Begin Your Journey: How to Register a Business in Saskatchewan

Starting a business in Saskatchewan can be an exciting yet daunting journey. Did you know that in 2022, small businesses contributed to 24% of the province’s GDP? Whether you’re a budding entrepreneur with a groundbreaking idea or an experienced professional looking to venture out on your own, understanding the registration process is crucial for your success.

This comprehensive guide will walk you through the essential steps to register a business in Saskatchewan, ensuring you start on the right foot. From choosing the perfect business structure to navigating the necessary licenses and permits, we’ll cover everything you need to know.

By the end of this article, you’ll be equipped with the knowledge to confidently launch your enterprise and join the ranks of Saskatchewan’s thriving business community. Let’s embark on this entrepreneurial journey together and set your business up for success in the heart of the prairies!

1. Understanding Saskatchewan’s Business Registration Process

Registering a business in Saskatchewan involves specific steps and legal considerations to ensure your venture is properly established and compliant with provincial laws. Whether you’re launching a sole proprietorship, partnership, or corporation, understanding these requirements is essential for a smooth start.

Do I Need to Register My Business in Saskatchewan?

Business registration is required if you plan to operate under a name other than your legal name. This applies to sole proprietorships, partnerships, and all corporations. However, sole proprietors using only their legal names are exempt from this requirement.

It’s best to register your business before starting operations or publicly using your chosen business name. This safeguards your brand and ensures compliance with provincial laws. Registering provides legal protection, enables access to business banking, and supports your brand identity.

Who Can Register A Business In Saskatchewan?

Anyone aged 18 or older can register a business in Saskatchewan, including Canadian citizens, permanent residents, and temporary residents with valid work permits. Residency in Saskatchewan is not required to register.

Partnerships must involve at least two individuals or corporations, while corporations require directors who meet legal qualifications, such as being of sound mind and at least 18 years old. Non-profit organizations and cooperatives must follow specific registration processes with unique eligibility criteria.

What Do I Need to Register a Business in Saskatchewan?

To register your business, you’ll need:

  1. A unique business name (unless using your legal name for a sole proprietorship)
  2. Personal identification for all owners or directors
  3. Business address in Saskatchewan
  4. Description of your business activities

For corporations, additional requirements include:

You may also need to provide additional documents, such as a partnership agreement (for partnerships), business licenses or permits specific to your industry, and GST/HST registration if your business has revenue over $30,000. Preparing these documents in advance can help streamline the registration process and prevent delays in launching your business.

2. Types of Business Ownership in Saskatchewan

Saskatchewan offers several options for business ownership structures. Each type has distinct characteristics, tax implications, and legal responsibilities. Choosing the right structure is crucial for your business’s success and legal compliance.

Sole Proprietorship

A sole proprietorship is the simplest and most straightforward business structure in Saskatchewan. As a sole proprietor, you have full control over the business, its decisions, and operations. This structure is easy to establish and requires minimal paperwork.

If you operate under a name other than your legal name, you must register it, although using your legal name exempts you from this requirement. Keep in mind that you’re personally liable for the business’s debts and obligations. Profits are taxed as personal income, and you’ll file a T1 General form along with a Statement of Business Activities (T2125).

This structure works well for small, low-risk businesses or those just starting out. However, personal liability and the need for business licenses in certain industries should be considered before making your choice.

Partnership

A partnership involves two or more individuals or entities sharing ownership and responsibilities in a business. Saskatchewan allows two types of partnerships: general partnerships and limited partnerships.

In a general partnership, all partners share the management, profits, losses, and liabilities. This arrangement does not provide personal liability protection, which means partners are personally responsible for the business’s debts.

A limited partnership consists of at least one general partner who manages the business and assumes full liability and limited partners who contribute capital but have limited involvement and liability.

Partnerships must be registered with the Saskatchewan Corporate Registry, which protects the business name and formalizes the partnership. While this business structure offers shared resources and expertise, it can lead to conflicts between partners and joint liabilities. Careful planning and a solid partnership agreement are crucial to minimizing risks.

Corporation

A corporation is a separate legal entity from its owners, offering the most protection for personal assets. However, setting up and maintaining a corporation is more complex than other ownership structures.

In Saskatchewan, you can incorporate provincially or federally. Provincial incorporation suits businesses operating primarily in Saskatchewan, while federal incorporation facilitates expansion into other provinces. To incorporate, you must choose a unique business name, file articles of incorporation, appoint directors, issue shares, and draft corporate bylaws.

