Alberta Incorporation Basics

Incorporating a Company in Alberta Doesn’t Have to be Difficult

Oct 2, 2009

Alberta is one of the simplest provinces to incorporate in, making it easy for new business owners to choose a corporation as their business form.

Considering incorporating? Confused by the rules? Don’t be! Alberta is fairly simple to incorporate in, and can be done at any registries office in under an hour (although it may take a few days to get confirmation).

What is Needed to Incorporate in Alberta?

In order to incorporate, a list of all directors and their addresses should be created. As well, one should make sure that any of the rules that the corporation must follow regarding share structure and restrictions on shares are included with the incorporation papers. Some registries offices are actually able to provide a standard list of share types and typical rules for this. This is a good idea for anyone starting their own business.

Shareholders do not have to be listed in the initial registration, although this option is available. Any other limits to the organization should be known ahead of time, as well. Such limits could be the type of business operated, any borrowing limits, or even limits on directors and shareholders. The limits on directors will need to be listed when first incorporating. This is typically 1 to 7 and is safe for most corporations. Anything over 15 shareholders has more rules to follow and should be considered carefully. All of the forms to incorporate can be downloaded from the Service Alberta site. The three forms required are:

Costs and Help Available in Order to Incorporate

Costs for incorporating also vary, so it’s a good idea to check this out with a couple of close by registries offices, as this can save as much as $50 from one office to another. A registries office’s fees include the government’s registration fees, which there is no GST on, and the registry office’s own fees, which are GST applicable.

Of course it’s also possible to have a lawyer, accountant, or other experienced agent do the process. This will cost more than self registration. And that cost can vary considerably; lawyers tend to cost the most. When an agent is advertising a fee of $99, for example, it does not include the government registration fees and fees from the registry office. As both of these can change, it is a good idea to be prepared. When uncertain of total cost, always ask the agent of incorporation for this. And don’t forget to ask whether agent’s the fee includes GST or not. As well, these agents rarely include such services as setting up a minute book or assisting in registering for Business and GST Numbers, and will charge more for these services.

Corporate Names in Alberta

It is possible to simply start a numbered corporation, such as “12345678 Alberta Ltd.” For some this may not be the best choice, and it may be better to have a company along the lines of “ABC Electric Inc.” In order to have a named corporation there are three elements required:

All named corporations must have a NUANS report completed that shows that the name of the corporation is unique enough that there will be no conflicts or confusion with other, existing corporations. If there are conflicts, the other company can protest and force a name change on the newer company. As well, the other company could have a reputation that is less than perfect; and no one really wants to be associated with that.

A NUANS report is an extra cost to incorporating, and must be current. Therefore, having a named corporation costs a little more at the outset than starting a numbered corporation. It may be worth noting that long term costs associated with a numbered corporation can be more, due to legal requirements in advertising, billing, and notifications. All signs and business cards must make reference to the company’s legal name, for example, not just a trade name that the company may be operating under.

More Information and Help

There are guides available both online and in the registry offices that anyone can buy explaining much more about the incorporation process and what is needed. It may be a good idea to purchase one of these and review it, as it will still save dollars and headaches for those who are looking for an easy way to incorporate and understand the whole process.

As well, there is a fair bit of information on Service Alberta’s site (link is above) regarding the regulations, Acts, and processes involved in setting up an Alberta corporation, of any type, including non-profits, societies, and more.

The copyright of the article Alberta Incorporation Basics in Small/Home Business is owned by Johanus Haidner. Permission to republish Alberta Incorporation Basics in print or online must be granted by the author in writing.