How do you incorporate a retail business in Quebec?
To incorporate a retail business in Quebec, you form a business corporation, then declare the CAE code of your store, chosen among the 85 codes of the retail sector.
Grocery store, bakery, clothing store, hardware store, florist, jewellery store, garage or direct selling: incorporation follows the same steps as for any other business. What is specific to your sector is the economic activity code (CAE) you enter in the corporation’s initial declaration.
For the rest of the process:
- the incorporation steps;
- the cost of incorporating;
- the right time to incorporate;
- choosing a legal structure;
- after incorporation, your GST and QST numbers.
Which economic activity code (CAE) fits a retail business?
The “Retail” sector has 85 CAE codes, from 6011 to 6921: food, clothing, furniture, vehicles, specialty stores, vending machines and direct selling.
The codes fall into these groups:
- 6011 to 6041: food stores, alcoholic beverages, pharmacies, tobacco products and newspapers;
- 6111 to 6151: shoes, clothing, fabrics and yarn;
- 6211 to 6239: furniture, household appliances, electronics, computers and home furnishings, with their repair shops;
- 6311 to 6399: dealers, recreational vehicles, service stations, parts, garages, repair shops and car washes;
- 6411 to 6413: department stores, general stores and other general merchandise stores;
- 6511 to 6599: specialty stores (bookstores, florists, hardware stores, sporting goods, jewellery, toys, used goods, pets…);
- 6911 and 6921: vending machines and direct selling.
Here are the most common codes, with the exact labels of the Registraire des entreprises:
| Code | Official label (French, as filed with the Registrar) | In English | Reserved code |
|---|---|---|---|
| 6011 | Supermarchés d'alimentation | Supermarkets | |
| 6012 | Épiceries (sauf supermarchés) | Grocery stores (except supermarkets) | |
| 6013 | Boulangeries et pâtisseries | Bakeries and pastry shops | |
| 6019 | Autres magasins d'alimentation spécialisés n.c.a. | Other specialty food stores n.e.c. | |
| 6021 | Commerce de détail de boissons alcooliques | Alcoholic beverage retail | |
| 6032 | Pharmacies (vente de médicaments au détail et consultation) | Pharmacies (retail sale of drugs and consultation) | * Restricted to members of the relevant professional order |
| 6131 | Commerce de détail de vêtements pour femmes | Women’s clothing retail | |
| 6143 | Autres types de commerce de détail de vêtements | Other clothing retail | |
| 6211 | Commerce de détail de meubles de maison (avec appareils ménagers et accessoires d'ameublement) | Household furniture retail (with appliances and home furnishings) | |
| 6226 | Magasins d'ordinateurs et de logiciels | Computer and software stores | |
| 6312 | Concessionnaires d'automobiles d'occasion | Used car dealers | |
| 6342 | Commerce de détails de pneus, d'accumulateurs, de pièces et d'accessoires neufs pour l'automobile | New tire, battery, parts and accessories retail for automobiles | |
| 6351 | Garages (réparations générales) | Garages (general repairs) | |
| 6411 | Magasins à rayons | Department stores | |
| 6511 | Librairies et papeteries | Bookstores and stationery stores | |
| 6521 | Fleuristes | Florists | |
| 6531 | Quincailleries | Hardware stores | |
| 6541 | Commerce de détail d'articles de sport | Sporting goods retail | |
| 6561 | Bijouteries | Jewellery stores | |
| 6582 | Commerce de détail d'objets d'art et d'artisanat, de cadeaux, d'articles de fantaisie et de souvenirs | Art, craft, gift, novelty and souvenir retail | |
| 6591 | Commerce de détail de marchandise d'occasion | Used merchandise retail | |
| 6596 | Commerce de détail d'animaux de maison | Pet retail | |
| 6599 | Autres types de commerce de détail | Other retail | |
| 6911 | Exploitants de distributeurs automatiques | Vending machine operators | |
| 6921 | Entreprises de vente directe | Direct selling businesses |
Only one code in the sector carries an asterisk: 6032. A code marked * is restricted to members of the relevant professional order; a non-member cannot use it. The neighbouring code 6033, Commerce de détail de médicaments brevetés et de produits de toilette (patent medicine and toiletries retail), carries none.
All 85 codes are in our CAE search tool, filtered on retail.
Which CAE sector applies if you sell wholesale, manufacture or serve meals?
The code follows the activity that brings in most of your revenue: selling to consumers is retail, selling to businesses is wholesale, making goods is manufacturing, serving meals is food service.
Example with bread:
- 6013 — Boulangeries et pâtisseries (bakeries and pastry shops): your main activity is retail sales;
- 1072 — Industrie du pain et des autres produits de boulangerie-pâtisserie (bread and other bakery products industry): you mostly manufacture, and over-the-counter sales can then be your second activity;
- 5218 — Commerce de gros de produits de boulangerie et de pâtisserie (wholesale of bakery and pastry products): you mostly sell to businesses or resellers.
