Limited Partnership Registration
Canada Limited Partnership Registration service. Register a new Limited Partnership in Canada for Only $2200 (All Inclusive). A limited partnership is a partnership consisting of one or more general partners, who have unlimited liability, and one or more limited partners, who have limited liability depending upon their contribution to the partnership.
For liability reasons, limited partnerships are often set up with a corporation as the general partner and two or more individuals as limited partners.
A limited partner (also referred to as a “silent partner”) contributes financially and may occasionally provide advice but is not otherwise involved in the business. If a limited partner does become involved in operating the business, he or she will lose their “limited” liability status and become just as liable as a general partner.
Ecompanies Canada offers fast & easy Canada online limited partnership registration service in Ontario Canada. At Ecompanies Canada we help you step-by-step and take care of the entire business registration process from start to finish. Registering a new limited partnership in Canada with us is fast, easy and takes just minutes.
There are four characteristics that distinguish a limited partnership from a general partnership:
- It is operated by a single general partner with unlimited liability, supported by other “limited partners.”
- The single general partner gets a bigger share of the earnings in exchange for increased contributions and risk.
- The limited partners contribute capital but cannot be involved in the company’s management.
- The liability of the limited partners is capped by the amount of capital they contribute.
Canadian residency is not required for a person to be a general partner or a limited partner. Additionally, when a non-Canadian corporation is acting as a limited partner, it is not required to complete extra-provincial registration in Ontario.
Canada Limited Partnership Registration Fees:
$2200 (All Inclusive)
Our Canada Limited Partnership Registration service includes:
- Name Search Report confirming the availability and uniqueness of the name.
- Government Registration Fees.
- Registered Office Address for 1 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.
- Courier Delivery.
An LP is not considered a separate taxable entity under the Income Tax Act (Canada). Therefore, it is not required to pay income taxes or file a corporate income tax return. Instead, all profits received by an LP are passed through the LP. Profits and losses are then allocated among the partners of the LP at the end of the fiscal year, in accordance with the terms of the LP agreement governing the LP’s business and affairs.
Partners who are Canadian residents are required to include their part of the profit received through the LP in their personal/corporate tax returns. Partners who are not Canadian residents are not subject to withholding tax on the profits they receive from the LP.
LPs have no audit requirements.