Going out on your own

How to start a commercial construction business in Ontario

Commercial construction has no special provincial trade licence, but the prequalification bar — bonding, $5M insurance, COR safety certification, and references — is what actually gates entry to the work.

The steps to start your commercial construction business

1. 1

   Incorporate your company

   Most contractors incorporate (Ontario or federal) to limit personal liability, look credible to larger clients, and access tax advantages once profitable. You choose a named or numbered company, set directors and share structure, and file the articles. Budget roughly $400–$600.

   Full guide: Incorporation
2. 2

   Register your CRA accounts

   Get a Business Number, then register for HST/GST (mandatory once you exceed $30,000 in revenue, and worth registering sooner to claim input tax credits), a payroll account if you will hire, and corporate income tax. This is free and done through the CRA.

   Full guide: CRA Registration
3. 3

   Register for WSIB

   Construction is a mandatory WSIB sector. Independent operators and partners in construction generally must register even with no employees, and clients and general contractors will require a valid WSIB clearance certificate before letting you on site.

   Full guide: WSIB & Provincial
4. 4

   Handle commercial construction licensing & permits

   No provincial commercial-contractor licence exists, but commercial and institutional owners gate access through prequalification: surety bonding capacity, $5M CGL, often COR® safety certification, financial statements, and project references. Building permits and the Ontario Building Code govern the work; compulsory trades must be certified.

   Full guide: Trade Licensing
5. 5

   Get insured

   Carry Commercial General Liability (typically $2M, $5M for commercial/industrial work), plus tools and equipment, commercial auto, and — depending on scope — builders risk and professional liability. Many contracts and clients specify minimum coverage before you can quote.

   Full guide: Insurance
6. 6

   Set up health, safety & compliance

   Meet your Occupational Health and Safety Act duties: a health and safety policy, required training (WHMIS, Working at Heights where applicable), and — for commercial and public work — often COR® certification. This is also where any trade-specific safety tickets live.

   Full guide: Safety Compliance
7. 7

   Stand up your operations

   Open business banking, set up construction-specific accounting, and understand your trust obligations under the Construction Act (holdback, prompt payment, and adjudication). This is the back office that keeps you paid and out of trouble.

   Full guide: Operational Setup
8. 8

   Get bid-ready and win work

   Assemble your prequalification package — incorporation and WSIB documents, insurance and bonding letters, safety program, key personnel, and project references — then quote, send proposals, and collect on invoices. This is where a construction business actually makes money.

   Full guide: Bid Readiness

Insurance for a commercial construction business

Commercial owners almost always require $5M CGL, surety bonds (bid, performance, labour & material payment), and frequently COR certification. Wrap-up liability may be required on larger projects.