CONP11116 – Application for a Prepaid Contracting Business Licence

Jurisdiction: Country: Canada | Province/State: Alberta

What is a CONP11116 – Application for a Prepaid Contracting Business Licence?

The CONP11116 is the provincial application you complete to get licensed as a prepaid contractor in Alberta. You use it when your business takes money from consumers in advance of doing work or delivering goods tied to that work. It covers home and property improvement services that involve deposits, progress payments, or any advance funds. The licence allows you to legally advertise, take deposits, and perform prepaid work with consumers in Alberta.

A “prepaid contractor” is any business that enters a consumer contract and takes payment before all work is done. You may also handle progress draws before you reach final completion. If you run a renovation, repair, or installation business, this likely applies to you. It often includes roofing, siding, decks, fencing, landscaping, paving, windows, doors, HVAC, plumbing, electrical, waterproofing, concrete, or general renovations. It also includes specialty work like custom cabinetry, bath or kitchen remodels, and exterior finishing.

The form gathers the information the province needs to assess your suitability. It confirms your business identity, structure, people in control, and operational details. It also confirms whether you meet core consumer protection requirements. Those requirements include holding prepaid funds correctly, using compliant written contracts, and disclosing key information in your advertising. You must certify that your information is accurate and complete.

Who Typically Uses This Form?

You use this form if you own or manage a business that takes deposits from consumers for future work on their homes or property. It is common for:

• Sole proprietors who bid on residential projects and ask for deposits.
• Corporations that sell home improvement services and stage payments.
• Partnerships or joint ventures offering renovation or repair services.
• Franchises operating under a brand and taking advance payments.
• Out-of-province companies entering the Alberta consumer market.

You might be an owner-operator, a director, or a compliance lead. Accountants and lawyers also complete the form on behalf of clients. The authorized signatory must certify and sign.

Why Would You Need This Form?

You need this licence to legally take deposits or any advance funds from consumers for contracting work. Without it, you risk enforcement, fines, and orders to stop taking deposits. You may also face contract issues that harm cash flow and brand trust. The licence signals that you follow provincial standards. It also helps consumers verify your status before they hire you.

If you already operate but now plan to take deposits, you need this licence first. If you expand services to higher-value projects with progress draws, you need it. If you market directly to consumers and collect advance payments, you need it.

Typical Usage Scenarios

• You are a roofing company that quotes $12,000 and takes a 30% deposit on booking. You must hold a prepaid licence before you collect that deposit. You must also place prepaid funds in a designated way and use a compliant contract.
• You are a landscaping firm that schedules projects for spring. You take deposits in winter to secure materials and dates. You need this licence to collect those deposits from consumers in Alberta.
• You are a renovation contractor who bills progress draws at defined milestones. You still take money in advance of full completion. This qualifies as prepaid contracting. You must be licensed.
• You are a window installer who offers seasonal promotions. You accept upfront payments to order custom windows. You must apply for this licence before you collect funds.
• You are an out-of-province contractor entering Alberta. You plan to market to homeowners and request deposits. You must get licensed in Alberta using this form.
• You are changing ownership or control of an existing licensed contractor. You may need to apply again or update details through this application. You must confirm the required path with the regulator. In many cases, material ownership changes trigger a new application.
• You are reopening after a lapse, suspension, or cancellation. You need to submit this application to reinstate your licence before taking deposits again.

When Would You Use a CONP11116 – Application for a Prepaid Contracting Business Licence?

You use this form before you accept deposits or advance payments from consumers for work in Alberta. The key trigger is the flow of money before work is fully completed. If you accept any funds upfront for home or property work, you use this application. That includes a deposit, a booking fee, a staged payment, or a progress draw before completion. It applies whether you are on a fixed price, cost-plus, or time-and-materials model.

Use the form when starting a new consumer contracting business. You should apply well before you start taking money. Your marketing plan may involve promotions that ask for upfront commitments. You should have the licence in hand before you launch those offers.

