Canada is an ideal place to start a business due to its economic stability, lower corporate taxes, and skilled workforce.

It also provides opportunities for business owners to expand to the foreign market due to its close connection to the U.S – that’s why many people want to start a business in Canada. 

If you’re planning to invest your hard-earned money into a business in Canada, the most profitable ones to start are in transportation services, food service, waste management, storage services, and construction.

Starting a business can be daunting, but in this article, we’ll discuss why these are Canada’s most profitable industries to help you out! Remember that this list is based on our research and not personal recommendations.

Well, no more delays, and let’s dive right in!

1. Transportation Service

The transportation business in Canada is a lucrative industry. Building this type of business means having your own fleet to transport cargo and goods to different cities or provinces, specifically trucks.

According to Statista, the trucking industry generated nearly $39.55 billion from almost $63.7 million in shipments in 2018 alone. It’s such a popular industry to go into that there were 324,200 truck drivers in 2021, an 8% increase from the previous year.

Although the pandemic caused a dip in the trucking industry due to the slow and unpredictable movement of cargo and goods, it has seen a gradual return in 2021. 

Despite that, it remains one of Canada’s most vital industries. In 2021, it made up 3.6% of the country’s total gross domestic product (GDP).

Statistics Canada reported that for-hire trucking businesses developed an operating revenue of about $67.8 billion in 2019.

And the province that earned the majority of the revenue is Ontario at $24.4 billion. Meanwhile, Alberta had $11.9 billion, quickly followed by Quebec at $11.8 billion.

Truck transportation is commonly used to transport goods to different provinces, compared to air and rail transportation. In fact, truck drivers will be one of the most in-demand jobs in the country due to the current labour shortage.

Canada’s ageing population means it needs to employ more truck drivers to transport goods all over the country and to neighbouring countries. This also means it’s one of the most popular jobs for immigrants.

2. Food Service

It’s no secret that the pandemic damaged many industries all over the world. Despite that, food service remains one of Canada’s most profitable businesses.

The food industry is a flexible business because of its many areas. Different types of food cater to different palates, and some people can start a food business with a small investment.

You can start a food truck business if leasing a space is too pricey because it offers mobility. Plus, it’s becoming popular because it’s a unique take compared to traditional restaurants. 

There’s also a rise in in-person and virtual cooking classes. This is an easy business to go into because you can also record lessons for customers to pay for and view on their own time.

Another option is putting up a stall at weekend markets or festivals. Furthermore, street vendors in Canada continue to rise and will do so in the next several years.

The food service industry offers flexibility and tonnes of choices. As a result, many immigrants start their own restaurants because of the different cultural dishes they can offer Canadians.

Statista reported that the largest part of the food industry is confectionery and snacks, with a US$27.69 billion market volume in 2023. Consequently, there are various dessert and snack businesses in the country.

According to Agriculture and Agri-Food Canada, food service is the largest manufacturing industry in most of Canada’s regions.

Ontario and Quebec produced the most in 2019, with 62% of total sales combined. British Columbia and Alberta are just behind, with 22% of the sales. 

In the table below is a list of some profitable food business ideas in Canada:

3. Waste Management

Who would’ve thought that trash could be profitable?

Waste collection depends on the amount of rubbish from households, businesses, and healthcare services. People purchase many types of goods, resulting in more production from manufacturers due to demand.

The packaging for deliveries alone requires a lot of cardboard and plastic. And since the pandemic, online purchases have seen a huge demand.

For example, purchasing a laptop online will require the original packaging. On top of that, there will be another cardboard box to put the product in, with plastic or foam inserts for protection.

Then, these things will go to the trash, where waste management comes in. They will collect and segregate hazardous and non-hazardous waste for recycling, composting, and proper disposal.

It’s a booming industry that Canada’s 2023 waste services revenue will be $6.8 billion in 2023, according to IBISWorld.

Additionally, the forecast is it will grow to about 2.5% this year. As a matter of fact, waste management has steadily risen from 2017 to 2022, making it a profitable business in the years to come.

4. Storage Services

Storage is a profitable business that doesn’t get the reputation it deserves. In 2021, it had US$51.32 billion in value and is expected to reach up to US$71.37 billion by 2027.

Self-storage, specifically, is a lucrative business. You can build many storage units for rent in a single property and earn a profit.

