Are you looking for a respectable jurisdiction to start your business where taxes are not very high? One of the best destinations is Canada. You can start a limited partnership here and benefit from a huge US market, Canadian banking, and zero taxes on the condition that you are not operating on the Canadian market. And if you are seeking confidentiality as well, take into account that Canada does not reveal information about beneficial owners to any public authority, so your identity will be kept secret.
If that sounds interesting, you can get additional information on our portal called International Wealth. Read the full text of the article on limited partnership for non-resident in Canada and discover other posts on business in Canada and other countries. We also deal with all related issues, like banking, taxation, and investment. And if you have any questions, our experts will be happy to help you.
If you have no time to read a lot of information and study the local laws before you venture to register a partnership, we can be your guides to lead you through the process. We offer a turnkey package for partnership registration that will make it possible for you to get a fully operational legal entity in a matter of several days without much effort on your part. Starting a business has never been easier!
Ontario: Best Choice for Partnership
If you want to establish a partnership in Canada, we recommend Ontario. This is one of the largest and most economically developed provinces. Its capital Toronto with more than 5.5 million residents and Ottawa, the capital of Canada, attract a lot of entrepreneurs from all over the world. They set up their companies in this bustling area to take advantage of excellent conditions for business and high-class banking.
Local Registered Address
If you set up a partnership in Ontario, Canada, a registered address is mandatory: this is where you will receive official correspondence. If you buy a turnkey package from us, we will provide you with a registered address for one year at no fee. Otherwise, we will simply help you get one.
If you need a physical office in Canada, we can shortlist the best offers for you at an additional fee.
Partnership in Canada: Structure
You can start a limited or a general partnership in Canada.
A limited partnership is a structure that consists of at least two partners. One of them must be a general partner – that is, the one whose liability is unlimited. The other one (or as many partners as you need) will be a limited partner who is liable for the partnership’s debts only to the extent of the contribution he made to its capital. This is one of the most popular business forms due to its structure.
A general partnership is an entity where all partners have unlimited liability. It is usually preferred by banks due to its higher transparency than the limited partnership. Affiliate marketing, web design, consulting services, and other industries are well-suited for a general partnership.
The partners you choose may be individuals or legal entities that reside anywhere in the world.
Canadian Partnership: Benefits
- Canada has a high reputation in the business world, so your partnership will be set up in a respected jurisdiction.
- There are no restrictions on residency, so any partner may come from any country.
- If you are planning to take advantage of Canadian banking, you will be able to establish a corporate account in Canada by using the services of a nominee residing in Canada.
- If you derive all your income outside Canada, you are not liable for income tax.
- There are no limits set for the capital required to start a partnership: it can be as high or as low as you want to.
- You are not liable for corporate tax in Canada.
- There is no need to submit any tax returns or have your documents audited.
Ontario Partnership: Applicable Taxes
The good news is that a partnership is not considered taxable in Canada as it is not a legal entity under Canadian laws. All applicable taxes are declared in the tax returns of each partner, and they are payable to the partner’s country of residence. If no profit was generated in Canada and none of the partners is a Canadian resident, the partnership is not liable for any taxes in Canada.
If an Ontario partnership has no profit derived in Canada, it is not obliged to submit any tax returns or financial reports. Still, these need to be kept as it may be necessary to provide them in the future.
Legal entities and individuals that make up the partnership will pay taxes on the basis of the tax rates set in the jurisdictions of their tax residence.
If there is a partner who is a Canadian tax resident, the situation remains unchanged: taxes are payable according to Canadian tax rates, and the tax return is submitted to Canadian authorities.
Opening a Business Account with a Canadian Bank
Opening a corporate account in Canada may be more difficult if you have an offshore company among partners. In this case, we will simply offer you some other options.
If you need an account in US dollars, it will be offered by any Canadian bank. What is more, the financial ties between Canada and the USA are very strong, so transfers will be cheap and you will not have to use SWIFT. However, if you need an account in euros or another currency, you’d better look elsewhere: Canadian banks mostly work with USD and CAD.
If you still want to use Canadian banking, we strongly recommend you to engage a nominee partner who is a resident of Canada. It will make the process of interaction with banks much easier, and we will be able to use our arrangements with the local banks to identify your partners remotely. The procedure is safe as the nominee signs an agreement to cede all the rights to the account to the partnership.
Conclusion
Follow the above link to read more details about the Canadian partnership and book a session with our experts to get any explanations you need or order services. We have ready-made partnerships with a bank account that you can get in a matter of several hours, so don’t miss a chance to start your business quickly!