Use it when expanding your service area into Alberta. If you are licensed in another province, you still need this Alberta licence. Your Alberta contracts and funds handling must meet Alberta rules.

Use it when your business model changes. You may have run a business that only billed on completion. If you now plan to take deposits or progress draws, you need to apply.

Use it when you add a new trade name or change your legal name. The name on your invoices and ads must match what is on your licence. If you rebrand or add a trade name, you update your licence. If the regulator requires a fresh application for certain changes, you use this form.

Use it after a change in ownership, directors, or officers. Material changes can affect your licence. You may need to reapply or report changes using this application. The regulator uses this information to evaluate control and suitability.

Typical users include owners, directors, and compliance managers. Bookkeepers and accountants help prepare trust account details and attachments. Lawyers may prepare corporate records and consent documents. Operations managers can help assemble sample contracts and business process details. The authorized individual signs and certifies the application.

Legal Characteristics of the CONP11116 – Application for a Prepaid Contracting Business Licence

This application is part of a statutory licensing process. It is legally significant because the regulator uses it to grant, refuse, suspend, or cancel a licence. Your statements in the form are official declarations. False or misleading statements can trigger enforcement. That includes administrative penalties, licence action, and prosecution. You must answer truthfully and completely.

The licence that results from a successful application carries conditions set by law and policy. Those conditions include how you hold prepaid funds, what your written contracts must include, and how you advertise. You must comply with those rules at all times. The licence can be checked by consumers, lenders, and partners. It builds trust through verified compliance.

What ensures enforceability?

Enforceability stems from several features. The form requires identification of the legal entity and people in control. The regulator can verify this against corporate and personal records. The form requires you to agree to terms and to consent to checks. The declaration confirms you understand your obligations and the consequences of non-compliance. The regulator can audit your trust account and your consumer contracts. The regulator can also require more information before granting or renewing a licence.

General legal considerations include contract content, funds handling, and disclosure. Your consumer contracts must include key details. Those details typically include business name, licence number, scope of work, start and end dates, total price, payment schedule, and cancellation rights. Your advertising must show your licensed name and number, and not mislead consumers. You must manage consumer funds in a compliant manner. That usually involves use of a dedicated trust account and release rules tied to contract performance.

You must also keep records. Keep copies of all signed consumer contracts and receipts. Keep trust account records and bank statements. Keep project records that match progress draws to milestones. Maintain records for the retention period the law requires. This protects your business in case of audit or dispute.

Finally, remember that this licence applies to consumer work. It is about residential or personal-use contracts. Commercial-only work may not need this licence. If you serve both consumer and commercial clients, you still need the licence for consumer work. You should keep your processes aligned with consumer rules at all times.

How to Fill Out a CONP11116 – Application for a Prepaid Contracting Business Licence

Follow these steps in order. Prepare your documents first. Then complete the form carefully. Use full legal names and accurate dates. Keep your sentences clear and your figures exact.

1) Confirm you need the licence.

• Describe your services and payment practices. Do you take deposits, booking fees, or progress draws from consumers? If yes, you need this licence. Confirm that your clients are consumers, not only businesses.

2) Identify the legal entity (the “party” applying).

• Enter the full legal name of the business. This is the name registered in Alberta or federally. Include your Alberta registration or corporate access number, if you have one. Select the structure: sole proprietor, partnership, or corporation. If a partnership or corporation, provide your formation details and jurisdictions.

3) List trade names and related entities.

• Enter every trade name you will use in Alberta. These names must be registered. List affiliated entities or divisions if they will appear on contracts or ads. Your licence should match what consumers see.

4) Provide business addresses and contact details.

• Provide your principal place of business and any Alberta business locations. Add mailing address if different. Provide a business phone and email monitored by your team. This is where the regulator sends notices.

5) Name your authorized contact.

• Identify the person the regulator can contact about the application. Include their title, phone, and email. This person should understand your operations and documents.

6) Disclose owners, partners, directors, and officers.

