Starting an Early Childhood Centre in Prince Edward Island

The following information guideline is intended to provide a better understanding of license, permit and registration requirements for establishing an Early Childhood Centre or Daycare. The information provided is correct to the best of our knowledge, however for specific information or updates, please contact the departments listed below or the Canada/Prince Edward Island Business Service Centre at 368-0771 or 1-800-668-1010.

Business Name Registration
A verification of corporate name availability must be reviewed before an establishment or organization can register their business name. To verify and register, please contact the Department of Provincial Affairs at 368-4550. For more details on business registration, including costs, pick up a Starting Your Own Business booklet at the Business Service Centre, 75 Fitzroy Street.

Licensing
Any early childhood centre with more than five pre-schoolers, and no more than two infants (younger than 2 years old) must be licensed by the Child Care Facilities Board. In determining the number of children, the child care provider must include her/his own pre-school children. The maximum number of children is for each facility and is not based on the number of adults present. For further information please contact 368-6513.

Requirements
Operation of child care facilities are regulated by the PEI Child Care Facilities Act. Regulations address such issues as the number and qualifications of staff, health and safety, curriculum, liability insurance, meals, etc. For further information, please call 368-6513.

Types of Facilities
The Child Care Facilities Board issues licenses to Type 1 early childhood centres, which includes daycare centres, kindergartens and nursery schools. Type 2 facilities include family daycare homes and school age child care services. If you have any questions about licensing please call Early Childhood Services at 368-6513.

Maximum Capacity Regulations
The number of children allowed in a early childhood centre is determined by the physical spaces, number of washrooms, number of staff, and type of facility. Maximum capacity for a licensed facility is 50 spaces, except for family daycare homes, where the maximum capacity is 6 children. Staff/child ratios are established by the Regulations of the Child Care Facilities Act, and vary by the ages of the children.

Educational Requirements
A maximum of 2 staff in all licensed early childhood centres, family daycare homes and school age centres must be eligible for certification by the Child Care Facilities Board. Requirements vary depending on the type of facility. For more information, please Early Childhood Services at 368-6513.

Employee Regulations
To obtain information on the laws relating to vacation pay for employees, minimum wage rates, proper notice of termination of employment, or pay statements, please contact the Department of Provincial Affairs, Labour and Industrial Relations Division at 368-5550.

Workers' Compensation Act
All new businesses hiring employees must register with the Workers' Compensation Board at 1-800-237-5049.

All businesses, exceeding a gross yearly revenue of more than $30,000 must register for the Goods and Services Tax at Canada Revenue Agency. If yearly revenue is less than $30,000, it may be still beneficial to register for the Goods and Services Tax, depending on the nature of the business. Contact Canada Revenue Agency at 1-800-959-5525.

Payroll Deductions
All new businesses are also required to obtain a business number by contacting Canada Customs and Revenue Agency. It is the responsibility of the individual business to collect and remit federal and provincial income tax, Canada Pension Plan contributions, and Employment Insurance premiums for each employee. This division can be reached at 628-4227 or 1-800-959-5525.

Building Permits
A building permit must be obtained from Planning and Inspection Services before commencing any building, renovating or expanding. It is advisable to have fire and environmental health inspections before undertaking any building renovations. Please contact 368-5280 for further information. NOTE: Please check with your local municipality as an additional permit may be required.

Zoning By-laws
Zoning by-laws vary for different areas. A license will not be issued to an early childhood centre by the Child Care Facilities Board unless the proposed child care facility meets zoning requirements. To obtain the information pertaining to your location contact your local municipality, or John Berry at the Department of Municipal Affairs, at 368-4876.

DISCLAIMER
Information contained in this document is of a general nature only and is not intended to constitute advice for any specific fact situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

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