeople can also look at Doyo's Area Partner program in York Region: partners never pay Doyo, and earn a share of Doyo's fee on jobs by the pros they bring.

See Doyo's partner territories in York RegionSee how