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how to register a business in alberta

How to Register A Business in Alberta

Do you make delicious homemade pickles using a secret family recipe? Are you the type of person who absolutely loves working on cars in your spare time? Regardless of your local claim to fame, you may want to consider turning your hobby into a small business.

Being self-employed is much more common than you’d think — approximately 2.9 million Canadians are self-employed, with just over 320,000 of them living in Alberta.

But, before you start generating sales, you need to take care of a handful of essential tasks. One of the most overlooked (yet crucial) tasks is registering your business. If you’re thinking about starting a small business but don’t know how to register a business in Alberta, be sure to continue reading.

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What does “register a business” mean and why is it important?

Simply put, registering your business is the act of declaring the existence of your business to the Canadian government.

There are two primary reasons why you’ll want to register your business in Alberta.

First of all, registering a business name in Alberta can help you avoid or give you the upper hand in future legal disputes (related to the usage of your business name). We’ll touch on this again shortly.

Additionally, business owners register their business names for tax purposes. As you likely know, business owners need to pay HST and GST on their income if they make over $30,000 by the end of the fiscal year. In order to make these payments, business owners must register their business with the government.

Are different types of registration required for various businesses?

Simply put, yes, there are two different types of registration that business owners can choose from in Alberta.

The type of registration that you need depends on what kind of business you plan on running:

Registering a trade name in Alberta

If you’re starting a small business by yourself or with one partner, you’ll want to register a trade name or partnership. These types of business registrations are required for sole proprietorship (an individual who owns and runs a business), partnership, limited partnership or limited liability partnership.

Registering as a corporation in Alberta

If you’re starting a business with a group of people, you’ll need to register as a corporation. To register a corporation in Alberta, you’ll need to supply the following information to the provincial government:

  • The name and address of the corporation
  • The type of corporation
  • The general structure of the corporation
  • Information pertaining to the directors of the corporation (names, personal addresses, Canadian residency status, etc.)

How do you register a business in Alberta?

Registering a business in Alberta is easier than you’d expect — here’s a quick guide that we’ve put together:

Naming your business

First things first, you need to come up with a name for your new business. Your business name should embody your products and services. It also doesn’t hurt if your name is unique or catchy.

However, you should know that, legally speaking, names don’t have to be unique; nothing can stop you from using the exact same (or very similar) name as a pre-existing business. However, if the existing business is registered, they have the right to sue you, which can lead to an insurmountable mountain of legal fees. Because of this, it’s best to come up with something original.

Obtain a business name report

Although this step isn’t technically required, we suggest you consider getting a business name report before making a final decision. A business name report is a document stating existing business names that are similar to your prosed name.

Taking this step can help you avoid legal issues down the road, saving you a ton of time, energy and money in the long run.

Fill out the required forms

As you most likely expected, you need to fill out a number of forms before officially registering your business. The types of forms that you need to fill out vary depending on the structure of your business.

Here’s a quick list of the documents you need to complete:

  • Trade name - Declaration of Trade Name
  • Partnership - Declaration of Partnership
  • Limited partnership - Application for Alberta/Extra-Provincial Limited Partnership and Special Authority to Execute a Registration
  • Limited liability partnership - Application for Alberta/Extra-Provincial Limited Partnership and permission from Alberta governing body of the industry
  • Incorporation - Article of Incorporation, Notice of English/French Name Equivalency, Notice of Address, Notice of Directors, Notice of Agent for Service/Change of Agent for Service for an Alberta or Extra-Provincial Corporation

Bring forms to an Alberta service provider

The primary way of registering a business is by visiting an authorized Alberta service provider.

Before visiting the service provider, double-check that you have the following:

  • Filled out forms related to registering your business
  • A valid form of identification
  • Required payment

Please note that you can’t complete the registration process online.

Do you need business insurance to register a business in Alberta?

No, you do not need business insurance to register your business.

However, if you’re planning on running the business out of your home, you should know that your home insurance policy will not cover any business-related damages. If you want to ensure that your business, equipment and products are financially protected, you should look into business insurance.

If you’d like a refresher on the various types of business insurance available for Canadian business owners, you should reach out to one of our licensed insurance advisors.

Our insurance advisors are always happy to help — not to mention, our team can help you save money on business insurance by providing you with affordable quotes from the best insurance carriers in Alberta.

With the help of our team, you’ll have more affordable business insurance quotes to choose from than you’ll know what to do with!

What have you learned about registering a business Alberta?

Before reading this article, you may have thought that registering a business was an arduous battle that took months to complete. Thankfully this isn’t the case; although some paperwork is involved, the process is relatively straightforward.

If you still have questions about registering a business in Alberta, you can reach out to a service provider at any time. Your local service provider can shine some light on topics or details that are still unclear.

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