Becoming a Dealer or Salesperson

To become a registered dealer or salesperson, follow the application process.

New salespersons, renewals or individuals associated with a dealer application

Step 1

  • Review the individual application form on the online services portal to confirm what documentation is required
  • If applicants are (or have been) licensed in another Canadian jurisdiction, and would like to become registered in Ontario review our registered out of province information

Step 2

  • Request a BackCheck report. Results will be sent directly to OMVIC within 24 hours

Step 3

  • Register for and complete the OMVIC Certification Course. There is a fee associated with taking this course.
  • Once registered, the Automotive Business School of Canada (ABSC) will send the course information to you via courier.
  • Insert the ABSC student ID in the relevant section of the individual application form. This will ensure that ABSC will send results directly to OMVIC once the course has been completed.

Note: Your application cannot be approved until you have completed the OMVIC certification course.

Step 4

  • Retain a copy of the completed application and all attachments
  • Notify OMVIC within five business days of any changes to the information provided for registration

Note: Applications cannot be accepted unless the certificate of dealer (section F) has been completed

Step 5

  • Submit the completed application form with all required attachments online and pay the associated registration fee

Step 6

Note: The cost of the Automotive Certification Course is not included in the OMVIC registration fee

New dealers

Step 1

  • Review the pre-start section of the online business application to confirm the requirements, including mandatory documents
  • Requirements include information for all officers, directors, partners, the sole proprietor, shareholders, signing authorities and individuals seeking registration as a salesperson (as applicable)

Step 2

Step 3

  • Ensure all related applications, supporting the business applications are also submitted (as in individual applications or salesperson change application)
  • The business application is not ready for review until the submission of all related applications.
  • Access the salesperson change notice form on our online services portal

Note: Applicants are required to be forthright and properly disclose any information to OMVIC related to past bankruptcies. OMVIC will then request an explanation of the circumstances and a copy of the statement of affairs and discharge, to determine if a lack of financial responsibility played a role. Bankruptcies rarely lead to a refusal or revocation for salespeople.

Dealership Names

Dealers have raised concerns about the use of words in a dealer’s name that may be misleading. For example, names which incorporate words or phrases such as wholesale, at cost, liquidation and factory direct may lead customers to believe that they will enjoy special pricing otherwise unavailable.

OMVIC now restricts the use of these words in dealership names and will no longer register legal or trade names which fall into this category.

Note: Although this change will not be retroactive, OMVIC will continue to closely monitor the advertising practices of dealers who have names that may not accurately describe their business. Advertising produced by (or on behalf of) such a dealer will need to prominently indicate the true nature of their business.

Reapplying for registration

The MVDA states that a dealer or salesperson whose registration is refused, revoked or refused renewal can reapply for registration if both of these conditions are met:

  1. Two years have passed since the refusal, revocation, or refusal to renew
  2. New or other evidence is available or it is clear that material circumstances have changed

If OMVIC’s registrar considers it in the public interest, he or she may order a temporary suspension that takes effect immediately. The dealer/salesperson can make a written appeal to the Licence Appeal Tribunal (LAT). This temporary suspension expires 15 days after LAT has received the written request for a hearing; if LAT starts the hearing within that 15 days, it can extend the expiry date of the temporary suspension.

What applications are available to file online for dealers?

  • Officers, directors, owners, and partners of the dealership have access to file all applications and notices online
  • DAs can do the following actions online
    • File dealership’s renewal registration
    • Pay renewal fees and transaction fees
    • Review transaction and renewal request history
    • Subscribe to notifications for both the dealer and salespeople (e.g., application is approved, registration has expired)

Refusal of registration

  • The MVDA prohibits OMVIC from registering any dealer or salesperson who does not meet the requirements of the act
  • If the requirements are not met, we cannot process the application, and the registrar is not required to issue a proposal to refuse the application
  • If the registrar wants to refuse an application for any other reason, the registrar must give the applicant written notice of a refusal setting out the reasons for the refusal


If you believe you may be exempt from OMVIC registration refer to the list of registration exemptions.

