How to register your own business in Alberta?
Starting your own business in Alberta is an exciting but challenging process that requires careful planning and compliance with a number of legal requirements. Proper business registration not only gives you official entrepreneur status, but also provides a basis for legal protection, simplifies interactions with customers and suppliers, and opens up access to various support programs. This article describes in detail each stage from conception to launch of a business in the province of Alberta, covering the practical aspects of choosing a structure, registering a name, obtaining licenses, and tax registration.
Choosing a legal form
The first step is to decide on the legal form of your business. In Alberta, the most common options are sole proprietorship, partnership, or corporation. Each form has its advantages and disadvantages.
A sole proprietorship is the simplest and least expensive option: you run the business yourself, and registration and annual fees are minimal. However, you bear all financial and legal responsibility personally. A partnership allows you to combine the resources and skills of several people, but all partners are liable for the business's obligations. A corporation is a separate legal entity that limits your liability to the amount of capital contributed; this option is appropriate for businesses with significant investments or plans for rapid growth, but requires more complex accounting and stricter reporting.
Once you have chosen a structure, consider your future needs: do you plan to bring in partners, seek investors, sell shares, or scale your business beyond Alberta? If your long-term vision includes entering international markets or attracting outside investors, a corporation is often the best choice due to its flexibility in issuing shares and limiting liability.
Selecting and registering a business name
The next step is to choose a unique name for your company. The name must be original and not conflict with existing trademarks. To check the availability of a name, use the NUANS (Newly Upgraded Automated Name Search) service, which generates a report on similar or identical names in Alberta and at the federal level. The NUANS report is valid for 90 days, so be sure to submit your application before it expires.
If you have chosen to work with a partner or form a corporation, the name must include the designation of the legal form: “Ltd.” or ‘Limited’ for corporations, “Association” for non-profit organizations, etc. Once the name has been approved, it must be registered with Service Alberta through the My Alberta Digital ID portal or in person at one of the Alberta Registries centers. The fee for registering a name is approximately CAD 60, and the fee for issuing a certificate is approximately CAD 40.
If you change your company name in the future, you will have to repeat the NUANS procedure and submit updated information to the registry, so it is worth considering the name carefully from the outset.
Submitting documents and paying fees
After registering the name, the next step is to actually register the business. Sole proprietors and partners submit a Statement of Registration to Alberta Registries, indicating the business name, address, owner details, and a description of the business. Corporations must submit Articles of Incorporation, which include statutory documents, share capital structure, and information about the director(s).
Documents are submitted online through the Corporate Registry portal on Alberta.ca, or you can use the services of private registration agencies. The total amount of government fees ranges from CAD 100 to CAD 400, depending on the structure and type of registration. The cost of additional certificates and extracts from the registry also varies, usually around CAD 25 per document.
After payment and submission of documents, you will receive a confirmation of registration and a Business Number (BN) from the Canada Revenue Agency (CRA), which is required for tax registration and interaction with government programs.
Registration with the Canada Revenue Agency and GST/HST
Once you have your BN, your business must register to pay taxes. If your annual income exceeds CAD 30,000, registration for Goods and Services Tax (GST) or Harmonized Sales Tax (HST) is mandatory. The GST rate in Alberta is 5%. Registration can be done online through the CRA web portal using the BN.
Corporations and businesses that pay salaries must also register for Payroll Deductions — the collection of employee income taxes, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums. The CRA provides an online service called My Business Account, which allows you to manage all your tax obligations, file reports, and receive notifications from the agency.
After registering for GST/HST and payroll, your BN will receive the appropriate accounts, which indicate which tax obligations you are responsible for. Keep track of filing and payment deadlines: GST/HST — quarterly or annually, depending on sales volume; payroll — monthly or even weekly for large businesses.
Local licenses and permits
Even a registered business needs local permits and licenses depending on the type of activity. Municipal transportation, health, construction, and product trade authorities require separate permits. For example, cafes or restaurants need food health and safety bonds, and construction contractors need licenses from Alberta Municipal Affairs.
Municipal license fees vary: retail outlets pay between CAD 50 and CAD 500 annually, while construction companies pay between CAD 200 and CAD 1,000, depending on the scope of work. Before starting work, check with the city council (e.g., City of Calgary or City of Edmonton) for requirements for business owners in a specific industry.
In addition, a license from the Alberta Gaming, Liquor & Cannabis Commission (AGLC) is required to sell alcohol. Importing products or using protected trademarks requires separate permits and registration with the Canadian Intellectual Property Office (CIPO).
Mandatory insurance and compensation fund
Alberta law requires certain businesses to have liability insurance. For example, professional consultants, accountants, and lawyers must have professional liability insurance with a minimum coverage amount. For construction work, commercial general liability insurance is required to cover accidents on the construction site.
Businesses that hire employees must have Workers' Compensation insurance through the Workers' Compensation Board – Alberta (WCB-Alberta). Contributions to the WCB depend on the industry rate and the wages of your employees.
Accounting and reporting
After registration, a business must organize its accounting and financial reporting. Even sole proprietors must keep records of income, expenses, receipts, and bank statements for six years. Using accounting software such as QuickBooks or Xero greatly simplifies this process.
Corporations are required to file annual returns with the Corporate Registry and financial statements with the Canada Revenue Agency. Filing the T2 Corporate Income Tax Return annually is mandatory for all corporations, regardless of income. The filing deadline is six months after the end of the fiscal year. Accounting also includes preparing GST/HST returns, payroll reports (T4 slips and T4 Summary), and annual employee income reports to the CRA.
Support programs and consulting services
The Province of Alberta and the federal government offer a range of small business support programs: innovation grants, hiring subsidies, training courses, and mentoring programs. Alberta Innovates, Business Link, and Canada Business Network offer advice on business planning, marketing, and financing.
Community business centers, chambers of commerce, and local business associations also organize seminars and networking events. Even on a limited budget, it is worth taking advantage of free advice and resources to get off to a good start and avoid common mistakes.
Conclusion
Registering your own business in Alberta is a multi-step process that includes choosing a legal structure, verifying and registering a name, filing incorporation documents, registering with the CRA, obtaining local licenses, insurance, and organizing accounting. A thoughtful approach at each stage will not only ensure compliance with the law but also create a solid foundation for the growth and success of your enterprise. Plan ahead, use available business support resources, consult with experts, and your business in Alberta will have every chance for long-term development and prosperity.