How to Start in Canada

How to Start a Construction Company in Ontario

Start a construction company in Ontario: register the business, get WSIB coverage under the construction rules, run clearance certificates, and meet your constructor duties on every project.

Written November 7, 2026 · 13 min read

Applies in: Ontario

Starting a construction company in Ontario is different from starting most other businesses, because construction has its own coverage and safety regime. The Workplace Safety and Insurance Board (WSIB) covers owners as well as employees in construction, every project has one named constructor with overall health and safety responsibility, and the trades that do the work are individually certified. This guide covers the Ontario-specific mechanics: business registration, WSIB registration and clearances, constructor duties and project notices, trade authorization, and municipal building permits. This guide is process information, not legal advice: where a figure was not verified on an official page, this guide states a check instead of a figure.

1. Choose the business structure and register the business

Pick the structure first, because it decides who is covered and who signs what. A sole proprietorship is the simplest start; a partnership shares the work and the risk; a corporation separates the company's liabilities from your personal assets and is the usual choice once you hire crews or sign larger contracts. The mechanics of registering a business name or incorporating in Ontario are covered in the Ontario business registration guide linked below.

Get a Canada Revenue Agency (CRA) business number early: the WSIB asks for it when you register, along with the legal name of the company and trade names, mailing, email and website addresses, and a description of your business activity, according to Workplace Safety and Insurance Board, Information you need to register your business. You will also need the names, addresses, birthdates, and official titles of directors or owners, and an estimate of the insurable earnings you will pay employees for the current year, on the same page. If your company will charge for its work, the GST/HST registration guide linked below covers when you need a GST/HST number.

2. Register with the WSIB

Construction is the one industry where WSIB coverage reaches the owners, not just the employees. Compulsory coverage extends to independent operators, sole proprietors, partners in a partnership, and executive officers of a corporation carrying on business in construction, with certain exemptions, according to Workplace Safety and Insurance Board, Expanded Compulsory Coverage in Construction. Every independent operator, sole proprietor, partner, and executive officer carrying on business in construction is a deemed worker unless exempt under the policy, on the same page. The main exemption is for work done exclusively in home renovation on existing private residences, on the same page — if that is all you do, read the exemption carefully before deciding you are outside coverage.

By law, most businesses need to register with the WSIB within 10 calendar days of hiring their first employee, and if you own or operate a business in construction your registration obligation may be different, according to Workplace Safety and Insurance Board, Questions and answers: Registration. Registration takes about 10 minutes online: gather information about your business, answer a few questions and select your business activity, and the WSIB confirms whether you need to register based on your answers, on the same page. In most cases you get your WSIB account number immediately after submitting your information, and after your account is created you get a welcome email, a letter with the premium rate for your business activity, and instant access to online services, on the same page. You can register before you hire employees, but it is not required, and if you do and your business activity requires mandatory coverage, your account is registered the date you submit and coverage begins once your first employee starts working, on the same page. If you cannot register online, you can register by phone or mail, on the same page.

3. Get a WSIB clearance certificate before any subcontractor starts work

Clearances are the document your clients will ask for, and they are also a legal duty. A principal who directly retains a contractor to perform construction work must obtain a clearance certificate confirming the contractor is in good standing with the WSIB, and the principal and contractor must ensure a clearance is obtained before the construction work begins and that a clearance remains in effect for the entire time the contractor is performing the work, according to Workplace Safety and Insurance Board, Clearance Certificate in Construction. Starting the construction work without a clearance is an offence for both the principal and contractor, on the same page.

In practice this cuts both ways for your company. When you hire a subcontractor, you are the principal: get their clearance before they start, and get a new one if it expires mid-job. When a client or general contractor hires you, they are the principal: they will ask for your clearance before you start, and only a registered business in good standing can get one. A clearance is valid for up to 90 calendar days, depending on the date it is issued, and is renewable, on the same page. Principals and contractors must keep a record of clearances for at least three years from the date they were obtained, on the same page. Build this into your job file: no clearance on file, no one starts work.

4. Name the constructor on every project and file the project notices

On every construction project, one party carries overall responsibility for health and safety. The intent of the Occupational Health and Safety Act is to have one person with overall authority for health and safety matters on a project, and that person is the constructor, according to Government of Ontario, Constructor guideline. Section 1 of the Act defines a constructor as a person who undertakes a project for an owner and includes an owner who undertakes all or part of a project by themself or by more than one employer, on the same page. When an owner hires only one contractor to do all the work, that contractor is the constructor, often called the general contractor, on the same page. If an owner contracts with more than one contractor and no agreement names one party as constructor, the owner will likely be deemed the constructor, on the same page.

The constructor's key responsibilities are to ensure that the measures and procedures prescribed by the Act and its regulations are carried out on the project, that every employer and every worker on the project complies with the Act and its regulations, that the health and safety of workers on the project is protected, that the ministry is notified of a project when required, and that a supervisor is appointed for every project at which five or more workers will work at the same time, according to Government of Ontario, Constructor guideline. The constructor must also ensure every contractor or subcontractor receives a list of all designated substances present at the project before entering into a binding contract, and that written emergency procedures are established for the project and posted, on the same page.