• List all individuals with control roles. Include full legal names, positions, dates of birth, and addresses. Disclose anyone with signing authority over the trust account. Accuracy here is critical. The regulator will verify identity and history.

7) Answer background and suitability questions.

• The form will ask about past bankruptcies, judgments, regulatory actions, and criminal matters. Answer each question truthfully. Provide details and attachments where required. If you have a history, explain the context and the steps you took to remediate risk.

8) Describe your prepaid contracting activities.

• Describe the types of work you will perform. Include typical project values, average deposits, and common draw schedules. State whether you sell materials and installation together. Clarify the geographic area served within Alberta. This helps the regulator understand your business model.

9) Set up your trust account.

• Open a dedicated trust account with a Canadian financial institution. Ensure the account name identifies it as a trust for prepaid funds. Ask the bank for a signed letter that confirms the account name and type. Attach this letter to your application. You will deposit consumer funds into this account as required. Do not co-mingle these funds with operating money.

10) Prepare your consumer contract template.

• Draft a clear, complete contract for consumer jobs. Include your licensed name and number. Include a detailed scope of work, materials, start date, and completion date. Include the total price, payment schedule, and deposit terms. Include cancellation rights, warranties, change order process, and dispute contacts. Include the address for notices and the trust account payment terms. Attach a sample contract to your application if requested.

11) Prepare your refund and cancellation policies.

• Put your policies in writing. Align them with provincial rules. Show how you handle cancellations before work starts. Show how you handle delays, backorders, or schedule changes. Include timelines and methods for refunds. Be clear and consistent with your contract terms.

12) Prepare proof of name registrations and corporate records.

• Attach proof of your legal name and registration. If a corporation, attach your certificate and a current ledger of directors and officers. If a partnership, attach the partnership registration. If you use a trade name, attach the trade name registration.

13) Prepare insurance details (if requested).

• Have a certificate of commercial general liability insurance with current dates. Include your policy number and limits. While not always mandatory for licensing, clients expect it. It also supports your risk management narrative.

14) Confirm your advertising practices.

• Prepare examples of ads or web copy showing your licensed name and number. Confirm you will not claim you are licensed until approval. You may need to provide samples or attestations. Your number must appear in consumer-facing ads after approval.

15) Complete the declaration and consent clauses.

• Read the form’s declarations closely. You, as an authorized signatory, confirm truth and completeness. You also consent to checks, including credit, criminal, and administrative history. Understand that false statements can lead to refusal or licence action.

16) Sign and date the application.

• Sign as the authorized individual. If a corporation, an officer or director should sign. If a partnership, a partner should sign. If a sole proprietor, you sign personally. Use wet ink if submitting on paper, or digital signature if allowed. Date the form.

17) Pay the fee.

• Calculate the fee as set out in the form. Fees are generally non-refundable. Keep a copy of the receipt. If paying electronically, print or save the confirmation.

18) Submit the application package.

• Assemble the form and all attachments. Include the trust account letter, contract sample, name registrations, corporate records, and any disclosures. Submit as directed by the form. Keep a full copy of everything you submit.

19) Respond to follow-up requests.

• The regulator may ask for clarifications. Answer quickly and completely. Provide any missing documents. This keeps your review moving.

20) Track your application and plan your launch.

• Do not take deposits until approval is issued. Prepare your operations for compliance. Train your team on trust deposits and contract content. Update your invoicing and receipt templates to match your licence details.

21) On approval, activate compliance controls.

• Add your licence number to your contracts and ads. Open job files with a copy of the signed consumer contract. Deposit all advance funds into the trust account. Release funds only as allowed by your contract and the law. Keep records of each draw and milestone.

22) Maintain your licence.

• Calendaring helps. Note your licence expiry and renewal dates. Track changes in ownership, directors, or trade names. Report changes promptly as required. Keep your trust account letter current. Update your contract template if laws or policies change.

23) Common mistakes to avoid.

