shop owner turning closed sign

If you are no longer operating your business, it is important to finalize the end of the business operation by either cancelling your Sole Proprietorship, General Partnership, Tradename or Incorporation with the Province. Until a business licence is cancelled, it will remain active until its expiry date. In the case of an Ontario corporation, it has no expiry date and will remain active until it is dissolved.

Why should I cancel the registration or incorporation?

Revenue Canada/Minister of Finance

When you first established the business, whether you registered a small business or incorporated, details of the business set up were provided to Revenue Canada. If you have filed any tax returns, Revenue Canada and the Minister of Finance have insight into what revenues are being produced by the business, and there is an expectation of continued revenues and taxes based on previous tax filings.

Unless you cancel or dissolve the business, an assumption cannot be made by any third party that the business no longer exists.

We have had a few clients who had stopped business operations but didn’t file a cancellation or dissolve their businesses with the Province. Revenue Canada imposed revenues to the business based on the previous tax filings. When individuals stated that the business was no longer in operation without proof of the cancelled business, Revenue Canada required audits to verify the business was no longer operational. This included clients being required to provide historic details of suppliers, bank account information, client lists etc. to ensure the business is no longer operational. This can happen years after the business has been closed.

Liability

As long as the business remains active, the opportunity for liability continues whether the business is operational or not.

Provincial Databank Search

When you have registered a Master Business Licence as a Sole Proprietorship, General Partnership or Tradename, the registration details including the owners of the business remain within the public databank for individuals to search and obtain the details. When you have cancelled the Master Business Licence, the registration itself becomes archived and not as accessible to public viewing.

To Cancel/Dissolve Your Business

Sole Proprietorship, General Partnership or Tradename
To cancel an existing Master Business Licence as a Sole Proprietorship, General Partnership or Tradename in Ontario, a cancellation must be filed with the Province of Ontario. If you would like, we can assist you with completing this filing.

Here is the link to complete the cancellation with our office:

Cancel a Sole Proprietorship, General Partnership or Tradename

The cancellation information that is required is as follows:

  • Business name
  • Business address
  • Activity of Business
  • BIN number (9 digit number listed on your current registration)
  • Your name and any other owners as registered initially

Ontario Incorporation
If you would like to cancel your Ontario incorporated company, the first thing required is a “Letter of Consent to Dissolve.” This letter is provided by the Minister of Finance in Ontario:

Ministry of Finance
Phone: 1-866-668-8297

You may be required to file any previous tax year filings that have not been completed or if up to date the most recent quarter of the business revenues. Once you have obtained the “Letter of Consent to Dissolve,” the secondary step of filing the Articles of Dissolution can be completed and filed with the Province to complete the dissolution process.

If you would like us to assist you in completing the filing of the Articles of Dissolution for your Ontario incorporation with the Province of Ontario, here is the link to do so:

Dissolve and Ontario Corporation

If you have any questions about completing cancellation or dissolution of your business, please feel free to contact our staff for additional information and assistance.

inquiries@ontariobusinesscentral.ca
Toll-Free: 1-877-306-9458
Local: 1-416-599-9009
Fax: 1-866-294-4363
Office Hours: 9:00am – 5:00pm
Monday – Friday E.S.T.

Ontario Business Central Inc. is not a law firm and cannot provide a legal opinion or advice. This information is to assist you in understanding the requirements of registration within the chosen jurisdiction. It is always recommended, when you have legal or accounting questions that you speak to a qualified professional.