How to Start a Trucking Company in Canada 

• October 29, 2025
• Lightspeed

Starting a trucking company is both an exciting and formidable undertaking. It offers independence, growth potential, and the ability to build a tangible business—but it also demands careful planning, proper execution, and ongoing management of complex operational, regulatory and financial factors. 

In this article, we’ll walk you through how to start a trucking company from the ground up: from foundational questions and business strategy through licensing, equipment, operations, finances and growth.  Understanding what to expect will help you prepare more effectively and set yourself up for long-term success.

Why Start a Trucking Company?

The trucking industry is a critical part of the national economy. Businesses rely on trucks to move goods across provinces and borders, creating a high demand for reliable trucking services.

Roughly 70 % of freight tonnage is moved by trucks. That means demand is consistent, and for entrepreneurs the opportunity exists to carve out a place.With the market projected to grow at a 4.32% CAGR between 2025 and 2030, the outlook for trucking companies is highly promising.

Some of the strategic motivations include:

• Growth potential: Starting with one truck and building into a large fleet is feasible if you manage costs and secure consistent freight.
  
• Industry demand: Driver shortages, growing freight volumes and logistical complexity mean there are opportunities for reliable carriers who structure well.
  
• Tangible asset business: Trucks, trailers, logistics contracts and freight lanes can create a business that is more than a salary job—building value over time.
  

That said, it’s not a “get-rich-quick” business. Many new trucking companies fail because of under-capitalization, poor margin control, inadequate compliance with regulations, or lack of load contracts. Recognizing the challenges early will help you plan better.

Starting a Trucking Business 

If you’re ready to launch your own trucking business in Canada, here is everything  you need to know—from key requirements and startup steps to essential costs and processes to help you get on the road successfully.

Step 1: Write a Trucking Business Plan

Every trucking business starts with a comprehensive business plan. It outlines your goals, target market, operational strategies, and financial projections.

Key Components

• Business Overview: Define the type of trucking services—local, long-haul, refrigerated, or specialized freight.
• Market Analysis: Research competitors, potential clients, and demand in your region.
• Operations Plan: Include routes, fleet size, maintenance schedules, and staffing.
• Financial Plan: Estimate start-up costs, including trucks, insurance, fuel, and other fees.
• Marketing Strategy: Outline marketing, networking, and client acquisition tactics.

Step 2: Choose Your Business Structure

Select a business structure that suits your goals and provides liability protection. Standard options in Canada include:

• Sole Proprietorship: Simple setup, but personal liability.
• Partnership: Shared responsibilities with partners.
• Corporation: Provides liability protection, tax benefits, and credibility with clients and investors.

Most trucking companies incorporate for protection, especially when managing multiple trucks and drivers.

Step 3: Register Your Trucking Company

Registering your business ensures legal operation. You can also search for registered trade names in the provincial and territorial databases across Canada if you plan to operate in those regions.

 Steps include:

1. Register Business Name: Ensure it is unique and compliant with federal or provincial rules.
2. Business Number (BN): Register with the Canada Revenue Agency (CRA) for taxes and GST/HST accounts.
3. Provincial Permits: Check specific requirements for Ontario, Alberta, or other provinces.

The registration process for corporations can get complicated, so consider consulting professionals before proceeding with it.

Step 4: Obtain Licenses and Permits

Starting a trucking company involves obtaining a wide range of permits, licenses, and insurance coverage. New operators must stay diligent about meeting all regulatory requirements.

• Commercial Driver’s License (CDL): Class 1 or Class A license based on the province.
• Vehicle Registration and Permits: Register trucks and trailers.
• International Registration Plan (IRP): For trucks traveling across provinces or into the U.S.
• International Fuel Tax Agreement (IFTA): Report fuel taxes when trucks cross multiple regions.
• Safety Certificates: Ensure trucks meet provincial safety standards.

International Fuel Tax Agreement (IFTA)

The International Fuel Tax Agreement (IFTA) streamlines fuel tax reporting for commercial trucking companies that operate across borders. It’s a partnership between 10 Canadian provinces and 48 U.S. states, designed to make compliance easier for carriers traveling in multiple jurisdictions.

If your Canadian trucking company operates commercial vehicles in both Canada and the United States, IFTA registration is required. Once registered, you’ll receive a single license and set of decals from your home jurisdiction. This allows you to travel within all IFTA member regions while filing one consolidated quarterly fuel tax report.

That report covers all the miles your trucks traveled and the fuel purchased across jurisdictions. The taxes collected are then allocated among the provinces and states where your vehicles operated, ensuring each region receives its fair share.

National Safety Code / Motor Carrier Safety Fitness Certificate

Under the National Safety Code (NSC) and the Motor Vehicle Transport Act, federally regulated motor carriers must obtain a Safety Fitness Certificate before operating across provincial or international borders.

