How to Start an Alternative and Complementary Healthcare Business in Ontario

Table of Contents

Introduction
Getting Started
Regulations
Taxation
Financing
Managing Your Operation
Next Steps

Introduction

Alternative and Complementary healthcare includes a wide variety of services. Before opening your business, consider the types of services you will provide.

Some common alternative and complementary healthcare services are:

• Acupuncture
• Aromatherapy
• Chiropractic
• Homeopathic medicine
• Massage Therapy
• Naturopathic medicine
• Natural Health Products (such as herbal remedies, and traditional medicine)
• Reflexology
• Reiki
• Therapeutic Touch

This guide will give you an overview of the requirements for starting your business.

Getting Started

When you start a business there are several things to consider before you can sell your product or service. Most businesses in Ontario need to complete a minimum of three basic steps:

• Find out what licences and regulations apply to your type of business
• Choose a business structure and register or incorporate
• Determine if you will need to collect and remit HST

Our business start-up guide will give you more information on these steps and other basic requirements for starting a business in Ontario.

Read online:
Business Start-Up Guide

Read online:
Therapeutic and Cosmetic Products

Regulations

Your business may need licences and permits from the federal, provincial and municipal levels of government.

In addition to the information you will find in this guide, you can use BizPaL—an online search tool—to find licences and regulations that may affect your business. You can also contact the Business Info Line to speak to someone about starting your business.

Use online:
Permits and Licences Wizard

Contact the Business Info Line:
1-888-745-8888

Some common licences, permits and regulations that may apply to starting your business include:

Food and Drug Regulations

Many alternative and complementary healthcare products, such as alternative medications and chiropractic devices, are regulated by Health Canada through the Food and Drugs Act. Learn more about how the Act may affect your business.

Contact Health Canada:
1-866-225-0709
Health Canada

Some of the most common Health Canada regulations that may apply to your business include:

Therapeutic and Cosmetic Products

If your services include the use or sale of cosmetics and therapeutics products, including soaps, deodorants and creams, you need to be aware of requirements for manufacturing, labelling, distributing and selling these products.

Read online:
Therapeutic and Cosmetic Products

If you will be producing and selling your own alternative or therapeutic cosmetic products, learn more about the ingredient labelling standards.

Read online:
Cosmetics Ingredient Labelling

Natural Health Product Regulations

Find out what is required to manufacture or sell natural health products including:
 

• Vitamins
• Minerals
• Herbal remedies
• Homeopathic medicines

Read online:
Natural Health Products

Medical Devices Regulations

When you use medical devices in your business, make sure that they are authorized for use in Canada and meet Health Canada’s safety and quality regulations.

Read online:
Medical Devices

Certification and Training

You may need formal certification and training to provide alternative and complementary healthcare services. Make sure that you are aware of the requirements that apply to the type of services you plan to offer.

Some alternative healthcare professionals are licensed or registered with a sector-specific college. For information on certification and training, contact the appropriate association for details.

You can find a list of regulatory bodies for the health sector on the Federation of Health Regulatory Colleges of Ontario website.

Read online:
Federation of Health Regulatory Colleges of Ontario

Music Licence

When your business uses recorded music, you are responsible for obtaining the right licence(s) for that use. The Copyright Board of Canada works with individual copyright collective societies who provide music licensing. Contact the following two organizations for more information.

Legal Questions

If you have legal questions, contact a lawyer who deals with business regulations. The Law Society of Upper Canada's Lawyer Referral Service may be able to assist you in finding a lawyer, based on your needs.

Contact the Law Society of Upper Canada:
1-800-268-8326
Law Society of Upper Canada's Lawyer Referral Service

Taxation

Depending on your location and the type of products or services being offered, federal, provincial and/or municipal business taxes may apply.

Read online:
Taxation Guide

If you sell goods and services in Ontario, you may need a business number to collect and remit the Harmonized Sales Tax (HST). Most businesses that make less than $30,000 in any 12 month period are not required to charge HST; however, you can register voluntarily and claim input tax credits. Speak with the Canada Revenue Agency (CRA) for more information.

Contact CRA:
1-800-959-5525
Canada Revenue Agency – Business

Financing

Canada Business can help you find government financing options for your business. There are programs that apply to businesses across Canada, and others that apply only to businesses in Ontario. Use the Canada Business financing search tool or browse by type of financing.

You can also access Canada Business information through the ONe-Source online financing wizard. The wizard guides you through 3 easy steps to create a personalized list of results for Ontario business financing programs.

