How to Register a Business in Nunavut: Everything You Need to Know

Are you ready to embark on an exciting journey of establishing your business in Canada’s largest and northernmost territory? Nunavut’s economy has been growing steadily. In face, Nunavut’s 3.4 per cent growth in gross domestic product in 2023 was the strongest in the country. As such, it offers unique opportunities for innovative businesses. Whether you’re a local resident or looking to expand your enterprise into this vast and beautiful region, understanding how to register your business in Nunavut is a crucial first step.

In this comprehensive guide, we’ll walk you through the essential process of registering your business in Nunavut. From navigating local regulations to understanding the unique business landscape of the territory, we’ve got you covered. Whether you’re starting a small local shop or planning a larger venture, this article will provide you with the knowledge and confidence to navigate the registration process successfully.

So, are you ready to turn your business dreams into reality in Canada’s Arctic jewel? Let’s dive in and discover how to register your business in Nunavut!

1. Overview of Business Registration in Nunavut

Registering a business in Nunavut is a crucial step for entrepreneurs looking to operate legally in the territory. The process involves specific requirements and steps to ensure compliance with local regulations.

Do I Need to Register My Business in Nunavut?

If you’re operating under your own name without adding a business name, registration may not be necessary. However, if you use a name other than your own (e.g., “Arctic Designs”), registration is required. It’s important to note that even if you’re not required to register, doing so can provide legal protections and credibility for your business.

Registering your Nunavut business with the NNI Secretariat makes you eligible for certain benefits. These include a 5% bid adjustment when bidding on Government of Nunavut contracts.

When Do You Have to Register a Business in Nunavut?

You should register your business before you start operating in Nunavut. This ensures you’re compliant with local laws from day one. For existing businesses, you may need to register if you’re expanding operations into Nunavut. It’s best to complete the registration process as soon as you decide to conduct business in the territory.

Remember, operating without proper registration can lead to legal issues and missed opportunities for government support.

Who Can Register A Business In Nunavut?

To qualify as a registered Nunavut Business under the Nunavummi Nangminiqaqtunik Ikajuuti policy, your enterprise must meet specific criteria. These include being a for-profit limited company wholly owned by Nunavut residents or businesses, a co-operative controlled by Nunavut residents or businesses, a sole proprietorship owned by a Nunavut resident, or a partnership where all partners are Nunavut residents or businesses.

Additionally, your business must maintain a registered office in Nunavut, have a resident manager with decision-making authority residing in the territory, conduct the majority of its operations within Nunavut, and be listed on the NNI Nunavut Business registry before any procurement process concludes

Where to Register a Business in Nunavut

You can register your business with the NNI Secretariat. Here’s how:

1. Print an application form
2. Complete the form and attach required supporting documents
3. Sign the form
4. Send the completed application to NNI Headquarters

The process typically takes up to 6 weeks for a completed application to be fully processed. There’s no charge for registration on the NNI Business Directory.

How Much Does It Cost to Register a Business in Nunavut?

The cost of registering a business in Nunavut varies depending on the type of business structure you choose. For example, registering a corporation is around $300.

It’s important to note that these fees can vary depending on the service provider and the specific services included in the registration package. For the most accurate and up-to-date information, it’s advisable to consult the Nunavut Legal Registries or authorized service providers directly.

2. Types of Business Ownership in Nunavut

Nunavut offers several options for business ownership. Each structure has unique characteristics regarding liability, taxation, and operational control. Understanding these differences will help you choose the best fit for your enterprise.

Sole Proprietorship in Nunavut

A sole proprietorship is the simplest form of business ownership in Nunavut. You operate the business yourself and have full control over all decisions. This structure is easy to set up and requires minimal paperwork.

As a sole proprietor, you’ll need to register your business name if it’s different from your own. You’re personally responsible for all debts and obligations of the business. The main advantages include:

• Low startup costs
• Simple tax reporting
• Full control over business decisions

Keep in mind that you’ll need to obtain necessary permits and licenses. Your personal assets are at risk if the business faces legal issues or debts.

Partnerships in Nunavut

Partnerships involve two or more individuals or entities running a business together. In Nunavut, you can form a general partnership or a limited partnership.

General partnerships share profits, management responsibilities, and liabilities equally among partners. Limited partnerships have at least one general partner with unlimited liability and one or more limited partners with liability restricted to their investment. To establish a partnership:

1. Create a partnership agreement
2. Register your business name
3. Obtain required licenses and permits

Partnerships offer shared decision-making and pooled resources. However, disputes between partners can arise, so a clear agreement is crucial.

Corporations in Nunavut

Incorporating your business in Nunavut creates a separate legal entity. This structure offers personal asset protection and potential tax benefits. You can incorporate federally or territorially. To incorporate in Nunavut:

1. Choose a unique name
2. File Articles of Incorporation
3. Establish a registered office in Nunavut
4. Appoint directors

Corporations must comply with legal requirements to operate in Nunavut. This includes annual filings and maintaining proper records. Benefits of incorporation include:

• Limited liability
• Easier access to capital
• Potential tax advantages

The downside is increased paperwork and higher setup costs compared to other structures.