Corporations are taxed separately from their owners, allowing for potential tax benefits. They also offer advantages like the ability to raise capital through shares and unlimited business continuity. However, corporations involve more detailed record-keeping, higher costs, and ongoing legal obligations.

Consulting with a lawyer or accountant can help determine the most suitable corporate structure based on your business needs and growth plans.

3. How to Register a Business in Saskatchewan: Step by Step

Registering a business in Saskatchewan involves choosing a structure and following specific procedures. The process varies depending on whether you’re setting up a sole proprietorship, partnership, or corporation.

How to Register a Sole Proprietorship in Saskatchewan

Registering a sole proprietorship is straightforward. If you’re starting small and want to keep things simple, this is a good option. Here are the steps involved in registering a sole proprietorship:

  1. Choose a Business Name: The first step is to pick a unique business name. Make sure it’s not already in use by conducting a name search.
  2. Register the Business Name: After selecting a name, register it online through the Corporate Registry. Here, you will provide your personal details and the nature of your business activities.
  3. Pay the Registration Fee: The registration fee for a sole proprietorship is typically $65, and it covers a 3-year period.
  4. Obtain Licenses and Permits: Depending on the nature of your business, you may need to apply for specific licenses or permits.
  5. Register for Taxes (if necessary): If your annual revenue exceeds $30,000, you will need to register for a GST/HST account.

Once these steps are completed, your sole proprietorship will be officially registered, and you can begin operations knowing that you’re compliant with provincial requirements.

How to Register a Partnership in Saskatchewan

A partnership is a great option for businesses where the workload, expertise, and capital investment are divided among partners. The registration process for partnerships in Saskatchewan follows similar steps to a sole proprietorship, but there are a few additional considerations, particularly in drafting an agreement to outline the roles and responsibilities of each partner.

Here’s how to register a partnership:

  1. Choose a Business Name: As with a sole proprietorship, the first step is to choose a name for your partnership.
  2. Create a Partnership Agreement: Drafting a partnership agreement, even though it’s not legally required, is highly recommended. This agreement will outline each partner’s role, responsibilities, and share of profits and losses.
  3. Register the Partnership: Register your partnership through the Saskatchewan Corporate Registry. Provide necessary details about the partnership, including the names of the partners and the nature of the business. This ensures that the partnership is legally recognized by the province.
  4. Pay the Registration Fee: You can find the updated registration fees on the ISC fees website.
  5. Obtain Necessary Licenses and Permits: Depending on the type of business you’re running, additional licenses or permits may be required.

Once your partnership is registered, you’ll have all the necessary legal foundations to operate your business smoothly and begin collaborating with your partners.

How to Incorporate a Business in Saskatchewan

Incorporating your business provides added benefits such as liability protection, potential tax advantages, and enhanced credibility. While the process is more complex than registering a sole proprietorship or partnership, incorporating is often a smart move if you plan to grow your business.

Here’s how you can incorporate your business in Saskatchewan:

  1. Reserve a Corporate Name: Choose a distinctive name for your corporation and reserve it through the Saskatchewan Corporate Registry.
  2. Prepare Articles of Incorporation: Draft your Articles of Incorporation, which will outline the structure of your business, the responsibilities of your directors, and your share structure.
  3. Appoint Directors and Set Up a Share Structure: You’ll need to appoint at least one director for your corporation and determine your share structure, such as the number and type of shares to issue.
  4. File Incorporation Documents: Submit your incorporation documents online through the Saskatchewan Corporate Registry. The filing fee for provincial incorporation is typically around $255.
  5. Obtain a Federal Business Number: After your business is incorporated, you will need to obtain a federal business number from the Canada Revenue Agency (CRA) for tax purposes.
  6. Register for Necessary Taxes: Depending on the nature of your business, you may need to register for GST/HST, payroll accounts, and other tax-related accounts.
  7. Register Extra-Provincially (if necessary): If your business plans to operate outside Saskatchewan, you may need to register your corporation in other provinces. This is known as extra-provincial registration and ensures compliance with regulations in those provinces.

Once your corporation is incorporated, you will have all the legal protections and benefits associated with running a corporate business, including limited liability and enhanced credibility with clients and investors.

