Tax Treatment for Ontario Limited Partnerships

An Ontario Limited Partnership is considered a disregarded or ‘flow-through’ entity for Canadian tax purposes meaning that all profits/losses pass directly through and is attributed to the partners.

Where the Limited Partnership is engaged in trade or business outside of Canada and the partners are non-Canadian residents, there will be no Canadian income tax arising for the overseas partners. However, the partners may, however, be subject to taxation and reporting obligations in their own jurisdiction based on their share of the Partnership income/ profits. If any Canadian source income is generated, then the tax treatment of the LP and it’s partners will become more complex – at a minimum, the overseas partners may be subject to Canadian withholding taxation on profits arising from Canadian sourced income.

Company Formations offers Ontario Limited Partnership Registration to Canadian residents and non-Canadian residents. Our Canada Limited Partnership registration service for Only $2200 (all inclusive) Includes:

  • Name Search confirming the 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

Register Today your New Limited Partnership in Ontario. Fast, Easy, Online