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).
Sale of Partnership Interest
It is typically best to prohibit the sale or transfer in any manner, of a partner’s partnership interest to an outside third party (other permitted transfers to “controlled” corporations or other entities can be considered for tax planning purposes). However, the agreement could provide for a “put right” of a retiring or withdrawing partners if the continuing partners refuse to buy out a retiring or withdrawing partner. Some partnership agreements do not provide for any formal purchase of departing partners’ partnership interests (i.e., attribute no goodwill to partnership interests) and merely deal with final distributions of profit and capital to the departing partner who ceases to be a partner (subject to any continuing payment rights and surviving obligations to the partnership including set-off rights against unpaid amounts or liability to firm creditors for acts prior to departure, etc.). Some partnerships can consider residual payments to retiring partners as a form of retirement plan, 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
Register of General Partners
Register of Limited Partners
For more information about our Ontario Limited Partnership Registration Services, please contact us using the form below: