Канада LP

Canada - LP/Other jurisdictions

Canada is a state with a relatively rigid tax system. Regular Canadian companies pay taxes on all their incomes, regardless of where they are received and, therefore, they do not have any qualities that can be classified as tax-free or offshore.
Given these aspects, Canada is among businessmen and official bodies has a well-established image of a country with a standard tax system. Therefore, any company established in Canada is highly prestigious and in no way bears the stigma of the tax-free structure.

At the same time, Canadian law provides the actual possibility of using the zero rate of taxation in the Limited Partnership (LP) companies. Company L.P. - a partnership established by at least two founders, one of which has the status of a main partner (“General Partner”), the rest - the standard status (“Limited Partners”). In the province of Alberta, the registration and activities of Limited Partnerships are governed by the Alberta Partnership Act (Part 2).
Canadian partnerships L.P. with foreign founders who do not conduct business in Canada and who do not receive income on its territory, are not subject to taxation here. Company L.P. is not considered as a separate tax subject in Canada. Taxes from L.P. profits must be paid by its founders (“Partners”) at the place of their residence in proportions according to their interests in L.P., if it is provided for by the legislation of a particular country. 

  • Basic information about jurisdiction

    Area – 9.922.385 sq. кm
    Population – 33.900.000
    Government – federation
    Capital – Ottawa
    Official language – english, french
    Official currency – canadian dollar (CAD)
    Time zone – GMT–4 / GMT–8

  • Company type

    Limited Partnership (L.P.)
  • Directors of the company

    Number: at least two
    Status: natural or legal persons
    Residents: residents of any country
    About founders: only in the register of enterprises of the respective province
    Nominee founders: allowed
  • Shareholders of the company

    Company Laws L.P. stipulates that the management of L.P. it is carried out by its general partner (“General Partner”), who can also perform the role of director.
  • Secretary Company

    There are no requirements for the position of secretary
  • Authorized capital of the company

    Standard declared capital – 1.000 CAD.
    Minimum paid up capital - no requirements.  

  • Company name

    Must end with the words “Limited Partnership”. Registration of names containing the words "Bank", "Insurance", "Trust", etc., is not allowed. 
  • Information about the real owner of the company

    Information about the real owner is submitted only to the registered agent and is confidential.

  • Annual Return

    Partnerships do not include the requirement for submitting an annual return to the business register.
  • Financial Statement

    There are no requirements for the submission of a financial statement (Financial Statement) to the business register. However, this does not exempt the company from legislative requirements to compile and store financial reports in the office. 
  • Taxation

    In the event that the founders of LP are non-residents of Canada and the company does not receive income in Canada, then the taxation of LP companies –  0%. 
  • Double tax treaties

    Since LP companies are not residents (taxpayers) of Canada, they are not subject to interstate treaties concluded by Canada.
  • The term of registration of a new company

    15-20 business days; The term of receipt of the full package of documents is 6-7 weeks.

  • Acceptance of third-party companies for service FIVECONSULT

    Only in consultation with the previous servicing agent in Canada.
  • A set of constituent documents of the company

    All the necessary documents for the work, including an apostilled set of documents and a general power of attorney.
  • "Ready-made" companies

    For information on the availability of ready-made companies for the current day, we suggest contacting FIVECONSULT.
  • FIVECONSULT comment:
    Registering your own company in Canada is a solid and prestigious choice. Jurisdiction is not included in the “black lists” and has no restrictions on cooperation with residents of certain countries.

    Not being a resident of the EU, a Canadian company is the best tool for purchasing goods in the EU countries and their further export to other countries (for example, to Russia and Ukraine). Indeed, when using a Canadian company, export from the EU is obvious, whereas when using a company registered in any EU country for this purpose, the seller does not always have complete clarity as to whether this operation is export from the EU (and thus exempted from VAT) or not.