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Nova Scotia

Nova Scotia Small Business: 2023 Guide to Business in Nova Scotia

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Nova Scotia is known for lobster, blueberries, and the stunning Cabot Trail…

But did you know Nova Scotia also has a growing population and some unique business opportunities?

In this guide we cover everything you need to know about Nova Scotia small business – from major industries in NS to how to start a business in Nova Scotia to resources to support your NS business.

Major Industries in Nova Scotia

Nova Scotia’s economy has traditionally been resource-based, consisting of fishing, coal mining, paper, mining, and agriculture. In the past several decades, offshore oil and gas has also contributed to the economy.

Newer industries in Nova Scotia include defence and aerospace, filmmaking, and information & communication technology.

Rounding out the province’s industries is tourism, which contributes over $2.5 billion to the provincial economy.

Best Business to Start in Nova Scotia: 11 Promising Industries

In addition to the traditional industries mentioned above, Nova Scotia has 11 priority sectors that build on the province’s existing strengths and are promoted by the provincial government:

  • Ocean industries
  • Seafood
  • Agri-Food
  • Naval defence
  • Information and Communications Technology
  • Digital media
  • Film & television production
  • Advanced manufacturing
  • Clean technology
  • Financial services
  • Life sciences

These industries take advantage of the labour force’s existing skill set, the knowledge base of local universities, as well as funding programs offered by the provincial government.

If you’re thinking about starting a manufacturing business (especially one that’s focused on exports), these 11 industries are an excellent place to start.

If you’re thinking about starting a services business, consider how you can serve existing businesses that operate in these industries.

How to Start a Business in Nova Scotia: Step-by-Step Instructions

1. Brainstorm the basics:

  • The niche (industry) you want to be in
  • The offer(s) that you will sell to your customers
  • Brainstorm solutions to pressing problems
  • Decide if you will manufacture a product or provide a service
  • Which business channel you want to operate in (online or in-person)

2. Understand government requirements:

3. Write a business plan

A good business plan will give you a clear vision of the path you need to take to start and grow your business. Elements of a good business plan include a description of your:

  • Target audience and their needs
  • Competitive landscape
  • Planned products and/or services (offers)
  • Value proposition
  • Financial projections
  • Start-up costs

4. Get funding

Start-ups need money!

Besides looking for a traditional bank loan, there are hundreds of government funding programs that you may qualify for. Check out our round-ups of the best funding programs:

5. Find business advice and support

Mentors and professionals such as accountants and lawyers can provide invaluable advice on the steps to set up your business and the mistakes to avoid.

Small Business Grants Nova Scotia: 10 Top Grants to Start & Grow Your Nova Scotia Business

Our database of financial incentives for Nova Scotia businesses in the largest, most complete on the market. Here is just a small sample of the incentives available right now:

Start-Up Grants for Nova Scotia Businesses

Business Grants for Women in Nova Scotia

Women entrepreneurs have lots of places to find support for their start-ups or growing businesses. Click here for a list of grants for women entrepreneurs in Atlantic Canada.

Grants for Black Business Owners in Nova Scotia

There are also many federal and provincial programs available to black Nova Scotians to start and grow a business. Here are some grants for black entrepreneurs.

Small Business Loans Nova Scotia: 5 Loan Programs to Start & Grow Your Nova Scotia Business

Sometimes a loan is the quickest and easiest way to get funding to start or grow a business. Even better, there are low-interest (and no-interest) loans available to Nova Scotia entrepreneurs. Here are a few of the best loan programs:

Business for Sale Nova Scotia: Business Opportunities in Nova Scotia

Once you’ve decided the industry you’d like to enter, how do you get started?

One option is to buy an existing NS business. While it will cost you more upfront than starting a business from scratch, buying a business will get you up and running faster.

There a several places to find a business for sale in Nova Scotia:

Online Business Marketplaces

An online business marketplace is basically an online classified ads website specifically for businesses. The most popular businesses-for-sale websites include the following:

Real Estate Brokerages

More and more real estate brokerages are adding businesses for sale to existing inventory of homes for sale. Here are some online brokerage sites to check out:

Online Classifieds (For Sale by Owner)

Business owners who don’t want to pay a commission will often advertise on classified ads sites. Here are the most popular:

Business Brokers

A business broker is the equivalent of a real estate agent – they act as a middleman between buyers and sellers.

The benefits of using a business broker to buy a business include:

  • Tailored service. A business broker can quickly target a business using your precise criteria
  • Find businesses not on the market. Through their word-of-mouth network, a business broker might know of a business that isn’t yet listed for sale.

