Canada is a popular destination for non-residents that wish to register their businesses in a reputable and respected jurisdiction. Some entrepreneurs seek easy access to Canadian and US markets, while others use Canada as a tax-free jurisdiction: you don’t pay any taxes in Canada if all of your profits are generated outside the country.
If you want to benefit from Canada in the best way possible, we recommend registering a limited partnership in Ontario. This is the most convenient legal form, and you can engage both individuals and legal entities as partners or engage nominees to manage your business. This article will give you a general idea of the opportunity, but you can read a long guide on Ontario Limited Partnership registration on our portal. We can offer ready-to-use Canadian LPs with a business account or without.
Take a look at some benefits that an Ontario partnership offers:
- You register an entity in a solid jurisdiction
- Registration is open to a resident of any country
- You can engage a Canadian resident as a nominee to open an account with a local bank
- No minimum or maximum threshold on partnership capital is set
- You will not be liable for income or corporate taxes if you conduct business outside the country
- You will not need to submit any audited documents or tax returns
As you see, the Canadian partnership as a legal form is designed to provide a really convenient business experience.
The algorithm of partnership registration is by no way tricky:
- First, you invent a name and check whether it is unique and compliant with the rules set – for example, you cannot use the words academy, university, trust, and some others in the partnership name (read more details in our long article)
- You complete the procedure of partnership registration
- You will need to get an official postal address for your partnership
- The provincial authorities (in the case of Ontario) will send you the required letters
- You hire a registered agent for 1 year
- You pay all the state fees
- And, finally, you obtain electronic copies of documents for the partnership
If you need a professional director or partner, their services are provided at an additional fee.
You will also need to open a bank account for your partnership, and here are two valuable tips from our practice:
- If you intend to open a business account in Canada, we do not recommend using an offshore or foreign company as a partner. It is much more effective to register your partnership with the participation of a Canadian resident (an individual) as a nominee. This way, the procedure is completed much faster.
- A local nominee will also ensure that you pass the remote identification procedure required by the bank in a simplified way.
For your convenience, we can offer a partnership with a ready-made bank account, and in this case, you will only need to pass our internal due diligence, which allows you to start business operations almost on the same day.