Business Advisory Services: Business Start-Up in Prince Edward Island
Provincial Business Registration: Sole Proprietorship
Often a person starting in business for the first time will operate as a sole proprietorship because there are
fewer costs involved in getting started. Later if the business proves to be successful the sole proprietor can
incorporate a company and have the business carried on by a corporation.
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One person performs all the functions required to operate the business successfully
The proprietor is held personally liable for the debts, obligations or acts of the business
The proprietor is said to be self-employed
If you are a sole proprietor, you pay personal income tax on all revenue generated by your business. You also
assume all of the risks of the business.
How Do I Register a Business Name?
A business name must be registered before it is used, and stationery, signs, advertising etc should not be
purchased or used until after the business name has been registered. The reason for this is that the business
name may not be available.
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Decide on exact words to be used in business name
Request a name search (NUANS) to see if proposed name is available (fee is $40)
o Visit the Shaw Building at 95 Rochford Street, Charlottetown or call 368-4550 for more
information on NUANS and to get a search done
If the name is available, then registration can be completed (fee is $75 + publication fee of $15)
o Application forms are available at Access PEI sites or online and submitted with payment to the
Shaw Building as above: http://www.gov.pe.ca/forms/pdf/78.pdf
Total registration fee for sole proprietorship: $130
A business name registration is valid for three years from the date of registration. The fee to renew a Sole
Proprietorship is $75.
TIP: A Sole Proprietorship can be operated under the individual’s name without the need for registration.
(source: http://www.gov.pe.ca/infopei/index.php3?number=16920)
Business Advisory Services: Business Start-Up in Prince Edward Island
HST
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Charged on all goods and services that were previously subject to GST
The same rules for administration of GST apply to HST
Combined HST rate is 14%; provincial rate of 9% and federal rate of 5%
You do not have to register for HST if you are a sole proprietor, partnership or corporation and your total
revenues from taxable supplies (before expenses) from all your businesses are$30,000 or less in the last four
consecutive quarters.
For most businesses, if your revenue from the sales of taxable goods and services over one year is not expected
to exceed $30,000 you are not required to register, though it may be in your best interest to do so anyway; iIf
you do not register, you do not have to charge GST to your customers, but you will not be able to receive a
refund for GST paid on business expenses.
Total revenues from taxable supplies means your worldwide revenues from your supplies of goods and services
that are subject to GST/HST (including zero-rated supplies) or that would be subject to tax if supplied in Canada.
Taxable supplies are goods and services that are made in the course of a commercial activity.
Business Number (BN)
The business number (BN) is used for liaising with CRA for government processes, including payroll,
importer/exporter permit (customs), Corporate Income Tax, and GST – forms are available at some Access PEI
Centres or from CRA in Charlottetown 1 800 959 5525 or Summerside 1 800 267 6999
TIP: You can register online with CRA and do your business name search, registration and business number all in
one step at http://www.cra-arc.gc.ca/tx/bsnss/tpcs/bn-ne/bro-ide/menu-eng.html