How to buy a daycare in Saskatchewan: licences, ownership rules and what transfers

If you want to buy a daycare in Saskatchewan, the provincial statute decides most of what you are actually buying. Licensing runs under The Child Care Act, 2014 and The Child Care Regulations, 2015, the Minister is the person who issues the licence, and the ministry publishes the Child Care Licensee’s Manual, which the Regulations require every licensee to comply with. A centre’s licence belongs to the licensee and does not move to a new owner, and the Act also lists who may apply for a centre licence at all. This guide walks through those provisions in the order a buyer meets them. It covers Saskatchewan’s Act and regulations only. The national picture is in our guide to buying a daycare business in Canada.

Who regulates child care centres in Saskatchewan

Under section 5 of The Child Care Act, 2014, no person may operate a child care centre, or cause one to be operated, unless the person holds a licence for that facility. Section 13 says the Minister may issue a licence to an applicant if satisfied that the applicant has complied with the Act and the regulations, and may do so on any terms and conditions the Minister considers appropriate. Those conditions matter to a buyer, because section 17 forbids a licensee from failing to comply with them. The Government of Saskatchewan publishes a page on starting a regulated child care centre, addressed to parent groups, non-profit corporations, co-operatives, municipalities and other not-for-profit organizations, so a for-profit buyer should confirm its own route with the ministry. Listings are on our daycares for sale page.

The licence does not transfer

Section 15 of the Act is one sentence: a licence is not transferable. In practice, a buyer who takes over a centre’s premises, equipment and enrolment list has not taken over its licence. The buyer applies under section 12, in writing and in the form the Minister requires, with the prescribed fee and any further information and material the Minister requests. If you are buying the shares of a corporation that already holds the licence rather than its assets, ask the ministry whether it treats the change of shareholders as needing anything from you. Ask the ministry how it treats an application made around a pending sale, and whether the centre may keep operating on the day of closing. Do not assume it can.

Who may apply for a centre licence

Section 7(2) says an application for a child care centre licence may only be made by one of a listed set of applicants. They are a corporation under The Business Corporations Act, 2021 of which all the shares are legally and beneficially owned by individuals, a corporation under The Non-profit Corporations Act, 2022, a co-operative under The Co-operatives Act, 1996, a municipality, a partnership whose partners are all adult Saskatchewan residents, or an adult individual who is a Saskatchewan resident. The Act defines an individual as a resident of Canada. A buyer that is a holding company, a trust or a corporation with a corporate shareholder should check its structure against that list before signing.

Limits on interests in other facilities

Subject to section 7(4), section 7(3) also caps how many other facilities an applicant, and anyone else with an interest in the operation of the centre, may have an interest in the operation of; the cap is set out in the subsection. For this section, “other facility” includes an unlicensed family child care home and an unlicensed preschool. For the purposes of section 7(3), section 7(5) deems a shareholder of a corporation that has an interest in the operation of a facility to have an interest in the operation of that facility. The Act says an interest in the operation does not include a loan or an interest held by way of security for a debt or other obligation. Section 7(4) lifts the cap for non-profit corporations, co-operatives and municipalities. A buyer with other daycares, or a shareholder who holds a stake in one, should map every holding against section 7 first.

What the application must include

Section 8 of The Child Care Regulations, 2015 sets out what a centre applicant submits to the ministry on its form. That includes reports from the public health officer, from the Fire Commissioner’s local assistant and, on the heating system, from a person acceptable to the Director. A corporation or co-operative applicant also supplies its certificate of incorporation or registration, and a Business Corporations Act applicant adds a list of the names and addresses of its shareholders. Under section 7 of the Regulations, unless a licence is suspended or cancelled under section 18 of the Act, it is valid for the period it states or, if none, for one year after the day it was issued. Section 14 of the Act lets the Minister issue a provisional licence, for a period not to exceed six months, for a facility that does not comply, if satisfied that it will comply within six months and that the immediate health and safety of the children are not at risk.

Cancellation, closure and reopening

Section 18 of the Act allows the Minister, if considered in the public interest, to amend, suspend or cancel a licence. After a cancellation, section 18(3) bars the former licensee from applying for or obtaining a licence for 1 year after the date of cancellation, and, if the Minister considers it in the public interest, lets the Minister refuse a licence for that year to a person who owns or has an interest in the former licensee, or for a facility in which the former licensee has an interest. Ask the seller whether the licence has ever been amended, suspended or cancelled. The Ministry’s Licensee’s Manual tells a facility planning to close to contact an Early Learning and Child Care consultant at least two months before ceasing operation. It adds that if a facility has closed and later decides to reopen, licensing proceeds as for a completely new facility.

• The current licence, with every term and condition and the period it states, so you can see what the Minister attached under section 13.
• The licensee’s legal form and, for a Business Corporations Act corporation, its shareholder list, to test it against section 7(2) and the interest limits.
• The most recent public health, fire safety and heating system reports, which the Regulations require with a centre application.
• Any Ministry correspondence about amendment, suspension, cancellation or provisional licensing.
• Written confirmation from the Ministry of what it needs from a buyer, and when, before you commit to a closing date.