Becoming Self-Employed in Quebec: The Complete Guide

Step 1: Register your business (NEQ)

Before you invoice anyone, you need to pick your legal structure:

• Self-employed under your own name: no registration required. You invoice under your own name.
• Sole proprietorship with a business name: if you want to invoice as "Tremblay Plumbing" or "XYZ Electric," you need to register with the Registraire des entreprises du Québec to get a NEQ (Quebec enterprise number). Cost: roughly $40 for the initial declaration.

An NEQ is mandatory as soon as you operate under a business name that isn't your own. The process takes under 30 minutes online through the Quebec government's site. Note that registration isn't a one-time thing: an annual update declaration (with a similar fee) is required every year, except the year you register and the year after.

Step 2: RBQ licence (if you work in construction)

If your work touches construction, renovation, electrical, plumbing, or heating, you need a licence from the Régie du bâtiment du Québec (RBQ).

The most common categories:

• Category 1: General contractor (the exact subclass, e.g. 1.2 or 1.3, depends on the type and scale of the work)
• Category 16: Electrical contractor, qualified through the Corporation des maîtres électriciens du Québec (CMEQ)
• Category 15: Plumbing/pipe-mechanics contractor, qualified through the Corporation des maîtres mécaniciens en tuyauterie du Québec (CMMTQ)

You apply online through the RBQ's website. Expect exams, background checks, and licensing fees, and make sure the subclass you apply for matches your actual scope of work.

Without a valid RBQ licence in the required category, you're not legally allowed to perform or supervise that work.

Step 3: Register for GST and QST

Once your taxable revenue exceeds $30,000 over four consecutive quarters, registration becomes mandatory. You can also register voluntarily before hitting that threshold to recover the tax you pay on business purchases (tools, materials, gas…).

How to register:

• GST: online through the Canada Revenue Agency (CRA)
• QST: online through Revenu Québec

You'll receive your registration numbers by mail a few weeks later. These numbers must appear on every invoice you issue.

Step 4: Your first tax filings

Income tax

You pay tax on your net profit (revenue minus expenses). The return is due by June 15, but any amount owing must be paid by April 30 to avoid interest.

Rule of thumb: set aside 25 to 30% of your net income throughout the year.

GST/QST returns

If you're registered, you need to file and remit taxes on your assigned frequency (quarterly for most small operators). The deadline for an annual return is generally one month after your fiscal year end.

QPP contributions

As a self-employed worker, you pay both the employer and employee portions of the Quebec Pension Plan contribution. In 2025, the combined rate is roughly 12.8% of your net income, up to the annual maximum.

Deductible expenses not to miss

The single most important piece of advice

Open a dedicated business bank account from day one. Keeping business income and expenses separate from your personal finances makes tax time dramatically simpler, and it reassures accountants (and the tax authorities).