Do you want to make your business dreams a reality in Canada’s smallest but mighty province? Great decision! Prince Edward Island has a robust business culture, beautiful sceneries, as well as an encouraging atmosphere for business startups.
But before you go order business cards or open up shop, there’s something important you’ll need to do first: register your business. Don’t panic—while it may sound complicated, how to register a business in PEI is actually less painful than you could imagine.
In this guide, we will take you through all you need to know about registering at PEI business, from the selection of the business structure to to navigating the PEI business registry.
Whether you are opening a coffee shop at Charlottetown or an online boutique at your home in Summerside, you won’t miss a thing.
Understanding Your Business Structure Options
Before registering the business in PEI, you must choose one of the best business structures for you. It determines everything starting from your tax situation to the liability you as an individual may bear. So it’s advisable to get it right at the beginning.
It’s the easiest way to start a PEI business. You’re the boss, you call the shots, and you’re responsible for all the debts.
Best for: Consultants, small start-ups, or freelancers.
Thinking of going into business with someone else? Then perhaps partnership is for you. Profits, responsibilities, and liabilities go alike. You share them all with the partner(s).
Best for: Two or more people who desire to merge their skills and resources.
A corporation is a separate legal entity from you. It provides the best asset protection for personal assets but involves more paper work as well as regulation.
Best for: Companies looking to expand substantially, seeking investor money, or desire best liability protection.
How to Start a Business in PEI: The Registration Process
Now for the main event—actually registering your business. The process varies slightly depending on your chosen structure, but here’s what you need to know.
Step 1: Decide on Your Business Name
It’s trickier than it seems. Your name must be:
- Original: It can’t be too much alike with the existing businesses in Nova Scotia
- Descriptive: It should give people some idea of what you do
- Available: You must verify the name not being in use
You’ve got two choices here: select a numbered company (such as “3456789 Nova Scotia Limited”) or select a named company. Most find a named company appealing because it’s more memorable and helps with branding.
Before you get in love with the perfect name, you’ll want to run a name pre-search . It checks Canadian business databases for available use of the name you’ve picked.
Tip: Think of 3-5 potential names before you begin. It may well turn out it’s already being used as your first choice. In any case, you don’t want to begin all over again.
Step 2: Incorporate Your PEI Corporation
Here’s where the official magic happens. The PEI business registry is managed by the Office of the Attorney General, and you can complete your registration online, by mail, or in person.
Articles of Incorporation act as the cornerstone of your PEI limited company. The document contains the basic outline and the regulation of the corporation.
You’ll need to include:
- Business Name: Actual name you desire to register (with the words “Limited,” “Ltd.,” “Incorporated,” “Inc.,” ).
- Share Structure: How many shares you’re authorized to issue, what classes of shares exist, and any special rights or restrictions.
- Business Restrictions: Any restrictions on the company doing (most small businesses select “unlimited” in order to keep it loose).
- Number of directors: How many directors will sit on your board at a minimum of one in PEI.
- Registered office address: An actual address at PEI where documents will arrive (Has to be a physical address, not a P.O. box). In case you don’t have a physical address in PEI, Canada Incorporation Agency can provide a registered office address for you.
- Incorporator information: Name and address of the person who files for incorporation
Don’t panic—there’s already a standard template available that guides you through all of this.
Key point: You may also incorporate federally if you intend to do business all over Canada, but it’s an easier and less costly way for businesses to incorporate provincially. If you are wondering which corporation suits you best, here is the comparison table:
| Feature | PEI Incorporation | Federal Incorporation |
|---|---|---|
| Jurisdiction | Registered under the Prince Edward Island Business Corporations Act. | Registered under the Canada Business Corporations Act (CBCA). |
| Geographic Scope | Legal recognition and name protection apply only within Prince Edward Island. | Legal recognition and name protection apply across all of Canada. |
| Business Name Approval | Checked and approved by the PEI Business Registry. | Requires a federal NUANS name search for nationwide uniqueness. |
| Registration Process | File Articles of Incorporation with the PEI Business Registry (Registry of Companies). | File Articles of Incorporation online through Corporations Canada. |
| Costs (Government Fees) | Generally lower incorporation and filing fees. | Slightly higher incorporation fees compared to provincial. |
| Annual Filings | Must file annual returns with the PEI Business Registry to stay in good standing. | Must file annual returns with Corporations Canada plus extra-provincial registrations in each province/territory where business operates (including PEI if operating there). |
| Administrative Workload | Simpler if operating mainly within PEI. | More complex—requires both federal and provincial compliance filings. |
| Recognition | Recognized primarily within PEI. | Recognized nationwide; may provide more credibility for expansion. |
| Expansion Potential | Must register extra-provincially in each province if expanding beyond PEI. | Already recognized across Canada but still requires extra-provincial registration in provinces of physical operation. |
| Best For | Businesses planning to operate mainly within Prince Edward Island. | Businesses planning to operate or expand nationally across Canada. |
Step 3: Select Your Directors
Each PEI corporation must have at least one director. Directors are responsible for managing the business and making major decisions.
Requirements for directors:
- Should be at least 18 years old.
- No Canadian residency requirement ( the directors don’t have to be the citizens of Canada or permanent residency holders).
- Can also be the same individual as the officer and shareholder.
For the majority of small businesses the owner just makes himself the only director. Simple.
Step 4: File Your Incorporation Documents
It’s time to go official. You’ll register your documents with the PEI Government. Canada Incorporation Agency will do it for you. All you need to do – fill out a simple form on our website. It will not take longer than 10 minutes. Our corporate filing agent will review your application and contact you to confirm everything is up to date. After that, he will create a draft and submit it with the PEI Government.
Once it’s approved, you’ll get your Certificate of Incorporation by email. Well done – you’re now incorporated.
Step 5: Get Your Business Number
Once you incorporate in PEI, you must register for the Business Number through the Canada Revenue Agency (CRA). It is the Canada Revenue Agency’s identification number for the company for tax purposes.
Use the Business Number for:
- Subscribe for GST/HST (when needed)
- Open payroll accounts (if applicable for you financially)
- Corporate tax returns filings
Step 6: Create Corporate Records
Your PEI limited company must hold the right company records. These consist of:
Corporate minute book: A binder (physical or electronic) where all key corporation documents are kept.
Bylaws: Rules for how your corporation runs on the inside.
Share certificates: Documents showing who owns shares in the company
Minutes of meetings: Directory of director and shareholder meetings
Resolutions: Official decisions by directors or shareholders You may make them yourself using templates, have an attorney draw them up, or use this service as part of the package.
Step 7: Open a Business Bank Account
Now that you’re registered as a company, you must keep company finances entirely distinct from your personal finances. To set up for business bank account you generally require:
- Your Certificate of Incorporation
- Articles of Incorporation
- Business Number for CRA
- The Director and signing authority identification
- Bylaws and corporate resolutions
Shop around—business banks vary their features and charges for business bank accounts. Try to find one with small fees per month, decent internet banking, and decent small business assistance.
Conclusion
Now you exactly know how to register a business in PEI! Although the process may have seemed intimidating at first, now you can see it’s really possible when it’s broken down in straightforward steps.
Whether you’re opening the next technology hotspot, the next flower boutique, or the next consultancy firm, Prince Edward Island presents the perfect setting for entrepreneurs. The encouraging business network, responsive government resources, and lovely quality of life provide the perfect environment for establishing the dream.
So why not? Take the first official step toward business life. Go online today at the PEI business registry, select your business structure, choose that ideal name, and bring your entrepreneurial dream into existence.