• Do not accept any advance funds before approval. Do not use a general business account for deposits. Do not omit directors or owners from the disclosure list. Do not advertise a licence you do not yet have. Do not use a contract that lacks required terms. Do not ignore consumer cancellation or refund obligations.

24) Practical documentation checklist (schedules).

• Your “schedules” or attachments should include:
• Trust account confirmation letter from your bank.
• Sample consumer contract with all required terms.
• Proof of legal entity and trade name registrations.
• Corporate records listing current directors and officers.
• Disclosure statements for background questions, if applicable.
• Insurance certificate, if requested.
• Payment fee receipt.
• Any prior licences or permits, if relevant to your history.

25) After approval, prepare for audit.

• Keep your trust bank statements organized by month. Keep copies of every signed contract. Keep invoices, receipts, and draw release records. Keep proof of materials and labour tied to milestones. Maintain a procedure for refunds and cancellations. Good records support your licence and reduce risk.

Real-world examples

• You run a deck-building firm and plan a spring promotion with a 20% booking deposit. You complete the CONP11116 and open a trust account. You attach a contract template showing scope, price, schedule, and deposit rules. You wait for approval before you collect deposits. Once approved, you add your licence number to your ads and invoices. You deposit every booking payment into the trust account. You release funds when you hit the agreed milestone. You keep all records in a project file.
• You are a window installer taking a 50% deposit to order custom units. You apply and include a contract that explains long lead times and exact delivery windows. You state how you handle delays and backorders. You keep prepaid funds in trust until installation starts or other release conditions are met. You document any delays and offer options to the consumer per your contract.

If you follow the steps above, your application should be complete and clear. That makes review smoother and faster. It also sets your business up to comply from day one.

Legal Terms You Might Encounter

• Prepaid contract means a written agreement where a consumer pays before all work is done or goods delivered. If you take deposits, progress payments, or retainers before completion, you are entering prepaid contracts. The form asks whether your business takes payments in advance. Answer based on how you actually get paid.
• Prepaid contracting business is a business that sells, repairs, renovates, or improves consumer goods or real property and accepts payment before work completion. If your business model includes upfront payments for home services, you likely fall in this category. The form title specifies this licence type. Make sure your activities match it.
• Licence is the regulator’s authorization for you to operate a prepaid contracting business in Alberta. The form you complete is the application to get or renew that authorization. Do not collect prepaid funds or hold yourself out as licensed until approval is issued.
• Applicant is the legal entity applying for the licence. It can be a sole proprietor, partnership, or corporation. The applicant must be the legal owner of the business, not the brand name alone. The form will ask for the applicant’s legal name and structure.
• Legal name is the exact name registered for your entity. A trade name (also called a business name) is the name you use in the marketplace. The form requests both. Use the legal name in the applicant section. Use the trade name in the trade name field. Keep them consistent with your registration records.
• Sole proprietor, partnership, and corporation are business structures. A sole proprietor is one individual owner. A partnership has two or more partners sharing ownership. A corporation is a separate legal entity with shareholders and directors. The form asks you to check your structure and list owners, partners, or directors.
• Director, partner, or owner (sometimes called a control person) is an individual who directs, manages, or owns the business. The form will ask for their names, addresses, and background disclosures. List everyone who fits the role. Leaving anyone out can result in refusal.
• Security means the financial guarantee you provide to protect consumers if you breach obligations. It may be a bond, letter of credit, or cash deposit, as required by the regulator. The form will ask what security you have, the amount, and issuing institution details. Ensure the security is in the correct legal name.
• Trust account is a separate bank account to hold prepaid consumer funds until earned or until conditions in the contract are met. The form often asks if you maintain a trust account and for bank details. If you accept deposits, you may need a trust account to stay compliant.
• Criminal charge or conviction disclosure asks you to state whether any applicant, director, or partner has a relevant criminal history. The form includes disclosure questions. Answer truthfully and completely. The regulator considers context, severity, and recency.
• Place of business is the physical location where you operate in Alberta. A mailing address can be different. The form requests both. Provide an address where you can receive official notices and where records can be reviewed if needed.

