Start a taxi or limo business in Canada: learn your city's licensing layer, arrange for-hire insurance, and choose taxi, limo, or dispatch work.
Applies in: across Canada
A taxi or limo business is a licensing-and-dispatch business that happens to drive people. The driving is the visible part. The three things that decide whether you survive the first year are the city's licence layer, the for-hire insurance, and the steady work. The licence layer varies by city and decides which model you can legally run. The insurance decides whether a claim is covered at all. And steady work — a hotel contract, a corporate account, a brokerage dispatch — decides whether the vehicle earns on weekdays or only on Saturday nights. Get those three right, pick one model, and the driving takes care of itself.
Taxi and limo licensing is municipal, and it varies by city. Toronto is the worked example because it licenses the whole chain separately: vehicle-for-hire drivers, taxicab owners, taxicab operators, brokerages, limousine owners, and limousine service companies each hold their own licence type, with their own fees and requirements. New taxi operator applications in Toronto are submitted online, and the application takes 10 to 15 minutes and cannot be saved partway — have every document ready before you start.
Other cities license fewer layers or different ones. Oshawa licenses limousine owners directly, at $250 a year, with an application package covering identity, business registration or incorporation, directors and officers, a criminal record check, vehicle ownership, insurance, and a safety certificate. Some cities cap the number of taxi licences, which changes the entry entirely: a new entrant must buy or lease an existing licence rather than apply for a new one. Check your city's vehicle-for-hire bylaw and licence list before you buy a vehicle. This section is general information about the regulatory layer, not legal advice.
The three models need different licences and earn differently:
Pick the model before you buy, because each one needs a different licence application, a different insurance setup, and a different first hire. A driver who wants to own one car and a founder who wants to run a dispatch operation are starting different businesses.
In Toronto in 2026, a vehicle-for-hire driver licence costs $233.78 in total: a $55.53 application fee, which is non-refundable, a $103.23 licence fee, and a $75.02 Accessibility Fund Program fee. A standard taxicab owner licence costs $1,351.93 in total for 2026: no application fee, a $1,201.88 licensing fee, and a $150.05 Accessibility Fund fee. Toronto taxicab licensees and standard taxicab owners with an accessible vehicle are exempt from the Accessibility Fund fees. Driver applications in Toronto are made in person at the Licence and Permit Issuing Office, with hard copies of all requirements, and payment by debit, credit, or cheque — cash is not accepted.
Vehicle rules are city-specific too: age limits, inspection frequency, meter and roof-light requirements for taxis, and safety certificates all vary. Oshawa's limousine owner package requires a safety certificate and inspection report dated within 36 days of the application, and a criminal record check dated within 30 days. Build those dates into your launch plan — an expired inspection report on application day sends you back to the start.
A personal auto policy does not cover a vehicle used for hire. That is the single most expensive misunderstanding in this business: a driver who carries paying passengers on a personal policy risks a denied claim, and a company that deploys vehicles on the wrong coverage risks the same outcome at fleet scale. Oshawa's limousine owner rules illustrate the standard: proof of Ontario standard automobile insurance with third-party liability of at least $2,000,000 per accident.
Get the commercial quote before you buy the vehicle. For-hire premiums vary sharply by city, vehicle, and driving record, and the premium can change which vehicle makes sense — a luxury sedan that looks good in the brochure may not earn its insurance cost on airport runs. Tell the broker exactly how the vehicle will be used, who will drive it, and where it will operate, or the policy you buy may not cover the work you do.
Register the business name in the province where you operate: $60 for five years in Ontario, $40 plus a $30 name request in British Columbia, with other provinces in the same range. Get a Canada Revenue Agency business number, which is free, and register for GST/HST when you pass the $30,000 threshold — or voluntarily before it, so you can claim input tax credits on fuel, vehicles, and maintenance. If you operate in Quebec, you also deal with QST.
Toronto operator applications also need a business location and a provincial business name registration or articles of incorporation, plus a partnership agreement for partnerships. Keep the business paperwork, the licence, the insurance certificate, and the inspection reports in one file per vehicle — a roadside or city inspection goes faster when the file is complete, and a client audit goes better when the paperwork matches the vehicle.
Street hails and cab stands suit taxis in dense downtown areas, but they are the least predictable work. The steady work for a new taxi or limo business comes from contracts: hotels that need airport runs, corporate accounts that book weekly, wedding and event work, and medical or school transport where the city contracts it out. A single hotel or corporate account that books weekly beats a month of waiting at a stand.
Start with one vehicle and one steady source of work, and add vehicles only when the bookings you already have demand them. Keep a simple record of every account — client, rate, vehicle, driver, and repeat pattern — and ask for the next booking while the current one is still going well. Reliability is the product: a car that arrives on time, clean, with a driver who knows the route, is what earns the second booking.
