How to Dissolve a Business in Canada
1. Sole Proprietor / Self-Employed
If you operate as a sole proprietorship, the process is simpler since there’s no legal separation between you and your business.
Steps to Close a Sole Proprietorship:
Stop Business Activity
Complete all outstanding work, issue final invoices, and settle debts.
Cancel Business Licences and Permits
Cancel your municipal/provincial business licences.
Close CRA Accounts
Cancel your Business Number (BN) and related CRA accounts (e.g., GST/HST, Payroll) via:
CRA My Business Account, or
Form RC145 – Request to Close Business Number Program Accounts, or
Call CRA at 1-800-959-5525
File Final Tax Return
Report your business income on your T1 personal tax return (T2125 form) one last time.
Indicate the date the business ceased on the T2125.
Keep Records
CRA requires you to retain records for 6 years.
2.Incorporated Business (Federal or Provincial)
Closing a corporation involves a formal legal dissolution. Steps may differ slightly between federal and provincial corporations (e.g., Ontario, BC, Alberta).
Steps to Dissolve a Corporation:
Step 1: Settle Debts & Cease Operations
Pay all outstanding debts, taxes, and employee wages.
Close bank accounts and cancel leases/contracts.
Step 2: Board Resolution or Shareholder Vote
Obtain approval from directors/shareholders to dissolve the company.
Step 3: File Articles of Dissolution
a) Federal Corporation (Canada Business Corporations Act – CBCA)
File Form 17 – Articles of Dissolution
👉 Submit through Corporations Canada Online Filing Centre
b) Provincial Corporation
File dissolution documents with the appropriate provincial registry:
Ontario: Articles of Dissolution Form 10
BC: File online through BC Registries
Alberta: File with Corporate Registry
Step 4: File Final Tax Return
File a final T2 Corporate Tax Return, indicating that it’s the final return and include the wind-up date.
Close CRA accounts using Form RC145 or call CRA at 1-800-959-5525.
Step 5: Cancel GST/HST and Payroll Accounts
As with a sole proprietorship, close all CRA program accounts.
Step 6: Keep Records
CRA requires you to retain corporate records for 6 years, even after dissolution.
Additional Considerations
Legal Advice: It’s often wise to consult an accountant or lawyer to ensure liabilities are cleared and filings are accurate.
Employees: You must issue final T4s and ROEs (Records of Employment) and remit any outstanding payroll deductions.