4. Obtaining Necessary Licenses and Permits

Starting a business in Saskatchewan requires obtaining various licenses and permits at different government levels. These authorizations ensure your business operates legally and complies with local, provincial, and federal regulations.

Municipal Licenses

Municipalities in Saskatchewan often require businesses to obtain a license before operating. The requirements and fees vary by location, so it’s important to check with your local municipal office for the specifics.

For instance, in Regina, residential businesses require an annual license costing $195, while non-resident businesses operating within city limits pay $450 annually.

Some factors influencing your municipal licensing requirements include:

  • Business Location: Whether you’re running a home-based business or a commercial operation.
  • Business Activity: Different activities may require different permits.
  • Zoning Regulations: Certain locations may have restrictions based on land use.

Be sure to renew your business license annually to remain in good standing with local authorities.

Provincial Licenses

In addition to municipal requirements, Saskatchewan businesses often need to register at the provincial level. For most businesses, this includes registering for Provincial Sales Tax purposes.

Depending on your industry, you may need additional provincial licenses. Common examples include:

  • Liquor Licenses for establishments such as bars and restaurants.
  • Professional Licenses for healthcare providers, lawyers, accountants, and other regulated professions.
  • Environmental Permits for businesses in industries that impact the environment.

Visit the Government of Saskatchewan website for a comprehensive list of licenses relevant to your business. Be aware that some provincial licenses require regular renewal or ongoing compliance

Federal Permits

Certain business activities are regulated at the federal level and may require specific permits or licenses. These include industries with national oversight or those involved in international trade.

Examples of businesses requiring federal permits include:

  • Import/Export Companies that deal with international goods.
  • Radio and Television Broadcasters that operate in the media sector.
  • Banks and Financial Institutions are subject to federal financial regulations.

To find out if your business needs federal permits, you can use the Government of Canada’s BizPaL service. This online tool helps you identify the required licenses based on your business type and location.

Keep in mind that federal permits often have specialized application processes and may require periodic reporting or renewals to ensure ongoing compliance.

5. Applying for a Business Number (BN) and Tax Registrations

Registering your Saskatchewan business with the CRA is a crucial step. You’ll need to obtain a Business Number (BN), which is a unique 9-digit identifier for tax purposes.

To get your BN, you have several options:

  • Online: Use the Business Registration Online service for quick and easy registration.
  • Phone: Call the CRA’s Business enquiries line at 1-800-959-5525.
  • Mail or fax: Complete Form RC1 and send it to the CRA.

When registering, you’ll need to provide basic information about your business, such as its name, structure, and contact details. You can also register for various CRA program accounts during this process, including:

  • GST/HST
  • Payroll deductions
  • Corporate income tax
  • Import/export

Remember, not all businesses need to register for every program. Consider your business activities and consult with a professional if you’re unsure which accounts you require. Once you’re registered, make sure to keep your BN handy, as you’ll use it for all your dealings with the CRA and potentially other government agencies.

Frequently Asked Questions

Registering a business in Saskatchewan involves several key steps and considerations. The process can be completed online, with specific requirements for naming, costs, and timelines.

You can register your business name through the Corporate Registry at Information Services Corporation. Choose a unique name that’s not already in use. Conduct a name search to ensure availability. Submit your chosen name for approval along with your registration application.

To register your business in Saskatchewan, visit the Saskatchewan Corporate Registry website and create an account if you don’t already have one. Choose the type of business structure you wish to register, complete the required information, and submit any necessary documents. Pay the registration fee online, and once your application is approved, you’ll receive confirmation of your business registration.

Costs vary depending on your business structure. Sole proprietorships and partnerships typically have lower fees than corporations. Check the current fee schedule on the Saskatchewan Corporate Registry website. Be prepared for potential additional costs like name reservation fees.

Registering a business online in Saskatchewan typically takes 1 to 2 business days if all required information and documents are submitted correctly. However, the process may take longer depending on your business structure or if additional review or documentation is needed.

To register a business in Saskatchewan online, visit the Saskatchewan Corporate Registry website and create an account if you don’t have one. Choose the type of business structure and complete the necessary forms. You’ll need to provide business details, such as your business name and contact information, and submit any required documents. After paying the registration fee online, you’ll receive confirmation of your business registration once it’s approved.

Resources for Registering a Business in Saskatchewan

Government Resources

Industry Resources

Other Resources

Maurice

About the author

Maurice

Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Canada to identify and maximize funding to grow their business.

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