FAQs

Do I need this licence if I only take small deposits?

Yes. If you take any payment before the work is complete, you are prepaid. This includes deposits, retainers, and progress payments. You need the prepaid contracting business licence before collecting those funds.

Do subcontractors need a prepaid contracting business licence?

It depends on who contracts with the consumer and who takes money in advance. If you work only for a prime contractor and never take prepaid funds directly from consumers, you typically do not need this licence. If you contract with consumers and take money upfront, you do.

Do I need a trust account for prepaid funds?

Often yes. A trust account keeps prepaid funds separate from operating money. The form asks about trust accounts and bank details. If you accept deposits, set up a trust account before applying. Ask your bank for a letter confirming the trust account name and number.

Do I need to submit a bond or other security?

Most prepaid contractors must provide security. The form asks for the type and amount. The required amount depends on your business model, volume, and regulatory requirements. Choose a compliant instrument and ensure the name on the security matches your legal name.

Can I apply if my business is outside Alberta?

Yes, but you must be licensed to operate in Alberta and comply with Alberta rules when dealing with Alberta consumers. The form asks for locations and contact details. You may also need an Alberta service address. Make sure your trade name is registered if you market under it.

How long does approval take? Can I start work while waiting?

Processing time varies. It depends on completeness, background checks, and security verification. Do not operate as a prepaid contracting business or collect deposits until you receive your licence. Starting early can lead to penalties and possible refusal.

Do my salespeople need individual licences?

If they sell on your behalf and collect or negotiate prepaid contracts, your business must hold the prepaid contracting licence. In some cases, specific sales activities require individual authorization. Check the roles in your team. Train them to follow prepaid rules and to use your approved contract.

What if we change owners, directors, address, or trade name after filing?

You must notify the regulator and file an amendment as required. The form information must stay current. Changes to ownership, control persons, location, or trade names usually require updates and sometimes additional security. Plan ahead when restructuring.

Checklist: Before, During, and After the CONP11116 – Application for a Prepaid Contracting Business Licence

Before you start

Legal name details

• Exact legal name of applicant.
• Business structure (sole proprietor, partnership, corporation).
• Alberta registration or incorporation number.

Trade name details

• Registered trade name(s) and proof of registration.

Addresses and contacts

• Physical business location in Alberta, if any.
• Mailing address for official notices.
• Business phone and email.

Ownership and management

• Full legal names, home addresses, and contact info for all owners, partners, or directors.
• Dates of birth for background verification, if requested.
• Titles and roles (e.g., director, manager).

Background disclosures

• Any criminal charges or convictions.
• Any prior licence refusals, suspensions, or cancellations.
• Any bankruptcies or insolvency proceedings related to the business or principals.

Security and trust

• Security instrument details (bond, letter of credit, or cash security).
• Issuer name and contact details.
• Security amount.
• Trust account letter from your bank with account name and number.

Business operations

• Description of services (e.g., renovations, landscaping, roofing).
• Whether you take deposits, progress payments, or retainers.
• Typical contract value and payment stages.

Contract documents

• Your standard consumer contract or service agreement.
• Sales invoice or receipt format showing required details.

Supporting records

• Government-issued ID for signing officer.
• Corporate documents (articles, partnership agreement) if applicable.
• Proof of Alberta service address if you are out-of-province.

Fees

• Application fee payment method as accepted by the licensing office.

While completing and signing the form

• Confirm the applicant legal name matches all documents and security.
• Use the exact registered trade name. Spell it consistently.
• Select the correct business structure and attach proof.
• Provide complete addresses. Do not use a P.O. Box for the physical location.
• Describe your services and whether you accept prepaid funds.
• List all owners, partners, and directors. Include middle names if required.
• Answer every background question. Provide explanations and dates where requested.
• Enter security details exactly as shown on the instrument.
• Enter trust account details from the bank letter, without abbreviations.
• Attach your standard consumer contract, if requested.
• Review declarations carefully. They carry legal consequences.
• Ensure the authorized signing officer signs and dates in ink.
• Initial any corrections. Avoid white-out. Use fresh forms if needed.
• Create a copy package of all attachments for your files.

