Municipal licensing
Most people incorporating in Ontario are working from a spare room. Some cities licence that, some only zone it, and the difference decides whether there is a fee to pay or a rule to comply with.
Running the same home based business costs $80 a year in Pickering and $300.50 in Markham. That is roughly 4 times more for an identical business, and the gap is almost entirely a licensing decision rather than a cost of doing business.
| Municipality | What the by-law calls it | First year | Each year after |
|---|---|---|---|
| Pickering | Home-Based Business licence | $80 | Not published |
| Waterloo | Home Occupation licence | $207 | Not published |
| Oshawa | Class D Home Occupation Food Shop licence | $275 | $200 |
| Markham | Home Based licence | $300.50 | $300.50 |
| Toronto | Home occupations are zoned, not licensed | Toronto does not licence this, it zones it | |
| Brampton | Home occupations are zoned, not licensed | Brampton does not licence this, it zones it | |
Every figure is traced to the municipality below, with the by-law it came from and the date it was checked.
Because they are not all doing the same thing. Pickering licenses a home based business for $80.00, the cheapest of the six. Markham charges $300.50, which is nearly four times as much for the same permission and the same figure it charges a barber shop or a contractor. Brampton charges nothing, because it does not licence home occupations at all and regulates them through zoning instead, which is cheaper and considerably less forgiving.
The fee is the least important thing in this category. What decides whether you can work from home is a list of conditions about floor area, visitors, employees, signage and what the business actually does, and those conditions differ sharply between municipalities that charge similar amounts. Read the restrictions before you read the price.
Home-Based Business in Pickering, Home Occupation in Waterloo, Home Based in Markham, and in Brampton a home occupation that is zoned rather than licensed. Searching for a home business licence will miss the two municipalities here that call it an occupation, and will find nothing at all in the one that does not licence it.
No. Every municipality here accepts a sole proprietorship registration. None of them require you to incorporate.
A home based licence is about the dwelling as much as the business, so municipalities ask where you live and what you will do there rather than how the company is structured. Where a city asks for business documents at all, it is the same business name registration or incorporation papers it asks of any other applicant.
Incorporating does not create an exemption from any of this. A corporation operating out of a residential address is still a home occupation to the municipality, still bound by the floor area and visitor limits, and still subject to whatever the zoning by-law prohibits. The corporate structure sits above the municipal question and does not answer it.
If you want the comparison without the sales pitch, our sole proprietorship versus incorporation guide lays out both sides.
Each entry below shows what the municipality charges, what it calls the licence, what it will not tell you, and where the figures came from.
Greater Toronto Area
Home occupations are zoned, not licensed. Toronto issues no home occupation licence. It permits the activity through Zoning By-law 569-2013 instead, and rewrote those permissions as recently as December 2025. The rule that matters is about visitors rather than floor space: an office, service shop, custom workshop, artist studio or education use may have clients attend, and every other kind of home occupation may not. A consultancy run from a spare room is an office use and is on the permitted side of that line.
| Municipal licenceNone is issued. | Not published |
What this municipality does not publish
Source: Zoning By-law 569-2013, Regulation 150.5.20.1, as amended by By-law 1508-2025. Effective 2025-12-17. Checked 2026-09-16. View the source
Durham Region / Greater Toronto Area
Home-Based Business licence. At $80.00 this is the cheapest home based licence here, and the second cheapest municipal licence of any kind across all six categories, behind only London's $65.00 taxi driver licence. Pickering publishes it on the same single page as every other licence it issues, which is also unusual.
| Home-based business licence | $80 |
| First year total | $80 |
What this municipality does not publish
Source: Home-Based Business Licensing By-law. Checked 2026-09-16. View the source
Durham Region / Greater Toronto Area
Class D Home Occupation Food Shop licence. Oshawa does not licence home businesses as a class. It licenses one home occupation, the food shop, and the licence runs two years rather than one, so the $275.00 is better read as about $137.50 a year. Anyone running a non food business from a dwelling in Oshawa has nothing on this page to apply for, which is a different answer from the fee being unpublished.
| Application feeCharged on new applications and renewals alike. | $50 |
| New licence feeRenewal is $150.00, making $200.00 with the application fee. The licence covers two years. | $225 |
| First year total | $275 |
Proof of registration: A Business Name Registration, with Articles of Incorporation only if applicable. A sole proprietorship registration satisfies it.
