Canada business question

[AmyW]

Don't worry, I'm not going into business anytime soon, if at all. I won't even be in Canada until later this year and it'll be another year to get settled, and I'm not going to start a new business right after all those changes. But I am curious about this, if I ever do.

When registering your business with the government, what category is soap making and selling? Using this page: http://bizpal.alberta.ca it asks "What kind of business will you operate?" - which one covers soap makers and sellers?

 

[heartandsoap]

Soap is considered a Cosmetic...

you'll get some more info here


http://www.hc-sc.gc.ca/cps-spc/person/cosmet/info-ind-prof/_notification/guide-eng.php#s1

 

[AmyW]

Thanks for the reply I've poured over that page a few times and it has a lot of great information if I ever need it but doesn't really say what kind of business I'd be operating.

The closest one I can find is "Cosmetics, Beauty Supplies, and Perfume Stores" but that doesn't cover farmer's markets or online sales (as far as I can tell), or manufacturing the soaps, or any wholesale sales if I went that route. But there's also "Beauty Supply Wholesaler - Distributers" - would I need to register multiple types of businesses under the same business name?

 

[heartandsoap]

That's the right one you've picked. their definition of Cosmetics is...

" This Canadian industry comprises establishments primarily engaged in retailing cosmetics, perfumes, toiletries and personal grooming products."

Once you fill out the rest of the info in the form it will tell you the permits and approvals you need to manufacture soap and body products. It'll give you an idea what to expect. When you get settled you can talk to someone at City Council in your area. There's a lot involved. Business tax, insurance, etc...
Plus you'll have to submit all of your recipes to Health Canada which is the link I gave you.

I'm not selling but looked into it because a couple of people who received my soap as Christmas gifts were interested in purchasing it in bulk. It sounded like a great idea at the time but once I started looking into it I realized how much was involved and decided to stick with my day job.

Maybe someone else will chime in who has more experience. It's nice having your own company. I think once you get all the permits you can sell to stores, at Craft fairs and online .

 

[AmyW]

Perfect, thanks I know what you mean about 'everything involved'. Here in the states it seems downright easy (not to mention relatively cheap) to make and sell soap... it'll be a lot more cost and work there and I'll definitely be giving it a lot of consideration.

I've seen it mentioned somewhere that small businesses making either under 15k or 30k don't have to collect GST, or something... I need to go hunt down my links and get them bookmarked for later.

 

[Lindy]

If your gross sales are less than $30,000 you don't have to collect GST. Depending on what Province you are moving to will determine is there is a provincial sales tax, and then what the limits are. You will need insurance check out the Canadian Soap Guild that is just being formed for more information.

You are required to register your recipes but there is no charge to do that. You do not need to be a registered business or incorporated unless you choose to. Not nearly as scary as it may at first appear.