How to Start a Trucking Company in Canada 2026 Complete Guide

Quick Summary

How to legally start a trucking company in Canada – CVOR, operating authority, and compliance requirements – Trucking insurance costs and permits – Realistic startup cost breakdown – Common mistakes new trucking companies must avoid

Starting a trucking company in Canada can be highly profitable if done the right way. However, many new carriers fail within the first year due to poor planning, compliance issues, and lack of market knowledge.

This step-by-step guide explains exactly how to start a trucking company in Canada, including licensing, insurance, CVOR, operating authority, startup costs, and common mistakes to avoid.

Whether you want to become an owner-operator or build a fleet, this guide is designed for beginners and serious investors.

Step 1: Decide the Type of Trucking Company

Before registering anything, decide what type of trucking business you want to operate:

Owner-Operator (1 truck)
Fleet Owner (2 or more trucks)
Local trucking
Regional trucking
Long-haul trucking
Cross-border (Canada–USA)

Equipment Type

Dry Van
Reefer (Refrigerated)
Flatbed
Power Only

Your choice impacts insurance cost, authority requirements, permits, and profitability.

Step 2: Register Your Trucking Business in Canada

You must legally register your business.

Business Structure Options

Sole Proprietorship (low cost, higher personal risk)
Corporation (recommended for growth and liability protection)

Registration Requirements

Register business name provincially
Obtain Business Number (BN) from CRA
Open GST/HST account

This step is mandatory before applying for CVOR or permits.

Step 3: Apply for CVOR (Commercial Vehicle Operator’s Registration)

CVOR is mandatory for all trucking companies operating commercial vehicles in Canada.

Where to Apply

Ontario: Ministry of Transportation (MTO)
Alberta: Alberta Transportation
British Columbia: National Safety Code (NSC)

Documents Required

Business registration
Driver abstract
Safety history (if applicable)

Processing time usually takes 5–15 business days.

Step 4: Get Operating Authority

Intra-Provincial Authority

If operating within one province, CVOR may be sufficient.

Inter-Provincial Authority

To operate across provinces, you need: – National Safety Code (NSC) – Safety Fitness Certificate

Canada–USA Cross-Border Authority

For US operations, you must obtain: – USDOT Number – MC Authority – Unified Carrier Registration (UCR) – IRP (International Registration Plan) – IFTA (International Fuel Tax Agreement) – ACE & ACI registration

Missing any of these can result in fines or shutdown.

Step 5: Get Trucking Insurance in Canada

Insurance is the largest startup expense.

Required Coverage

$1–2 million Commercial Liability
Cargo Insurance ($50,000–$250,000)
Physical Damage Coverage

Average Insurance Cost

New trucking companies: $18,000–$35,000 per year

Many brokers decline first-time carriers, so choose an experienced trucking insurance broker.

Step 6: Register for IFTA and IRP

If you operate outside your province:

IFTA: Fuel tax reporting
IRP: Apportioned license plates

Both registrations are handled through your home province.

Step 7: Buy or Lease a Truck

Buying a Truck

Lower monthly cost
Higher maintenance risk

Leasing a Truck

Easier approval
Higher long-term cost

Additional equipment required: – ELD (Electronic Logging Device) – Dash camera – GPS – Safety equipment

Step 8: Compliance and Safety Setup

Compliance is not optional.
You must maintain: – Driver qualification files – Vehicle maintenance records – Daily ELD logs – Hours of Service records – Drug & alcohol testing (for US operations)
Most new carriers fail audits due to poor compliance.

Step 9: Open Business Accounts

You should set up: – Business bank account – Fuel cards – Factoring company (optional) – Load boards (DAT, Truckstop)

Step 10: Find Loads and Start Operations

Loads can be secured through: – Load boards – Freight brokers – Direct shippers – Long-term contracts
Profitability depends on lane selection, rate negotiation, and dispatch strategy.

Startup Cost to Start a Trucking Company in Canada

Expense	Estimated Cost
Registration & permits	$2,000 – $4,000
Insurance down payment	$5,000 – $10,000
Truck purchase	$40,000 – $90,000
Plates & permits	$3,000 – $5,000
Working capital	$10,000+
Total	$60,000 – $120,000

Common Mistakes New Trucking Companies Make

Starting without proper authority
Choosing cheap insurance
Poor compliance management
Running unprofitable lanes
Dispatching without market knowledge

Final Thoughts

Starting a trucking company in Canada requires proper planning, compliance, and market understanding. Those who invest in the right setup and education build sustainable and profitable operations.

If you’re serious about starting trucking the right way, Trucknomics offers hands-on training in dispatching, compliance, and cross-border operations.