Business Name Registration - Partnership
To register the business name of a sole proprietorship, partnership or trade name for a corporation or to check the availability of a corporate name, please contact the Consumer, Labour & Financial Services Division of the Department of Justice and Public Safety. To view business names on Prince Edward Island ONLY you may search the Corporate Registry Database.
What is a Partnership?
A partnership is a voluntary contract between two or more competent persons to place their money, efforts, labour and skill in business with the understanding that there shall be a proportional sharing of profits and losses between them. A partnership is governed by the Partnership Act. For every partnership, there should be a written partnership agreement between the partners setting out their respective rights, interests and responsibilities.
A written partnership agreement should be drawn up, preferably by a lawyer, and signed by the partners before any business is conducted by the partnership. If there is no partnership agreement, then the partners will be subject to various rules set out in the Partnership Act and some of those rules may not be suitable for a particular partnership. For example, the Partnership Act provides that where there is no partnership agreement all partners are entitled to share equally in the capital and profits of the business and must contribute equally towards the losses sustained by the firm. In cases where the partners wish to share profits and losses on some basis other than an equal sharing, a partnership agreement should set out the basis agreed upon by the partners.
A partnership enables two or more persons to pool resources, raise more capital and divide the duties and functions of carrying on the business. Compared to the sole proprietorship, there can be less burden on each partner if the workload is divided among several partners with different skills.
One of the disadvantages of a partnership is that each partner is responsible together with the other partners for the debts and liabilities of the partnership, incurred while he is a partner of the firm and each partner is liable for any wrongful act or omission of any partner acting in the ordinary course of the business of the firm. These points are set out in the Partnership Act in more detail.
Before entering into a partnership, the partners should consider the matter carefully and obtain professional advice before the partnership agreement is drawn and signed by the partners.
Within three months of the formation of a partnership, a statutory declaration of the partnership must be registered under the Partnership Act, at a cost of $90. This can be done through the Consumer,Labour & Financial Services Division of the Department of Justice and Public Safety. The statutory declaration must be signed by all partners. Persons wishing to register a partnership are required to have the Corporate Section conduct a computerized name search of the proposed partnership name prior to registration. The fee for this search is $40.
When a partnership discontinues business, the business name can be removed from the business names data base maintained in the Consumer, Labour & Financial Services Division of the Department of Justice and Public Safety. Removal of the name can be accomplished only by the registered owners of the business name. The cost of registering a Dissolution of Partnership is $15.
A partnership registration is valid for three years from the date of registration. At that time, the registration will expire and a renewal of registration must be completed by the partners or the partnership registration will be removed. The fee to renew a partnership registration is $75.
A notification of the registration or dissolution of a partnership is published in the Royal Gazette. All cheques are to be made payable to the Minister of Finance PEI.
Application forms are available at your nearest Access PEI site and the resources section of this page.
Who can I contact for more information?
Consumer, Labour and Financial Services Division
4th Floor Shaw Building
95 Rochford Street
PO Box 2000