Two filings follow from this. First, the notice of project: constructors must notify the Ministry of Labour, Immigration, Training and Skills Development before construction begins on any project meeting any of the requirements in section 6 of the Regulation for Construction Projects (O. Reg. 213/91), according to Government of Ontario, File a work notice. A notice is required if the total cost of labour and materials for the project is expected to exceed $50,000, or $250,000 for a project confined to a factory that manufactures or assembles automobiles, on the same page. To submit notices online you must first create an Ontario.ca Login, on the same page. Second, Form 1000: before beginning work at a project every constructor and employer engaged in construction must complete an approved registration form, which does not go to the ministry but must be at the project while the employer is working there, on the same page. Separate notices also apply to trench work deeper than 1.2 metres into which a worker may enter, diving, window cleaning, tunnels, and asbestos removal, on the same page — check the list before any job involving those hazards.

5. Staff compulsory trades only with authorized workers

Ontario does not have a general contractor licence. What it has is trade-by-trade authorization. Twenty-three of Ontario's 144 trades are classified as compulsory trades, including electrician for construction and maintenance, electrician for domestic and rural, and plumber, according to Government of Ontario, Compulsory trades and enforcement. To be authorized to work in a compulsory trade, a worker must hold a valid Certificate of Qualification in that trade, hold a valid Provisional Certificate of Qualification, or be an apprentice working under a valid Registered Training Agreement, on the same page. You cannot employ or otherwise engage someone to do compulsory trade work unless they are authorized under the Building Opportunities in the Skilled Trades Act, 2021 to do that work, on the same page.

That rule shapes hiring. Before anyone does electrical, plumbing, sheet metal, refrigeration, steamfitting, sprinkler, or other compulsory trade work on your jobs, verify their certificate or apprenticeship status with Skilled Trades Ontario and keep the proof on file. Apprentices must work under a Registered Training Agreement, and their supervision ratios are set by the trade. Voluntary trades such as general carpentry, painting, and drywall need no certificate to work, but the same hiring discipline still pays: clients and general contractors check credentials. The apprentice guide and the compulsory-versus-voluntary trades guide linked below cover the apprenticeship path and the full classification in detail.

6. Get the municipal building permit and arrange insurance

No construction work starts until the permit side is settled. A building permit is a document issued by the body responsible for enforcing Ontario's Building Code in your area, and a building permit is necessary when you wish to construct, renovate, demolish, or change the use of a building, according to Government of Ontario, Building permits. Building Code enforcement, including issuing building permits, is generally carried out by municipal building departments, on the same page. You must obtain a building permit before you construct any new building over ten square metres in area, make renovations or repairs or add to a building, change the use of a building, or excavate or construct a foundation, on the same page. Building permit applications are submitted to your municipality, not to the provincial government, and municipal staff review the application to confirm the proposed work complies with the Building Code and other applicable law such as local zoning bylaws, on the same page. If the work needs a zoning change or a minor variance, a permit will not be issued until that is obtained, on the same page — so confirm zoning before you sign a lease, buy land, or promise a client a start date.

Insurance is the other half of being hireable. WSIB coverage is not liability insurance: it covers workplace injury, not damage you cause to a client's property or a third party. Arrange commercial general liability insurance before you bid, and expect clients and general contractors to ask for proof of insurance alongside your WSIB clearance. No premium or coverage figure is printed here, because no official source states one — get quotes for your trade mix and contract sizes, and check what your contracts require.

Figures this guide does not state

  • WSIB premium rates for construction classes. The 2026 average premium rate of $1.23 per $100 of insurable payroll appears on advisory sites but was not verified on a WSIB page, so no rate is printed. Your premium rate arrives in the letter the WSIB sends after registration, and it depends on your business activity classification.
  • Business registration and incorporation fees. No fee is stated in this guide. Check the Ontario Business Registry before you file.
  • Commercial general liability insurance premiums and limits. No official source states them. Get quotes for your trade mix and contract sizes.
  • Building permit fees and review times. Permit fees are set by each municipality, and review times depend on the project. The Building Code sets review timeframes for complete applications, for example 10 days for a house and 30 days for a more complex building, according to Government of Ontario, Building permits, but your municipality's fee schedule and current queue are the numbers that matter.
  • Electrical contractor licensing. Electrical work done by your company may also need an electrical contractor licence and a Master Electrician designation. The mechanics were not verified on an official page, so none are printed. Check the Electrical Safety Authority before taking electrical work.

Related guides:

How to Become a Construction Craft Worker Apprentice in Ontario, Compulsory vs Voluntary Trades in Ontario, Contractor Licence Cost in Ontario, How to Register a Business in Ontario, and How to Register for GST/HST in Canada.

