Saskatchewan Business Registration (6 Step Detailed Guide)

Registering a business in Saskatchewan marks a pivotal moment in your entrepreneurial journey. Irrespective of whether you're establishing a sole proprietorship or a corporation, the procedure encompasses a series of crucial steps to ensure your business aligns with provincial regulations. Within this comprehensive guide, we will systematically lead you through the six fundamental steps required for business registration in Saskatchewan.

Step 1 - Do You Need to Register Your Business?

Before going through the effort of registering your business, double check that you actually need to register.

The Saskatchewan Business Registry clarifies the requirements to register your business:

You DON'T need to register your business if:

• You are operating a sole proprietorship under your personal name (ex. “John Smith”)

• You are practising a profession regulated by a governing body (e.g. doctor or lawyer) and your firm is operating under the name of a current or former associate

  You DO need to register your business if:

• You are operating a business under any other name (e.g. John Smith Consulting)

• Your business is operating under any other scenario not detailed above

Step 2 - Choose the Right Saskatchewan Business Structure

The two primary business structures in Saskatchewan are sole proprietorship and corporation. Other less common structures such as partnerships or unlimited liability corporations will not be the focus of this article.

Different Business Structures in Saskatchewan

Corporation (Saskatchewan)

Description. A legally separate business owned by shareholders. Governed by the Business Corporations Act (Saskatchewan).
Name reservation fee:$50
One-time government fee: $255
Annual government fee: $50

Corporation (Federal)

Description. Similar to a Saskatchewan Corporation but governed by the Federal district. 25% resident Canadian requirement.
One-time government fee: $200
Name search fee: $13.80
Annual government fee: $12

Sole Proprietorship

Description. A sole proprietorship is a business structure in which a single individual owns and operates the business, making them personally responsible for its profits, losses, and liabilities.
Name reservation fee:$50
Government Fee: $60 every 3 years

Partnership

Description.A partnership is a business legal structure in which two or more individuals or entities collaborate to manage and operate a business, sharing its profits, losses, and responsibilities according to the terms of a partnership agreement.
Name reservation fee:$50
Government Fee: $60 every 3 years

Pros and Cons of Different Business Structures

Business Type	Setup Fees	Pros	Cons
Corporation	$$$	Legal shield, easier to invest in, potential tax benefits	More complex, more expensive to set up and maintain
Sole Proprietorship	$	Simple structure & reporting	No legal separation between the individual and the business
Partnership	$	Can share costs between individuals	No legal shield, decisions require consensus between partners

Illustrative Costs Associated With Each Business Structure in Saskatchewan

	Corporation	Sole Proprietorship
One-time Government Name Search or Reservation Fee	Federal - $13.80 Saskatchewan - ~$50	$50
One-time Government Fee	Federal - $200 Saskatchewan - $255	$60
Annual Government Fee	Federal - $12 Saskatchewan - $50	$60 fee paid once every 5 years
One-time Extra-Provincial Name Registration Fee	Federal - $50 Saskatchewan - N/A	N/A
One-time Extra-Provincial Registration Fee	Federal - $255 Saskatchewan - N/A	N/A
Annual Extra-Provincial Registration Fee	Federal - $60 Saskatchewan - N/A	N/A
Legal	Lawyer ($1000+ and $500+/year), Ribbon ($300+/year)	$0+
Accounting	$1000+ for tax return preparation	$300+ for tax return preparation
Accounting Software	$0 to $700/year	$0 to $700/year
Payroll Software	$20/month + $3/employee	$20/month + $3/employee

Disclaimer. This are ballpark numbers to give a sense, situation and requirements will dictate

Step 3a - Register a Sole Proprietorship in Saskatchewan

Registering as a Sole Proprietorship in Saskatchewan is quick and can be completed online.

Steps to register a Sole Proprietorship:

1. Create Saskatchewan Corporate Registry Account. Navigate to the Corporate Registry Application and create an account.

2. Search for name conflicts. Check for name conflicts for your proposed name using the Corporate Registry Application and the Canadian Trademarks Database.

3. Reserve Name. Within the Corporate Registry Application reserve a name by navigating to File -> Business Names -> Reserve Name. The fee to reserve a name is $50.

4. Register a Sole-Proprietorship. Within the Corporate Registry Application register a sole proprietorship by navigating to File -> Business Names -> Register. The fee is $60 and lasts for 3 years.

Step 3b - Incorporate in Saskatchewan

Businesses can be incorporated in Saskatchewan as either a Federal Corporation or a Saskatchewan Corporation. There are some relatively minor differences but importantly both can sell across Canada and across the globe.

Legal name protection

Federal Corporations have legal name protection across all of Canada and can move their headquarters across Canada, while Saskatchewan Corporations have name legal protection only in Saskatchewan and must maintain an address in Saskatchewan.

Federal Corporation with Saskatchewan Extra-Provincial Registration

The most flexible choice for corporations in Saskatchewan is a Federal Corporation with an Saskatchewan Extra-Provincial Registration.

Extra-Provincial Registration

Extra-provincial registration in Canada refers to the process of a business entity obtaining permission to operate in a province or territory other than the one in which it was initially incorporated.

