Starting an Import-Export Business in Canada: Licences and Registrations

Starting an import-export business in Canada involves more paperwork than most first-time entrepreneurs expect, but the core registrations are well-defined and, once completed, unlock a straightforward path to booking your first ocean freight container. The confusion usually isn't about difficulty — it's about sequencing. Which registration comes first? Does a small operation really need a customs broker relationship before the first shipment? What insurance actually matters versus what is optional? This guide walks through the practical steps in order, from your CRA business number through your first container moving out of Montreal.

Whether you're planning to import finished goods for domestic resale, export Canadian products abroad, or both, the registration backbone is largely the same, and getting it right from day one avoids the scramble that happens when a shipment arrives at port and the paperwork isn't ready to support customs clearance.

Step 1: Register a Business Structure

Before any trade-specific registration, you need a legal business entity. Most new import-export operators choose between a sole proprietorship, a partnership, or an incorporated company, and the choice affects liability exposure, tax treatment, and how easily you can bring on investors or partners later. Incorporation, whether provincially or federally, is worth serious consideration for import-export specifically because of the exposure to customs penalties, cargo claims, and contractual liability that comes with international trade — a sole proprietor is personally liable for these in a way an incorporated business is not. Provincial incorporation through Quebec's Registraire des entreprises or Ontario's business registry is typically faster and less expensive than federal incorporation, though federal incorporation offers name protection across Canada, which matters if you plan to operate or seek suppliers in multiple provinces.

Step 2: Obtain a CRA Business Number and RM Import-Export Account

Once your business structure is registered, the Canada Revenue Agency issues a nine-digit Business Number (BN) that acts as the common identifier across all your federal program accounts — payroll, GST/HST, corporate income tax, and critically for trade, the import-export (RM) account. The RM account is not automatic; it must be specifically requested, either online through the CRA's Business Registration Online system, by phone, or through your accountant, and it is this RM account number that CBSA requires on every commercial import or export declaration.

Key points on the RM account:

• It costs nothing to register and is typically issued the same day when applied for online.
• You need a separate RM account even if you already have a BN with a GST/HST (RT) account for domestic sales.
• The RM account must appear on customs paperwork for every commercial shipment, so it should be obtained before your first booking, not after goods arrive at the port.
• If you plan to use a licensed customs broker, provide them your RM account details as part of your onboarding with them, since they will file declarations on your behalf using this number.

Step 3: GST/QST and Provincial Registrations

If your business will have revenues above the small-supplier threshold, you'll also need to register for GST/HST federally and, if operating in Quebec, for QST provincially through Revenu Québec. These registrations allow you to collect and remit sales tax correctly and, importantly, to claim input tax credits on the GST and QST paid at the time of importation — a meaningful cash-flow consideration given that import taxes are generally due before your goods are sold. Businesses based in Ontario selling into Quebec, or vice versa, should confirm with an accountant whether QST registration is required based on where their customers and inventory are located, since the rules differ from GST's more uniform national application.

Step 4: Insurance for International Trade

New import-export operators often underinsure, assuming ocean freight is inherently low-risk because containers are sealed and tracked. In practice, cargo can be damaged by rough handling, water intrusion, container stacking incidents, or improper loading, and general commercial liability insurance typically does not cover the value of goods in transit. Marine cargo insurance, purchased either on a per-shipment or annual open-policy basis, covers the declared value of your goods from the point of origin through to final delivery and is inexpensive relative to the protection it provides. Beyond cargo insurance, a growing import-export business should also carry:

• General commercial liability insurance, covering claims related to your business operations broadly.
• Product liability insurance, particularly important for importers, since liability for a defective imported product can attach to the Canadian importer of record even when the defect originated with an overseas manufacturer.
• Errors and omissions coverage, if your business also provides trade advisory, sourcing, or documentation services to clients.

Step 5: Contracts and Supplier Agreements

A written contract with each supplier or buyer, even a relatively simple one, protects your business against disputes over quality, quantity, delivery timing, and payment terms — disputes that are far more difficult and expensive to resolve across international borders than domestically. At minimum, contracts for import-export transactions should specify the agreed Incoterm (which determines who is responsible for freight, insurance, and risk at each stage of the journey), payment terms, quality specifications and inspection rights, and the governing law and dispute resolution mechanism. New importers frequently overlook the Incoterm specifically, defaulting to whatever term a supplier proposes without understanding that it directly determines who pays for and arranges the ocean freight leg, and who bears the risk of loss during that leg.