Starting a construction company in Ontario, in six steps

  1. Choose the structure and register the businessPick a sole proprietorship, partnership, or corporation, register the business name or incorporate, and get a Canada Revenue Agency business number, which the WSIB asks for at registration.
  2. Register with the WSIBConstruction has expanded compulsory coverage, so owners as well as employees are covered. Register within 10 calendar days of your first worker starting, online in about 10 minutes.
  3. Get clearance certificates before subcontractors startAs the principal, obtain a WSIB clearance certificate confirming each contractor is in good standing before their work begins. A clearance is valid for up to 90 days.
  4. Name the constructor and file the project noticesOn every project, one party is the constructor with overall health and safety responsibility. File a notice of project before work begins when the project is expected to cost more than $50,000 in labour and materials.
  5. Staff compulsory trades with authorized workersOntario has 23 compulsory trades. Only a worker holding a Certificate of Qualification, a provisional certificate, or a registered apprenticeship may do that work, and you may not engage anyone else to do it.
  6. Get the municipal building permit and insuranceApply to your municipality for a building permit before constructing, renovating, or changing the use of a building, and arrange commercial general liability insurance before you bid on work.

Questions people ask

Do I need WSIB coverage if my construction company has no employees?

Usually yes. Compulsory coverage extends to independent operators, sole proprietors, partners in a partnership, and executive officers of a corporation carrying on business in construction, with certain exemptions, according to [Workplace Safety and Insurance Board, Expanded Compulsory Coverage in Construction](https://www.wsib.ca/en/operational-policy-manual/expanded-compulsory-coverage-construction). Every independent operator, sole proprietor, partner, and executive officer carrying on business in construction is a deemed worker unless exempt under the policy, on the same page. One exemption covers work done exclusively in home renovation on existing private residences, on the same page, so check the policy before assuming you are exempt.

How quickly must I register with the WSIB after hiring my first worker?

Within 10 calendar days of the date the first worker begins employment, according to [Workplace Safety and Insurance Board, Questions and answers: Registration](https://www.wsib.ca/en/businesses/registration-and-coverage/questions-and-answers-registration). The same page says registration takes about 10 minutes online and that in most cases you get your WSIB account number immediately after submitting your information. The WSIB registration policy adds that the completed registration form is due by the final day of the month following the month the first worker began employment, and that independent operators in construction must complete a self-declaration form, according to [Workplace Safety and Insurance Board, Registration](https://www.wsib.ca/en/operational-policy-manual/registration-archived-september-22-2025).

What is a WSIB clearance certificate, and when do I need one?

A clearance certificate confirms a contractor is registered with the WSIB and in good standing. A principal who directly retains a contractor to perform construction work must obtain a clearance confirming the contractor is in good standing, and the principal and contractor must ensure a clearance is obtained before the construction work begins and remains in effect for the entire time the contractor is performing the work, according to [Workplace Safety and Insurance Board, Clearance Certificate in Construction](https://www.wsib.ca/en/operational-policy-manual/clearance-certificate-construction). Starting the work without a clearance is an offence for both the principal and the contractor, on the same page. A clearance is valid for up to 90 calendar days, depending on the date it is issued, and is renewable, and principals and contractors must keep a record of clearances for at least three years from the date they were obtained, on the same page.

Who is the constructor on a construction project?

The constructor is the one person with overall authority for health and safety on the project, according to [Government of Ontario, Constructor guideline](https://www.ontario.ca/page/constructor-guideline). Section 1 of the Occupational Health and Safety Act defines a constructor as a person who undertakes a project for an owner and includes an owner who undertakes all or part of a project by themself or by more than one employer, on the same page. When an owner hires only one contractor to do all the work, that contractor is the constructor, often called the general contractor, on the same page. When an owner contracts with more than one contractor and no agreement names one party as constructor, the owner will likely be deemed the constructor, on the same page, so put the constructor role in writing on every project.

When is a notice of project required?

Constructors must notify the Ministry of Labour, Immigration, Training and Skills Development before construction begins on any project meeting any of the requirements in section 6 of the Regulation for Construction Projects (O. Reg. 213/91), according to [Government of Ontario, File a work notice](http://www.ontario.ca/page/file-work-notice). For example, a notice of project is required if the total cost of labour and materials for the project is expected to exceed $50,000, or $250,000 for a project confined to a factory that manufactures or assembles automobiles, on the same page. A signed copy of the completed form must be posted in a conspicuous place at the project or be available at the project for review by an inspector, on the same page. Separately, before beginning work at a project every constructor and employer engaged in construction must complete an approved registration form (Form 1000), which does not go to the ministry but must be at the project while the employer is working there, on the same page.

Do I need a trade certificate to run a construction company in Ontario?

The company itself does not hold a trade certificate, but the workers do. Twenty-three of Ontario's 144 trades are classified as compulsory trades, including electrician for construction and maintenance, electrician for domestic and rural, and plumber, according to [Government of Ontario, Compulsory trades and enforcement](http://www.ontario.ca/page/compulsory-trades-and-enforcement). To be authorized to work in a compulsory trade you must hold a valid Certificate of Qualification, hold a valid Provisional Certificate of Qualification, or be an apprentice working under a valid Registered Training Agreement, on the same page. You cannot employ or otherwise engage someone to do compulsory trade work unless they are authorized under the Building Opportunities in the Skilled Trades Act, 2021 to do that work, on the same page. General contracting itself is not a compulsory trade, so a general contractor needs no certificate for that role, but every worker on the crew who performs compulsory trade work must be authorized.

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