Want to know how to register a sole proprietorship in BC? Opening your own business alone is very exciting, but it may have complexities if you do not have all the required information.
At Business Registration Centre BC, we helped more than ten thousand entrepreneurs to register or establish a business. This tutorial below will give you all the information on how to register a sole proprietorship business in BC, including when you need name approval with the step-by-step process, costs and common mistakes to avoid.
What Is a Sole Proprietorship in BC?
A sole proprietorship is the simplest form of business registration found in the province of British Columbia. The business is typically conducted using your name or a BC trade name (business name), and you and the business are considered the same.
The sole proprietorship business organization is the simplest and therefore the most affordable form of business organization.
You’ll see that BC residents opt for this business model when they’re evaluating the feasibility of a business idea, freelancing, or even starting a small business that provides a service. The reasoning behind the appeal of the business model is the fact that it’s very easy to organize.
This makes you bypass the red tape involved with incorporations and partnerships.
Why Register a Sole Proprietorship in BC?
Here’s why you’ll benefit from even simply considering how to register a sole proprietorship in BC: you come across guides like ours that detail the pros and cons.
Find out why registering a sole proprietorship helps you:
- Show customers that your business name is officially registered, but only in BC
- Open a business bank account
- Apply for a license and permits
- Register for taxes (Like GST/PST if required)
- Build trust with your clients and suppliers
We always tell our clients that registering your sole proprietorship is the first step toward operating formally and professionally. It’s also a way to make sure your chosen business name is available and legally allowed in the province of British Columbia.
Understanding When You Need a BC Name Approval
Before you register a sole proprietorship in BC, it’s important to understand when a BC name approval is required. Not every sole proprietor needs one, but if you plan to operate under a trade name instead of your legal name, approval may be mandatory.
Name approvals are not required in all situations, but it is good to have one if you decide to operate with a named business. BC has various requirements that depend on your business operations:
1. Using Your Legal Name
If you intend to carry on business using your full name (for instance, “Harpreet Singh,” “Maria Lopez”), you are not required to get a name approval or submit a BC Name Request.
2. Using a BC Trade Name
If you intend to use a business name (e.g., “Harpreet Home Cleaning” and “Lopez Digital Marketing”), you might require name approval before registering the sole proprietorship. This is to ensure that the name is not deceptive, prohibited, and not similar to another business operating in BC.
Many first-time business owners think that name approval is only required for corporations. This is not the case. The fact is that a person operating a business name in BC, even sole proprietors, may be required to obtain approval of the business name.”
How to Register a Sole Proprietorship in BC Online (Step-by-Step Guide)
The following is the complete step-by-step process on how to register a sole proprietorship in BC.
Step 1: Choose Your Business Name
You may operate using your true name or register a trade name. The name has to comply with BC name restrictions and cannot be misleading.
Step 2: Complete a BC Name Approval (If Needed):
If you are using a trade name, the optional but recommended next step is the submission of a Name Approval request. This involves the submission of a list of up to three trade name preferences to improve the approval prospects.
Step 3: Register the BC Sole Proprietorship
Once your chosen name is approved (or if you’re using your legal name), you can register your sole proprietorship with BC Registries. This step requires providing your business name, business address, and details about your business activities.
This involves the submission of your sole proprietorship business name declaration, business address, and business activities.
Step 4: Get Your Business Number (BN)
Once you register your business, you are allotted a CRA business number. This business number is important for taxation and other government communications, as well as other business transactions such as opening business accounts.
Step 5: Apply for Necessary Licences and Permits
Depending on your industry, you may also require additional licenses, permits, or municipal approvals before operating.
Step 6: Set Up Your Taxes
If you are going to exceed the threshold of GST or PST revenues, you will have to register for these accounts. Though not mandatory, there are businesses that register early for convenience’s sake, even if not required.
