A Limited Partnership is formed in Ontario according to the statutes of the Ontario Limited Partnership Act. A limited partnership is a partnership governed by statute and any governing documents agreed to between the parties (e.g. limited partnership agreement).
Absent an agreement, partners equally share in the capital and profits (as determined by the firm’s auditors/accountants) of the business and contribute equally towards the losses (see s. 24(1) of the Act). It is important to carefully consider both (a) the manner in which profits/losses will be shared among the partners (whether by simple percentage, detailed formula or other quantitative or qualitative methodologies) and (b) the timing of distribution of profits (whether as regular draws or periodic distributions) (see below also). It is important to consider (with the partnership’s tax advisors) the timing in which partners are deemed to have received their share of partnership profits and required to pay taxes/tax installments in respect of same so that distributions of profit can be coordinated with the timing of the payment of tax liabilities by individual partners, etc.
Advantages of Limited Partnerships in 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 Ontario
No requirements to file corporate tax returns
No corporate income tax.
Our fee to register a new LP in Ontario is $2000 CAD all inclusive.
Our service includes:
Name Search confirming uniqueness of the name
Government registration fee
Registered office address in Ontario for one year
Declaration Form 3 confirming registration of the Limited Partnership
Organizational Resolutions of the General Partners
Resolution Admitting of Limited Partner
Partnership Agreement
Register of General Partners
Register of Limited Partners
Courier delivery.
For more information about our Ontario Limited Partnership Registration Services, please contact us using the form below:
