How to Dissolve a Business in Canada

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.

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.

• 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.

• RC145 – Close CRA Accounts

• T2 Corporation Income Tax Guide

• Corporations Canada – Articles of Dissolution