Costs of Registering a Sole Proprietorship in BC
The following table summarizes the average and typical costs involved when it comes to how to register a sole proprietorship in BC:
| Cost Category | Estimated Amount |
|---|---|
| Name Approval Fee | Approximately $30 |
| Sole Proprietorship Registration | Approximately $40 (province-set fees) |
| Local Business Licence (Optional, varies by city) | $50–$150+ |
| Additional Permits (If applicable) | Varies |
These fees remain some of the most affordable business registration costs across Canada. Many people choose a sole proprietorship because it allows them to start quickly without investing heavily up front.
Practical Tips for Registering a Sole Proprietorship in BC
We have been working with a large number of first-time entrepreneurs since 2002, and the experience is smooth if you also take into account these:
• Provide three strong name choices if you need a BC Name Approval.
• Use clear, simple language when describing your business activities.
• Keep your business address updated to avoid missing government notices.
• Check whether your municipality requires a business licence before operating.
An important truth that’s supported by research that we’re always happy to share: “Small businesses comprise almost 98 percent of all employer businesses within the province of British Columbia, and sole proprietorships are a gateway into business ownership for a large number of start-ups each year.
Common Mistakes to Avoid When Learning How to Register a Sole Proprietorship in BC
We have observed over the years that owners of businesses often tend to repeat the same mistakes unknowingly. The following are the most common ones:
- Not reviewing whether a name is prohibited before submission
- Believing that a registered trade name provides Canada-wide protection (it does not — only trademarks offer nationwide rights).
- Combining personal and business finances
- Exemptions relating to local licenses because of a home business
- Using restricted words (e.g., “Company,” “Corporation,” or industry-regulated terms
If you avoid these common mistakes, you are able to remain compliant and operate your business successfully.
Sole Proprietorships vs Other BC Registrations vs Incorporations
Although the article only deals with the steps required to form a sole proprietorship in BC, often people compare the procedure with partnerships and corporations.
Here’s a quick summary to clarify:
- General Partnership: Requires registration and involves shared liability between partners.
- Limited partnership: Includes at least one general partner and one limited partner.
- Incorporation: Creates a separate legal entity with stronger liability protection, but requires more filings and compliance.
This is because you should know where a sole proprietorship falls into place. The sole proprietorship registration procedure is the easiest avenue if you wish to retain control over the business.
Myths vs Facts About Sole Proprietorship Registration in BC
Myth: You don’t have to register if you work under your legal name.
Fact: You may still need licences or tax accounts even if you’re using your legal name.
Myth: Registering a trade name gives exclusive rights across Canada.
Fact: BC registration only covers British Columbia.
Myth: You can’t change your business name later.
Fact: You can file for changes anytime, but it requires updating your licence and business records.
Myth: Sole proprietorships cannot hire employees.
Fact: You can hire staff as long as you comply with payroll and employment rules.
Conclusion
Learning how to register a sole proprietorship in BC is one of the most straightforward ways to get a business up and running. As long as you understand the aspects of name approval, registration, and the related costs, you are all set to start your business. At Incorporate BC, we see the positive effect it has on people’s lives every year because of the number of individuals and businesses that go through the steps of starting a sole proprietorship with us. Starting a sole proprietorship business could be for the sake of a freelance career, a business idea, and even a full-time business.
FAQs - How to Register a Sole Proprietorship in BC?
1. How long does it take to register a sole proprietorship in BC?
Most registrations can be completed within one to two business days once the name is approved or if you use your legal name.
2. Do I need a business licence for a sole proprietorship in BC?
It depends on your municipality. Many cities in BC require a licence for any operating business, including home-based businesses.
3. Can I run multiple businesses under one sole proprietorship?
You can operate multiple activities, but each trade name may need its own registration.
4. Can I change my business name after registering?
Yes, but you’ll need to update your registration and notify your municipality and bank.
5. Do I need a name approval for every sole proprietorship in BC?
Not always. If you use your legal name, you can skip it. If you use a trade name, approval may be required based on BC rules.
6. How to register a sole proprietorship in BC without breaking the bank?
You can register a sole proprietorship in BC without adding expense by avoiding the BC Name Approval if you really think you do not need one, and or have decided to operate under your legal given name. Stick with Sole Prop registration instead of incorporating, only register for important CRA registration when required to and avoid overhead costs like an office in the beginning.