A Short Checklist for Supplier Contracts

• Confirm the Incoterm and understand exactly where risk transfers from seller to buyer
• Specify currency and payment terms (deposit, balance, letter of credit, or open account)
• Include a clear quality and quantity acceptance clause with an inspection window after delivery
• Define what happens in the event of shipment delay, damage, or non-conformance
• Specify which country's law governs the contract and how disputes will be resolved

Step 6: Choosing a Customs Broker and Freight Forwarder

While not a government registration, selecting a licensed customs broker and a freight forwarder is a practical prerequisite to actually moving your first shipment smoothly. A customs broker files your import or export declarations with CBSA on your behalf using your RM account, calculates duty and taxes, and ensures your goods clear without unnecessary delay; a freight forwarder arranges the ocean transportation itself, from booking container space to coordinating pickup at origin and delivery after the container arrives in Montreal. Many businesses starting out benefit from working with a forwarder who can also advise on documentation requirements end-to-end, reducing the number of separate relationships a new operator has to manage in the early stages. Review the full range of available support on the services page before selecting your partners.

Step 7: Booking Your First Container

With registrations, insurance, and contracts in place, your first shipment typically moves through the following sequence: confirm the Incoterm and purchase order with your supplier, arrange cargo insurance, book the container through your forwarder with sufficient lead time for the vessel schedule out of Montreal, prepare the commercial invoice and packing list, and provide your RM account number and any required permits to your customs broker before the container arrives. New importers who are shipping smaller volumes than a full container load should ask about consolidation options, which allow multiple smaller shipments to share container space and reduce cost while goods are still moved on a fixed, predictable schedule. First-time exporters or importers are also encouraged to confirm well in advance whether their specific product category requires any additional permits or registrations beyond the standard set described here, since certain goods carry their own regulatory requirements independent of the general import-export registration process.

Common Early Mistakes to Avoid

• Booking freight before the RM account is active, which can delay customs clearance on arrival.
• Underestimating the total landed cost, forgetting that duty, GST, QST, brokerage fees, and inland trucking all add to the supplier's invoice price.
• Skipping marine cargo insurance on the assumption that ocean freight is low-risk.
• Relying on verbal agreements with suppliers rather than a written contract specifying the Incoterm and quality terms.
• Waiting until the container has departed to sort out customs documentation, rather than preparing it in advance.

Growing Beyond Your First Shipment

Once your first container has cleared successfully, the registration and process groundwork you've built scales naturally to higher volumes. Many businesses find that the biggest efficiency gains after the first few shipments come from consolidating purchase orders into fewer, larger containers, negotiating more favourable terms with a consistent freight forwarder, and building a simple internal checklist so that the documentation process doesn't depend on a single person's memory. Establishing a relationship early with a forwarder who understands both the regulatory side and the practical shipping schedule out of Montreal pays dividends as your shipment volume increases.

FAQ

Do I need to incorporate my business before I can import or export?

No, sole proprietorships and partnerships can legally import and export, but incorporation is worth considering given the personal liability exposure that comes with customs penalties and cargo disputes. Many new import-export operators choose to incorporate specifically for this reason.

How long does it take to get an RM import-export account?

When applied for online through the CRA's Business Registration Online system, an RM account is typically issued the same day, provided you already have a Business Number. It's a straightforward, no-cost registration but should be completed before your first shipment is booked.

Is marine cargo insurance mandatory?

It is not legally mandatory in most cases, but it is strongly recommended, since general commercial liability insurance typically does not cover damage to goods in transit. The cost is modest relative to the financial exposure of an uninsured shipment.

What's the difference between a customs broker and a freight forwarder?

A customs broker files import and export declarations with CBSA and manages duty and tax calculations, while a freight forwarder arranges the actual ocean transportation, including booking container space and coordinating pickup and delivery. Many new businesses work with both, and some forwarders can help coordinate documentation with your broker.

Can I start with less than a full container load?

Yes, consolidation services allow smaller shipments to share container space with other shippers, which reduces cost while still moving goods on a fixed, predictable ocean freight schedule out of Montreal.

What is the most common mistake new import-export businesses make?

Underestimating total landed cost is extremely common — new importers often price goods based only on the supplier's invoice, forgetting that duty, GST, QST, brokerage fees, and inland trucking can add a substantial percentage on top before the goods reach their warehouse.

Ready to plan your first shipment or discuss the registrations your business specifically needs? Contact our Montreal team or message us on WhatsApp at +1 514-718-0282 to get started.