What this municipality does not publish
Source: Business Licensing By-law 122-2024; Fees and Charges By-law 109-2024. Effective 2024-11-04. Checked 2026-09-16. View the source
Waterloo Region
Home Occupation licence. Waterloo calls it a home occupation rather than a home business, which is the word a searcher is least likely to use. Its fee schedule is unusually transparent about movement, printing both the outgoing and incoming amounts side by side, so you can see it rise from $196.27 to $207.00 in a single line.
| Home occupation licenceWas $196.27 from 1 July 2025, a rise of just over five per cent in six months. | $207 |
| First year total | $207 |
What this municipality does not publish
Source: Fees and Charges By-law 2026-047. Effective 2026-01-01. Checked 2026-09-16. View the source
York Region / Greater Toronto Area
Home Based licence. Markham charges $300.50, the same figure it charges a contractor, a barber shop, an aesthetics shop and a tow compound. It expires on 31 January whatever the issue date, so a licence taken out in December is worth about six weeks and the schedule does not prorate.
| Home based licenceExpires 31 January. A late charge of $57.00 applies after that. | $300.50 |
| First year total | $300.50 |
What this municipality does not publish
Source: By-law 2012-137, Licensing, Permit and Service Fees (consolidated to 1 January 2025). Effective 2025-01-01. Checked 2026-09-16. View the source
Peel Region / Greater Toronto Area
Home occupations are zoned, not licensed. Brampton issues no home based business licence. Its published list of licensed businesses runs to fourteen groupings without one, and it regulates home occupations through zoning conditions instead. That makes it free and also unforgiving: there is no fee, and equally no licence to point to if you fall outside the conditions.
| Municipal licenceNone is issued. | Not published |
What this municipality does not publish
The municipality does not cite a by-law number on this page. Checked 2026-09-16. View the source
Treat it as a shortlist, not a quote. Waterloo's schedule moved twice inside eighteen months, from $196.27 in July 2025 to $207.00 in January 2026, so even the cheap end of this category is not static.
Follow the source link for your municipality before you budget, and note the date each figure was checked. We publish what the by-law says and what it does not say, and we do not fill a gap with an estimate. If a number here disagrees with your city, the city is right and we want to know about it.
Do I need a licence to run my corporation from home?
It depends entirely on your municipality and on what the business does, not on the fact that you incorporated. Pickering issues a home based business licence for $80.00, Waterloo a home occupation licence for $207.00 and Markham a home based licence for $300.50. Brampton issues nothing, because it treats home occupations as a zoning matter rather than a licensing one. Incorporating changes none of that.
What does Brampton mean by regulating it without licensing it?
It means there is nothing to apply for and nothing to pay, and also no licence protecting you if you fall outside the conditions. Brampton permits a home office only under specific limits: one office per dwelling unit, one visitor at a time, no more than fifteen square metres, operated by the people who live there, no more than one employee from outside the household, and no sale of goods on the premises. Meet the conditions and it is allowed. Miss them and there is no licence to have been granted in the first place.
Are some home businesses banned outright?
Yes, and the list is shorter than people expect but firmer. Brampton prohibits repairing or servicing motor vehicles and engines from a home, along with anything creating excessive noise or vibration, or emitting gas, fumes, dust, glare or objectionable odour. Those are not conditions you can license your way past. If your business is on the prohibited list, the answer is premises rather than paperwork.
Why is Pickering so much cheaper than Markham?
There is no structural reason visible in either by-law, which is what makes it worth noting. Pickering charges $80.00 and Markham $300.50 for the same basic permission to work from a dwelling. Markham charges that identical $300.50 for a contractor, a barber shop and an aesthetics shop too, so its home based licence is priced as one of a set rather than on its own merits.
How current are these figures?
Every figure was read from the municipality's own published source and carries the date it was checked, most recently 2026-09-16. Ontario fee schedules reset in January, so treat anything here as a starting point for your own confirmation rather than a final quote, and follow the source link before you budget.
Before you apply
Every municipality on this page wants proof your business is registered, and most want it dated within the last year. It is the step people leave until last and the one that costs them a season.
See your options