The best advantages Nova Scotia, Canada can offer you
An excellent North American option for international trade.
No restrictions on residency
No minimum authorized capital
No corporate income tax
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Setting up your business in Nova Scotia, Canada
The benefits of Limited Partnerships to non-residents of Canada
Provinces of British Columbia, Nova Scotia and Ontario
Registering an LP is a popular option for non-residents because doing so:
Highly prestigious Canadian company.
No restrictions on the residency of partners.
Limited Partnerships – General Partner and Limited Partner
An LP must be composed of one (1) general partner and at least one (1) limited partner. Canadian residency is not required for the general partner nor the limited partner. The same person can be both the general partner and a limited partner. General and limited partners may be individuals or legal entities. Corporations incorporated outside of Canada are permitted to be partners of an LP if any such corporation is registered extra-provincially in Ontario (before becoming a partner).
Typically, the general partner of an LP has liability for all debts and obligations of the LP, while the liability of a limited partners is restricted to the amount such limited partner has contributed or agreed to contribute to the LP. There is no minimum contribution a limited partner must make to an LP. A limited partner’s contribution must, however, consist of money or property.
Canada Limited Partnership Taxation
Limited Partnership is not considered as a taxable entity. Therefore, LP is not required to file corporate tax returns and pay income taxes.
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.
Advantages to establishing an LP
Uses of Canada Limited Partnership
LPs are regularly used as vehicles for making venture capital and private equity investments, as one benefit of LPs includes confidentiality of partner identity and the amount committed to an LP. LPs are also a suitable and a popular choice for:
Regular trading company for doing business in Canada, US, EU and other highly regulated jurisdictions.
Wish most suitable Provinces in Canada where to set up your Limited Partnership
Based on the benefits including tax advantages to overseas investors and traders wishing to use a Canada Limited Partnership to reach and carry out their international business purposes, we do suggest the following Canada Provinces: