Starting a business can be a very daunting process. The Business License Program has put together a list of common questions and answers to make the process a little easier.
What is a business?
The City of Saskatoon defines a business as:
(i) a commercial, merchandising or industrial activity or undertaking
(ii) the carrying on of a profession, trade, occupation, calling or
employment, or
(iii) an activity providing goods or services
Is it legal to run a business from the location I have chosen?
The City of Saskatoon Planning & Development Branch can provide you with the information on the zoning requirements for the area in which you wish to set up business. Please call (306) 975-2645 and speak with a bylaw inspector to see if your location is compliant with the Zoning Bylaw or speak to a building inspector to find out if any building permits may be required prior to moving in.
What do I need to know before starting a home based business?
It is advisable to research the regulations for the area where you live. Some types of businesses may not be permitted. Home based businesses are intended to seek a balance between a quiet, safe and aesthetic residential environment and the aspirations of home based entrepreneurs. Business activities, which do not meet home based development standards, must locate in commercial or industrial areas. Please call the Planning & Development Branch at (306) 975-7710 or (306) 975-2658 for more information.
What is the purpose of a business license?
Business licenses are required for the following reasons: to ensure compliance with land-use and building regulations; to minimize land-use conflicts; to gather land-use information upon which commercial and industrial policies are based; and to facilitate effective planning decisions.
How much does a business license cost?
The fee to process a new business license application or a change of location is $95 for home based and commercial/industrial businesses operating in the city. For other business types, please call for fee information.
How much does it cost to renew my business license?
The annual fee to process a renewal notice is $70 for home based and commercial/industrial businesses operating in the city. For other business types, please call for more information. A business license is only valid for the location for which it is issued. Separate business licenses are required for additional business locations.
How long is a business license valid for?
A business license is valid for one year from the date it is issued, unless otherwise stated on the license.
Will registering my business protect its name?
Registering your business name with the Corporate Registry as a sole proprietorship, a partnership or a corporation provincially will protect that name in the province of Saskatchewan. Registering your corporation federally will protect your name across Canada but you will also have to register that corporation in the province of Saskatchewan as an extra-provincial corporation. Contact the Corporate Registry at (306) 787-2962 for more information on business name registration.
Do I need to register my business name?
If you plan to operate a self-employed, non-incorporated business under your own name, without adding anything to your name (eg: John Smith), then there is no need to register the business name with the Corporate Registry. Keep in mind that in order to open a business bank account, most banks require proof that your business is registered either as a sole proprietorship or as a corporation. If you decide to add a business description to your name (eg: John Smith Services), then you would need to register it.
I plan on working as a contractor. Do I need a business license?
Yes, a City of Saskatoon Business License is required for any work done within the city. To become an eligible contractor undertaking new home construction, a business license from the city and incorporation of the business are required. If you are from out of town please contact the Revenue Branch to obtain a proper license at (306) 975-2400.
How do I register for GST?
It is possible to register a GST number at any time, however it becomes mandatory at the point that you reach $30,000 worth of gross sales within one year. You cannot charge GST unless you are registered to do so. Contact the Canada Revenue Agency at 1-800-959-5525 for more information.
Do I need to register for PST?
Yes, all businesses are required to register with the Provincial Vendors License office. They then determine who is required to collect and remit PST. Please contact Saskatchewan Finance for more information on collection or PST exemptions at 1-800-667-6102.