This page provides a summary of the essential information and procedures involved in incorporating a business in Prince Edward Island, Canada; we describe several ways to create a Prince Edward Island corporation.
Canadian Federal Corporations are regulated by the Canada Business Corporations Act (CBCA), while corporations that are created as Prince Edward Island provincial Corporations are regulated by the Companies Act of P.E.I. You can find out more about the differences between Provincial and Federal Corporations in our general article presenting an overview of incorporating a business in Canada.
Prince Edward Island Incorporation Fees
In order to create a corporation in Prince Edward Island, you must file the required forms; however, in order to complete the process, there are mandatory incorporation fees to be paid:
- $265 – Incorporation fee, payable to the Provincial Treasurer.
- $40 – Fee for mandatory name search, performed by the PEI Consumer, Corporate & Insurance Services Division.
The total fee for incorporation is $305. Of course, there are also related costs such as the purchase of a corporate seal and the annual filing fee of $30.00 for your corporation’s mandatory annual return.
There are several options to proceed with the creation of your Prince Edward Island corporation: proceed with the incorporation by yourself; use an online incorporation Service Provider; or hire a corporate lawyer to create your business.
How to Incorporate a Business in Prince Edward Island by Yourself
To incorporate your business in Prince Edward Island yourself, whether in the office or by mail, you will need to submit the following documents:
- Application for Incorporation – you will need to fill out two copies of this form. Both must bear your signature; you can download the form online HERE.
- Affidavit – you will need to submit a notarized affidavit attesting to your role in forming the new corporation.
- Attorney’s Statement – you also must submit a signed statement by a practicing lawyer in Prince Edward Island affirming that the application complies with Prince Edward Island law.
- NUANS Search – a Prince Edward Island-based search provides a report that compares your proposed name for your Corporation with the names of existing corporations. Visit the NUANS website.
- Incorporation Fee – Your cheque for $265 made out to the Provincial Treasurer.
These documents can be submitted in person or via postal mail to the provincial government.
How to Incorporate a Prince Edward Island Business Using Online Incorporation Services
If you do not feel comfortable incorporating your Prince Edward Island corporation by yourself, or don’t want to seek out a lawyer in PEI to file the forms on your behalf, but the actual business is itself not very complex, you may wish to consider an online incorporation company, a Service Provider.
Online services provide an order form on their websites; you will fill out all of the information about your future Prince Edward Island Corporation. You will pay the fees above to the Provincial Government, but also a standard fee charged by the online service provider for their incorporation service.
Many service providers also offer additional materials you may need for your corporation, including minute books, corporate seals, share certificates or other supplies; you can also register for federal tax accounts using most online services.
These businesses still rely on your personal expertise and knowledge; at the same time, these companies file numerous incorporation requests and should be able to flag potential problems or answer simple questions about the process. You will not need to obtain your own notary or lawyer to use these services.
Two online incorporation companies that can help you to create a Prince Edward Island corporation are:
Incorporating a Business in Prince Edward Island Through a Corporate Lawyer
The most expensive, yet most secure, way to incorporate a business in Prince Edward Island is to hire a corporate lawyer, business entity lawyer or start-up lawyer to review and file your incorporation papers on your behalf. As a professional responsibility, a lawyer will ensure that your filing is fully correct and will also be able to provide legal advice regarding your business and which type of incorporation you should pursue.
Of course, hiring a lawyer presents an added legal cost. These legal fees could add up to hundreds or thousands of dollars, depending on the complexity of your business. Of course, in the more complex cases, you may pay more to do it yourself and risk damaging errors in the future.
To find a lawyer in Prince Edward Island to help incorporate your business, please visit the website of The Law Society of PEI for a referral directory and guides to choosing an attorney.