Alberta has no single business licence. Depending on what you do, you may need a provincial licence from Consumer Programs, a licence from your municipality, a licence from another department or agency, or none at all. The Government of Alberta says it's an offence to operate without a licence you're required to hold.
Provincial licensing in Alberta is targeted at specific activities, mostly under consumer protection law. City licences are separate and cover a much wider range of businesses. Here's how to tell which applies to you.
Two layers of licensing
| Layer | Who issues it | Who needs it |
|---|---|---|
| Provincial | Consumer Programs, Service Alberta and Red Tape Reduction | Specific regulated activities under the Consumer Protection Act, Charitable Fund-raising Act and Cemeteries Act |
| Other provincial | Other government departments or delegated agencies | Industries regulated elsewhere |
| Municipal | Your city, town or county | Depends on the municipality and business type |
| None | The Government of Alberta says some businesses don't need any licence |
Which activities need a provincial licence
The Government of Alberta lists the businesses licensed or registered by Consumer Programs. Its examples include:
- Prepaid contracting businesses.
- Employment agencies.
- Direct selling businesses.
- Businesses selling retail homes to Alberta consumers.
- Charitable organizations that fundraise, which register rather than license.
If you're not sure whether your business needs a provincial licence or registration, the government's advice is to contact the business licensing office. Some licences also require a security as extra protection for consumers, and a consumer may be able to claim on it if the business has been negligent.
The rules after you're licensed
This is where Alberta catches people out. A provincial licence isn't a one-time box to tick:
- Provincial licences aren't transferable. If the business changes ownership, you must tell Service Alberta and Red Tape Reduction within 15 days.
- A change of business location or mailing address must also be reported within 15 days.
- Any change in what you offer must be reported, because some licences are specific to products or services.
- Under the Consumer Protection Act, you're not licensed for new services until the licence is amended, and doing that work early is an offence.
The government's own example makes the point: a prepaid contractor licensed to build decks and fences who starts building garages needs an amended licence first. A licence is also not an endorsement of your business by the Government of Alberta.
Securities and consumer claims
For some provincial licences, getting approved isn't only paperwork. The Government of Alberta says some businesses must provide a security as part of licensing, as additional protection for consumers, and a consumer may be able to claim on that security if the business has been negligent in performing its services. If your activity needs a security, ask the business licensing office about the amount early, because arranging it can take longer than the application itself. The public licence search also shows whether a business has posted a security or is required to post one, so customers can see it.
City licences: Calgary as an example
Municipal licences are separate from anything the province issues. The City of Calgary lists contractors (including builders, landscapers and specialty trades), restaurants and breweries, and retail businesses among its popular business licence applications. Other municipalities run their own licensing, so check with yours before you open. A city licence and a provincial licence can both apply to the same business: a prepaid contractor building decks in Calgary, for example, would look at the province's Consumer Programs list and at the city's contractor licence. Holding one doesn't replace the other.
How to work out what you need
- Register your business name or incorporate first, if you're not trading under your own name.
- Check whether your activity is on the Consumer Programs list, and contact the business licensing office if you're unsure.
- Check your municipality's business licence requirements for your address and business type.
- Look at whether another department or agency regulates your industry.
- Diarise the 15-day reporting rule for ownership, address and service changes.
You can also check a competitor or supplier: Alberta's business licence search shows whether a business is licensed or a charity is registered with Service Alberta and Red Tape Reduction, the licence type, and whether it's posted or must post a security.
If you'll be hiring, my guides to the minimum wage in Alberta and employment standards in Alberta cover the next set of rules. For a wider view of licences, registrations and tax IDs, see do I need a business license.
My verdict
Most Alberta small businesses deal with their city, not the province. If your work involves prepaid contracting, direct selling, recruitment or fundraising, though, assume the province wants to hear from you, and remember the 15-day clock every time something changes.
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Frequently asked questions
Do I need a business licence in Alberta?
It depends on what you do. You may need a provincial licence from Consumer Programs, a municipal licence or a licence from another agency. The Government of Alberta says some businesses don't need any licence.
Which businesses need a provincial licence in Alberta?
Consumer Programs licenses activities such as prepaid contracting, employment agencies, direct selling and selling retail homes, and registers charitable organizations that fundraise.
Can I transfer an Alberta business licence to a new owner?
No. Provincial licences aren't transferable, and you must notify Service Alberta and Red Tape Reduction within 15 days of a change of ownership.
What happens if I offer new services under my Alberta licence?
Under the Consumer Protection Act, you're not licensed for the new services until your licence is amended, and doing them before then is an offence.
How do I check if a business is licensed in Alberta?
Use the government's business licence search, which shows whether a business is licensed, its licence type and whether it has posted a security.
Does Calgary require a business licence?
The City of Calgary runs its own business licensing, with contractors, restaurants and breweries, and retail among its popular applications. Check the city's requirements for your business type.
Does an Alberta business licence mean the government endorses the business?
No. The Government of Alberta says holding a licence or registration isn't an endorsement and doesn't guarantee the quality of goods or services.
Is it an offence to operate without a licence in Alberta?
Yes. The Government of Alberta says it's an offence to operate without the required licence or charitable registration.