After signing and submitting

• Submit the complete application with the fee and all attachments.
• Keep proof of submission and a copy of the cheque or payment receipt.
• Track your application. Respond quickly to any deficiency notice.
• Do not accept prepaid funds until your licence is issued.
• Once approved, store the licence in a secure, accessible place.
• Display or carry the licence as required. Train staff on its conditions.
• Provide your accountant and branch managers with the licence details.
• Implement your trust account procedures before taking deposits.
• Update your contracts to ensure required content and cancellation rights.
• Calendar your renewal date and any required reporting deadlines.
• Set reminders to report changes in ownership, address, or trade name.

Common Mistakes to Avoid

• Don’t forget to apply under your legal name, not just your trade name. If the security and the form show different names, the regulator will not match them. Expect delays or refusal until names align.
• Don’t omit any owner, partner, or director. Failing to disclose all control persons raises red flags. It can lead to rejection or conditions on your licence. Disclose everyone in control, even if they are not active day-to-day.
• Don’t understate or ignore prepaid activity. Saying you do not take deposits when you do can result in non-compliance. The regulator may require extra security or take enforcement action if you misrepresent your business model.
• Don’t skip trust account details when you accept deposits. If you take prepaid funds, a trust account may be required. Missing bank letters or account information stalls your file and can lead to conditions or refusal.
• Don’t gloss over criminal history or past regulatory issues. Non-disclosure is worse than disclosure. If you answer “no” and records show otherwise, the regulator may refuse your licence and question your integrity for future filings.

What to Do After Filling Out the Form

Submit the complete package with all attachments and the fee. Keep a timestamped copy of everything you send. If you receive a deficiency notice, respond within the timeline given. Provide clear, organized responses with labeled attachments.

Wait for written approval before operating as a prepaid contracting business. Do not collect deposits or sign prepaid contracts until you have the licence in hand. If a client presses for a start date, explain your licensing timeline and offer scheduling without taking payment.

Set up your financial controls as soon as you receive approval

• Confirm your trust account is active and correctly titled.
• Train staff on when to deposit funds into trust.
• Document who can transfer funds from trust and under what conditions.
• Reconcile trust accounts monthly and keep records.

Review and align your consumer contracts

• Add your legal name and trade name exactly as licensed.
• Include your licence number, if required on consumer documents.
• Show the total price, payment schedule, start date, and completion date.
• Include cancellation rights in plain language with the method and address for notice.
• Provide copies of the contract to consumers at signing.

Update your public-facing information

• Ensure your website, quotes, and invoices show the correct legal and trade names.
• Add any licence display or disclosure that the regulator requires.
• Remove outdated numbers or expired names from marketing materials.

Establish compliance routines

• File amendments when ownership, directors, trade names, or addresses change.
• Maintain current security. Replace or renew it before expiry.
• Review insurance coverage. Match it to your services and contract values.
• Keep records of contracts, trust transactions, invoices, and refunds for the required period.

Plan for renewal now

• Calendar the renewal date with early reminders.
• Track changes in prepaid volumes that may affect required security.
• Review staff training twice a year. Refresh contract procedures and consumer disclosures.
• Audit a sample of files each quarter for trust handling and contract content.

If you decide to expand

• Assess whether new services still fall under prepaid contracting.
• Add branch locations to your licence if you open new sites.
• Train new teams on prepaid rules before they meet consumers.

If you need to make a correction after filing

• File an amendment form as instructed by the licensing office.
• Attach supporting documents, such as new director details or updated bank letters.
• Keep confirmation of the amendment with your licence records.

If you stop operating

• Notify the licensing office that you are discontinuing prepaid activity.
• Close the trust account after all obligations are met and funds are disbursed correctly.
• Keep records for the required retention period in case of consumer inquiries.