Steps to Incorporate a Federal Corporation with Saskatchewan Extra-Provincial Registration:

1. NUANS Name Search. Conduct a NUANS name search through the Corporations Canada portal. Cost is $13.80 and is completed almost immediately.
2. Incorporate with Corporations Canada. Through the online portal, the same one you used for the NUANS Name Search, incorporate your business and pay a $200 fee. Corporations Canada provides recommended text you can use for items such as share classes, restrictions on share transfers, etc. Through the process you are required to sign the Articles of Incorporation and Initial Registered Office Address and First Board of Directors both of which are generated for you. You must keep a signed copy of both these documents.
3. Saskatchewan Extra-Provincial Registration:

• Create a Corporate Registry Account. Navigate to the Corporate Registry Application and create an account.

• Reserve Name. Within the Corporate Registry Application reserve a name by navigating to File -> Business Corporations -> Reserve Name. The fee to reserve a name is $50.

• Extra-Provincial Registration. Within the Corporate Registry Application register an extra-provincial corporation by navigating to File -> Business Corporations -> Register. The fee to register an extra-provincial corporation is $255.

4. Set Up Minute Book and Resolutions. Each corporation must maintain a minute book, which holds registers, ledgers, bylaws, resolutions, articles of incorporation, etc. Every corporation must also have the board of directors and shareholders issue certain resolutions relating to topics such as bylaws, appointing officers and directors, waiving of an auditor, etc. This step can get pretty confusing and it's recommended you hire legal/accounting advisors or use a service like Ribbon to do this for you.

Step 4 - Set Up Tax Accounts

Canada Revenue Agency Business Number. A business requires a Canada Revenue Agency Business Number if it is a corporation or if it needs a CRA Account (GST/HST, Payroll Deductions, Import/Export)

Saskatchewan Integration with Canada Revenue Agency

Every Saskatchewan Corporation is automatically signed up for the Canada Revenue Agency (CRA) Business Number (BN). When filing a T2 Tax Return with the Canada Revenue Agency, the Saskatchewan taxes are automatically included so no separate provincial income tax return is required.

Goods and Service Tax/Harmonized Sales Tax (GST/HST) Account. If a business has sales of greater than $30,000 within the past 12 months it must register for a GST/HST account with the Canada Revenue Agency. Businesses that don't meet this mandatory threshold may still optionally register for the GST/HST account.

Payroll Account. If you have employees, and you hire them as employees not as contractors, you must register for a Payroll Account with the Canada Revenue Agency. Certain mandatory deductions such as Canada Pension Plan, Employment Insurance and Income Tax Deductions are remitted through the Payroll Account.

Provincial Sales Tax. All businesses operating in Saskatchewan are required to be licensed or registered with the Ministry of Finance for PST purposes. Businesses can register with the Online Provincial Sales Tax Registry.

Step 5 - Obtain Licences and Permits

Registering for business permits and licenses is of utmost importance in Saskatchewan as it ensures that your business complies with the law and operates legitimately. These permits and licenses are not just a legal necessity; they also play a critical role in safeguarding your business from potential fines, legal issues, and disruptions. Additionally, they can bolster your business's reputation and trustworthiness among customers and partners, ultimately contributing to your long-term success and sustainability in the market.

In general, Saskatchewan is known for its business-friendly environment. If you ever have any uncertainties regarding the requirements, you can contact a local government entity (such as the city or province) and consult with a representative who can help clarify the necessary steps for obtaining the right permits or licenses.

tip

BizPal is a great resource to find permits and licences

Step 6 - Stay Compliant - Annual and Ongoing Obligations of Saskatchewan Businesses

Sole Proprietorship Obligations

A sole proprietor must file a T1 Tax Return (Individual Tax Return) if the business:

• has to pay tax for the year;
• disposed of a capital property or had a taxable capital gain in the year;
• has to make Canada Pension Plan/Quebec Pension Plan (CPP/QPP) payments on self-employed earnings or pensionable earnings for the year;
• wants to access employment insurance (EI) special benefits for self-employed persons; or
• received a demand from the Canada Revenue Agency to file a return.

Reference - Canada Revenue Agency

Business Registry. Sole proprietorships must renew their registration with the Saskatchewan Business Registry once every 3 years.

The remainder of the sole proprietorship obligations depends on what tax accounts, permits and licences they have signed up for.

Corporation Obligations

Corporate obligations are more demanding than the sole proprietors

Key annual and ongoing obligations

• File an annual return with the relevant business registry
• File T2 return with the Canada Revenue Agency
• File relevant returns for Canada Revenue Agency Program Accounts (GST/HST, Payroll, Import/Export, etc.)
• Maintain a minute book
• Complete mandatory director and shareholder duties
• Track and remit Saskatchewan Provincial Sales Tax to the Revenue Division
• File relevant returns or file renewals for permits and licenses as applicable

Ribbon Makes Business Easy

To keep a corporation compliant is challenging. Ribbon gives entrepreneurs the tools to help them stay compliant. From setting up minute books, maintaining registers to annual filings, Ribbon let's Entrepreneurs focus on their business. Learn more about Ribbon or email support@getribbon.ai.

Conclusion

In summary, the process of registering a business in Saskatchewan requires careful planning and a well-structured approach, as detailed in this comprehensive guide. Whether you're contemplating a sole proprietorship or incorporation, these six crucial steps offer the essential information and guidance to navigate the intricacies of initiating and managing a business in this thriving province. By diligently adhering to these steps and staying informed about your responsibilities, you can lay a strong groundwork for your business and secure its prosperity in Saskatchewan.