Search online:
Canada Business: Government Grants and Financing
ONe-Source Ontario Business Financing Guide

Contact the Business Info Line:
1-888-745-8888

The Ontario Business Program Guide (OBPG)

You can find Ontario-specific assistance for your business including advice, financing options, tax incentive programs and more using the Ontario government’s free online directory of support programs for business.

The OBPG provides:

• An at-a-glance directory designed for quick and easy scanning
• Programs and services for Ontario businesses
• Basic information on programs as well as links you can follow for more detailed information

Search Online:
Ontario Business Program Guide

Managing Your Operation

The success of any business starts by setting goals and managing daily operations. Here are some of the key factors to consider when starting a business:

Insurance

Having the correct business insurance can provide peace of mind. Contact an insurance agent to discuss your business insurance options, or to develop a plan that is right for your business.

You may also wish to contact your local chamber of commerce or industry association, as some organizations offer members lower rates on their business insurance.

The following list is included to remind you not to overlook the complex areas of business insurance. It is best, however, to discuss your specific requirements with your insurance agent.

Basic insurance:

• Fire insurance (extended coverage on buildings and contents)
• Liability insurance
• Burglary protection (theft coverage)
• Dishonesty insurance (covers thefts by employees)

Read online:
Insurance for Your Small Business

Marketing and Advertising

Marketing can help you determine the value of your product or service and communicate that information to customers. Depending on your market and its size, you can consider using flyers, business cards, brochures, newspapers, radio, TV, the phone book or the Internet. Keep in mind, a satisfied customer or a positive referral is often the best form of advertising.

Read online:  
Developing a Marketing Plan 
Marketing and Sales

When preparing your marketing and/or advertising material, there are regulations to follow. When you promote a product or service, your customers need to have enough information to make informed choices. You can get more information on advertising requirements from the Competition Bureau.

Contact the Competition Bureau:
1-800-348-5358
Misleading Advertising and Labelling

Professional Services

The use of business support services can be essential to the success of a small business. Professionals can provide knowledge and expertise to ensure your business is operating efficiently.

As an entrepreneur, there are several types of professional business services you can consult:

• Lawyers
• Real estate agents
• Insurance brokers
• Bookkeepers
• Accountants

Choosing a Location

For most businesses, choosing an appropriate location is critical. Your ideal location will depend on your business needs, zoning restrictions and where your customers and competitors are. Taxes, noise and the local business environment are also important factors to consider when reviewing your options.

If you are considering setting up your business in your home, make sure you know what regulations and restrictions will apply to your home-based business before you start.

Read online:
Choosing and Setting Up a Location
Home-Based Business

Furnishings and Equipment

Your business will need equipment and furniture, and it is important to decide what you need and how much you want to spend.  Some common ways to save money on furnishings and equipment are:

• Buying used equipment - Consider buying used equipment as a cost-saving measure. Sources of used equipment could be businesses that are closing or second-hand equipment stores. Keep in mind the cost of maintenance and repair in the overall costs when buying used equipment.
• Leasing equipment - Another alternative is to lease equipment to help keep start-up costs down. If you choose to lease equipment remember to include interest in your overall cost.

Next Steps

For other information that relates to starting your business, you can read the following guides:

• Business Planning
• Market Research and Statistics
• Starting Your Business
• Grants and Financing
• Taxation Guide
• Employment Regulations Guide: Hiring

Additional resources that may be of interest to you include:

• Public Health Agency of Canada (PHAC)
• Health Canada's Therapeutic Products Directorate
• Health Canada's Natural Health Products Directorate
• Health Canada - MedEffet Canada
• Health and Wellness Trends for Canada and the World
• Canadian Interdisciplinary Network for Complementary and Alternative Medicine Research (IN-CAM)
• The CAM in UME project
• Pediatric Complementary and Alternative Medicine Research and Education Network (PedCAM)
• Friends of Alternative and Complementary Therapies Society (FACT)

You can also find books, magazines and other relevant print material at business service organizations in your community. To locate a Canada Business Ontario (CBO) community partner, contact us through the Business Info Line at 1-888-745-8888.

Need more information?

Click: Canada Business
Call: The Business Info Line, a collaboration between ServiceOntario and Industry Canada, at 1-888-745-8888
Visit: Find a Community Partner Location near you

Disclaimers

Information contained in this document is of a general nature only and is not intended to constitute advice for any specific situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

Some of the organizations listed above are not subject to the federal Official Languages Act or the French Language Services Act of Ontario. Their services may not be available in both official languages.