So you're thinking about starting a business?

The word 'limited' at the end of a Canadian corporation's name implies that liability of the corporation's shareholders is limited to the money they paid to buy the shares. By contrast, ownership by a sole proprietor or a partnership carries unlimited personal legal responsibility for debts incurred by the business.

	How is a limited corporation formed?

To form a limited corporation, you must provide a corporate name and address, describe the structure, identify the 'type' of corporation and provide director information. The following information is provided to assist you in this process.

	Business name vs. Alberta Corporate name

There are differences between business names and incorporated names, as well as differences between the resulting entities formed. An incorporated name must contain a legal element, while a trade name or partnership name cannot. Another difference between a business name and an Alberta corporation name is that a corporation name is only granted once.

Another key difference between a registered corporation and a trade name or partnership, is that the trade name or partnership is not a distinct legal entity. Therefore, the proprietor(s) or partners are completely responsible for the debts and liabilities of the business.

So, you've decided to use a "business name". Does it have to be registered?

Yes, if you (or other people associated in partnership) are engaged in business for trading, manufacturing, contracting, or mining purposes, and use as your business name, a name or designation other than your own, or your own name, with a word or phrase indicating plurality of members in the firm, you must register the business name. This can be done at One Stop Licence Shop.

	The Business Name

There is no requirement under the Partnership Act for trade/partnership name to be unique - duplicate business names may exist. The registration of a business name does not have any restrictions, nor any right of ownership of the name. The registration of a business name is proof that it is in use by a particular business and provides consumers with information on the identities of the owners of the business names registered in Alberta.

Although there are a few restrictions on a business name, you should choose a business name carefully. If the name chosen is the same as, or similar to, an existing trade name, corporate name, or trademark, the owners of the other name or trademark could take your business to court, and ask a judge to stop the use of the name and award damages. It is therefore recommended that either a Business Name Report or a NUANS Report be obtained to help you decide whether the name you have chosen is appropriate.

The name of an Alberta limited liability partnership (LLP), however, cannot be identical to any other Alberta or extra-provincial LLP.

	Coprorate Names

There are different types of names. You can have a "named" name, such as ABC Holdings Ltd, or a "numbered" name, such as 123456 Alberta Ltd.

	The legal elements of "Named" Names

A "named" name should consist of three parts, or elements. The first part is usually the distinctive element. In the example, "ABC Travel Ltd", the distinctive element is "ABC". This party should set your name apart from other names, making it easy to remember. The second part describes what the corporation does or is. In our example, "Travel" is the descriptive element. The third part is the legal element - our legal element in this case is "Ltd". There are other legal elements, one of which must be in your corporation's name. Accepted legal elements are:

	Professional Corporations

Any type of "named" name corporation is a "Professional Corporation" which is a corporation specifically formed for one of the following types of professions:

This type of corporation will have the person's name, followed by the term "professional corporation". An example of a professional corporation's name would be "John Smith Professional Corporation".

Much of the technical information provided on these pages is with the assistance of Government Services web site. This information can changed without notice. Please contact us if you want clarification of any of the information provided.

If you are a business and want to set up an account with One Stop Licence Shop to obtain registry services simply complete an Application for Account form. At the end of each month you will receive an itemized statement of the registry services you have ordered. Your statement must be paid within 5 working days.

**One Stop Licence Shop has provided this page for your general information only. Policies may change without notice.