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Prince Edward Island Small Business: Complete Guide for Entrepreneurs

by Maurice | February 9, 2023

Prince Edward Island may be Canada’s smallest and most rural province, but that doesn’t prevent people from starting businesses and having success here.

PEI is known for its red sand beaches, rolling hills, and world-class golf courses. Businesses related to tourism are popular selections.

However, you have many other options when considering operating a business in Prince Edward Island. Our guide provides advice for the most popular industries currently operating in PEI, as well as advice for entrepreneurs.


Table of Contents
Major Industries in Prince Edward Island
Best Business to Start in Prince Edward Island: 9 Promising Industries
How to Start a Business in Prince Edward Island: Step-by-Step Instructions
Business for Sale Prince Edward Island: Business Opportunities in Prince Edward Island
Business Registration in Prince Edward Island
Business Licences in Prince Edward Island

Business Insurance in Prince Edward Island
Business Laws in Prince Edward Island
Business Taxes in Prince Edward Island
Prince Edward Island Business Immigration
Small Business Resources in Prince Edward Island
Prince Edward Island Business Directories

Major Industries in Prince Edward Island

Traditionally, the economy of Prince Edward Island has focused on tourism, agriculture, and fishery for many centuries. Other industries in PEI include information technology, health care, manufacturing, bioscience, and aerospace.

More than 1,300 farms operate on nearly 600,000 acres of land cleared for agriculture in PEI. Farmers here produce potatoes, dairy, beef, pork, grains, and oilseeds, among other items.

Common businesses related to tourism in Prince Edward Island include bed and breakfast facilities, restaurants, golf courses, and cultural attractions.

Fisheries in PEI routinely harvest a number of species, including lobster, blue mussels, oysters, clams, trout, snow crab, rock crab, cod, and giant bluefin tuna, as well as sea plants used in the manufacture of pharmaceuticals.

Best Business to Start in Prince Edward Island: 9 Promising Industries

When looking to start a Prince Edward Island business, the provincial government lists nine priority growth sectors that show strength now and that are poised for growth in the near future. They include:

  • Agriculture
  • Seafood
  • Aerospace
  • Bioscience
  • Manufacturing
  • Ocean tech and marine
  • Renewable energy and clean tech
  • Information and communications technology
  • Tourism

A government organization called Innovation PEI provides help to small businesses in these areas of the economy. All of Innovation PEI’s work aims to spark growth across Prince Edward Island’s economy.

If you are considering starting a new business, looking for an opportunity related to these growth sectors could help your chances at success.

Service businesses related to agriculture, tourism, and fisheries have shown strength for many decades. But service businesses related to the technology sector are growing, too.

How to Start a Business in Prince Edward Island: Step-by-Step Instructions

  1. 1
    Start with the basics:
  • Determine which industry best fits your skills
  • Decide how you can make a difference for potential customers
  • Do you prefer providing goods or services?
  • Do you want a brick-and-mortar business, an online business, or a combination of the two?
  1. 2
    Determine what regulations apply to you:
  • Choose the structure under which you will operate the business
  • Figure out if you need licences and permits from the government
  • Decide which laws and regulations may affect your business
  • Understand which taxes apply to your business
  • Determine which types of insurance you need to run the business safely
  1. 3
    Create a business plan.

Developing a business plan is an important aspect of starting a business. It gives you a guidebook to move toward your goals. The plan shows others you are serious about this venture, including potential financiers.

The business plan should include:

  • An overview of your business
  • Your plan for sales and marketing
  • How you expect to operate the business day to day
  • How many and what types of employees you need to hire
  • Profit margin expectations
  • Financial expectations for the business in one year, three years, and five years
  • Costs for starting the business
  1. 4
    Seek funding.

Finding the money you need to start the business is a challenge. If you plan to go to a bank for a business loan, you need a highly detailed business plan in place.

You also can work toward receiving grants and other types of funding reserved for Prince Edward Island businesses, including the
PEI Small Business Investment Grant.

  1. 5
    Seek out advice and support from others.

Many successful business owners in PEI and other places wouldn’t be where they are today without help from others in the beginning. If you need some advice, reach out to accountants, lawyers, bankers, or mentors in professional organizations in Prince Edward Island.

Not only can such people provide tips for success, but they also can point out mistakes they made in the early days that you can hopefully avoid.

Business for Sale Prince Edward Island: Business Opportunities in Prince Edward Island

You may have a clear vision for the industry in which you want to operate a business in Prince Edward Island. However, the number of steps and the amount of work required to start a business from scratch can feel overwhelming.

If so, you may be a candidate to purchase an existing business. We collected a number of resources you can use to find business others are trying to sell.

  • Online Business Marketplaces

A good starting point for seeking businesses for sale in PEI is through an online business marketplace, such as the following:

  • BusinessesForSale.com Prince Edward Island
  • BuyAndSellABusiness.com Prince Edward Island
  • BizQuest.com Prince Edward Island
  • PEI Businesses for Sale
  • Real Estate Brokerages

Real estate brokers operating in Prince Edward Island often will list businesses for sale, as well as residential property, retail property, and commercial property. Local PEI brokerages that have some businesses listed for sale include:

  • Realtor.ca Prince Edward Island Businesses for Sale
  • Point2Homes Prince Edward Island Businesses and Commercial Properties for Sale
  • Century 21 Prince Edward Island Businesses for Sale
  • Online Classifieds (For Sale by Owner)

Because realtors charge a fee, some business owners may try to sell their businesses on their own. Some sites that list these businesses for sale by owner include:

  • PEIBusinessesforSale.com
  • Kijiji Prince Edward Island Businesses for Sale
  • Craigslist Prince Edward Island Businesses for Sale
  • Business Brokers

Business brokers in PEI focus on matching buyers and sellers of businesses. Because they focus on business transactions, they often can help speed up the process of obtaining a business. They help with negotiations, serving as a go-between for you and the seller.

