How to start a renovation business in Ontario: licences and permits

Renovation is easy to enter and hard to run well. The rules that catch new renovators are rarely about a licence for the company. They are about who is allowed to do each part of the job, what needs a permit, and what the law says a consumer contract must contain. Get those three right and most disputes never start.

Do I need a licence to be a renovation contractor in Ontario?

Not at the provincial level. Ontario has no licence for general contractors or renovators. HCRA licenses builders and vendors of new homes, and it states that renovating or upgrading an existing home does not make it a new home, so a renovator does not need an HCRA licence. Tarion's new-home warranty likewise applies to new homes from licensed builders, not to renovations.

Two things still apply. Some municipalities license building renovators or contractors, so check your town on BizPaL and with its licensing office before you start; Toronto's municipal licensing code has covered some contractor categories, so confirm the current rules there before working in the city. And the trades inside a renovation are licensed individually.

When does a renovation need a building permit in Ontario?

Under Ontario's Building Code Act, you need a permit from the municipality's chief building official to construct or demolish, and construction includes material alterations and repairs. The 2024 Ontario Building Code applies to projects that started the permit process from 2025. In Newmarket, for example, the town lists these as needing a permit:

• Adding or removing walls, and any structural change.
• Finishing a basement, or adding a basement walkout.
• Raised decks and porches, and detached structures over 15 square metres.
• New or larger window and door openings.
• Changes to plumbing, heating or ventilation, and installing a wood stove or fireplace.
• Retaining walls over 1 metre, solar panels, and additional residential units.

The same town lists work that typically needs no permit, such as painting and decorating, new floor and ceiling finishes, replacing a window or door in the same-size opening, and small detached decks. Rules differ by municipality, so check with the building department of the town where the job is before you quote. Say in the contract who applies for each permit. For electrical work the Licensed Electrical Contractor files the ESA notification, and ESA warns homeowners against taking it out in their own name for a contractor's work.

What insurance and WSIB does a renovation business need?

Commercial general liability of at least $2 million per occurrence is the common minimum homeowners and platforms ask for, and larger renovation work often calls for $5 million. WSIB coverage is mandatory for construction business owners, including sole proprietors with no employees, unless you qualify for the home-renovation exemption: working only on existing private homes, hired and paid directly by the homeowner or resident. One commercial or subcontract job ends the exemption, and you must then stay covered for at least three months.

What must a renovation contract include in Ontario?

Ontario requires a written contract for any home renovation over $50, and consumer law sets the minimum it must say. A good contract also protects you when a job changes:

• Your business's legal name, address, phone and email, and the customer's details.
• A clear description of the work and materials, with start and completion dates.
• The total price, the payment schedule and the deposit. Ontario suggests consumers pay no more than 10% as a deposit.
• Permits: who pulls them and who pays.
• How changes are priced and agreed, in writing, before the extra work starts.
• Warranty terms on workmanship.
• The cancellation rights: a contract signed in the customer's home has a 10-day cooling-off period, and a cancelled deposit must be refunded within 15 days, less reasonable payment for work already done.

Estimates carry their own rule. Under section 10 of the Consumer Protection Act, 2002, you cannot charge more than 10% above an estimate unless the customer agrees to the new price. When a wall is opened and the job grows, stop, explain the change and get written agreement first. The Consumer Protection Act, 2023 has been passed but was not yet in force in September 2026; watch for its start date.

How do new renovation businesses find their first jobs?

Most start small and local: bathrooms, basements and kitchens for people who already know them, sub-trade work for established contractors, and referrals from real estate agents, designers and other trades. Photos of finished work, reviews and a quick written quote matter more than a big ad budget. Platforms can add volume: on Doyo, renovation, flooring, closets and landscaping jobs are priced by written quote after a site visit, the customer's deposit is held until they confirm the work, and part of the pro's pay is held back for a warranty period.

Contractors with a crew of trusted sub-trades can also look at Doyo's Area Partner program for York Region, which pays partners a share of Doyo's fee on jobs by the pros they bring. It is free to join, and partners never pay Doyo.