Here are some top Nova Scotia business brokers to check out:

Business Registration in Nova Scotia

Registering a business in Nova Scotia involves the following steps:

  • Choose a legal structure (proprietorship, corporation, or partnership)
  • Choose a business name
  • Do a name search (to confirm that the name is available)
  • Reserve your business name
  • Register your business (online or in-person)

Business Licenses in Nova Scotia

Depending on the industry you’ll be operating in, you might need specific licenses and permits to run a business in Nova Scotia.

You can find out which NS business licenses and permits you need from the following websites:

  • BizPal allows you to do an online search for the permits and licenses you’ll need for your Nova Scotia business
  • Nova Scotia Permits Directory is a 1990s-era web page (but it still works!) that is organized by industry

Business Insurance in Nova Scotia

Insurance for a business in Nova Scotia might seem like a boring topic, but it’s critical for avoiding financial ruin (who hasn’t heard about a small business being sued when a customer slips on the ice outside their premises?).

While the Nova Scotia government does not require most businesses to have insurance, there are several types of insurance that are recommended to protect your business:

  • General liability insurance, which protects against on-premise accidents and other claims
  • Business property insurance, which protects against damage to your property
  • Product liability insurance (if you manufacture a product)
  • Errors and omissions insurance (if you operate a professional services business)

Business Laws in Nova Scotia

You might be disappointed to learn that there are laws and regulations that businesses in Nova Scotia must follow ☹. The main laws are:  

Business Taxes in Nova Scotia

Business tax is an important and complicated topic, and we recommend you seek the help of a professional to sort through it.

Here are some resources to get you started:

Current corporation tax rate in Nova Scotia: 2.5% – 14%.

Nova Scotia Business Immigration

Nova Scotia has seen a record number of immigrants recently, including economic immigrants.

Part of that surge has been through the Nova Scotia Entrepreneur Stream of the Nova Scotia Nominee Program. 

To learn more about how to migrate to Nova Scotia as an entrepreneur, read our guide to Nova Scotia Business Immigration.

Small Business Resources in Nova Scotia

There are lots of support resources for small businesses in Nova Scotia. Here are some of the best ones:

Nova Scotia Business Directories

General Business Directories

Indigenous-Owned Businesses Nova Scotia

Black-Owned Businesses in Nova Scotia

Nova Scotia Business Associations & Organizations

  • Business Navigators Nova Scotia help you “navigate” the process of starting a business in Nova Scotia
  • Nova Scotia Association of CBDCs (Community Business Development Corporations) provides financial support (loans, loan guarantees and equity financing) and in-kind support (advice, training, etc.) to small businesses in 13 communities throughout Nova Scotia.

    You can find the contact info for all 13 Nova Scotia CBDCs here. 
  • Nova Scotia Business Federation offers marketing services and employee group benefits for small businesses in Nova Scotia

Nova Scotia Business News

Here are some online sources for business news in Nova Scotia:

Nova Scotia Capital Investment Tax Credit (CITC)

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Amount:

$ 30,000,000.00

Type of Program:

Tax Credit

Description:

The Nova Scotia Capital Investment Tax Credit (CITC) is a 15% refundable corporate income tax credit claimed by eligible corporations for capital equipment acquired for use in Nova Scotia on or after January 1, 2015. The capital equipment must be acquired as part of an "approved project".

The CITC is aligned, but not harmonized with, the federal government’s Atlantic Investment Tax Credit (AITC). 

Comments on Funding:

Funding is 15% of the capital cost of "qualified property" acquired in a taxation year, with a maximum tax credit of $30 million per "approved project."

When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

The applicant must:

  • be a taxable Canadian corporation,

  • have a permanent establishment in Nova Scotia,

  • with certain exceptions, be corporations in the manufacturing, processing, fishing, farming, logging, storing grain and harvesting peat sectors,

  • have acquired capital equipment as part of an "approved project".

Application Steps:

1

Applicant must submit a mandatory Part A application and receive an "eligibility certificate" before an application for the tax credit can be made.

2

Applicant must submit a Part B application for a tax credit certificate once he obtained the eligibility certificate and no later than 18 months following the end of the taxation year in which the qualified property was acquired. Multiple Part B application for tax credit certificates can be made since projects can run over a period of up to 5 years.

Documentation Needed: 

The applicant must submit the following documentation in support of his Part A application form:

  • proof that the corporation is an "eligible corporation" and that its corporate registration is in good standing,

  • financial statements (projected financial statements for taxation years during project period and financial statements for the preceding taxation year),

  • a business plan for the project,

  • the T2 corporate tax return and notice of assessment if the project is underway and qualified property has already been acquired,

  • the loan agreements for all loans provided by public authorities,

  • any additional information deemed necessary by the Minister.