Business brokers sometimes receive notice of businesses that are coming up for sale before they actually hit the market, giving you an early chance at buying them. These brokers often excel at finding niche businesses, too, if that interests you.

Some of the top business brokers operating in Prince Edward Island include:

  • Queen Square Business Brokers in Prince Edward Island
  • Sunbelt Network Business Brokers in Prince Edward Island

Business Registration in Prince Edward Island

The government of Prince Edward Island offers multiple resources for helping businesses register their names. The process involves going through the following steps:

  1. 1
    Choose whether to create a business with the legal structure of sole proprietorship, corporation, or partnership
  2. 2
    Choose the business name you want to use
  3. 3
    Search the PEI business registry to ensure your desired name is available and unique
  4. 4
    Reserve your business name through PEI’s new online registration system and submit your payment
  5. 5
    The PEI Registry Office will review your application and advise you about approval or denial

Innovation PEI provides a checklist of steps new businesses need to follow, too.

Business Licences in Prince Edward Island

Depending on the type of business you are starting in PEI, you may be subject to holding certain licences and permits. The following websites can help you figure out what licences you need.

  • BizPaL is an online search tool that shows each licence required per type of business.
  • The city of Charlottetown and the city of Summerside each maintain their own online portals for permits and licences.

Business Insurance in Prince Edward Island

The provincial government of Prince Edward Island does not require businesses to hold particular types of insurance coverage. However, operating a business without the safety net of insurance coverage is a dangerous idea.

Some of the most common types of business insurance include:

  • General liability for protection against any claims of negligence against you that lead to personal injury or property damage for the victim.
  • Professional liability to protect you against a customer accusing you of causing financial harm because of an error you allegedly made.
  • Commercial property to protect the physical property of the business from things like fire or storms.
  • Business income loss to guard your business against the loss of income because of something beyond your control, such as a power interruption or flooding.

You may need workers’ compensation insurance if you have employees as well.

Business Laws in Prince Edward Island

As you start and operate your business, make sure you are following business laws in effect in PEI, including:

  • Business Corporations Regulations, Prince Edward Island
  • Business Corporations Act, Prince Edward Island
  • Business Practices Act, Prince Edward Island
  • Employment Standards Act, Prince Edward Island
  • Labour Act, Prince Edward Island
  • Occupational Health and Safety Act, Prince Edward Island

Business Taxes in Prince Edward Island

Taxes are part of life, even for a business owner. Laws and regulations related to business taxes in PEI include:

  • Corporate income tax law (Government of Prince Edward Island)
  • Free Tax Help for Small Business Owners (Government of Canada)
  • Federal and provincial corporate income tax rates in Canada

The current provincial business tax rate in Prince Edward Island ranges from 1% to 16%.

Prince Edward Island Business Immigration

Prince Edward Island is an environment where immigrants are encouraged to start businesses right away. Immigrants can make use of the Work Permit Stream program to start a business and to work toward becoming a resident.

Small Business Resources in Prince Edward Island

For many people, one of the most appealing reasons for starting your own business in PEI is so you can be your own boss … and do the exact opposite of what all your bad bosses did to you! You get to make all the decisions when you are running your own business.

Fortunately, even if you are working for yourself, you don’t have to go it alone. You can access multiple local resources to help you start and grow your business.

Prince Edward Island Business Directories

  • General Business Directories
  • PEI Business and Corporate Registry
  • PEILocal.com Business Directory
  • 411.ca Prince Edward Island Business Directory
  • PEI Business Directory
  • Yellow Pages Business Directory in Prince Edward Island
  • Indigenous-Owned Businesses Prince Edward Island
  • PEI Aboriginal Business Directory
  • Indigenous Business Directory in Prince Edward Island and all of Canada
  • Prince Edward Island Business Associations & Organizations
  • PEI Business Women’s Association (PEIBWA)
  • Greater Charlottetown Area Chamber of Commerce
  • Greater Summerside Chamber of Commerce
  • Prince Edward County Chamber of Commerce
  • PEI Business Federation
  • Prince Edward Island Business News
  • PEI Canada Business Market
  • SaltWire Prince Edward Island Business News
  • CBC Prince Edward Island

Related posts:

Starting a Business in PEI: Step-by-Step Guide for Prince Edward Island Entrepreneurs
Incorporating a Business in Prince Edward Island: Step-by-Step Guide for New Entrepreneurs
Registering a Business in PEI: Step-by-Step Guide for Prince Edward Island Entrepreneurs
Businesses for Sale PEI: Best Places to Buy + Mistakes to Avoid

About Maurice

Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Atlantic Canada to identify and maximize government grants to grow their business. Click here to learn more about Moe’s background and how he can help your business.

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