How to Start a Daycare in Canada

Start a daycare in Canada: centre or home, province by province. Ontario, BC, Alberta, and Quebec licensing paths, child limits, fees, and funding.

Applies in: across Canada

There is no national daycare licence in Canada. Every province runs its own child care system, so the licence, the child limits, the staffing rules, and the funding all depend on where you operate. This page is the map: the two models, the provinces we cover, and which guide to read next.

The two models

A child care centre is a licensed facility in a dedicated (or purpose-built) premises with staff and a provincial licence. The application takes months: you file with the province, prove building and fire compliance, and pass a site inspection. Centre guides:

A home daycare is care provided in your own home, under a licensed or unlicensed path depending on the province. It is the lowest-cost way to start — but the child cap is the business. Home daycare guides:

How to choose

Start with the province, then the model. If you have premises, capital, and a staff plan, read the centre guide for your province. If you want to start from your own home this year, read the home daycare guide. In every province, the licensed path is more paperwork but puts you inside the $10-a-day funding framework — which is where the families are going. The unlicensed path is faster and cheaper, but it caps your income (5 children in Ontario, 2 in BC's unlicensed care) and leaves you outside the funding system.

Wherever you land, the business paperwork is the same everywhere in Canada: registering the business, separating its money, and understanding the ECE credential if you will hire staff. The related guides below cover all three.

Provinces without a dedicated guide yet

No dedicated guide exists yet for the provinces and territories below. Start with the licensing authority in each place.

  • Saskatchewan: Ministry of Education, Early Learning and Child Care. It approves and funds regulated child care centres. Start at its Apply to start a regulated child care centre page.
  • Manitoba: Early Learning and Child Care. It licenses and monitors centres and family and group homes under The Community Child Care Standards Act — see Early Learning and Child Care.
  • New Brunswick: Department of Education and Early Childhood Development. It licenses early learning and child care homes under the Early Childhood Services Act — see Investing in Early Learning and Child Care: Operator.
  • Prince Edward Island: Department of Education and Early Years. It licenses early childhood centres, family home centres, school-age centres, and preschool centres — see Early Learning and Child Care Space Creation Progress.
  • Newfoundland and Labrador: Early Learning, Inclusion and Child Development Division, Department of Education and Early Childhood Development. It licenses and monitors regulated child care services — see the Early Learning, Inclusion and Child Development Division.
  • Northwest Territories: Department of Education, Culture and Employment. It licenses centre-based programs and family day homes. A licence is required for more than four children — see Types of early learning and child care.
  • Yukon: licensed centres and family day homes are listed on the territorial Find early learning and child care page.
  • Nova Scotia: Department of Education and Early Childhood Development, Early Learning and Child Care. Regulated care includes licensed child care facilities and regulated family home child care through agencies; operators start under Become an Operator (Open a Licensed Child Care Facility, or Become a Regulated Family Home Child Care Provider) — see Child Care Nova Scotia.
  • Nunavut: Department of Education, Early Learning and Child Care division. It licenses child care facilities for children aged 0 to 6 under the Child Day Care Act and Regulations — see the Canada–Nunavut Canada-wide Early Learning and Child Care Agreement.

Every province and territory now has at least a licensing-authority pointer above; the dedicated-guide gap is closed to authority pointers, not to full guides.

Related guides

How to pick your daycare path

  1. Pick your provinceThe licence, the child limits, and the funding are all provincial — Ontario, BC, Alberta, and Quebec each run their own system.
  2. Choose the model: centre or homeA centre is a licensed facility with staff; a home daycare is care in your own home with a hard child cap.
  3. Follow the provincial guideEach guide below walks the licence or registration path step by step, with the fees and funding for that province.

Questions people ask

Do I need a licence to open a daycare in Canada?

There is no federal daycare licence — child care is regulated by the provinces, and the rules change at the border. Two legal models exist everywhere: a licensed child care centre (a dedicated premises with staff) or a home daycare (care in your own home). Both are licensed differently in each province, with different child limits, staffing rules, and funding. Start with the province guide that matches where you will actually operate.

Should I open a daycare centre or run a home daycare?

A centre means a commercial-scale operation: leased or owned premises, building-code and fire approvals, qualified staff, and a provincial licence that takes months — in Ontario, for example, the licence runs through the ministry's Child Care Licensing System with fees of $200 to $450 by capacity. A home daycare means care in your own home under a licensed or unlicensed path — Ontario caps unlicensed home care at 5 children, BC's Licensed Family Child Care allows 7. Home care has far lower start-up cost but the child cap limits income. Pick the model that fits your capital, your home, and how many families you want to serve.

Do I charge GST/HST on my daycare fees?

No. Child care services are an exempt supply under the GST/HST rules everywhere in Canada (the CRA's GST/HST Memorandum 21-1 confirms it), so you do not add GST or HST to parent fees. The flip side: you cannot claim input tax credits on daycare purchases, and the $30,000 GST/HST registration threshold does not bite your fee revenue.

What is the Canada-wide $10-a-day child care program?

The federal-provincial Canada-Wide Early Learning and Child Care agreements are cutting parent fees toward $10 a day — but only for licensed child care. That makes the licensed path (centre or agency-licensed home care) materially more attractive to families than the unlicensed path, even where unlicensed care is legal. Ontario's version is called CWELCC: 92% of the province's licensed spaces for children aged 0–5 were enrolled as of March 2024, and fees are capped at $22 a day. The details, enrolment rules, and funding rates are province-specific — see the provincial guides below.

Sources

Get new guides by email

One short email when a new Canadian startup guide publishes. No spam — unsubscribe anytime.

We use your address only for the newsletter. Privacy policy.