Extra Provincial Licence (EPL)

Definition

An Extra Provincial Licence (EPL) is a regulatory requirement in some jurisdictions that allows a business registered in one province or territory to operate in another province or territory.

What is the Extra Provincial Licence?

Businesses are typically registered at the provincial or territorial level. However, if a business wants to expand its operations beyond the province or territory where it is registered, it may need to obtain an Extra Provincial Licence to legally conduct business in other jurisdictions.

To get an Extra Provincial Licence, a business typically needs to submit an application to the relevant licensing authority. The application may require details about the business, its ownership structure, its registered address, and its intended activities in the jurisdiction where the licence is sought.

Once granted, an Extra Provincial Licence imposes certain compliance requirements on the business. This may include maintaining a registered office or agent in the jurisdiction, filing annual reports or updates with the licensing authority, and paying any applicable fees or taxes. Failure to comply with these requirements may result in penalties or the revocation of the licence.

While an Extra Provincial Licence grants a business the legal authority to operate in multiple jurisdictions, it does not alter the business’s legal structure or status. The business remains registered as a separate legal entity in its home province or territory, and its liability, taxation, and other legal obligations are determined by the laws of that jurisdiction.

Example of Extra Provincial Licence 

Let’s say a software development company called “Tech Solutions Inc.” is registered in the province of Ontario. The company has been successful in Ontario and now wants to expand its operations to British Columbia.

The company submits an application along with the required documentation, including details about its business activities, ownership structure, and registered address.

Once the application is processed and approved, Tech Solutions Inc. is granted an Extra Provincial Licence. With the EPL in hand, the company can now establish a presence in British Columbia, hire local employees, enter into contracts, and provide its software development services to clients in the province.