As such, Canada has an image in the eyes of entrepreneurs and government bodies as a country with a standard system of taxation. Due to this, any structure established on Canadian territory is considered a highly prestigious vehicle.

However, Canadian legislation does offer the opportunity of registering and using Canadian enterprises with a zero rate of tax. These are known as Limited Partnerships. The LP is a limited partnership which has no less than two partners. One of the partners is a General Partner, whilst the other partners have the status of Limited Partners.

A Canadian LP with foreign members, which does not carry on a business in Canada and derives no income on Canadian territory, is not liable to tax in Canada. According to the Canadian tax laws, the LP is not considered as the separate subject of taxation. It is the founders (“Partners”) who should pay taxes from the profits received by the LP company in the place of their residence, in proportions according to the shares of interests belonging to them in the LP company, if it is stipulated by the legislation of that particular country.

Ontario LP Registration
For Non-Residents

Limited Partnerships is a simple form of business registration in Canada, which creates a Canadian company and does not generate filing and tax obligations in Canada for partners, who are not residents of Canada.

This form of business registration is extremely popular among software developers, web programmers, computer support specialists and IT service providers, who offer services to customers in Canada, US and Europe.

Advantages to register a Limited Partnership (LP) in Ontario

Limited Partnerships is a simple form of business registration in Canada, which creates a Canadian company and does not generate filing and tax obligations in Canada for partners, who are not residents of Canada.

This form of business registration is extremely popular among software developers, web programmers; computer support specialists and IT service providers, who offer services to customers in Canada, US and Europe.

Some of the advantages to register your LP in Canada, Ontario:

• Highly prestigious Canadian company.
• No restrictions on the residency of partners.
• Availability of one-man limited partnership, when one person is a sole general and limited partner.
• There is no minimum authorized capital. Partners can make any contribution to the limited partnership.
• No withholding tax on profit received by partners outside of Canada.
• No requirements to file corporate tax returns.
• No corporate income tax.

Common use of Limited Partnership

• Regular trading company for doing business in Canada, US, EU and other highly regulated jurisdictions.
• Agent working under Sales Agency Agreement. Principal may be any legal entity including companies registered in low and zero tax jurisdictions.
• Software development and IT support services, when major customers are located in Canada, US and EU.
• Online based businesses (website development, marketing services, auctions, webstores, etc.).

Corporate Tax

All profit received by Limited Partnership passes through the company to its partners. Partners, who are not Canadian residents, do not have tax liabilities in Canada. If a partner is a Canadian resident, he is required to include his part of profit received through his Limited Partnership into his personal tax return and pay personal income tax.

There is no withholding tax on the profit passed to partners, who are non-Canadian residents.

There are no audit requirements for Limited Partnerships.

Filing of Financial Statements

Tax Treaties

Name of Limited Partnership

LP Name cannot include a last name or a distinctive corporate name unless it is the last name or corporate name of one of the general partners.

The name of a Limited Partnership may be in English form, French form or both.

The name cannot include restricted words, such as “bank”, “trust”, “insurance”, “stock exchange”, “university”, “academy”, etc.

General Partners

Corporate general partners are permitted. If a corporation is incorporated outside of Canada, it must be registered in Ontario as Extra-Provincial Corporation before it becomes a general partner.

Limited Partners

No Canadian residency is required.

When a non-Canadian corporation is a limited partner, extra-provincial registration of the corporation in Ontario is not required.

A person may be a general partner and a limited partner at the same time in the same limited partnership. Therefore, just one person is needed for registration of limited partnership.

Contribution into Limited Partnership

Partners may contribute money and other property to the limited partnership, but not services.

Interest of a partner in the limited partnerships is considered as a personal property.

Personal Liability

Management

Annual General Meeting

Address of Principal Place of Business

Our company provides Ontario address to its clients and maintains all records for clients limited partnerships. The address also accepts letters from the Ontario government.

When a client would like to receive letters sent by his banks, customers and suppliers at the Ontario address, he has to order our virtual office services.

Beneficial Ownership Information