Legal Briefs: Three main steps to extra-provincial registration of your company

By Medicine Hat News on March 16, 2019.

I recently re-watched the movie “Smokey and the Bandit.” The first time I saw it, I was impressed with the chase scenes and of course the Trans Am. What impressed me the second time watching was the premise of the movie: Coors Beer was unable to be sold east of Oklahoma, which was why the Bandit was propositioned to bring it across state lines (illegally). Fast-forward to the present, companies can sell their products or services across provinical and national borders easier than ever.

Medicine Hat’s close proximity to the Saskatchewan border presents opportunities for companies in Medicine Hat to operate in Saskatchewan.

The New West Partnership Trade Agreement (NWPTA) has made it easier for your company to legally engage in business in all of the western provinces (B.C., Alberta, Saskatchewan and Manitoba). One way the NWPTA has helped businesses in the west is the ability to register your company extra provincially.

If you have an incorporated business, you do not need to incorporate a second company to operate in Saskatchewan. The extra provincial registration allows you to operate your existing Alberta company in Saskatchewan, or vice versa. It makes sense to consider this option where you are soliciting business, setting up a warehouse or office, or licensing your business to operate in Saskatchewan.

There are three main steps to complete extra provincial registration.

First, you need to have a search conducted of your company’s name (called a NUANs search) in the province you plan to operate in. Ideally you want to keep the company name the same in each province. Generally, as long as your company name is not too familiar to an already existing business, this will not be an issue.

Second, you will need to have an attorney for service in the province you plan to operate in. The attorney is the contact person if the provincial government needs to contact the business. If you or an employee lived in Saskatchewan, they could be the attorney for your company. Law offices may also act as an attorney for your business.

Third, you need to complete and provide the registration package to the corporate registry of the province your business is presently incorporated in. If you are in Alberta, the Alberta corporate registry will liaise with Saskatchewan corporate registry to complete the process.

There is good information on extra provincial registration on the Service Alberta website servicealberta.ca/713.cfm.

This process benefits from assistance of your business lawyer and can take two to four weeks to complete depending on the circumstances.

If you want to legally operate your company in another western province, and you don’t own a 1977 Trans Am, it is worth considering extra-provincial incorporation.

Les Scholly helps you navigate the turning points of life. He is a partner with Pritchard & Co. Law Firm, LLP and member of the Society of Trust and Estate Practitioners (STEP). Contact Les at 403-527-4411 or at lscholly@pritchardandco.com