Valuation of Partnership Interest
Determine how the amount to be paid to a withdrawing/retiring, expelled or deceased partner for the partner’s interest in the partnership is to be calculated. Determine whether goodwill will be included in the valuation. If so, the valuation could be based on a reasonable multiple of profits over the past several years or a multiple of book value at cost or depreciated value or at a value to be determined annually/periodically by all partners. If goodwill is not to be included, a valuation may be based on advances or loans plus a share of capital assets, including amounts contributed by partners, plus the undrawn share of profits. Income tax consequences could impact the valuation. An auditor/accountant can assist in advising on a reasonable and workable valuation formula, which should be included in the agreement. The valuation should not be based on future profits, as this may cause the retiring partner to be considered a continuing partner (see s. 3 of the Act).
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: