How to Register a Sole Proprietorship in British Columbia: Costs & Process

Setting up a company as a sole proprietor is one of the simplest ways to run a business in British Columbia. A sole proprietorship is a business owned by one person who is personally responsible for the operations, profits, losses, debts, and liabilities of the business. A sole proprietorship is one of three business structures recognized in B.C., the others being general partnerships and corporations. 

When you intend to do business under a name other than your legal name, in most cases you should get your name approved and register the sole proprietorship with the B.C. Registry. The base government fees are $30 for the name approval and $40 for registration for a sole proprietorship, and a total of $70 when both are necessary.

This guide provides an overview of how to register a sole proprietorship in British Columbia, including the requirements, registration process, costs, business licenses and tax obligations, as well as considerations before selecting a sole proprietorship.

What Is a Sole Proprietorship in British Columbia?

A business owned and managed by a single person is called a sole proprietorship. In legal terms, the company and the owner are not separate legal entities. The owner claims the profits and the losses of the business and is personally liable for the business’s debt.

It may be the right structure for people who are beginning a small business, freelance activity, professional practice, or other one-person business where a simple business structure is desired.

A sole proprietor may hire staff, but ownership remains with one proprietor. Unlike a corporation, a sole proprietorship does not create a separate legal entity that shields the owner from business liabilities.

One important point is that registering a sole proprietorship does not give the business name exclusive legal protection. The B.C. states that incorporated companies, cooperatives, and societies are the only entities that can ensure exclusive use of their names.

Do You Need to Register a Sole Proprietorship in BC?

Not all sole traders need to register through the BC Corporate Registry.

Where you run under your own personal name, you will not normally need to register the proprietorship with the Registrar of Companies. However, a local company license or other permits may still be required based on your company’s activity and location.

When you use a business name that is not your own, you will typically need to:

1. Request approval for the proposed business name.
2. Register the sole proprietorship with the B.C. Registry.

B.C. law requires that a business name be registered where the person using the name is engaged in business activities other than under their personal name.

Example

If you are a sole proprietor, but your legal name is John Smith, and you are using it as the business name, John Smith, you may not need to register the sole proprietorship with the province.

If you operate as Smith Digital Solutions, you generally need to have the business name approved and register the proprietorship.

Requirements to Register a Sole Proprietorship in BC

Before registering, you should have the information required for the registration application ready.

Generally, you will need:

• A proposed business name, if you are not operating under your own name
• An approved name request
• The proprietor’s information
• Business and mailing address information
• Delivery address information where required
• Information about the nature of the business
• Contact information for the person completing the registration
• Payment for the applicable registration fee

The B.C. Registry’s current registration guide requires the application to identify the completing party and the proprietor. The proprietor may be an individual or, in certain cases, an existing business or corporation operating under another name.

Business name requirements

Planning to operate under a name other than your own? You must first submit a business name request and may list up to three preferred names.

Name approval helps determine whether the proposed name is appropriate and sufficiently distinguishable for registration. However, approval does not provide the same name protection that incorporation provides.

How to Register a Sole Proprietorship in British Columbia?

You can register your sole proprietorship online through the B.C. Registry.

Step 1: Decide whether you need a business name

First, determine whether you will operate under your personal legal name or a separate business name.

If you use your own name, provincial sole proprietorship registration may not be required. If you use another business name, proceed with the name approval process.

Step 2: Request approval for your business name

Submit a name request through the B.C. name request service.

The name application allows you to list three options, starting with your first choice. The standard name request fee is $30. B.C. also offers priority service for an additional $100 fee when a faster review is required.

The B.C. Government currently indicates that standard name and search services generally take 5 business days, while priority service can have a name approved in approximately 1 to 2 business days.

After approval, you have 56 days to complete the business registration using that name. You need to complete the business registration during that period or submit another name request.

Step 3: Register the sole proprietorship

After the name is approved, register the sole proprietorship through the BC Business Registry.

The standard registration fee is $40. B.C. currently provides online registration through the BC Business Registry and also allows registration in person at a Service BC location.

The application requires information about the proprietor and the business. After your application is processed, the registry provides confirmation along with your registration records.

Step 4: Complete any additional registrations

Registering the business is just one step in getting your sole proprietorship ready to operate.

Depending on your activity, you may also need:

• A municipal or local business license
• Provincial or federal permits
• GST/HST registration
• PST registration
• Industry-specific licenses
• Payroll-related accounts if you hire employees
• Other regulatory registrations

The exact requirements depend on what you sell, where you operate, and how your business is structured.

How Much Does It Cost to Register a Sole Proprietorship in BC?

The basic provincial registration costs are straightforward.

Registration item	Current fee
Business name request	$30
Sole proprietorship registration	$40
Total when both are required	$70
Priority name service	Additional $100
Change to sole proprietorship registration	Free
Dissolution of proprietorship	Free

B.C.’s current forms and fees confirm the $30 name request fee and $40 sole proprietorship registration fee. The government also lists changes to a sole proprietorship registration and dissolution as having no filing fee.

If you operate under your own name and do not require provincial sole proprietorship registration, you may avoid the $30 name request and $40 registration fees. Depending on your business activities, you may also have to budget for permits, licenses, and applicable tax registrations.

The B.C. government’s registration information also states that the registration fees are exempt from GST.

How long does registration take?

B.C. currently indicates approximately 5 business days for standard names and searches and approximately 10 business days for other filings. Priority service is available for faster review, subject to the applicable priority fee.

Business Licenses and Permits for Sole Proprietors

Business registration alone does not cover every license or authorization your business may require.

Your location and type of business will determine whether you need additional permits or licenses from municipal, provincial, or federal authorities. B.C. specifically recommends using BizPaL, a free government service that can provide a customized list of permits and licences based on your business activities and location.

For example, requirements can vary for businesses involved in:

• Food services
• Construction and trades
• Transportation
• Retail
• Professional services
• Health-related activities
• Home-based businesses
• Accommodation
• Regulated products

Local governments may also require a business license even when provincial sole proprietorship registration is not required.

The provincial government does not issue all business licenses itself. B.C. advises businesses to contact their local government or First Nation to determine local requirements.

What Tax Obligations Apply to a BC Sole Proprietor?

A sole proprietor has several potential tax responsibilities. The exact obligations depend on the business’s income, activities, employees, and sales.

Income tax

Because a sole proprietorship is not a separate legal entity from its owner, the proprietor generally reports business income or losses on their personal T1 income tax and benefit return.

The CRA explains that a sole proprietor pays tax on business income and may also have CPP obligations on self-employed earnings.

Business owners should maintain accurate records of:

• Business revenue
• Business expenses
• Invoices and receipts
• Bank transactions
• Asset purchases
• Tax-related documents

GST/HST

A sole proprietor may need to register for GST/HST when taxable supplies exceed the CRA‘s $30,000 small-supplier threshold. The threshold is generally assessed based on taxable supplies over a single calendar quarter or the previous four consecutive calendar quarters.

If your taxable sales go beyond the threshold during one calendar quarter, your GST/HST registration can take effect from the transaction that pushed you over the limit, and you generally must register within 29 days. Businesses that remain below the mandatory threshold can also choose to register voluntarily when eligible.

PST

B.C. Provincial Sales Tax (PST) applies to taxable goods, software, and certain taxable services. If a sole proprietor in B.C. sells or leases taxable goods or provides taxable services that require PST registration, the business generally needs to register, collect, and remit PST.

There are exceptions and special rules. For example, qualifying small sellers may not be required to register for PST. B.C.’s small-seller rules include a $10,000 gross-revenue limit for eligible retail sales, subject to the other conditions in the program.

2026 update: Starting October 1, 2026, B.C. is expanding PST to cover certain professional services. Sole proprietors providing affected professional services should check the current B.C. PST rules before invoicing clients.

Advantages and Disadvantages of a Sole Proprietorship

A sole proprietorship can be attractive because it is relatively simple to establish and operate, but the owner also takes on significant personal responsibility.

Advantages

• Simple setup: Registration is generally less complicated than incorporating a company.
• Lower initial cost: The basic B.C. registration fee is $40, with a $30 name request when a separate business name is required.
• Direct control: The proprietor makes the business decisions without shareholders or directors.
• Simple tax structure: For tax purposes, a sole proprietor generally includes business income and losses on their individual income tax return.
• Flexible operation: A sole proprietor can operate independently and hire employees where appropriate.

Disadvantages

• Unlimited personal liability: The owner is personally responsible for the business’s debts and liabilities.
• No separate legal entity: Unlike a corporation, the business and owner are not legally separate.
• Limited financing options: Raising capital can be more difficult because the owner generally relies on personal resources and creditworthiness.
• No exclusive business-name protection: Registering a sole proprietorship does not provide the same name protection as incorporation.

Sole Proprietorship vs. Corporation in BC: What’s the Difference?

The main difference is that a sole proprietorship does not create a separate legal entity, while a corporation does.

Factor	Sole Proprietorship	Corporation
Ownership	One proprietor	Shareholders
Separate legal entity	No	Yes
Personal liability	Generally unlimited	Generally limited, subject to exceptions
Tax reporting	Generally through the owner’s T1	The corporation files its own corporate tax return.
Setup	Simpler	More complex
Initial government filing	$40 registration when required	Higher incorporation costs
Business name protection	No exclusive protection	Corporate name receives greater protection.
Administration	Generally simpler	More ongoing corporate requirements

B.C. describes a sole proprietorship as a structure where the owner receives profits, claims losses, and remains personally responsible for the business’s liabilities. Corporations, by contrast, are separate legal entities owned by shareholders.

The better structure depends on factors such as liability exposure, expected income, financing needs, tax planning, and long-term business objectives. Professional legal or accounting advice may be appropriate when choosing between structures.

Can You Change a Sole Proprietorship to an LLC in British Columbia?

No, you cannot directly convert a sole proprietorship into an LLC in British Columbia. An LLC is not a standard B.C. business structure; the common options include sole proprietorships, partnerships, and corporations.

If you want limited liability, you would generally incorporate a B.C. corporation and move your business to the new structure. This may require updating your registrations, licences, tax accounts, contracts, and business assets.

If you mean a U.S. LLC, different rules apply because it is a foreign business entity.

Before changing your structure, consider the tax, legal, and liability implications and seek professional advice if needed.

Conclusion

Registering a sole proprietorship in British Columbia is a simple way to start a one-owner business. If you use a separate business name, you’ll generally need name approval and registration through the B.C. Registry, with government fees of $30 for the name request and $40 for registration.

Need assistance with your BC business registration? Incpass.ca provides professional support to help you navigate the setup process. Get in touch with our team for guidance.

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