Letter of Credit (LOC)- FAQ

A Letter of Credit is a financial document that a financial institution (Bank/Credit Union) issues to guarantee payment between the Beneficiary (Motor Vehicle Dealers Compensation Fund) and the Applicant/Registrant. It’s a form of security that ensures the Beneficiary shall receive payment if certain conditions are met.

The purpose of this policy is to establish the standards and financial requirements that the Registrar will consider in determining whether a registrant/applicant must provide a letter of credit as a condition of registration.

In the event that there is an indication of potential risk that the registrant, applicant or any other interested party’s financial history or past conduct may risk the proper compensation to consumers in case of the registrant’s failure to fulfill their obligations under the Act, then a letter of credit will be necessary. It will be reviewed on a case-by-case basis based on this policy.

This policy applies to applicants/dealers who are involved in trading motor vehicles with consumers. Primarily, General Dealers.

While it is not mandatory for applicants/registrants to provide a letter of credit for registration, Section 8 of the Act allows the Registrar to approve the registration or renewal of registration with certain conditions if the Registrant is not entitled to registration under Section 6 of the Act.

Example: If the Registrar believes that the applicant’s financial position or past conduct, or the financial position or past conduct of the interested person, poses a risk that they may not be able to properly compensate consumers if they fail to meet their obligations under the Act.

During the review process, the Registrar conducts a comprehensive risk assessment in accordance with the policy and considers all potential risks that may directly or indirectly affect consumers. Based on this assessment, the Registrar may determine that a Letter of Credit (LOC) is necessary from the applicant/registrant. The decision to require an LOC is based on various factors, such as the applicant/registrant’s/interested parties’ financial stability, history of compliance and other potential risks.

  • substantially follow the format outlined in the sample LOC (Sample Letter of credit will be provided to applicants/registrant).
  • be irrevocable
  • allow for partial drawings
  • allow automatic renewals unless the Registrar’s office receives a written notice from the financial institution with at least 30 days notice – Note: if letter of credit is to be rescinded by the financial institution, the dealer must provide a replacement letter of credit before the expiry of the notice period.
  • give the Motor Vehicle Dealers Compensation Fund exclusive control over the release of fund

Does it need to be issued by a financial institution, or is obtaining it from a third-party lender acceptable?

A letter of credit should come from your bank. Third-party letters or promissory notes will not be accepted.

The LOC will be held for a minimum of two years from either the date of registration termination or from the date of the last retail transaction of the Registrant (the “Closure of Business”), whichever is earlier.

The Registrar may release a portion of the funds held by the letter of credit prior to the Closure of Business, subject to the following conditions:

  • The request must be made in writing to the Registrar.
  • The request must be submitted by all owners, partners, officers, directors, and shareholders registered with the Registrant, as the case may be.
  • The request can only be made after 2 (two) years from when the letter of credit was deposited with the Registrar; and
  • The Registrar shall hold back a minimum of $5000.

If a dealer sends a request to release the LOC after two years of registration, the Registrar will consider the risk analysis outlined in the LOC policy and review the request. Based on the outcome of the risk analysis, a decision will be made as to whether the LOC can be released at that time.

In addition to financial stability, history of compliance, and potential risks of the applicant/registrant/interested parties, there are other risk factors that could be considered in the process of determining whether a Letter of Credit (LOC) is required.  For example, applicants with a work permit and other immigration matters could be considered a risk factor which potentially may affect the ability of the applicant/registrant to comply with the Act and Regulations.

If an applicant or registrant refuses to provide the LOC, it could result in their application being denied or their registration being revoked, depending on the circumstances.

There are no changes in the application process due to this policy as all applications are processed according to the Act and with the careful evaluations outlined in Section 6.  However, this policy is designed to ensure that applicants are financially stable, operate with integrity, and comply with the MVDA and its regulations. It also allows the Registrar to exercise regulatory authority and address risks and other concerns related to consumer protection.

This policy is a tool to prevent potential risks and issues that could harm both consumers and the overall integrity of the industry.