Starting a cleaning business in Canada is one of the most accessible paths to entrepreneurship. With low barriers to entry and a demand that remains consistent regardless of the economy, it is a practical venture for many Canadians. Whether you want to run a solo residential cleaning service or build a commercial janitorial empire, the fundamentals of success remain the same.
Here is your comprehensive guide to launching a cleaning business in Canada, from registration to setting your rates.
1. Legal: Registration and Licensing for your cleaning business
Before you scrub your first floor, you need to make your business official. In Canada, this process involves a few key steps:
- Choose Your Structure: Most cleaning startups begin as a Sole Proprietorship because it is inexpensive and easy to set up. However, if you plan to hire a large team immediately or want liability protection, you might consider Incorporation.
- Register Your Business Name: If you are operating under a name other than your own legal name, you must register it with your province. In Ontario, for example, this is done through the Ontario Business Registry.
- Get Your Business Number (BN): You will need a Business Number from the Canada Revenue Agency (CRA). This is essential for opening a business bank account and interacting with the government.
- GST/HST Registration: If your business makes (or you expect it to make) $30,000 or more in a single calendar quarter or over four consecutive quarters, you must register for GST/HST. Many owners register voluntarily before hitting this threshold to claim tax credits on their startup expenses.
- Permits and Licenses: Use BizPaL, a government online tool, to check which specific municipal licenses you need. Some cities require a general business license, while others may require a background check for cleaners entering private homes.
Take a look at our Business Ownership page to see how to start, run, and grow a business.
2. Protecting your cleaning business with Insurance and Bonding
Trust is the currency of the cleaning industry. Clients are letting you into their most private spaces. To build that trust and protect your assets, you need:
- Commercial General Liability (CGL) Insurance: This covers you if you accidentally damage a client’s property (e.g., knocking over an expensive vase) or if someone slips on a wet floor.
- Bonding: Being “bonded” means you have coverage in case of employee theft. It is a powerful marketing tool that reassures clients their belongings are safe.
- Worker’s Compensation: If you hire staff, you must register with your provincial Workplace Safety and Insurance Board (e.g., WSIB in Ontario, WorkSafeBC in British Columbia).
3. Financials: Startup Costs and Expenses for your cleaning business
One of the biggest perks of this industry is the low startup cost.
You can launch a “lean” residential cleaning business for $500 to $5,000.
Typical Startup Expenses:
- Registration & Licensing: $100 – $500
- Insurance: $50 – $1,500/year (often paid monthly)
- Equipment & Supplies: $100 – $1,000 (Vacuum, mops, eco-friendly chemicals, cloths)
- Marketing (Website & Flyers): $100 – $1,000
Ongoing Expenses:
- Replenishing supplies (approx. 2-5% of revenue).
- Fuel and vehicle maintenance.
- Software for scheduling and invoicing (e.g., Jobber, QuickBooks).
4. Setting Your Rates: What to Charge in 2025
Pricing can make or break your business. You need to cover your costs, pay yourself, and remain competitive.
Residential Cleaning Rates:
- Hourly: The average going rate for independent cleaners in Canada is $30 to $50 per hour. Registered companies with overhead often charge $50 to $70 per hour.
- Flat Rate: Many experienced cleaners prefer flat rates (e.g., $150 for a 2-bedroom condo) because it rewards efficiency.
Commercial Cleaning Rates:
- Commercial contracts are often bid by the square foot.
- Rates: Typically range from $0.10 to $0.25 per square foot, depending on the frequency of cleaning and the type of facility (medical offices charge more than warehouses).
5. Income Potential
What can you actually make?
- Solo Operator: A dedicated solo cleaner working 30 billable hours a week at $40/hour can generate roughly $60,000 in annual revenue, with very low overhead.
- Small Team: Once you hire staff, your margins on their labor will be lower, but your volume increases. A small agency with 2-3 crews can easily surpass $150,000 – $200,000 in annual revenue.
6. Government Funding Options
While “free money” grants for general startups are rare, there are several avenues for funding:
- Futurpreneur Canada: Offers collateral-free loans of up to $60,000 plus mentorship for entrepreneurs aged 18-39.
- Canada Small Business Financing Program (CSBFP): Makes it easier to get loans from financial institutions by sharing the risk with the government.
- Digital Adoption Program: If you are setting up a robust digital booking system, you may eventually qualify for grants to offset technology costs. However there are recent changes to this program you should be aware of. Contact the team there to find out more before applying.
Launching a cleaning business in Canada is a journey of hard work and relationship building. By handling the legalities early, setting professional rates, and securing the right insurance, you position yourself not just as a cleaner, but as a business owner ready for growth.
