Q&A: Costs of Starting a Cosmetics Business in Canada


I was also curious about what you were referring to by 'licensing' or the 'costs and requirements'? 



There are actually only a few things that have to be completed before you are set to start selling cosmetics or skincare in Canada. You can find those requirements and licenses in this blog post.


As for the cost, it really depends on where you’re located and the business model you choose.


A business license can vary, but one from the City of Calgary costs $146 per year.


The only cost of setting up a sole proprietorship would be to register a business name with the provincial government which would be $10-50 upfront.


Choosing to incorporate will cost much more upfront, in addition to annual costs. Upfront, you will have to register a business name like in sole proprietorship ($10-50) and register the corporation either provincially or federally ($750). Annually, you will need to pay an accountant to file your corporate income taxes (varies), as well as the legal office for being the registered office of all paperwork and minutes ($260).



Submitting CNF’s to Health Canada is free!


And then looking at liability insurance (I like HBBG for in Canada) will be $75 for an annual membership and $750 per year for the insurance.


Plus, don’t forget about all the equipment, supplies, and raw ingredients you will need starting out. My tip - keep these purchases as lean as possible until you start making some money.


A couple of other costs I paid or pay now to also consider for the future are:

Purchasing a website domain - $26

PO mailbox - $160 per year

Ecommerce website hosting - $29 USD per month for Shopify

Custom email host - $5 USD per month for Gsuite


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