Many households and businesses use self-storage to store their extra furniture, equipment, and supplies. Many renters need this as well because they don’t have enough space in apartments to store all their belongings.

It’s not a business idea in Canada that one instantly thinks of. But it’s profitable and easy to manage compared to other business sectors.

Moreover, it has a market size of $8 billion. Besides that, it has shown stability even with the pandemic crisis.

Urban development has positively impacted the storage industry. Many Canadians in the city are looking at apartments and condominiums, which have smaller spaces. Hence, the need for self-storage units.

There’s so much demand for it that there’s even a reality show based on storage units – Storage Wars!

5. Construction Business

Building a construction business in Canada can be highly profitable. There’s so much demand for new structures – big or small – that Canadians are continuously looking for contractors.

It can be a demanding and competitive industry, but many provinces have a high demand for contractors. Canada has even included skilled contractors in its in-demand jobs for immigrants.

Provinces like Ontario and Quebec have so much construction going on to repair, modernize, and improve structures. As the years go by, many buildings, houses, roads, and bridges will need to be built, renovated, repaired, or replaced.

As a result of these factors, the demand for construction businesses will continue to grow. In fact, the construction industry brings 7.5% to Canada’s GDP. To give you a better idea, it fetches $141 billion annually.

Business Industry Recommendations for Immigrants

Coming into a new country is not easy. There are many challenges when integrating into the community.

But many immigrants in Canada have been successful in establishing businesses. Some have even been operating for decades!

Here are some business industry recommendations for immigrants who want to have a successful foundation in Canada. But keep in mind that you must still do your research on the business structure, type, and location for better success.

Requirements When Starting a Business in Canada

Starting a business can be an intimidating task. There are many requirements and paperwork that you need to think about.

When building a business in Canada, there are certain steps you need to take. To guide you, we’ve made a list to keep it simple and concise.

1. Plan and choose your business structure.

The type of business will dictate your tax obligations. It’s important that you know ahead if you want to build a small or large business. So, you need to choose your business structure.

2. Register Your Business Name and Business.

It may look easy to choose a business name, but it’s probably one of the most challenging aspects when starting a business. This is also difficult to do in a big country like Canada.

A business name needs to be recognizable to customers, while representing your business. It can’t be the same as other companies, or even similar, especially as other corporations.

Remember that there are legal ramifications if your business name is too similar to other companies. In contrast, sole proprietors will only need to use their legal names. 

Once you register your business name, you also need to register your business. You must know where your main office location will be and if you plan on doing business in other provinces or territories.

Federal business registration will generally take a couple of days. Meanwhile, provincial business registration will sometimes take up to 35 days, depending on the province.

It’s important to note that there are fees when registering a business, depending on the business structure. Some will take only $80, while some can take $300.

The Government of Canada provides access support for business registration by region, which you can access here.

Another factor to know is that corporations will need to make a company bank account. Meanwhile, sole proprietors don’t need to create a different business bank account (but it’s good practice to have one). 

3. Apply for Business Permits and Licenses.

Next is applying for business permits and licenses, which sounds tricky. Luckily, Canada has set up BizPal, an online portal to help business owners find the required permits and licenses based on their business structure, industry, and location.

This paperwork will depend on the municipality, too. Besides that, different business activities can have different types of permits or licenses.

For instance, certain types of businesses will need building permits and electrical permits. Another is food inspection for food services like bakeries or restaurants.

4. Know Your Tax Obligations.

All businesses need to pay taxes, and failure to do so will result in hefty fines (or jail time). Taxes will depend on the business structure and location.

You are also required to keep accounting records. Remember that you will need the CRA’s permission before destroying these before the retention period ends or face prosecution.

Depending on the location and business type, owners will usually need to include Goods and Services Tax (GST) or Harmonized Sales Tax (HST) in their services. However, this will also depend on the revenue.

Canada offers free tax support for self-employed individuals and sole proprietors. This is an option that many freelancers opt for if they cannot afford to hire an accountant or a bookkeeper.

5. Register for Insurance and Employee Benefits.

Businesses with employees will need to register for employee benefits. Labour-type companies will need insurance and liability coverage to keep the business, employees, and customers safe in case of worksite accidents.

Other employee benefits include healthcare insurance and leave benefits. Apart from that, business owners will need to have a payroll system for their employees.

FAQ about Profitable Businesses in Canada