The neighbouring sectors:
- Wholesale and import: codes 5011 to 5999, if you mostly sell to businesses or resellers rather than consumers;
- Manufacturing and food processing: codes 1011 to 3999, if you mostly sell what you make yourself;
- Restaurant, bar or hotel: codes 9111 to 9221, including 9213 Services de mets à emporter (take-out food services), if you mostly serve meals.
Which CAE code should a store selling several kinds of products choose?
Declare first the code of the product line that brings in most of your revenue, then the code of your second activity; a general merchandise or “Other…” code fits when nothing matches.
The law requires you to declare the business’s two main activities, in order of importance, with the code for each. Example: a clothing store that also sells shoes declares the clothing code first, then the shoe code.
The sector has codes for stores with a broad assortment:
- 6411 — Magasins à rayons (department stores);
- 6412 — Magasins généraux (general stores);
- 6413 — Autres magasins de marchandises diverses (other general merchandise stores).
And “Other…” codes when your products have no label of their own:
- 6019 — Autres magasins d'alimentation spécialisés n.c.a. (other specialty food stores n.e.c.);
- 6143 — Autres types de commerce de détail de vêtements (other clothing retail);
- 6239 — Autres types de commerce de détail d'accessoires d'ameublement (other home furnishings retail);
- 6329 — Autres types de commerce de détail de véhicules de loisir (other recreational vehicle retail);
- 6399 — Autres types de commerce de détail pour véhicules automobiles (other automotive retail);
- 6599 — Autres types de commerce de détail (other retail).
Has your assortment changed? The code is corrected with an updating declaration.
Which CAE code fits a repair shop or a garage?
Repair shops tied to goods sold at retail are classified in this sector: garages, body shops, and furniture, appliance, watch and jewellery repair.
If repairs bring in most of your revenue, their code comes first and sales become your second activity; the reverse applies if you mostly sell.
The sector’s repair codes:
- 6213 — Ateliers de réparation de meubles (furniture repair shops);
- 6223 — Ateliers de réparation d'appareils ménagers (household appliance repair shops);
- 6224 — Ateliers de réparation de téléviseurs, de postes de radio et d'appareils stéréophoniques (television, radio and stereo repair shops);
- 6351 — Garages (réparations générales) (garages, general repairs);
- 6352 — Ateliers de peinture et de carrosserie (paint and body shops);
- 6353 — Ateliers de remplacement de silencieux (muffler replacement shops);
- 6354 — Ateliers de remplacement de glaces de véhicules automobiles (automotive glass replacement shops);
- 6355 — Ateliers de réparation et de remplacement de boîtes de vitesses de véhicules automobiles (automotive transmission repair and replacement shops);
- 6359 — Autres ateliers de réparation de véhicules automobiles (other automotive repair shops);
- 6562 — Ateliers de réparation de montres et de bijoux (watch and jewellery repair shops).
The sector also includes 6391 — Lave-autos (car washes) and 6331 — Stations-service (service stations).
Which CAE code fits an online store or a vehicle business?
An online store often declares 6599 or 6921, a car dealer 6311 or 6312; each of these activities has its own guide for the steps specific to it.
- Online store: our guide to incorporating an online store in Quebec covers whether to incorporate to sell on the web, taxes based on the customer’s province, the requirements of payment platforms and marketplaces, dropshipping, and choosing a CAE code for a store with no physical location, including between 6599 and 6921.
- Vehicle dealer: our vehicle dealer guide details the steps to sell vehicles, including the OPC road vehicle dealer permit, the full sequence from incorporation to your first auction, and the pitfalls to avoid. The sector’s codes: 6311 — Concessionnaires d'automobiles neuves (new car dealers) and 6312 — Concessionnaires d'automobiles d'occasion (used car dealers).
Ready to start your business?
Complete online incorporation: articles of incorporation, initial declaration with the REQ and your NEQ — $497 all-in, government fees included.
Frequently asked questions about retail businesses
Does selling used merchandise have its own CAE code?
Yes: code 6591 “Commerce de détail de marchandise d'occasion” (used merchandise retail) covers the general resale of second-hand goods. The sector also has specific codes for some used goods, such as 6312 “Concessionnaires d'automobiles d'occasion” (used car dealers) and 6343 for used tires, batteries, parts and accessories for automobiles.
Does a franchisee declare the franchisor’s CAE code?
No: your corporation declares the activity it carries on itself. A franchised convenience store declares a grocery store code, a franchised clothing store the code for the clothing it sells, whatever the franchisor’s code may be.
I am opening a second store of a different kind: do I need to change my CAE code?
Only if that store changes your two main activities. If it becomes your first or second source of revenue, update your activities and their codes with an updating declaration; otherwise, your codes remain valid.