To open a car dealership in Canada, you must navigate through several regulatory and licensing requirements that vary by province. Here are the key steps and considerations:
First, you need to register your business as a corporation or limited liability company, a process that applies uniformly across Canada[3).
In each province, specific licensing requirements must be met. For example, in British Columbia, any person or entity selling or leasing motor vehicles to retail consumers must be licensed as a motor dealer. This includes having at least one licensed salesperson, and all sales and management staff must have valid salesperson licenses. Fees are based on the type of vehicles sold and the number of vehicles sold or demonstration license plates issued[5).
In Ontario, you must register with the Ontario Motor Vehicle Industry Council . This involves completing an application form online, passing the Automotive certification course, and undergoing a background check. Both individual salespersons and the business itself must be registered, with specific requirements for business plans and premises[2).
Additionally, you need to comply with federal and provincial laws such as the *Motor Dealer Act*, *Business Practices and Consumer Protection Act*, and the *Competition Act*[5).
Regarding the safety of the car, it must meet Canadian safety standards. If the vehicle does not comply, it cannot be sold or leased to consumers. Ensuring compliance with safety regulations is crucial before proceeding with any dealership plans.
In summary, starting a car dealership in Canada requires careful planning, compliance with provincial and federal regulations, and ensuring that all vehicles meet Canadian safety standards.
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