You must apply for a certificate under provincial law if you operate only within your home province and drive vehicles:

• Weighing 11,794 kg or more, or
• Designed to carry 11 or more people, including the driver.

Apply under federal law if you operate across provinces, territories, or states with vehicles:

• Weighing over 4,500 kg, or
• Designed for 11 or more passengers, including the driver.

Check with your provincial transportation office for specific requirements and fees.

Canadian ELD and Hours of Service (HOS) Regulations

Trucking companies in Canada must comply with Hours of Service (HOS) and Electronic Logging Device (ELD) regulations set by Transport Canada under the National Safety Code (NSC) and the Motor Vehicle Transport Act.

HOS rules limit how long drivers can operate their vehicles to prevent fatigue-related accidents and improve road safety. To track compliance, carriers are required to use ELDs, which automatically record driving hours—replacing paper logs and outdated systems (with limited exemptions).

These regulations help ensure safer, more efficient operations across the trucking industry

Step 5: Secure Financing

Trucking businesses require significant capital. Funding options include:

• Bank Loans: Finance trucks, insurance, and operations.
• Leasing Options: Lease trucks to reduce upfront costs.
• Government Grants: Small business support programs in transportation.
• Private Investors: Seek partners to fund fleet expansion.

Step 6: Purchase or Lease Trucks

The right fleet ensures reliable service. Consider:

• Truck Type: Choose flatbed, refrigerated, dry vans, or specialized vehicles.
• Condition: New trucks are reliable; used trucks reduce initial costs.
• Technology Integration: Equip trucks with GPS and ELDs compatible

Whether to buy or lease depends on your finances. Buying is ideal if you have good credit and can cover a large down payment. New trucks offer reliability and warranties, while used ones are cheaper but may have shorter lifespans.

Leasing is typically easier and a good short-term option while building capital and credit.

Beyond the truck itself, invest in software tools for operations—like accounting, payroll, route optimization, fleet management, and dispatching. Many of these are integrated into Transportation Management Systems.

Step 7: Get Trucking Insurance

Insurance protects your business from liability and unexpected costs. Required policies:

• Commercial Auto Insurance: Covers trucks and liability.
• Cargo Insurance: Protects goods in transit.
• General Liability Insurance: Covers property or injury claims.
• Workers’ Compensation: Covers employees in accidents.

Step 8: Hire Drivers and Staff

Qualified drivers are essential for safety and reliability.

• Experienced Drivers: Hire drivers with clean records and proper licenses.
• Training Programs: Ensure drivers understand safety, regulations, and AVAAL system use.
• Recruitment: Use job boards, and industry networks.
• Retention Strategies: Offer competitive pay, benefits, and performance bonuses.

Step 9: Manage Operations Efficiently

Efficiency is key to profitability. Focus on:

• Route Planning: Optimize deliveries using AVAAL GPS tracking.
• Maintenance Scheduling: Use automated alerts to prevent costly breakdowns.
• Fuel Management: AVAAL cards track fuel usage to avoid overspending.
• Compliance: Keep up-to-date with provincial and federal trucking regulations.

Operational efficiency ensures client satisfaction and maximizes profits.

Step 10: Plan for Growth and Expansion

Once your company is stable, growth plan:

• Increase Fleet Size: Add more trucks to handle higher volume.
• Diversify Services: Offer refrigerated, long-haul, or specialized transport.
• Expand Geographically: Operate across multiple provinces or cross-border.
• Invest in Technology: Continue upgrading AVAAL systems to scale operations.

Growth planning ensures your trucking company remains competitive and profitable.

Conclusion

Starting a trucking business can feel daunting, but it’s a rewarding venture when approached with careful planning.

Tackle each requirement step by step, staying consistent until everything is in place.

Lastly, collaborate with trusted service and software providers to help your business run smoothly and efficiently.

FAQs:

1. What are the first steps to starting a trucking company in Canada?
Start by creating a detailed business plan outlining your services, target market, operations, and financial projections. Next, choose a business structure, register your company, and obtain the necessary licenses and permits.

2. Why should I use AVAAL?
AVAAL helps manage fuel costs, track fleet performance, optimize routes, simplify maintenance scheduling, and streamline reporting. It reduces administrative workload while improving operational efficiency and security.

3. What types of trucking services can I offer?
You can offer local deliveries, long-haul trucking, refrigerated transport, flatbed, dry van, or specialized freight services depending on your market and fleet.

4. What licenses and permits do I need to operate?
You need a Commercial Driver’s License (CDL), truck and trailer registration, International Registration Plan (IRP), International Fuel Tax Agreement (IFTA) registration, and safety certificates for your vehicles. Requirements may vary by province.5. How much does it cost to start a trucking company in Canada?
Start-up costs vary but typically include trucks (purchase or lease), insurance, fuel, licenses, permits, staff wages, and technology like AVAAL fleet management. New businesses often require tens of thousands to hundreds of thousands of dollars to start.