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Province guide · PE

Doing business inPrince Edward Island

A compact market with a 15% HST, hands-on provincial support and close ties to the Atlantic supply chain.

Start a business here →Grants & fundingWhat to watch in Prince Edward Island
Sales tax15% HST

Filed with CRA

Workers’ compWCB PEI

Mandatory for most employers

Payroll taxNone

No provincial payroll tax

RegisterCorporate Registry

Business names and corporations

Photo: Charlottetown by Quintin Soloviev, CC BY 4.0
About the province

Prince Edward Island at a glance

CapitalCharlottetown
Largest cityCharlottetown
Key industries
AgricultureFisheriesTourismBioscience
Local business networkGreater Charlottetown Area Chamber of Commerce

Who’s who for small businessFull cabinet ↗

Rob LantzPremierRob LantzPremier of Prince Edward IslandRechie ValdezFederalRechie ValdezSecretary of State (Small Business and Tourism)
5,246Small employer businesses1–99 employees, December 2024
0.5%Share of Canada’s small businessesOf 1,079,188 nationally
36.2Businesses per 1,000 adultsNational average 32.7
48,900Private-sector jobs2024
278Goods exportersEstablishments, 2024

Source: Innovation, Science and Economic Development Canada, Key Small Business Statistics 2025 (Statistics Canada Business Register). Portraits: Wikimedia Commons (Rob Lantz: Ambassador Pete Hoekstra, Public domain; Rechie Valdez: Patrick Doyle, CC BY 4.0).

Prince Edward Island: A Compact Market with Strong Community Ties

Prince Edward Island is Canada’s smallest province, but it has one of the highest rates of businesses per adult in the country. Close-knit communities and accessible government make it easier for entrepreneurs to build networks quickly.

Farms, fisheries, food processors, tourism operators, retailers and service businesses form the core of the Island economy.

Industries and Regional Strengths

Charlottetown is the centre for government, health care, bioscience and professional services. Summerside has strengths in aerospace and manufacturing. Rural PEI is known for potatoes, mussels, oysters, lobster and agri-food, and tourism is important everywhere on the Island.

The Confederation Bridge links Island businesses to mainland markets.

Opportunities for Small Businesses

Opportunities include bioscience and animal health, food innovation, seasonal and culinary tourism, and services for a growing population.

Seasonality and a small local market mean many firms plan for a busy summer and diversify into exports or year-round services.

Discover Prince Edward Island’s Business Community

CanadianSME shares the stories, insights and experiences of Prince Edward Island’s entrepreneurs and business leaders. Explore small business news, founder interviews, practical resources and industry perspectives that connect and inform the province’s business community.

Step-by-step guide

How to start a business in Prince Edward Island

  1. 1

    Choose your business structure

    Decide between a sole proprietorship, partnership or corporation. Incorporating — provincially or federally through Corporations Canada — limits personal liability and can lower tax on retained profits, but adds filing work.

    Corporations Canada ↗
  2. 2

    Register your business

    Register a business name or incorporate through the PEI Corporate and Business Registry.

    Corporate and Business Registry ↗
  3. 3

    Set up your tax accounts

    Get a CRA business number and HST account — 15% HST applies on PEI.

    Register for a business number ↗
  4. 4

    Get licences and permits

    Use BizPaL to see the federal, provincial and municipal permits your type of business needs, then confirm zoning and any local business licence with your city or town.

    BizPaL permit finder ↗
  5. 5

    Prepare to hire

    Open a CRA payroll account, register with WCB PEI for workplace insurance, and review the province’s employment standards for pay, hours and leave.

    WCB PEI ↗
  6. 6

    Find advice and funding

    Talk to a local small business centre, check the funding finder for programmes that fit, and build a relationship with a bank or credit union early.

    Innovation PEI ↗

What to watch in Prince Edward Island

  1. 01Innovation PEI offers financing, export and productivity programmes.
  2. 02Seasonal businesses should plan cash flow around tourism months.
  3. 03ACOA is the main federal funding partner.

Register and stay compliant

Provincial funding and support

Federal support in Prince Edward Island

Business networks and data

Reviewed October 2026. Rates, thresholds and programmes change — confirm with the official source before you file or apply. CanadianSME is not affiliated with these agencies.

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