A domain name is part of the URL, which points to the server where the website is hosted. It is your website's unique address on the internet. For example, if you register the domain name "yourcompany.com", the URL for your company's website would be "http://www.yourcompany.com" or "http://yourcompany.com".
Top level domains (TLDs) include any that contain only one suffix – for example; .com, .ca, .net, .info, .biz and so on. Second level domains (2LDs) are domain names containing another level after the .com or .co suffix. For example; .com.au is a second level domain as it contains an additional suffix after the .com that shows the website originates in Australia.
It is important for Canadian businesses to register a Canadian domain name as Canadians are more comfortable dealing with a local company. This is particularly important if you want to sell online. A .ca domain name lets your customers know that you're a legitimate Canadian business.
A Canadian domain name can also help your potential customers find you more easily. In Search engines like Google Caanda you can choose to search Canadian pages only, so if you have a .ca domain name, your website is more likely to rank highly.