Related guides: How to Start a Courier Business in Canada, How to Start a Moving Company in Canada, How to Start a Towing Business in Canada, and How to Start a Mobile Car Detailing Business in Canada.
| Toronto vehicle-for-hire driver licence, 2026 total | $233.78 |
|---|---|
| Toronto standard taxicab owner licence, 2026 total | $1,351.93 |
| Toronto taxi operator licence, 2025 total | $760.65 |
| Oshawa limousine owner licence, annual | $250 |
| Ontario business name registration | $60 for 5 years |
| British Columbia business name registration | $40 plus a $30 name request |
| Canada Revenue Agency business number | $0 — free |
Toronto and Oshawa figures are those cities' published fees, not a national price list — your city's licence types, fees, and vehicle rules differ, and some cities cap the number of taxi licences. The vehicle, for-hire insurance, and dispatch costs dwarf every fee on this table; price those from dealers and brokers, not from a guide.
Yes, at the municipal level, and the shape varies by city — there is no national taxi or limo licence. Toronto licenses the whole chain separately: vehicle-for-hire drivers, taxicab owners, taxicab operators, brokerages, limousine owners, and limousine service companies each hold their own licence type. Other cities license fewer layers or different ones: Oshawa licenses limousine owners directly, at $250 a year, with its own application package. Some cities also cap the number of taxi licences, which means a new entrant must buy or lease an existing licence rather than apply for a new one. Check your city's vehicle-for-hire bylaw and licence list before you buy a vehicle, because the licence answer decides the whole business model.
In 2026, a Toronto vehicle-for-hire driver licence costs $233.78 in total: a $55.53 application fee, which is non-refundable, a $103.23 licence fee, and a $75.02 Accessibility Fund Program fee. A standard taxicab owner licence costs $1,351.93 in total for 2026: no application fee, a $1,201.88 licensing fee, and a $150.05 Accessibility Fund fee. Toronto taxicab licensees and standard taxicab owners with an accessible vehicle are exempt from the Accessibility Fund fees. A taxi operator licence cost $760.65 in total in 2025: a $326.08 application fee, a $284.52 licence fee, and a $150.05 Accessibility Fund fee — confirm the current-year figure before budgeting, because Toronto adjusts these fees annually. Limousine service companies and limousine owners are separate licence types again, so price the exact licence your model needs.
A taxi picks up street hails and cab-stand passengers at city-regulated rates, under a taxicab owner or operator licence and usually through a brokerage. A limousine works on pre-arranged bookings — hourly, daily, or weekly — under a limousine owner or limousine service company licence, and sets its own rates. A rideshare driver works through a private transportation company, such as a ride-hailing platform, under that company's licence and the city's rules for those companies. The three models differ in how customers find you, how rates are set, and which licence you hold, so do not assume a licence for one covers the others. If you plan to drive for a platform as an individual, that is a different path from running a taxi or limo business, and this guide does not cover it.
A commercial for-hire auto policy, not a personal auto policy. A personal policy does not cover a vehicle used to carry paying passengers, and a claim under the wrong policy can be denied. Oshawa's limousine owner rules illustrate the standard: proof of Ontario standard automobile insurance with third-party liability of at least $2,000,000 per accident, plus a safety certificate and inspection report, vehicle ownership, a business name registration or articles of incorporation, and a criminal record check dated within 30 days of the application. Get the commercial quote before you buy the vehicle, because for-hire premiums vary sharply by city, vehicle, and driving record, and the premium can change which vehicle makes sense.
Buying gives you control and the full revenue, but ties up capital in a vehicle that must meet the city's age, inspection, and equipment rules. Leasing or renting from a fleet owner removes the capital outlay and the maintenance risk, but the weekly or monthly payment comes out whether you earn or not. Joining a brokerage as an owner-driver gives you dispatch work without running your own booking operation, but the brokerage takes its share and sets some of the rules. The lowest-risk start is usually one vehicle under an established brokerage or a steady contract — a hotel, a corporate account, or an airport service — rather than a fleet bought on a guess about demand.
Once your taxable supplies pass $30,000 over four consecutive calendar quarters, or $30,000 in a single calendar quarter, you must register for GST/HST and charge it on your services. You have 29 days from the day you pass the threshold to register, and registration is free through the Canada Revenue Agency. Many operators register voluntarily before the threshold so they can claim input tax credits on fuel, vehicles, and maintenance. If you operate in Quebec, you also deal with QST. This guide is general information, not tax advice — confirm your own position with the Canada Revenue Agency or an accountant.