Set Up a Business for Repair of Motor Vehicles in Canada

Updated on Tuesday 12th February 2019

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Automotive is one of the most important industries in Canada and those who want to open companies in the sector have various options. The good part about starting a company in the automotive sector is that both small and medium-sized businesses can thrive in Canada. For example, it is possible to set up a business for selling motor vehicles, however, one can also start a business for maintenance and repair of motor vehicles in Canada.

Those who plan on setting up a business for maintenance and repair of motor vehicles in Canada must comply with several regulations. Our company formation consultants in Canada can help both local and foreign investors interested in establishing car repair shops in this country. We offer specialized services to those interested in setting up businesses in Canada.
 

What to consider when opening a motor vehicle repair shop in Canada


Both local and foreign entrepreneurs are welcome to take advantage of the huge opportunities the Canadian automotive sector offers by setting up their own businesses here. Setting up a business for maintenance and repair of motor vehicles in Canada is simpler than opening a business for the sale of motor vehicles from a licensing point of view, however, there are certain specific aspects to consider. Among these, we mention:
 
  •           one can set up small or large motor vehicles repair businesses, depending on their investment possibilities;
  •           the establishment of such business depends on the Canadian province where it will operate;
  •           it is important to find a suitable location in which such services can be offered;
  •           choosing a business form under which the company will operate is essential;
  •           it is necessary to obtain a license for offering motor vehicles repair and maintenance services.

With respect to the licenses which need to be obtained when opening a business for maintenance and repair of motor vehicles in Canada, these will depend on the province the company will operate in. If you are interested in a specific region in Canada for opening a car repair and maintenance business, our local consultants are at your disposal with detailed information.
 

Registering a business for maintenance and repair of motor vehicles in Canada


Once the entrepreneur has decided on the chosen business form, he or she must register it with the local office of the Trade Register in the city the company will operate. This will imply preparing the necessary documents for incorporation, registering for taxation and VAT purposes and hiring specialized personnel.

The company must also consider registering with the authority providing for the regulations of automotive businesses in the region it will operate. It should be noted that each Canadian territory is governed by a specific authority.

Specific regulations should also be considered when hiring employees for the business for maintenance and repair of motor vehicles in Canada. These must hold auto mechanic certifications.
 

Activities completed by maintenance and repair of motor vehicles companies in Canada


As mentioned above, the personnel of a business for maintenance and repair of motor vehicles in Canada must be qualified to provide such services. Among these services are:
 
  •           electrical and electronic repair and maintenance services on various types of vehicles;
  •           auto body repair and maintenance services on auto vehicles and transport equipment;
  •           emission, transmission, engine and fuel repair and maintenance services for vehicles;
  •           engineering and installation of various equipment services for motor vehicles.

Automobiles repair and maintenance shops in Canada can service private and public motor vehicle owners.
 

Obligations of businesses for maintenance and repair of motor vehicles in Canada


According to the Consumer Protection Law in Canada, auto vehicle repair and maintenance shops have several obligations towards their clients. Among these, the Canadian company is required to issue invoices for any type of repair or maintenance services offered. Also, the company is required to provide a written estimate of the repair or maintenance costs. Once the estimation issued, the costs cannot go up by more than 10%.

The Canadian business for maintenance and repair of motor vehicles is also required to offer a minimum warranty for the services provided. Usually, the warranty period does not exceed 3 months. All car repair shops in Canada must display specific signs related to the services, warranty, and estimations they provide.

If you plan on opening a business for maintenance and repair of motor vehicles in Canada, do not hesitate to contact us for guidance in registering the company.