Montreal small business owner reviewing plans outside a neighbourhood storefront

How to Open a Small Business in Montreal: Permits and First Steps

Opening a small business in Montreal starts with a good idea, but the first practical steps are about location, registration and permits. A café, retail shop, home-based service and professional office can face different requirements. Use this guide to organize your research before signing a lease or announcing an opening date.

1. Test the idea and build a simple plan

Define who you will serve, what you will sell and how your business will earn enough to cover its costs. Compare nearby competitors, estimate rent and startup expenses, and decide whether customers will find you in person, online or both. Montreal has opportunities across many sectors, as our overview of the Montreal business community explains.

For a storefront, visit the neighbourhood at different times of day. Look at pedestrian traffic, transit access, deliveries and the needs of nearby residents. A lower rent is not necessarily a better choice if the space cannot legally accommodate your activity.

2. Choose a business structure and register where required

Decide whether you will operate as a sole proprietor, partnership or corporation. The legal form affects registration steps and other obligations, so review Québec’s enterprise registration guidance before filing. Most enterprises in Québec must register with the Registraire des entreprises when they are created, although the rules depend on the form and circumstances.

A registered enterprise receives a Québec enterprise number, or NEQ. This ten-digit identifier helps public bodies and business partners identify it. Check the official NEQ explanation to understand when and how it is assigned.

3. Check the location before committing to a lease

Before choosing a commercial space, confirm that your proposed activity is allowed at that address and ask the relevant borough about the permits and approvals you may need. Montreal’s guide to opening a business recommends checking the applicable rules early. Ask about renovations, accessibility, signage and any special use of outdoor space. Put any essential approval conditions in writing when discussing a lease.

A business operated from home also needs a location check. The city says an occupancy permit can be necessary even when only part of a home is used as an office.

4. Apply for the appropriate city permits

Montreal requires an occupancy permit for commercial, industrial or professional activity. The application and supporting documents depend on the establishment and activity. Verify the exact requirements for your borough and type of business rather than assuming that an existing tenant’s permit covers your new operation.

If you plan to install, replace or change a commercial sign, the city also requires a commercial sign permit. Renovations, a terrace or use of public property may call for separate approvals. Montreal’s permits and authorizations directory is a useful starting point for checking these possibilities.

5. Set up tax accounts and bookkeeping

Review whether you must register to collect GST and QST. Revenu Québec states that registration is generally required when worldwide taxable supplies, including those of associates, exceed $30,000 in one calendar quarter or the preceding four calendar quarters. There are exceptions and special cases, so use its GST and QST registration guidance for your circumstances.

Set up a way to track sales, invoices and expenses from day one. A separate business account and organized records make it easier to understand cash flow and meet filing obligations. An accountant can help you choose a suitable bookkeeping process.

6. Check industry-specific obligations

An occupancy permit is only one piece of the setup. Restaurants, food businesses, bars and other regulated activities may need additional authorizations from provincial or other authorities. If you will hire staff, research employer obligations before making offers. Review the relevant regulator’s requirements for your exact activity and confirm the order in which applications must be made.

7. Prepare your launch and local visibility

Once the location and approvals are settled, prepare clear business hours, contact details, a website and a realistic opening timeline. Make sure your address and name are consistent across your website and local listings. Tell customers what you offer and how they can reach you, then adjust your marketing based on the questions they actually ask.

A practical pre-opening checklist

  • Define your customers, budget and business model.
  • Select a legal form and check Québec registration requirements.
  • Confirm the proposed activity is permitted at the location.
  • Apply for the required occupancy permit and any sign or renovation permits.
  • Review GST and QST registration and industry-specific rules.
  • Organize bookkeeping, online information and your opening plan.

Requirements can vary by activity and borough. Verify the current rules with the relevant government offices before spending money on a lease, renovations or signage.

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