Provinces and Territories Without Reciprocal Agreements
Not every province and territory has moved to simplify the process of conducting cross-border business by establishing extra-provincial or extraterritorial agreements with their Canadian neighbours.
The jurisdictions without any reciprocal agreements are:
- Prince Edward Island
- Newfoundland and Labrador
- Nunavut
- Northwest Territories
- * Yukon
If you want to do business in Prince Edward Island (P.E.I.) but you’re incorporated in another province or territory, P.E.I. requires that you register as an extra-provincial corporation. It may cost you between $250 and $1,500, depending on your type of business, and you must renew your registration each year. To qualify for the Economic Diversification and Growth Enterprises (EDGE) program and other tax incentives in Newfoundland and Labrador, you have to register as an extra-provincial corporation there, too.
To do business in the territories outside of where you’re incorporated, Nunavut requires you to register as an extraterritorial corporation under the Business Corporations Act (BCA). For registration as an extraterritorial corporation in the Northwest Territories, you must submit materials to Corporate Registries, starting with a Northwest Territories Application for Name Search and Reservation form, unless you’re registering a numbered or federal company. And the Yukon government requires you to register as an extraterritorial corporation under Part 21 of the Yukon Business Corporations Act. You can begin the process by submitting the Application for Name Reservation, along with the appropriate fee.
Only you can decide whether to pursue business opportunities across provincial and territorial boundaries. The good news is that there are numerous opportunities for business growth, development, and benefits at tax time, if you choose to venture out beyond your home base.
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