Canada - Partnership (Canada - Limited Partnership)
Canada is a state with a regulated tax system.
Ordinary Canadian companies pay taxes on all their incomes, regardless of where they are received, and thus have no qualities that make them tax-free or offshore.
Canada is a respectable jurisdiction with an impeccable reputation.
At the same time, Canadian legislation provides the actual possibility of using companies with a zero tax rate - L.P. (Limited Partnership). Company L.P. - a partnership with at least two founders. One of the founders has the status of the main partner (“General Partner”), the other founders have the standard status (“Limited Partners”).
Canadian partnerships L.P. with foreign founders who do not conduct business in Canada and who do not receive income on its territory, are not subject to taxation here.
Company L.P. is not considered in Canada as a separate subject of taxation, and taxes on income received by company L.P. must be paid by its founders (“Partners”) at the place of their residence, in proportions according to their interests in L.P., if it is provided for by the legislation of a particular country.
Basic information about the jurisdiction of Canada
- The area is 9.984.670 square km
- Population - 34,500,000 inhabitants
- Political status - federation
- Capital - Ottawa
- State language - English, French
- The official currency is Canadian dollar (CAD)
- Time zone - GMT – 4 / GMT – 8
Type of company
Limited Partnership (L.P.)
Quantity: minimum - 2.
Status: natural or legal persons.
Residence: may be residents of any country.
Information about the founders is stored in the register of enterprises of the respective province.
Nominee founders: allowed.
Company L.P. Law provides that the management of L.P. is carried out by its general partner who can also fulfil the function of director.
There are no requirements for the position of secretary.
Share capital of the company
Standard declared capital - 1.000 CAD.
Minimum paid up capital - no requirements.
Company name must end with the words “Limited Partnership”. It is not allowed to register names containing the words '' Bank '', '' Insurance '', '' Trust '', etc.
Company Owner Information
Information about the owner is provided only to the registered agent and is confidential.
Submission of the annual return
Partnerships do not include the requirement for the delivery of an annual return to the business register.
Submission of the financial statement
There are no requirements to submit a financial statement to the business register. However, this does not exempt the company from the legal requirement to compile and store financial reports.
In case the founders of L.P. - non-residents of Canada, and the company does not receive income in Canada, then the taxation of companies L.P. - 0%.
Double tax treaties
Since the company L.P. are not residents (taxpayers) of Canada, they are not subject to the interstate treaties concluded by Canada.
Is jurisdiction included in “Blacklists”
- Belarus: no
- Latvia: no
- Russia: no
- Ukraine: no
- Kazakhstan: no
Period of company registration
12-15 working days;
The term for receipt of the full package of documents is 7-10 weeks.
* This information is informative, its use in practice requires additional advice on your individual business situation.