The applicant must submit the following documentation in support of his Part B application form:

  • proof of the capital cost of each qualified property,

  • a statement identifying the qualified property that was acquired in respect of and that matches the business plan submitted in support of the eligibility certificate,

  • a statement detailing any government assistance with respect to the qualified property,

  • a status report of the project and explanation for any deviation from the business plan submitted in support of the eligibility certificate,

  • the T2 corporate tax return and notice of assessment for the taxation year immediately preceding the taxation year for which a tax credit certificate is sought,

  • a draft copy of the corporation's Schedule 31 for the T2 corporate return in the taxation year for which the tax credit is being applied for,

  • a copy of the corporation's CITC eligibility certificate,

  • any additional information deemed necessary by the Minister.

Other Things to Note:

New Guidelines were published in March 2022.

Program Contact:

Capital Investment Tax Credit - Nova Scotia Department of Finance

CITC Guidelines.pdf

Nova Scotia Innovation Equity Tax Credit

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Amount:

$ 112,500

Type of Program:

Tax Credit

Description:

The Innovation Equity Tax Credit (Innovation ETC) is a non-refundable personal and corporate income tax credit available to eligible investors who invest in an approved corporation. The credit is meant to encourage investors to make equity capital investments in eligible Nova Scotia small and medium corporations engaged in innovative activities.

Comments on Funding:

The credit is equal to 35% of eligible investments made in approved corporations, up to $ 87,500.

It increases to 45% for eligible investments made in approved corporations in eligible classifications within the oceans technology and life sciences sectors, up to $ 112,500.
The maximum annual investment amount is $250,000.

For corporations, the credit is equal to 15% of the eligible investment. The minimum investment amount is $50,000 and the maximum annual investment amount is $500,000. 

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

The applicant must:

  • be a taxable Canadian corporation,

  • carry-on a business in Nova Scotia (and be registered in Nova Scotia),

  • be incorporated less than 10 years ago,

  • have its head office in Nova Scotia,

  • use all or substantially all of its assets in an active business,

  • have less than $15 million in assets (including assets of associated corporations),

  • have fewer than 100 employees (including employees of associated corporations),

  • pay at least 50% of its remuneration to employees or full-time contractors who are residents of Nova Scotia and report to or deal with a permanent establishment of the corporation in Nova Scotia,

  • have authorized capital consisting of at least 1 class of common voting shares,

  • be developing or implementing new technologies or applying existing technologies in a new way to create new products, services or processes.

  • not fall under any of the restrictions below:

  • its principal business includes: construction, developing, leasing or selling real property, hotel ownership or management, retail, including food and beverage services, oil or gas exploration, development and production, film, digital animation, or digital media, membership based recreational activities, financial or insurance services,

  • it is incorporated for a self-regulated professional practice,

  • it is a business for which public financial support would be contrary to public policy,

  • it has been issued a Film Industry Tax Credit, Digital Media Tax Credit, Digital Animation Tax Credit, or Capital Investment Tax Credit,

  • it has been approved for or received a payroll rebate or an innovation rebate from Nova Scotia Business incorporated,

  • it has raised (along with all associated corporations) more than $5 million through previous specified issues.

An eligible investor is an individual who is a resident of Nova Scotia and at least 19 years of age or a taxable Canadian corporation which is registered to carry on business in Nova Scotia, has its head office in Nova Scotia, and is not a qualifying venture capital fund under section 27B of the Income Tax Act (Nova Scotia).

Application Steps:

1

Applicant must apply for a Certificate of Registration before accepting investments from eligible investors by submitting the completed application packages via email to the Innovation ETC Administrator.

2

 Applicant must Issue eligible investments to eligible investors through a specified issue.

3

Applicant must apply for Tax Credit Certificates on behalf of all eligible investors who made eligible investments during the time the corporation was registered under the program. The application for Tax Credit Certificates must be received by the department within 6 months of the expiry date on the corporation's Certificate of Registration.

4

Applicant must submit an annual return to the Innovation ETC administrator for each of the 4 years after the expiry date on the certificate of registration.

Documentation Needed: 

To apply for the Certificate of Registration the applicant must submit:

  • the completed and signed application form,

  • the financial statements for the previous tax year, together with a review engagement report or auditor’s report, for the applicant corporation and for all corporations associated with the applicant corporation,

  • T2 Corporate Income Tax Return for the previous tax year of the applicant corporation and of all corporations associated with the applicant corporation (including all forms and schedules),

  • an up-to-date and notarized shareholder’s register,

  • the corporate chart/structure, if applicable,

  • the shareholder agreements, if any,

  • the debenture agreements, if any,

  • the proposed investor forms completed by all proposed eligible investors,

  • a brief business plan,

  • the Certificate of incorporation, constitution/articles of incorporation and memorandum of association.

To apply for the Tax Credit Certificates the applicant must submit:

  • the completed Application Form,

  • the up-to-date and notarized shareholder’s register,

  • an Investor Data Report in Excel,

  • copy of each share certificate or convertible debenture issued to each eligible investor showing the terms of the share/debenture,

  • a signed statement from an authorized officer of the corporation.

  • signed statements from each eligible investor,

  • proof of payment from each eligible investor displaying the amount invested and date of investment.

Other Things to Note:

It's important to note that the deadline for applying for the Nova Scotia Innovation Equity Tax Credit can vary depending on the specific circumstances of your investment and the corporation you invested in. Therefore, it's recommended that you seek professional advice or consult the official guidelines from the Nova Scotia Department of Finance for more detailed information.

Program Contact:

Nova Scotia Department of Finance - Innovation Equity Tax Credit

Innovation-ETC Guidelines.pdf

Canada.ca - NS Innovation Tax Credit

Nova Scotia Small Business Loan Guarantee Program

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Amount:

$500,000

Type of Program:

Loan Guarantee

Description:

The Small Business Loan Guarantee Program delivers better financial assistance for the start-up and expansion of small businesses in Nova Scotia by providing them loan guarantees.

Credit unions are the only financial provider to offer access to the financing program and they can provide financing up to $500,000 in the form of term loans, working capital and lines of credit . No other financing programs provide access to working capital or lines of credit to individuals who would like to start or purchase a small business and/or grow and expand an existing business.

Benefits of the NS Small Business Loan Guarantee Program:

  • Access to capital: The program provides financing up to $500,000 in the form of term loans, working capital and lines of credit. This can help small businesses with big ideas get the funding they need to start and grow their enterprise.

  • Lower interest rates: The program offers lower interest rates than traditional loans, which can help small businesses save money on interest payments.

  • Flexible repayment terms: The program offers flexible repayment terms, which can help small businesses manage their cash flow and repay the loan on their own terms.

  • No collateral required: The program does not require collateral, which can make it easier for small businesses to get the funding they need without putting up their assets as collateral.

  • Fast approval process: The program has a relatively fast approval process, which can help small businesses get the funding they need quickly and efficiently.

Comments on Funding:

Funding will take the form of a guaranteed loan or line of credit, subordinated debt, equity, revenue sharing or royalty agreement. A maximum investment of $500,000 will be granted to successful applicants, until the funds are all invested.

When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

Applicants must:

  • be start-ups and/or growth and expansions;

  • be not-for-profit, co-operatives or private businesses that have a positive impact on a social or environmental issue that meets a community need or maximize a community opportunity;

  • be registered and based in Nova Scotia;

  • be in good standing with the Canada Revenue Agency.

Application Steps:

1

Applicants must contact their local credit union branch for details.

Documentation Needed:

Applicants must submit a formal application.

Program Contact:

Small Business Loan Guarantee Program

START Program Nova Scotia

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Amount:

No Fixed Amount

Type of Program:

Subsidy

Description:

The START program offers financial incentives to businesses and organizations that have business locations and jobs in Nova Scotia to help them hire Nova Scotians who need work experience. There will be a focus on SMEs.

Benefits of the Nova Scotia Start Program:

The Start Program provides a range of career opportunities for unemployed individuals looking to enter the workforce. The program helps connect job seekers with employers who have vacancies that need to be filled.

One of the main benefits of the Start Program for job seekers is the letter of recommendation that they receive after applying. This letter helps market their skills and experience to potential employers, making it easier for them to find a job.

In addition to the letter of recommendation, the Start Program also provides job seekers with access to training and education opportunities. By participating in these programs, job seekers can improve their skills and increase their chances of finding employment in their desired field.

Employers who participate in the Start Program also benefit from the program’s incentives. These incentives include wage subsidies and other types of funding that can help offset the cost of hiring an unemployed Nova Scotian. By participating in the program, employers can find qualified candidates for their job vacancies and receive financial support to help with the cost of training and development.

Comments on Funding:

Funding is up to a maximum of $25,000 per hire, and at ENS’ discretion.
Incentives will vary depending on the type of employment offered and the skill level of the employee. Incentives can be used to pay for individual’s wages, MERC, training costs or other related costs associated with hiring of a new employee.

When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

The applicant must:

  • be a business, organization (Not-for-profit and Social Enterprises), with a focus on SMEs,

  • be located in Nova Scotia,

  • have its employees working in the province.

The individual he hires must be:

  • Nova Scotia resident,

  • unemployed and actively seeking full time or increasing employment,

  • Canadian citizens or permanent residents legally entitled to work in Canada OR be an international graduate (additional criteria may apply).

Application Steps:

1

Applicant must register in the online Labor Market Programs Support System (LaMPSS),

2

Applicant must complete the application form and submit it electronically.

Documentation Needed: 

The applicants must attach a Job Description as supporting documentation.

Program Contact:

START program: hiring incentive

START-Program-Guidelines.pdf