- Request for a Business Number (BN)
What is a business account number
The Business Number (BN) is a numbering system that simplifies and streamlines the way businesses deal with the federal government. It is based on the idea of one business, one number. Each business requires one BN for its legal entity.
Completing your Form RC1, Request for a Business Number (BN)
Part A - General Information
Box A1 - Ownership Type and Operation Type
Choose the operation type that best describes the type of business you have. If your business does not match any of the operation types listed, choose "Other" and describe your business.
Box A2 - Owner(s) Information
Enter the information for all owners. This section will let the CRA know who owns the business and who may provide authorization to a representative to speak on its behalf.
Box A3 - Identification of business
Indicate the name that the business will use during its operation as well as its physical location and mailing address. If applicable, enter an operating or trading name of the business and your choice of language of correspondence.
Box A4 - Major business activity
Enter your major business activity and give as much detail as possible. You have to list the products you will sell and estimate the percentage of revenues each product represents.
Box A5 - GST/HST information
Everyone has to complete box A5. If you need a GST/HST account, also complete Part B of the form.
If your business is in Quebec, the BN does not include your GST/HST accounts. For more information, see Operating in Quebec.
Part B
Registering for a GST/HST account
If, after completing part A, you determine that you have to register for GST/HST or you want to register voluntarily, complete Part B of the form.
Box B2 - Filing information
In the second section of box B2, enter the amount of your total sales in Canada of taxable goods and services in your previous fiscal year, including those of your associates. Do not include zero-rated exports and financial services, taxable sales of capital real property or goodwill.
Enter the amount of your worldwide sales of taxable goods and services in your last four consecutive calendar quarters or in any single calendar quarter in the third section. Your worldwide sales determine whether you have to be registered, while the amount of your sales in Canada will determine your reporting periods and how frequently you have to file.
Enter the fiscal year-end in the fourth section of box B2.
To change the fiscal year-end of your business for GST/HST purposes, answer "Yes" to the question of the fifth section and enter the new fiscal year-end date you would like to use.
Enter the effective date of registration in the last section of box B2. The effective date of registration for GST/HST is important because it helps set up your reporting requirements, and it establishes the date that you become both liable to collect GST/HST and eligible to claim input tax credits.
Box B3 - Reporting period
You will be assigned a reporting period based on your total annual GST/HST taxable sales in Canada (including those of your associates) for the preceding year. This amount determines how frequently you have to file your GST/HST returns. In this calculation, include your total taxable sales of goods and services made in Canada, including those of your associates. Do not include zero-rated exports and financial services, taxable sales of capital real property, or goodwill.
Box B4 - Direct deposit information
Registrants who choose this option must provide their financial institution's branch number, institution number, account number, and the name(s) of the account holder.
Part C
Registering for a payroll deductions account
Most employers, trustees, and administrators need a payroll deductions account.
Employers
You are an employer if you:
-
pay a salary, wages (including advances), bonuses, vacation pay, or tips to your employees; or
-
provide a benefit, such as board and lodging, to your employees.
Trustees and administrators
If you are a trustee or an administrator (e.g., of a registered retirement savings plan or a registered retirement income fund), you need a payroll deductions account to deduct and remit income tax. This applies if you:
-
administer, manage, distribute, wind up, control, or otherwise deal with the property, business, estate, or income of another person; and
-
authorize or cause a payment to be made for that other person who performs a function similar to that of a trustee.
A trustee includes a liquidator, receiver, receiver-manager, trustee in bankruptcy, assignee, executor, administrator, sequestrator, or any other person who performs a function similar to that of a trustee.
Part D
Registering for an import/export account
If your business will be importing commercial shipments from a foreign country, or exporting commercial goods to other countries, you should register for an import/export account before you import or export goods. The import/export account number will be used to process customs documents.
When you complete Form RC1, Request for a Business Number (BN), include all your business names that may appear on customs release forms and documents, such as commercial invoices. These names could be the legal entity or common trading name. If the name on the customs release document is different from the names that appear in your BN account, your goods may be held up at the border.
Part E
Registering for a corporate income tax account
If you want to open a corporate income tax account, you should complete Part E of the form. In most cases, new corporations will automatically receive a BN from the CRA within 45 days of incorporating at the federal or provincial level.
Useful links:
Federal:
RC4022 General Information for GST/HST Registrants
T4001 Employers' Guide - Payroll Deductions and Remittances
Importing Commercial Goods Into Canada
T2 Corporation - Income Tax Guide (T4012)
Québec: