In Prince Edward Island, getting a Business Number (BN) from the CRA is nearly instant if you apply online. Telephone registrations take a few minutes, while applying by mail or fax can take 10 to 30 days. As of May 2026, there is no government fee to obtain a BN.
Starting a business in Prince Edward Island is an exciting venture, but it comes with important federal tax obligations. 📍 Whether you are opening a cafe in Charlottetown or a tech startup in Summerside, you will likely need to deal with the Canada Revenue Agency (CRA). A federal Business Number (BN) acts as a unique nine-digit identifier for your company, much like a Social Insurance Number for an individual.
Understanding the CRA’s processes can save you unnecessary delays. Generally, you need a BN if your business is incorporated, if you plan to hire employees, or if your revenue requires you to collect HST. This guide will walk you through the simplest ways to secure your BN in PEI and get your business fully operational.
Step-by-Step Process to Get a BN in Prince Edward Island
Applying for a business number is a streamlined federal process that applies equally across Canada, including PEI. 📄 Most applicants can handle this on their own, though local law firms can assist if you are setting up a complex corporate structure.
Step 1: Determine If You Need a BN
Not every small side hustle requires a Business Number immediately. If you are a sole proprietor operating under your own legal name and earning less than $30,000 a year, you might not need one yet. However, once you cross that $30,000 threshold, you must register for an HST account, which automatically requires a BN.
Step 2: Gather Your Information
Before contacting the CRA, ensure you have all your essential details ready. 💵 You will need your Social Insurance Number (SIN), your business name, a brief description of your major business activity, and your business address in PEI. If you recently incorporated through the PEI Corporate Registry, you will also need your certificate of incorporation.
Step 3: Apply Using Business Registration Online (BRO)
The fastest way to get your BN is through the CRA’s Business Registration Online portal. The system guides you through the necessary questions step-by-step. At the end of the online session, your nine-digit Business Number is generated instantly. You can also set up your payroll and HST program accounts during this same session.
Step 4: Alternative Application Methods
If you prefer speaking to a human, you can call the CRA’s business enquiries line directly. ☎ The agent will ask you the same questions and issue your BN over the phone. You can also fill out Form RC1, Request for a Business Number, and mail or fax it to your designated tax centre, though this is the slowest method.
How Much Does it Cost in PEI?
Acquiring your federal Business Number is primarily an administrative task rather than a financial one. Here are the typical costs you might encounter:
- CRA Fees: Applying for a BN and program accounts (like HST or payroll) is completely free.
- Business Name Registration: If you use a name other than your own legal name, registering it with the PEI Corporate Registry typically costs around $90 CAD.
- Lawyer Fees: If you hire a local corporate lawyer to register your business and secure your BN on your behalf, expect to pay between $300 and $700 CAD.
How Long Does the Process Take?
The timeline depends entirely on the application method you choose. ⏳ Below are the current estimates for a PEI business applying through the CRA:
| Application Method | Estimated Timeline |
|---|---|
| Online (CRA BRO Portal) | Instant |
| Telephone Call to CRA | 10 to 30 minutes |
| Mail or Fax (Form RC1) | 10 to 30 days |
Frequently Asked Questions (FAQ)
What is the difference between a BN and an HST account?
The Business Number is the main nine-digit identifier for your company. An HST account is a specific program account attached to your BN (indicated by an RT0001 extension) used exclusively for collecting and remitting sales taxes.
Do I automatically get a BN when I incorporate in PEI?
If you incorporate federally through Corporations Canada, a BN is usually issued automatically. If you incorporate provincially through the PEI Corporate Registry, you may still need to contact the CRA directly to activate your specific program accounts.
Can I use my SIN instead of a Business Number?
If you are a sole proprietor earning under $30,000 without employees, you generally report your business income on your personal tax return using your SIN. However, you cannot use your SIN to collect HST or run payroll.
What happens if I lose my Business Number?
You can easily retrieve it by logging into your CRA My Business Account online, checking past tax documents, or calling the CRA business line directly.
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