3. Before Registering Your Business

Preparing to register your business in Nunavut involves several key steps. You’ll need to conduct a name search, meet reservation requirements, and gather essential information and documents.

NUANS Name Search

Access the NUANS System

• Visit the official NUANS website.
• You can directly conduct a pre-search online for basic name availability checks.

Select the Jurisdiction

• Specify whether you are conducting the search for:
  • Federal incorporation or registration.
  • Provincial/territorial incorporation or registration (e.g., Nunavut or other provinces).

Submit a Request

• You will need to provide:
  • Your proposed business name(s).
  • Details about the nature of your business.

Pay the Required Fee

• The cost of a NUANS report is typically around $13.80 to $25, but fees can vary depending on the service provider.

Receive the NUANS Report

• The NUANS system will generate a report listing similar names currently registered. This helps determine whether your proposed name is distinct and acceptable.

Finalize Registration

If the name is not available, revise your proposed name and repeat the process. If the name is available, you can proceed to register it for your business.

Name Reservation Requirements

Once you’ve completed the NUANS search and found an available name, you’ll need to reserve it. Name reservation is a crucial step in the business registration process. To reserve your business name:

1. Fill out the name reservation form
2. Submit the form to the Nunavut Legal Registries
3. Pay the reservation fee

Your name reservation is valid for 90 days. During this time, you should complete the business registration process to secure your chosen name.

What Else Do I Need to Register a Business in Nunavut?

To register your business in Nunavut, you’ll need to gather several important documents and information. Ensure you meet the criteria for registration before proceeding. Copies of the following documents are required to complete an NNI Nunavut Business Registry Application.

For a SOLE PROPRIETORSHIP:

• Certified copy of a Certificate of Status of Business Name issued by the
  Department of Justice, Nunavut Legal Registries Office
• Business License from the local hamlet/municipality
• Statutory Declaration and Nunavut ID from Owner and Resident Manager

For a PARTNERSHIP:

• Certified copy of a Declaration of Partnership issued by the Department of
  Justice, Nunavut Legal Registries Office (867) 975-6590
• Business License from the local hamlet/municipality
• Statutory Declaration and Nunavut ID from all Owners and Resident Manager

For an INCORPORATED BUSINESS:

• Certificate of Compliance (annual filings) issued by the Department of Justice,
  Nunavut Legal Registries Office
• Articles of Incorporation issued by the Department of Justice, Nunavut Legal
  Registries Office
• Certificate of Compliance issued by Workers’ Safety Compensation
  Commission
• Business License from the local hamlet/municipality
• Statutory Declaration and Nunavut ID from all Owners and Resident Manager
• Shareholder Register maintained at the Records Office of the Corporation
• If any, all agreements affecting control and ownership of the business
• If any, all by-laws affecting control and ownership of the business

For a CO-OPERATIVE ASSOCIATION:

• Letter of Compliance issued by the Department of Economic Development and
  Transportation
• Certificate of Compliance issued by Workers’ Safety Compensation
  Commission
• Business License from the local hamlet/municipality
• Statutory Declaration and Nunavut ID from Resident Manager
• List of Members maintained at the Records Office of the Association
• If any, all agreements affecting control and ownership of the business
• If any, all by-laws affecting control and ownership of the business

4. How to Register a Business in Nunavut: Step by Step

Registering a business in Nunavut involves different processes depending on the business structure you choose. The territory offers options for sole proprietorships, partnerships, and corporations, each with its own set of requirements and procedures.

How to Register a Sole Proprietorship in Nunavut

To register a sole proprietorship in Nunavut, you’ll need to complete an application form and submit it to the NNI Secretariat. This process is straightforward and can be done online or by mail.

As mentioned earlier, you need to choose a unique business name and conduct a name search to ensure it’s available. Then, register your business name with the Department of Justice. Next, obtain any necessary licenses or permits for your specific industry. You may need to register for a GST/HST account if your annual revenue exceeds $30,000.

Remember to renew your registration every two years to maintain your status as a Nunavut business.

How to Register a Partnership in Nunavut

Registering a partnership in Nunavut follows a similar process to sole proprietorships. You and your partners will need to agree on a business name and structure. Complete the partnership registration form and submit it to the Department of Justice. Include details about all partners and their respective roles in the business.

Obtain a partnership agreement that outlines responsibilities, profit-sharing, and dispute resolution procedures. This isn’t legally required but is highly recommended. Register for any necessary licenses and permits specific to your industry. Consider getting professional advice on tax implications and liability issues for your partnership.

How to Incorporate a Business in Nunavut

Incorporating your business in Nunavut provides limited liability protection and potential tax benefits. Start by choosing a unique corporate name and reserving it with the Department of Justice. Prepare and file your Articles of Incorporation, which include details about your company’s structure, shares, and directors. You’ll need to appoint a registered agent in Nunavut.

Create corporate bylaws and hold your first directors’ meeting. Issue shares to your initial shareholders and set up a minute book to record important company decisions. Register for a federal business number and any required territorial licenses. Consider professional assistance to ensure compliance with Nunavut’s corporate regulations.

Resources for Registering a Business in Nunavut