An Ontario limited partnership (LP) is a partnership among persons carrying on business in common. It is composed of a general partner (or partners) and one or more limited partners. The limited partners benefit from limited liability.
In an Ontario Limited partnership, management is conducted by the general partner(s), who is/are fully liable for all debts, liabilities, and obligations of the Limited partnership. The liability of the limited partners is restricted to the amount of money or interest they have invested in the Limited partnership.
An LP is not considered a separate taxable entity under the Income Tax Act (Canada). Partners who are not Canadian residents are not subject to withholding tax on the profits they receive from the LP.
Common Use of Ontario Limited Partnerships are:
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.)
Company Formations offers Canada Limited Partnership Registration to Canadian residents and non Canadian residents. Our Canada Limited Partnership registration service for Only $2000 (all inclusive) Includes:
Name Search confirming uniqueness of the name
Government registration fee
Registered office address 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
